Despite declines in distressed sales and investor activity, all-cash purchases are making up a larger share of the real estate market, according to a new report from the National Association of Realtors (NAR).

Lawrence Yun, NAR chief economist, said the findings are counterintuitive.

“Distressed home sales, most popular with investors who pay cash, have declined notably in the past two years, yet the share of all-cash purchases has risen,” he said in a statement. “At the same time, investors have declined as a market share, indicating other changes have been underway in the marketplace.”

Distressed home sales declined from 26 percent of the national market in 2012 to 17 percent in 2013 and 15 percent in the first quarter of this year; NAR projects distressed homes to drop to a single-digit market share by the fourth quarter. All-cash purchases rose to 31 percent in 2013 and 33 percent in the first quarter of 2014 from 29 percent in 2012.

In Florida, more than half of all homes were purchased with cash. High levels of all-cash sales also were recorded in Nevada, Arizona and West Virginia, accounting for close to four out of 10 transactions.

The findings, derived from a survey of about 3,000 responses each month for NAR’s Realtors Confidence Index, also show investors edged down from 20 percent of buyers in 2012 to 19 percent in both 2013 and the first quarter of this year.

A separate annual study of consumers, NAR’s 2014 Investment and Vacation Home Buyers Survey, shows investors at a somewhat higher market share, but declining more sharply from 24 percent in 2012 to 20 percent in 2013.

Yun seemed stumped by the contradictory indicators.

“The restrictive mortgage lending standards are a factor, but the higher levels of cash sales may also come from the aging of the baby boom generation, with more trade-down and retirement buyers paying cash with decades of equity accumulation,” he said in a statement. “A majority of foreign buyers pay cash as well, and the five-year bull run of the stock market has also provided financial wherewithal among higher wealth households.”
- See more at: http://www.bankerandtradesman.com/news159458.html#sthash.xUBHVlFk.dpuf

Dr. Dre has officially found himself a new home – courtesy of Tom Brady and Gisele Bundchen.
The music mogul and his wife, Nicole Young, have purchased Tom and Gisele’s California home for $40 million.

Previous reports on the sale of the house indicated the NFL star and his supermodel ladylove had originally been asking $50 million for the home, located in Los Angeles’ upscale Brentwood community.

Tom and Gisele first listed the home for sale back in March.

The home is reportedly 18,700 square feet, featuring five bedrooms, nine bathrooms, a six-car garage, as well as a lagoon-shaped swimming pool, a gym, a wine cellar – and a moat.

According to sources, Dre and Nicole – who have been married for 18 years — will make this new home their primary residence.

The home was featured in the October 2013 issue of Architectural Digest.

#fitzlaw

Banker & Tradesman reports that the rise in housing prices since the recovery began two years ago has lifted the vast majority of homeowners back into the black, with only 10 percent now underwater on their mortgage as of March 2014, according to a new report from Black Knight Financial Services.

“Looking at current combined loan-to-value (CLTV), we see that while four years ago 34 percent of borrowers were in negative equity positions, today that number has dropped to just about 10 percent of active mortgage loans. While negative equity levels have declined for both judicial vs. non-judicial foreclosure states from the peak of the crisis, non-judicial states are now at just under eight percent, as compared to 13.4 percent in their judicial counterparts,” Kostya Gradushy, a Black Knight senior analyst, said in a statement. “Overall, nearly half of all borrowers today are both in positive equity positions and of strong credit quality – credit scores of 700 or above. Four years ago, that category of borrowers represented over a third of active mortgages.”

According to Black Knight, the length of time delinquent loans are spending in foreclosure is also increasing, reaching an average of 966 days delinquent. More than half – 55 percent – of all loans in foreclosure are now more than two years delinquent, an all-time high.

Massachusetts was among the states suffering most from lengthened foreclosure timelines, ranking fifth among all states for the percentage of loans in serious delinquency, behind Mississippi, Nevada, Rhode Island and Alabama.

In March, the total U.S. loan delinquency rate was 5.52 percent, down 7.57 percent from February. Of all homes, 2.13 percent were in foreclosure, down 4.23 percent from February.

This is good news, a positive trend. If you have equity and are looking to sell give us a call for legal guidance. #fitzlaw

Who do you like in tomorrow’s Kentucky Derby? The NJ Star Ledger (click) has a great overview.

If you like money, here are my picks…
1. Wicked Strong
2. California Chrome
3. Ride on Curlin

Enjoy the race and have a great weekend!

-Fitzgerald Law Offices
#fitzlaw