IRVINE, CA-October was a good month for the housing market. Completed foreclosures nationwide for the month decreased to 58,000, a 17% year-over-year decrease from October 2011 and a 9% drop since the beginning of the year, according to CoreLogic. In addition, the firm reports that home prices nationwide, including distressed sales, increased on a year-over-year basis by 6.3% in October compared to October 2011—the largest increase since June 2006 and the eighth consecutive increase in home prices nationally on a year-over-year basis.
“The housing recovery that started earlier in 2012 continues to gain momentum,” said Mark Fleming, chief economist for CoreLogic, in a prepared statement. “The recovery is geographically broad-based with almost all markets experiencing some appreciation. Sand and energy states continue to experience the most robust appreciation and some judicial foreclosures states are even recording increasing prices.”
On a month-over-month basis, including distressed sales, home prices decreased by 0.2% in October compared to September, but decreases in month-over month home prices are expected as the housing market enters the off-season. CoreLogic’s HPI analysis shows that all but five states are experiencing year-over-year price gains.
As GlobeSt.com previously reported, national home prices in October were 8.4% higher than a year earlier, while month-over-month prices inched up 0.4%, according to Redfin Real-Time Price Tracker, a monthly report on home prices, sales and inventory across 19 US markets. The Tracker also reported that home prices in October increased 8.4% year over year and were up 0.4% month over month.
As the housing market recovers, the multifamily market vacancy rate is expected to rise slightly in 2013, according to a new analysis from CBRE Group Inc. The increase from a rate of 4.5% in third-quarter 2013 to 5.3% next year will be driven by new construction completions and a slight tapering off of demand from historically robust levels in recent years. CBRE forecasts that the multifamily vacancy rate will fall back to 5.2% in 2014.
According to Gleb Nechayev, senior managing economist for CBRE Econometric Advisors, “It is a great time to own multi-housing properties: apartment demand is benefiting from the slowly recovering economy as well as rapidly expanding pool of renter households.”
However, the housing news isn’t all good, particularly for the Obama administration. According to a recent survey of its customers by YouWalkAway.com, a firm that works with borrowers facing foreclosure, only 22% of respondents felt that the Obama administration has had a positive effect on the foreclosure crisis, although nearly 47% felt that it has had no effect on the foreclosure situation. A total of 89.6% of respondents had begun their foreclosure during President Obama’s first term. The housing market doesn’t appear to be on the list of immediate priorities for the administration, so underwater homeowners who were previously undecided about whether or not to strategically default are choosing to do so given the election results, YouWalkAway.com reports.
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| The five states with the highest number of completed foreclosures for the 12 months ending October 2012 were California, Florida, Michigan, Texas and Georgia. The five states with the lowest number of completed foreclosure for the 12 months ending October 2012 were South Dakota, District of Columbia, Hawaii, North Dakota and Maine. *chart courtesy of CoreLogic |
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| Since January 2005, the number of both judicial and non-judicial foreclosures has taken a mostly descending ride despite a few bumps along the way. *chart courtesy of CoreLogic |
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| Nearly 47% of customers dealing with foreclosure felt that the Obama administration has nad no real impact on the foreclosure crisis. President Obama’s reelection could lead those who were debating whether or not to strategically default to go ahead with those plans. *chart courtesy of YouWalkAway.com |
For the complete CoreLogic reports, click here.
For more information on CBRE’s research, click here.
For more information on YouWalkAway.com’s surveys, click here.
For more information on distressed asset investments, click here.
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Carrie Rossenfeld
Carrie Rossenfeld is a reporter for the San Diego and Orange County markets on GlobeSt.com and a contributor to Real Estate Forum. She was a trade-magazine and newsletter editor in New York City before moving to Southern California to become a freelance writer and editor for magazines, books and websites. Rossenfeld has written extensively on topics including commercial real estate, running a medical practice, intellectual-property licensing and giftware. She has edited books about profiting from real estate and has ghostwritten a book about starting a home-based business.
