Just Listed brings you the latest news and information from the Twin Cities-area commercial and residential real estate market and beyond from veteran reporters Jim Buchta and Janet Moore.

Posts about Foreclosures

Mortgage preforeclosure notices in Minnesota drop 41% during the first quarter

Posted by: Jim Buchta Updated: April 16, 2014 - 10:40 AM

I recently wrote that with home prices on the rise and the economy on the mend, the foreclosure crisis in Minnesota was nearing its end, and today there's more evidence that fewer Minnesota homeowners are headed towards that terrible fate. The Minnesota Homeownership Center issued a new report that says the number of preforeclosure notices sent during the first quarter fell 41 percent compared with last year. Though foreclosures are still happening all too often in Minnesota and beyond, the decline in notices is important because it's an indicator of how many houses will end up being sold at sheriff's sales.

Here's a graphic look at what happened:

March housing: Closings declined, prices and listings increased

Posted by: Jim Buchta Updated: April 10, 2014 - 10:46 AM

Twin Cities real estate agents say that a shortage of listings and harsh weather put a lid on home sales during March, but with fewer foreclosures in the mix and limited options for buyers in some areas, prices were up compared with last year. And those higher prices helped draw more sellers into the market. All of that is according to a monthly report from the St. Paul Area Association of Realtors. Here's a quick look at the Twin Cities housing market during March:

  • Closings: 3,133, down 16.7%
  • Pending sales: 4,141, down 8.4%
  • Median sales price: $190,000, up 7.6%
  • New listings: 6,492, up 5.5%
  • Inventory of homes for sale: 13,086, down 4.1%

Twin Cities mortgage foreclosure rate drops nearly 50 percent in January

Posted by: Jim Buchta Updated: April 2, 2014 - 9:55 AM

Twin Cities homeowners appear to be in far better financial shape than they were last year.

CoreLogic, a national real estate research firm, said that the foreclosure rate in the metro was 0.63 percent during January, a decrease of 0.58 percentage points compared to January of 2013 when the rate was 1.21 percent. Nationwide, the foreclosure rate dipped to 1.97 percent.

The complete list of best and worst U.S. markets for rental housing returns

Posted by: Jim Buchta Updated: April 1, 2014 - 12:40 PM

In many parts of the country house prices are rising faster than rents, making it difficult to find investment opportunities that will cash flow. A new analysis by RealtyTrac takes a closer look at where median home prices and average rental rates make for good — and not so good — returns on rental properties. That rental return, by the way, for each county is the gross rental yield, calculated by taking the 2014 fair market rent for a three-bedroom home multiplied by 12 (months) and then dividing that 12-month total by the median sales price of residential properties in the county. Here's what they found:

Old Man Winter dealt Twin Cities home sales last month a mighty blow

Posted by: Jim Buchta Updated: March 12, 2014 - 10:27 AM

Brutal weather and a dramatic decline in foreclosure and short sale listings put the brakes on homes sales in the 13-county metro area last month, according to a new report from the Minneapolis Area Association of Realtors. Here are the highlights:

  • Median sales price: up 14.4 percent to $183,044 - the 24 straight month of year-over-year median price gains.
  • Closings fell 14.0 percent to 2,465 properties.
  • Closings (not lender mediated) increased 6.7 percent.
  • Closings (foreclosure sales and short sales) fell 33.4 and 61.9 percent, respectively.
  • Foreclosures and short sales made up 30.3 percent of all sales compared with 43.9 percent last year.
  • New listings declined 5.0 percent to 4,616 overall,.
  • New listings (not lender mediated) were up 9.1 percent
  • New listings (foreclosures and short sales) fell 34.5 and 54.6 percent, respectively.
  • The overall inventory stood at 11,975 properties, a 9.6 percent decline and a 10-year low.
  • On average it took 99 days to sell a home last month, down 10.8 percent from last year.
  • At the current sale pace, there enough listings on the market to last just 2.8.

The quote that sums it all up: “It was an interesting month,” said Emily Green, president of the Minneapolis Area Association of Realtors.  “While the market shifts back toward where it was before the bubble, we expect to see foreclosures and short sales become less prevalent, which can dilute overall numbers. Then you have the weather.”

10 percent of all Twin Citians still owe more than their house is worth

Posted by: Jim Buchta Updated: March 7, 2014 - 10:57 AM

Rising home prices have put a serious dent in the number of people who owe more than their house is worth in the Twin Cities and beyond. During the fourth quarter of last year 10.2 percent of all people with a mortgage were underwater, according to CoreLogic, a national real restate research firm. That's down from 16 percent last year, but up very slightly from the previous quarter.

Nationwide, nearly 6.5 million homes, or 13.3 percent of all residential properties with a mortgage, were still in negative equity territory at the end of last year.

Negative equity happens when house prices decline and/or when mortgage debt increases. Across the country,the national aggregate value of negative equity was $398.4 billion for fourth quarter 2013, compared to $401.3 billion for third quarter 2013, a decrease of $2.9 billion.

Here's Mark Fleming's, CoreLogic's chief economist, take on the situation: "The plight of the underwater borrower has improved dramatically since negative equity peaked in December 2009 when more than 12 million mortgaged homeowners were underwater," he said "Over the past four years, more than 5.5 million homeowners have regained equity, reducing their risk of foreclosure and unlocking pent-up supply in the housing market."



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