• In 2011, there were 1,887,777 foreclosure filings (including default, auction, and bank repossession notices) in the U.S. Though, 1.9 million homes seems like a daunting number, it is actually the lowest it has been since 2007. The 1.9 million homes that went into foreclosure in 2011 is down 34% from 2010, 33% from 2009, and 19% from 2008.
• Nationally, in December 2011, 1 in every 634 homes received a foreclosure filing. The Knoxville real estate market fares significantly better than the national ranking. In Knox County, 1 in 1136 homes received a foreclosure notices. To see how other East Tennesee counties fared, check out the Foreclosure Rate Heat Map on RealtyTrac.com.
• Scheduled auctions hit a 49 month low in December. It was down 19% from November 2011 and 20% from December 2010.
• Default notices were also down in December, down 19% from November, and down 23% from December 2010.
• Still, despite what shows to be a decrease in foreclosure filings for 2011, RealtyTrac also reported that the time table for foreclosure proceedings has actually increased in 2011. Foreclosure filings took an average of 348 days in the fourth quarter of 2011, up from 336 days in the third quarter in 2011, and up from 305 days in the fourth quarter of 2010.
• In the state of Tennessee, the foreclosure process takes less than two months, with a process period of 40-45 days and a sale publication of 20-25 days. The state with the longest foreclosure process is New York, which takes an average of 1,019. New York is closely followed by New Jersey, which takes on average of 964 days.

What do you think these numbers mean for the Knoxville real estate market, and other areas of the nation?

The number of foreclosure filings rose 3 percent in September, according to foreclosure-tracking firm RealtyTrac. The term “foreclosure filing” is a catch-all word for housing, comprising default notices, scheduled auctions, and bank repossessions.

September marked the 19th straight month that the number of filings topped 300,000, and the first month in which 100,000 repossessions were logged.

As usual, a small number of states dominated the national foreclosure figures, accounting for more than half of all repossessions.

1. California : 17% of all repossessions
2. Florida : 13% of all repossessions
3. Michigan : 7% of all repossessions
4. Arizona : 7% of all repossessions
5. Texas : 5% of all repossessions
6. Georgia : 5% of all repossessions

Thankfully for home sellers, mortgage servicers appear to be metering the pace at these newly bank-owned homes are made available to the public. RealtyTrac notes that, in doing so, servicers prevent “the further erosion of home prices”.

That said, distressed properties still sell at a steep discount.

In the second quarter of 2010, the average sale price of homes in the foreclosure process was 26 percent lower than the average sale price of homes not in the foreclosure process. It’s no surprise, therefore, that, based on RealtyTrac’s preliminary data, 31 percent of all homes sold in September were “distressed”.

There’s lot of good deals out there, in other words, but they come with certain risks.

Buying a foreclosed home is not the same as buying a non-foreclosed home. Specifically, you’re buying from a corporation and not from a “person”. Contracts may vary, and so may terms.

Therefore, Knoxville home buyers — even experienced ones — should talk with a real estate agent before making an offer. It’s important to understand the foreclosure-buying process.

It’s hard to miss the news in real estate today: major lenders are investigating issues in their foreclosure processes. To date, GMAC (now Ally Financial), JPMorgan Chase and Bank of America have announced foreclosure freezes to review how their companies are handling the process. While most lenders have stalled foreclosure procedures in roughly half the nation, Bank of America recently extended their freezes to all 50 states.

However, few are talking about what this means for distressed homeowners and the agents who can help them. While these major lenders evaluate their foreclosure processes, delinquent and seriously delinquent homeowners now have more time to evaluate alternatives to foreclosure. Real estate professionals, particularly CDPE-designated agents, have an opportunity to reach out to these homeowners and educate them about their options.

Not every distressed Knoxville homeowner may qualify for a short sale. But in this economy, the real estate agent has the opportunity – some might say, the responsibility – to find solutions for homeowners in need, even if it does not result in a sale. This will help to stabilize community values and salvage financial futures for those facing true hardships.

It’s important to note that time may be short in these foreclosure freezes. GMAC was even quoted as stating their halt could extend through the end of the year, but may be as short as a few weeks. Take this opportunity to engage homeowners who may feel they have no other options. It’s an opportunity to make a huge difference.

If you are a homeowner facing foreclosure take this time as a blessing and explore your options. Remember the bank doesn’t want to foreclose on your home they will work with you. I have the most experienced team in Knoxville helping folks in trouble avoid foreclosure. Call me 865-696-9002 or email me Rick@TheBigOrangePress.com and let’s talk about it

The number of single-family Housing Starts rebounded in August, climbing 4 percent from July’s 14-month low.

A “Housing Start” is defined as a home on which construction has started and the August increase represents 18,000 single-family units nationwide.

