John Leiby and The Red Door Realty Group - Selling Homes One Yard at a Time

Smaller Homes to Grow in Demand, Surveys Suggest

John Leiby — Mon, 28 Nov 2011 01:57:03 +0000

The square feet of new homes is expected to continue its decline in future years. The National Association of Home Builders predicts that U.S. houses will average 2,152 square feet in 2015, which will be down 10 percent compared to last year.

Smaller homes near restaurants and retail may be the most in demand as the housing market crawls out of its slump, housing experts say.

McMansions–which are at least 2,600 square feet–were popular during the years of the housing boom, but now are only desired by 18 percent of households today and is expected to drop more, according to a survey by Trulia.

“Baby boomers are trading down. They don’t need the McMansion, and they don’t want to drive as much,” Jed Kolko, Trulia’s chief economist, told Money Magazine.

Freddie Issues Rule Changes on Short Sales

John Leiby — Sun, 27 Nov 2011 17:56:40 +0000

As of Jan. 1, Freddie Mac will require parties involved in a short sale to sign affidavits that will make them liable for any negligent or intentional misrepresentations in the transaction, HousingWire reports. Mortgage servicers are being urged to implement the change immediately before the Jan. 1 mandate, however.

The move is part of Freddie Mac’s effort to crack down on the rising incidences of short-sale fraud.

“With this change, you will have more information to identify potential mortgage fraud and a clearer understanding of the intent of all parties involved in the real estate transaction,” Freddie said in a statement announcing the rule changes to mortgage servicers last Friday.

In its guidance, Freddie also eliminated a requirement that borrowers who are more than 120 days delinquent are required to list their home for sale before becoming eligible for a deed-in-lieu. The rule changes also included efforts to help mortgage servicers speed up the loss-mitigation process.

Best Housing Markets for Big Bargains

John Leiby — Sat, 26 Nov 2011 22:56:13 +0000

Financial analysis firm 24/7 Wall St. has identified the housing markets expected to offer some of the biggest discounts for home buyers. Many of these markets have been plagued with large gluts of foreclosures that have dragged down prices. In fact, six of the 10 markets on the list have had median home prices fall to less than half what they were five years ago, according to 24/7 Wall St.

The following housing markets offer home buyers some of the biggest discounts:

North Port-Bradenton-Sarasota, Fla.
Median home price: $170,000
Home value decline from peak: -51.4%
Predicted change in home value through 2Q 2012: -6.5%

Riverside-San Bernardino-Ontario, Calif.
Median home price: $180,000
Home value decline from peak: -55.4% (14th biggest decline)
Predicted change in home value through 2Q 2012: -14.8%

Charleston-North Charleston, S.C.
Median home price: $200,000
Home value decline from peak: -23.3%
Predicted change in home value through 2Q 2012: -1.6%

Fort Lauderdale-Pompano Beach, Fla.
Median home price: $199,000
Home value decline from peak: -48.4%
Predicted change in home value through 2Q 2012: -9.2%

Cape Coral-Fort Myers, Fla.
Median home price: $106,000
Home value decline from peak: -59.3%
Predicted change in home value through 2Q 2012: -12.2%

The Largest Group of Home Buyers by 2030?

John Leiby — Sat, 26 Nov 2011 15:30:48 +0000

Immigrants are expected to make up a large number of the future home buyers of America in the coming decades, according to a new report, “Assimilation Tomorrow: How America’s Immigrants Will Integrate by 2030” by the Center for American Progress.

Researchers found that while 25.5 percent of immigrants owned homes in 2000, that percentage is expected to jump to 70.3 percent by 2030. If that happens, the percentage of immigrants who will own homes will be on par or even slightly higher than the home ownership rate among native-born Americans, the study finds.

Hispanics, in particular, are expected to make the biggest gains toward home ownership. Home ownership for Hispanic immigrants stood at 21 percent in 2000, but is projected to reach 67 percent by 2030.

Group Aims to Save Pets From Housing Crisis

John Leiby — Sat, 26 Nov 2011 04:55:23 +0000

A growing number of real estate professionals are finding pets left behind in vacant homes after families have moved on.

Pets are being increasingly left behind in homes for any number of reasons, not just in cases of foreclosure, agents say. For example, pets are sometimes found in homes when the home owner has passed away and the relatives didn’t want to deal with the pet, or home owners who believe that by leaving their pets in a home they’ll have saved the animal from being euthanized at a pound.

In any case, it’s real estate professionals who are increasingly finding the abandoned pets when touring homes.

A group of real estate professionals in Chicago, for example, is reaching out to real estate professionals to help them provide information or assistance for families with pets they no longer want. For example, agents may also be able to provide guidance to these families’ who face foreclosure on what to do with their pets.

Suzy Thomas, a real estate professional for Dream Town Realty in Chicago, found REALTORS® to the Rescue in 2005. Originally, the group helped find new homes for animals abandoned in homes, but the group has now refocused its efforts on raising funds for animal-protection groups.

“We began to wonder, how can we network to help the shelters?” Thomas told the Chicago Tribune. “Because they have the experts. Or maybe we could help them get volunteers for events. Lately, we did a food drive to provide food for people who can’t afford to feed their pets. We volunteered at a 36-hour animal-adoption event. … We focus now on helping the shelters and rescue groups.”

Another group — No Paws Left Behind — was formed by a mortgage broker in Houston. Since 2008, the group has rescued at least 1,000 animals nationwide.