The end of the housing correction is looking closer, as the job market
finally turns the corner, investors step up home purchases, and the Obama
administration revamps its foreclosure mitigation efforts, according to
Moody 's Investors Service."These forces lift our outlook for house prices slightly," the credit
ratings and research agency said in its ResiLandscape report issued this
week.Moody's noted that in March the job market turned in its best performance in
three years, with payroll employment increasing by 162,000. While the market
is still very much in transition, Moody's says the March numbers mean "it is
safe to say that the worst is over.and sets the stage for stronger gains to
come. "Jobs are key to the housing outlook, with job creation supporting demand
for home purchases, as well as helping homeowners stay current on their
mortgage loans," the agency said.According to Moody's report, investors are also boosting demand as they
actively seek home purchases in many of the most distressed housing markets.
"There is a growing sense that while there may be further price declines to
come, the market is near bottom and investors with a buy and hold strategy
are moving in," the report said. Anecdotal evidence suggests that bargain basement prices on distressed homes
have brought in large numbers of investors and previously slack markets are
tightening up, Moody's said, citing data from the California Realtors
Association that shows the months of supply of available homes for sale is
averaging around five, compared to seven a year ago and 15 at the market's
peak in 2007.Based on credit file data from Equifax, close to 4.5 million first mortgage
loans are currently in the foreclosure process or at least 90 days
delinquent and quickly headed toward default. "On this front, the spring is also bringing in good news," Moody's said.
"The Obama administration is revamping its foreclosure mitigation efforts,
which to date have fallen well short of expectations. The changes are
wide-ranging and could help end the foreclosure crisis earlier than
anticipated."The administration's new initiatives under the Home Affordable Modification
Program (HAMP) to help the underwater and unemployed are expected to help
bring down the number of foreclosures by addressing the two main causes of
delinquency in today's market. Moody's says without what it calls HAMP 2.0, the agency was expecting some
2.25 million homeowners to lose their homes this year in foreclosures or
short sales. "We expect the new program to keep some 350,000 of these homes from being
lost," Moody's said. "The foreclosure problem will remain serious, but fewer
homes will be lost to a distress sale this year than last year. Further, the
mix of sales will shift to a higher share of short sales, which typically
result in a higher sale price than a foreclosure sale."Regarding the principal write-down piece of the program revisions, Moody's
said, "The servicers we surveyed view the principal forgiveness program
positively and are willing to implement it as allowed by transaction
documents. The biggest challenge that they cited, however, is a lack of
sufficient process detail that is required for implementation and is not
likely forthcoming until mid- to late-2010." Promote your business and
services online and offline, find out when our next mixer is.Connect with other successful
womenReal Estate Investing Education,
take advantage of today's real estate marketBuild Your Business-Drive Your Dream Promo
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finally turns the corner, investors step up home purchases, and the Obama
administration revamps its foreclosure mitigation efforts, according to
Moody 's Investors Service."These forces lift our outlook for house prices slightly," the credit
ratings and research agency said in its ResiLandscape report issued this
week.Moody's noted that in March the job market turned in its best performance in
three years, with payroll employment increasing by 162,000. While the market
is still very much in transition, Moody's says the March numbers mean "it is
safe to say that the worst is over.and sets the stage for stronger gains to
come. "Jobs are key to the housing outlook, with job creation supporting demand
for home purchases, as well as helping homeowners stay current on their
mortgage loans," the agency said.According to Moody's report, investors are also boosting demand as they
actively seek home purchases in many of the most distressed housing markets.
"There is a growing sense that while there may be further price declines to
come, the market is near bottom and investors with a buy and hold strategy
are moving in," the report said. Anecdotal evidence suggests that bargain basement prices on distressed homes
have brought in large numbers of investors and previously slack markets are
tightening up, Moody's said, citing data from the California Realtors
Association that shows the months of supply of available homes for sale is
averaging around five, compared to seven a year ago and 15 at the market's
peak in 2007.Based on credit file data from Equifax, close to 4.5 million first mortgage
loans are currently in the foreclosure process or at least 90 days
delinquent and quickly headed toward default. "On this front, the spring is also bringing in good news," Moody's said.
"The Obama administration is revamping its foreclosure mitigation efforts,
which to date have fallen well short of expectations. The changes are
wide-ranging and could help end the foreclosure crisis earlier than
anticipated."The administration's new initiatives under the Home Affordable Modification
Program (HAMP) to help the underwater and unemployed are expected to help
bring down the number of foreclosures by addressing the two main causes of
delinquency in today's market. Moody's says without what it calls HAMP 2.0, the agency was expecting some
2.25 million homeowners to lose their homes this year in foreclosures or
short sales. "We expect the new program to keep some 350,000 of these homes from being
lost," Moody's said. "The foreclosure problem will remain serious, but fewer
homes will be lost to a distress sale this year than last year. Further, the
mix of sales will shift to a higher share of short sales, which typically
result in a higher sale price than a foreclosure sale."Regarding the principal write-down piece of the program revisions, Moody's
said, "The servicers we surveyed view the principal forgiveness program
positively and are willing to implement it as allowed by transaction
documents. The biggest challenge that they cited, however, is a lack of
sufficient process detail that is required for implementation and is not
likely forthcoming until mid- to late-2010." Promote your business and
services online and offline, find out when our next mixer is.Connect with other successful
womenReal Estate Investing Education,
take advantage of today's real estate marketBuild Your Business-Drive Your Dream Promo
Code: legendwww.TotalSolutionsAlliance.com Connect with me on Facebook
Twitter LinkedIn
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