The National Association of Realtors latest existing-home sales survey shows that sales are on the rise again. This is the third straight month of increases as well the rate rising above year ago levels. December saw a 5.0 percent rise and is now 3.6 percent above December 2010. The entire of year of 2011 experienced an overall 1.7 percent rise in existing-home sales over 2010.

Lawrence Yun, NAR chief economist, said these are early signs of what may be a sustained recovery. "The pattern of home sales in recent months demonstrates a market in recovery," he said. "Record low mortgage interest rates, job growth and bargain home prices are giving more consumers the confidence they need to enter the market."

Regional increases were seen across the board, but had the largest increase in the Northeast which rose by 10.7 percent for the month of December. Next in line was the Midwest, rising 8.3 percent. The South and west followed suite, rising 2.9 and 2.6 percent respectively.

This rise in existing-home sales has led to a dip in available inventory, which is welcome news for many sellers who are facing steep competition. NAR reports "available inventory has trended down since setting a record of 4.04 million in July 2007, and is at the lowest level since March 2005 when there were 2.30 million homes on the market."

Total housing inventory fell a staggering 9.2 percent in December to 2.38 million homes for sale. "The inventory supply suggests many markets will see prices stabilize or grow moderately in the near future," Yun said.

NAR President Moe Viessi, broker-owner of Veissi & Associates Inc., in Miami, said more buyers are expected to take advantage of market conditions this year. "The American dream of homeownership is alive and well. We have a large pent-up demand, and household formation is likely to return to normal as the job market steadily improves," he said. "More buyers coming into the market mean additional benefits for the overall economy. When people buy homes, they stimulate a lot of related goods and services."

Partially to blame for pent up demand has been the large amount of contract failures. The NAR says failures were reported by 33 percent of NAR members in December, unchanged from November; they were 9 percent in December 2010.

Declined mortgages and depressed home values leading to loan values under appraised values are heavily at fault. A recent Government Accountability Office (GOA) found that the appraisal process needs more monitoring procedures.

A recent NAHB survey shows that one out three builders have lost signed sales contracts because of flawed appraisals.

NAHB Chairman Bob Nielsen says, "The current system is not working." He called for resolution of a flawed appraisal process. He says the current system "fosters price instability, puts more families in danger of default or foreclosure, and undermines the housing and economic recovery."

by Carla Hill  Realty Times

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After nearly two decades of traipsing through the International Builders Show, the housing industry's annual trade show, I've noticed a pattern. When the market is booming, product manufacturers roll out splashy and silly products, like talking refrigerators, wash-and-dry heated toilet seats and crystal-handled gold faucets. In bad times, they focus on the basics, like beefed up insulation, recycled flooring and energy-efficient heating, ventilation and air conditioning systems.

With the National Association of Home Builders reporting new single-family home starts at a still-anemic 470,000, it's no surprise that most of the products that will be exhibited at this year's show—which will run from Feb. 8 to 11 in Orlando, Fla. —tend toward the bland. And yet, both builders' confidence and single-family permits have ticked up in recent months and it appears that some manufacturers are feeling at least a bit of the buzz. Here's a preview peek at a few of the flashier products that will be featured at this year's show:

Wall-hanging fireplace: For homeowners who don't want to crick their necks staring down at crackling flames, the recently released vent-free Napoleon Plazmafire fireplace hangs on the wall like a picture. With a flat or convex surround in various finishes, including "diamond dust pewter," the $1,600 gas fireplace throws off 20,000 British thermal units of heat and is remote-controlled. A sparkling bed of crystalline glass embers and optional accent lights add to the glow. The unit doesn't need a chimney but the company says it does need a fresh air supply to operate safely and shouldn't be installed in a bedroom or bathroom. Check your building codes before buying, because unvented gas fireplaces are illegal in some states.

No-touch fashion faucet: Though hands-free faucets usually evoke airport restrooms, Brizo is bringing them into the powder room this spring. Fashion maven Jason Wu designed the starkly modern Odin faucet, which turns on whenever it's touched, or even when hands are within four inches of the faucet. A built-in electronic monitor keeps the water temperature consistent, while a light display at the base of the faucet shows when the water's cool (blue), tepid (magenta) or hot (red). In black, polished chrome or brushed nickel, the $800 faucet is not for the thin of wallet.

