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Knowing The Facts Matters

It’s important that you know the facts before making decisions. Having good data is very important. To this end, CoreLogic has accelerated the frequency and expanded the coverage of its CoreLogic Case-Shiller Indexe. Separately, the company unveiled a new report, Cash Investor Trends, that will track and report on cash and investor sales in all 50 states and in more than 34,000 ZIP codes. Both announcements were made today at the 26th annual CoreLogic RiskSummit in Dana Point, Calif.

“At CoreLogic, we are always looking for new ways to deliver actionable information that will give our clients a more complete view of the housing market,” said Olumide Soroye, managing director, Information Services for CoreLogic. “The enhancements announced today will make the CoreLogic Case-Shiller Indexes an even better platform for modeling home price change and risk. Similarly, our new Cash Investor Trends report will be the most comprehensive and timely report on cash sales and institutional investor activities available in the market.”

Beginning in July, CoreLogic Case-Shiller Index clients will receive the new index set monthly while a quarterly report will continue to be made available to the news media. The new index set will now leverage CoreLogic transaction data, broadening its geographical coverage with a net increase of more than 1,000 CoreLogic Case-Shiller Indexes nationwide, including an 89 percent increase in the number of single-family home indexes at the CBSA level and a 128 percent increase in the total number of condominium indexes. The new index will continue to employ the same Case-Shiller repeat sales index methodology, first developed by Karl Case and Robert Shiller.

Cash Investor Trends is a new monthly report that is designed to provide a more complete picture of the dynamics of the mortgage and real estate markets. It will track:

>> The percentage of cash sales: nationally and by state, CBSA, county and ZIP code.

>> The percentage of purchases by institutional investors (an institutional investor is defined as a buyer that purchases 10 or more properties per year within a CBSA).

>> Mean and median sales prices for cash and investor sales transactions.

>> The type of sale: REO sale, short sale, resale, new construction.

>> The type of property: Single-family Detached, Single-family Attached, and Condo/Co-op.

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Home Prices Are Slowly On The Rise

*Home Prices Are Slowly On The Rise*
**By Tony Garritano**

TonyG***CoreLogic released an analysis of home price trends during the second quarter of 2013 in more than 380 U.S. markets based on the CoreLogic Case-Shiller Indexes. The CoreLogic Case-Shiller Indexes estimate that home prices increased by 10.1 percent in the second quarter of 2013 compared to a year ago.

****Home prices nationwide are now 16 percent above the trough, reached in the fourth quarter of 2011, but still remain 24 percent below the peak, reached in the first quarter of 2006. The analysis projects that price appreciation will decelerate through the second half of 2013 and into the beginning of 2014. Based on CoreLogic Case-Shiller data forecast through June 30, 2014, home price appreciation will slow to an average of 5.4 percent across all U.S. markets.

****“Prices are now rising in nearly 90 percent of metro areas, and in all metro areas with populations greater than 1 million,” said Dr. David Stiff, principal economist for CoreLogic Case-Shiller. “The strongest growth continues to be recorded in cities that were at the center of the housing bubble, but investor demand in those markets appears to be waning, meaning rapid rates of price appreciation are likely unsustainable.”

****Of the metro areas that felt the greatest impact from the housing bubble, Sacramento (+26 percent), Las Vegas (+25 percent) and Phoenix (+20 percent) saw the largest increase in home prices during the second quarter of 2013 versus the same period last year. Coastal California markets also exhibited strong price appreciation, including Oakland (+24 percent), San Jose (+22 percent) and Los Angeles (+20 percent), as buyers continue to jump in before increasing prices and mortgage rates substantially reduce affordability.

****Purchases by first-time and trade-up buyers are increasing, though tight mortgage lending conditions and slow job-market gains are constraining demand for owner-occupied housing. Demand from investors is weakening as well, as fewer distressed properties are listed for sale and rising home prices cut into potential rental profits. At the same time, the overall supply of homes for sale is still rising in many metro areas as current homeowners take advantage of favorable seller’s markets.

****“Combined with increased housing construction, expected increases in existing inventories should restrain price appreciation even if demand remains strong. Nevertheless, the rate of home price growth in the coming months will remain above its long-term average of 4.5 percent annual appreciation since 1975,” said Dr. Stiff.

List Mania

*List Mania*
**By Lew Sichelman**

LewS***I don’t know about you, but I am sick and tired of all the “bests” and “worsts” and “mosts” and “leasts.” As in, the hottest housing markets, the slowest housing markets, the best college towns to buy real estate, the top ten cities for engineering innovation.

****Bert Sperling of Sperling’s Best Places once told a group of real estate reporters that he could come up with a list of the “best places” for just about anything. Thus, we have the best places to live, to retire, to work, to visit, to chill, to hyperventilate, to think, not to think, ad infinitum.

****And then we also have the fastest markets from flip to sale. I mean, gimme a break.

****Nope. No such luck. There’s the ten most exciting cities, the top ten markets in which to buy vacation homes and the 25 best places to flip.

****And then there’s the funniest cities (Ha!), the most over-valued, the most under-valued (or is that the least?), and our favorite summer towns.

****Wait, there’s more, as in the most secure largest cities, the most stressed cities, the most popular for the holidays, and the best baseball cities.

****I actually like that last one. But not the best for job growth, the worst for job growth, the healthiest – that’s fiscal health, not physical – and the ten best cities for NASCAR fans.

****Everybody, it seems, is enamored with lists. I haven’t seen the ten worst mortgage regulations yet, but I’m sure its out there – somewhere.

****And while we’re skewering this pig, how about all those indices we’re subjecting to each and every month, month after month after month. I’m tired of those, too.

****Why, everybody has one – or more. There’s Core Logic, Case-Shiller, LPS, the FHFA, the NAHB, Pro Teck, Redfin, etc., etc., etc. (This is not to single out any particular company; it’s  just to name a few. So please, everyone, don’t get your knickers in a wedgie.)

****It’s time to stop all this madness, these mindless veiled attempts to get your name up in lights. And I fault supposed news outlets which publish these lists — one after another after another, even though they hold little or no value — just as much, if not more, than their purveyors.

****Take the monthly catalogue of the housing markets with the fastest appreciation. Even the government publishes them. But they do consumers a disservice, for what’s happening in Bumdale has absolutely, positively nothing to do with what’s Bumberg.

****No, borrowers, buyers and sellers would be much better off knowing what’s going down – or up – in their communities, their neighborhoods, their very own blocks. Yet we continue to tell them that prices are up 11 percent in Bumville when what’s more meaningful is that values have slipped 2 percent on their street because it’s loaded with foreclosures or pig-pen neighbors.

****So, I, for one, say let’s stop this silliness. And the presses. Except for maybe a list of the ten worst offenders.