Hackney's Houses

In recent weeks we've seen some upheaval in the mortgage industry.  Has it affected business, sure.  BUT it's not the catastrophe many are making it out to be when you keep it all in perspective.  This is one more example though of my industry and the mortgage industry becoming a professionals market.  This is good for the industry and good for the consumer.  I just came across this about perspective today from some agents in Orange County and thought I'd share.

Keep the Housing News You Hear In Perspective

Blanche Evans
Realty Times Columnist

Realtors Bob and Nancy Hunt liked what they heard at a recent Orange County Association of Realtors meeting. Local economist Gary Watts gave a talk where the main message was - keep news about housing in perspective.

The popular press has called an end to housing for some time, says Watts:

• "The goal of owning a home seems to be getting beyond the reach of more and more Americans. The typical new house today costs about $28,000." Business Week, 1969

• "The median price of a home today is approaching $50,000 ... housing experts predict price rises in the future won't be that great." National Business, 1977

• "The golden age of risk-free run-ups in home prices is gone." Money Magazine, 1985

• "A home is where the bad investment is." San Francisco Examiner, 1996

• "We want to share some of his other observations," said the Hunts. And they did so by sending out a newsletter to their contacts filled with interesting facts and figures Watts gave during his talk.

Among the "gems," say the Hunts, were the following:

• Since the year 2000, Orange County homes have appreciated over 100 percent.

• The average Orange County appreciation rate over the past 37 years has been 14.9 percent yearly.

• 2005 was the peak subprime lending year in Orange County, when subprime loans represented about 23 percent of all loans funded.

• Nationally, the delinquency rate on sub-prime loans (13.77 percent) and conventional loans (2.57 percent) combined produces a delinquency rate of 4.84 percent. The record low is 4 percent.

• The California delinquency rate is currently 3.25 percent.

• In 2006, the California foreclosure rate was 1.17 percent.

• Out of 5,680 properties that entered foreclosure in 2006, only 697 were foreclosed upon.

• As of July, only 13 percent of properties listed in the MLS were bank-owned.

"Half-full? Half-empty? It depends on who is looking at the glass," say the Hunts. "Just remember, there is another perspective than the one we receive from the news media."

Copyright © 2007 RE/MAX International Inc. 8/14/07