If you only read the headlines, however, you would think the data was stronger. This is because the Housing Starts data is actually a composite of 3 types of homes — single-family, multi-family, and apartments — but  the press tends to lump them all three together.

As a sampling, here are a some headlines on the story:

• US Stock Futures Rise After Housing Starts Surge (WSJ)
• Housing Starts At 4-Month High, Hint At Stability (Fox)
• Housing Starts Jump 10.5% In August (Marketwatch)

Now, it’s not that the news is wrong, per se, it’s just not necessarily relevant.  Few home buyers  in Knoxville are buying multi-family homes or entire apartment complexes. Most buy single-family and, for the first time since April, single-family starts are on the rise — just not by as much as you’d believe from the papers.

Even still, we can’t be entirely sure that the August Housing Starts data is accurate anyway.

A footnote in the Department of Commerce report shows that, although single-family starts are said to have increased 4 percent, the data’s margin of error exceeds its actual measurement, meaning the data has “zero confidence”.

In other words, starts may have dropped in August, but it’s something we won’t know for sure until revisions are made later this year.

Today, in its 7th meeting of the year, the Federal Open Market Committee voted 9-to-1 to leave the Fed Funds Rate unchanged.

The Fed Funds Rate remains at a historical low, within a Fed’s target range of 0.000-0.250 percent.

In its press release, the FOMC said that the pace of economic recovery “has slowed” in recent months. Household spending is increasing but remains restrained by high levels of unemployment, falling home values, and restrictive credit.

For the second straight month, the Federal Reserve showed less economic optimism as compared to the prior year’s worth of FOMC statements dating back to June 2009. However, the Fed still expects growth to be “modest in the near-term”.

This outlook is consistent with recent research showing that the recession is over, and that growth has resumed — albeit at a slower pace than what was originally expected.

The Fed also highlighted strengths in the economy:

1. Growth is ongoing on a national level
2. Inflation levels remain exceedingly low
3. Business spending is rising

As expected, the Fed re-affirmed its plan to hold the Fed Funds Rate near zero percent “for an extended period”.

There were no surprises in the Fed’s statement so, as a result, the mortgage market’s reaction to the release has been neutral. Mortgage rates in Tennessee are thus far unchanged this afternoon.

The FOMC’s next meeting is a 2-day affair scheduled for November 2-3, 2010.

On the first Friday of each month, the Bureau of Labor Statistics releases Non-Farm Payrolls data for the month prior.

The data is more commonly called “the jobs report” and it’s a major factor in setting mortgage rates for residents of Tennessee and homeowners everywhere. Especially today, considering the economy.

This is because, although it’s believed that the recession of 2009 is over, there’s emerging talk of new recession starting.

Support for the argument is mixed:

1. Job growth has been slow, but planned layoffs touch a 10-year low
2. Consumer confidence is down, but beating expectations
3. Consumer spending is weak, but not declining

In other words, the economy could go in either direction in the latter half of 2010 and the jobs market may be the key. More working Americans means more paychecks earned, more taxes paid, and more money spent; plus, the confidence to purchase a “big ticket” items such as a home.

Jobs growth can provide tremendous support for housing, too.

Today, though, jobs growth was “fair”. According to the government, 54,000 jobs were lost in August, but that reflects the departure of 114,000 Census workers.  The private sector (i.e. non-government jobs), by contrast, added 67,000.

In addition, net new jobs was revised higher for June and July by a total of 123,000.  That’s a good-sized number, too.

Right now, Wall Street is reacting with enthusiasm, bidding up stocks at the expense of bonds — including mortgage-backed bonds.  This is causing mortgage rates to rise.  Rates should be higher by about 1/8 percent this morning.

As 2009 was ending, the “experts” were busy making forecasts about the U.S. economy and what to expect in 2010.

With respect to the housing markets, two predictions were made again and again:

1. Home prices would fall in the first half of 2010
2. Mortgage rates would be higher in 2010

Well, it’s July 1 and the year is half-over.  Both predictions are proving to be incorrect. Home values are rising in most markets and mortgage rates are down. Way down.

It reminds us that economists are much more skilled with analysis of the past versus predictions of the future.

A pile of data can only get you so far.

Think of Knoxville housing market predictions like watching a local weather forecast. A meteorologist can look at the radar and tell you that rain is coming, but it’s never with 100% certainty.  There is always a chance of change.

The housing market is the same way.  Just as the U.S. economy is unpredictable, so are housing prices, and so are mortgage rates.

Therefore, when you have a personal finance decision to make, evaluate your options based on the information at hand today rather than an educated guess about the future. The future, after all, is subject to change — despite what the experts forecast.

Relocate To Knoxville TN BIG Orange Country!!

