All the Real Estate News That’s Fit to RE-Print™
Welcome to our weekly edition of Hot Real Estate Investment News.
The big news this week is that rental income produced from residential properties increased 12 percent year-over-year in September 2012.
Also, foreclosure starts dropped 28 percent from a year ago to 71-month low, but annual bank repo’s increased for the first time since October 2010. And the number of new improving markets observed by the National Association of Home Builders skyrocketed in December, up 76 metros from November’s data.
Here are the real estate investing related news items that caught our attention this past week. We hope they help you stay up-to-date with your real estate investment strategies and inspire some profitable real estate deals for you.
Report Highlights Economic Impact of Residential Investment in
Post-Recession Housing Market
Key findings in the December MarketPulse report include:
- Rental income produced from residential properties increased 12 percent year-over-year in September 2012. The rapid growth in rental income is a byproduct of fundamental shifts in the housing market, driven by a large increase in affordability of investment properties and rising rents.
- Heading into 2013, the trend in overall rental income will likely reflect tightness in the single-family rental market and a continued rise in rental demand given weak wage income and job growth.
- The real estate cycle is now producing residential investment that is contributing to economic growth in line with post-recession history.
- Lenders have returned to more sustainable loan products and remain cautious in extending credit to only the most qualified borrowers.
- Overall market uncertainty can be reduced further by a reduction in mortgage risk, investment-driven economic recovery and further clarity on housing policies, leading to more sustainable profits and outcomes for real estate and housing finance.
For a full copy of the December CoreLogic MarketPulse report, including a complete set of data and charts, visit http://www.corelogic.com/downloadable-docs/MarketPulse_2012-December.pdf.
Rental Income Rises 12% Over the Year in September
After growing just 1.3 percent in the second quarter of this year, the economy grew 2.7 percent in the third quarter—falling more in line with market predictions, according to CoreLogic. Economic growth received a boost from residential investment, which up until now has not contributed much.
Foreclosures Starts Drop 28 Percent from a Year Ago to 71-Month Low
Bank Repossessions Increase Annually for the First Time since October 2010
RealtyTrac® just released its U.S. Foreclosure Market Report™ for November 2012, which shows foreclosure filings — default notices, scheduled auctions, and bank repossessions — were reported on 180,817 U.S. properties in November, a decrease of 3 percent from October and down 19 percent from November 2011 — marking the 26th consecutive month with an annual decrease in foreclosure activity. The report also shows one in every 728 U.S. housing units with a foreclosure filing during the month.
Tory Barringer reports:
“The number of new improving markets observed by the National Association of Home Builders (NAHB) skyrocketed in December, according to a release from the group.
The NAHB/ First American Improving Markets Index (IMI) surged to 201, up 76 metros from November’s data. The number of states represented in the index also increased, rising to 44 (plus the District of Columbia) from 38 previously.
December marks the fourth straight month to see an increase in the IMI.”
Temporary waiver of 90-day ‘anti-flipping’ rule extended through 2014
From Ken Harney at Inman News:
“Good news for single-family home investors, rehabbers and buyers seeking to use low down payment FHA financing: The temporary waiver of FHA’s 90-day “anti-flipping” rule was extended last week through 2014.
The waiver, which facilitates purchases of homes from sellers who have held title to their properties for less than 90 days, continues a policy first adopted by the Obama administration in 2010.”