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The economic news and reports as of late have at best been mixed, without that shining light at the end of the economic collapse's tunnel to lead us into decided recovery.
Lagging in improvement, and as one of the largest drags on the economy, the housing market has been a brutally stubborn anchor against recovery.
Recently, however, there are a few glimpses of hope suggesting that the housing market is - finally - experiencing a turnaround.
Mortgage Loan Delinquincy Rates Down And Foreclosure Starts Are At Their Lowest Level Since The End Of 2007
The first good news came last month from the Mortgage Bankers Association’s (MBA) National Delinquency Survey:
"WASHINGTON, D.C. (May 16, 2012) — The delinquency rate for mortgage loans on one-to-four-unit residential properties decreased to a seasonally adjusted rate of 7.40 percent of all loans outstanding as of the end of the first quarter of 2012, a decrease of 18 basis points from the fourth quarter of 2011, and a decrease of 92 basis points from one year ago, according to the Mortgage Bankers Association’s (MBA) National Delinquency Survey. The non-seasonally adjusted delinquency rate decreased 121 basis points to 6.94 percent this quarter from 8.15 percent last quarter."
That report highlights several improving statistics, suggesting not only that the housing market has bottomed out but is actually getting better. It further states:
“Mortgage delinquencies normally fall during the first quarter of the year, but the declines we saw were even greater than the normal seasonal adjustments would predict, so delinquencies are clearly continuing to improve. Newer delinquencies, loans one payment past due as of March 31, are down to the lowest level since the middle of 2007, indicating fewer new problems we will need to deal with in the future. The percentage of loans three payments or more past due, the loans that represent the backlog of problems that still need to be handled, is down to the lowest level since the end of 2008. Foreclosure starts are at their lowest level since the end of 2007,” said Michael Fratantoni, MBA's Vice President of Research and Economics.
Housing Starts rise 2.6 Percent in April
The second indicator of a rebound in new residential construction came this week from the Commerce Department, reporting that:
"Building permits in May 2012 were at a seasonally adjusted annual rate of 780,000, up 7.9 percent from the revised April rate and up 25.0 percent from May 2011. Housing starts in May 2012 were at a seasonally adjusted annual rate of 708,000, down 4.8 percent from April’s revised estimate, but up 28.5 percent from May 2011."
Expanding on the New Residential Construction in May 2012 report, acting U.S. Commerce Secretary Rebecca Blank, said:
“Today’s data show that the housing market continues to improve. Housing permits are up 31 percent in the first 5 months of this year compared to last and housing starts are up 27 percent,” said Acting Commerce Secretary Rebecca Blank. “However, while the housing market is stabilizing, too many homes are still underwater and too many homeowners are still struggling to make ends meet. That is why it’s so important that Congress support the President’s proposals to continue boosting jobs and ensure that everyone gets a fair shot, including cutting red tape so responsible homeowners who are paying their mortgage can refinance at today’s lower rates.”
You can read the entire report here »»newresidentialconstruction28may201229.pdf
Are You Seeing An Improvement In The Housing Market In Your Area?
Any good news about the depressed housing market is a wonderful thing and is welcome to all, I'm sure. But, the big questions is whether you are seeing an improvement in the housing market in your area.
Are things getting better, with improvements in your business - and business outlook?
The bigger question may be: Is your business ready for a housing recovery?
This Professional Land Surveyor Premium Post written by Eric Colburn, PLS, Professional Land Surveyor Adviser & Revivalist.