Once again just like we did in 2009 Knoxville TN was picked by Relocate America as one of the BEST Places to Live

Relocate America recently released its 2010 list of Top 100 Places To Live In America. The rankings are topped by some cities you may expect, and some you may not.

According to Relocate America, the rankings highlight communities “moving in the right direction”, defined as having a combination of strong leadership, job opportunities, improving real estate markets, recreational options and a good quality of life.

It’s not a bad formula and topping the list of Top 100 Places To Live In America is Huntsville, Alabama.  Huntsville was chosen for its low levels of unemployment, stable housing stock, and low cost of living.  Last year, Huntsville placed fifth on the Relocate America list.

The Top 10 cities in which to live, as selected by Relocate America are:

1. Huntsville, AL
2. Washington, DC
3. Austin, TX
4. San Diego, CA
5. San Antonio, TX
6. Tulsa, OK
7. Charlotte, NC
8. Raleigh, NC
9. Boulder, CO
10. Minneapolis, MN

View the complete Top 100 Places To Live In America 2010 list at the Relocate America website.

There are a lot of things to consider when you may be relocating to a new city. A few of them are climate, quality of life, employment opportunity’s. I think Knoxville has them all to offer to people. You have a mild climate with four seasons. Great quality of life with plenty of things to do. Easy access to water and mountains. Vibrant economy with a strong employment base. And of course “How Bout Them VOLS”

If you are thinking about relocating to Knoxville TN give me a call at 865-675-8326 or email me Rick@TheBigOrangePress.com My family and I relocated to Knoxville TN a few years ago and just love it here. Knoxville is a GREAT Place to work and raise a family

Existing Home Sales rose in March, as expected. U.S. home buyers closed on 7 percent more homes as compared to February.

Furthermore, versus March 2009 — a month many people equate to the low point of the U.S. economy — sales volume was up 16 percent.

“Existing home sale” is the technical term for a home resale; a home previously inhabited by a person.  It’s the opposite of a “new home sale” which is a sale of a newly-constructed home.

Existing Homes Data is tracked by the National Association of Realtors® and a closer look at the March data reveals some other interesting notes:

1. Year-over-year sales are higher for the 9th straight month
2. Real estate investors represented 19 percent of all homes purchased
3. First-time home buyers account for 44 percent of all buyers

Also worth noting is that the supply of available homes is down on a broader basis.  At the current rate of sales, the existing home inventory will be exhausted in 8 months.

Despite banks releasing foreclosures and REO into the Knoxville TN  market, that’s still one half-month less from February.

When supplies drops, home prices tend to rise. It suggests an underlying strength in housing that should support home prices through the next few months — especially as the home buyer tax credit finishes working its way through the system.

That said, real estate markets are local. You shouldn’t assume that what’s happening on the national level is also happening here at home.  Be sure to check with your real estate agent about local market conditions before making a decision to buy or sell.

If you are thinking about selling or have any questions feel free to give me a call at 865-675-8326 or email me Rick@TheBigOrangePress.com

As Expected Buyers Are Out In Force In Knoxville TN and Other Areas Around The Country..

Home buyers have been out in force in Knoxville and other areas around the country taking advantage of the tax credit and low interest rates.

As expected, the Knoxville TN Pending Home Sales shot higher in February, boosted by the federal home buyer tax credit’s April 30 deadline.

Versus the month prior, February’s index rose 8 percent but remains well off the highs set last October.

For today’s home buyers and seller, the Pending Home Sales Index is an important measurement. This is because a “pending home” is a property that is under contract to sell, but not yet closed.

According to the National Association of Realtors®, 80% of homes under contract close within 60 days, historically. Therefore, a higher Pending Sales figure in February projects that April’s Existing Home Sales will be higher, too.

If you’re a Knoxville home buyer today, no doubt you’ve noticed the extra market activity.

On right-priced homes, multiple offer situations are more common; sales prices are settling closer to listing price; Days on market is falling. These are the signs of a buyer-heavy market.  It drives home supplies down and home prices up.

It’s a good time to be a seller, in other words.  Especially as buyer activity looks poised to peak.

When the home buyer credit faced its last expiration in November 2009, we saw a pattern of buyers rushing to beat the deadline.  There’s no reason to expect that won’t happen again. And as it does, Pending Home Sales should continue to climb. Average home sale prices should rise.

Home buyers may find it smart to go under contract sooner rather than later. Pending Home Sales is a warning shot.  Higher home sales figures are ahead.

Check out my 5 Step Program to make your buying experience smooth and painless. It is FREE and will help you. Call me at 865-675-8326 or Rick@TheBigOrangePress.com I would love to help you find a new home

Tax Credit Ends Soon

Knoxville One Of Top 5 Cities To Recover 1st