Smart thermostat: Thermostats that can be controlled through a smart phone, laptop or tablet are a small but growing trend. Lennox's new entry in this category is the icomfort Wi-Fi thermostat, to be released in April. It sets temperature and humidity levels for various times of the day, nags you when the filter needs changing or the furnace needs servicing, and provides a five-day weather forecast. Cost without installation is $300 to $350, compared with less than $100 for a traditional programmable thermostat. The company says that the device must be installed by a Lennox dealer.

Remote-controlled deadbolt: Locks are also getting smarter and pricier. Early in 2011, SimpliciKey launched a battery-powered deadbolt that can be operated by a remote control, encrypted key fob, wireless keypad or regular key. The $250 lock comes in polished brass, satin nickel and aged bronze can be installed by a do-it-yourselfer. At the show, the company will unveil its soon-to-be-launched mobile web application that will allow an owner to control the lock from afar—especially useful for an out-of-town landlord or vacation-homeowner. But better keep the key handy, in case the device's four AA batteries run out of juice.

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Foreclosure notices in California, the state with the highest number of distressed mortgages, fell in the fourth quarter as the housing market improved and loan servicers changed their policies, DataQuick said.

A total of 61,517 notices of default were recorded in the three months ended Dec. 31, down 12 percent from a year earlier and 14 percent from the previous quarter, the San Diego-based real estate information provider said today.

“We are certainly seeing a lower level of foreclosure activity than a year or two ago,” DataQuick President John Walsh said in the statement. “The question is, how much of that decline is due to market conditions, and how much is due to policy changes that try to address economic distress and lower home values?”

Sales involving homes with delinquent mortgages increased last month as lenders pushed to “move them off their balance sheets before the end of the year,” according to a report today by the California Association of Realtors. Short sales, in which lenders let homeowners sell for less than the mortgage balances, accounted for 22.2 percent of December transactions, up from 21 percent in November. Bank-owned homes made up 24.6 percent of deals, up from 23.5 percent in November.

A total of 37,734 new and resale houses and condominiums sold in California in December, up 16 percent from the previous month and 4.2 percent from a year earlier, DataQuick reported Jan. 18. Foreclosure filings dropped in late 2010, when lenders faced investigations over accusations they had used improper documentation to seize homes with delinquent mortgages.

Foreclosure Sales

Last year, 428,045 California homes received foreclosure filings, accounting for 23 percent of all homes nationwide with a notice of default, auction notice or foreclosure sale, RealtyTrac Inc. reported Jan. 12.

Most of the California loans going into default in the fourth quarter were originated between 2005 and 2007, when home values were at their peak and lenders loosened credit terms, according to today’s DataQuick report. California foreclosure filings peaked in the first quarter of 2009, when 135,431 homes received notices of default, the company said.  Click to View Complete Article

By John Gittelsohn – Jan 24, 2012

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The fourth-largest U.S. bank and largest U.S. mortgage originator said it would donate $23 million toward downpayment assistance programs this year and plans to make $11.8 billion in home-purchase loans over the next five years in the two cities.

"We are not going to solve the housing crisis alone, but we think this is an opportunity to take a leadership position," said Jon Campbell, Wells Fargo head of social responsibility.

Wells Fargo said that next month it would also hold events such as tours of homes for sale in Los Angeles and Atlanta.

The program aims to show that financing is available for home buyers at a time of low prices and excess inventory, Campbell said.

He said the lending goal is based on past originations in the two cities. The downpayment assistance will be made available through NeighborWorks America, a nonprofit organization. Borrowers do not have to use Wells Fargo for their loans to receive the assistance.

Wells Fargo is one of the lenders in negotiations with state and federal officials to settle an investigation of foreclosure-related abuses. Campbell said the bank remains focused on helping homeowners stay in their homes.

Wells Fargo originated $357 billion in residential real estate loans in 2011, down from $386 billion in 2010.

(Reporting By Rick Rothacker; editing by Mark Porter)

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