New Homebuyer Tax Credit Likely to Encourage Mostly First-Time Purchasers

The proposed move by federal lawmakers to extend and expand the homebuyer tax credit is likely to have a much larger impact on first-time homebuyers than trade-up homebuyers, according to results from the Campbell/Inside Mortgage Finance Monthly Survey of Real Estate Market Conditions. The proposal expected to be approved this week would extend an $8,000 tax credit for first-time homebuyers and add a new $6,500 credit for current homeowners who buy a new principal residence.

Because the credit would average 4 percent of the purchase price for first-time homebuyers but only 2 percent for current homeowners, a lot more first-time purchasers are expected to take advantage of the tax break. Campbell Surveys estimates an extension and expansion of the tax credits will generate about 300,000 additional home sales to first-time homebuyers and 150,000 extra sales to current homeowners. Click here for more info.

Cash is King in REO-Dominated Housing Market, Survey Finds

Cash deals accounted for more than a quarter of home sale transactions tracked nationwide during the third quarter of 2009, according to the Campbell/Inside Mortgage Finance Monthly Survey of Real Estate Market Conditions. Not surprisingly, the survey found most of the cash deals were tied to sales of distressed properties–particularly damaged real estate owned, or REO. The growth in cash transactions, which is expected to continue for the foreseeable future, could put a damper on mortgage lender plans to grow their home purchase financing business in 2010.

For more information on the monthly survey contact John Campbell at john@campbellsurveys.com or (202) 363-2069.

New Monthly Housing Tracking Survey Launched by IMF

To help track the impact distressed properties are having on regional housing markets as well as monthly changes in the home purchase market, Inside Mortgage Finance has teamed up with Campbell Surveys to produce a comprehensive new monthly tracking survey. The Campbell/Inside Mortgage Finance Monthly Survey of Real Estate Market Conditions tracks both home sales and mortgage usage patterns nationally as well as regionally. The August survey results showed that 46 percent of all home sales involved distressed properties.

Damaged real estate owned (REO) accounted for 18 percent, move-in ready REO accounted for 16 percent, and short sales accounted for
another 12 percent.

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Tougher Mortgage Underwriting Limiting New Home Sales

This year’s tougher mortgage underwriting environment is clearly limiting home sales –particularly among first-time homebuyers– a new Inside Mortgage Finance- sponsored study reveals. Down payment and credit score requirements, which are much more stringent than they were a year ago, were cited as among the biggest obstacles facing first-time homebuyers this summer. A somewhat new impediment to both first-time homebuyers and current homeowners in buying a home are appraisal problems, according to the report. The new research is based on a nationwide survey of more than 1,500 real estate agents conducted by Campbell Surveys last month.

For further information on the new study, contact John Campbell at (202) 363-2069 or john@campbellsurveys.com.

Distressed Properties Now Account for Two-Thirds of Home Sales

An ongoing flood of mortgage defaults and foreclosures is dramatically changing the home sale landscape in the U.S. According to preliminary results from a new nationwide survey of housing conditions sponsored by Inside Mortgage Finance, nearly two-thirds of all home sale transactions now involve some sort of distressed properties. This is way up from the just over 50 percent level found just four months ago.

The new research, based on a survey of more than 1,500 real estate agents conducted by Campbell Surveys, found that nearly half of the current home sale market involved real estate owned (REO). Of the REO being sold, more than half now consist of damaged homes in need of repair. The study also found that only about 14 percent of current home sales involve so-called short sales. This was actually down from a 19 percent level found earlier this year. For further information on the new study, contact John Campbell at (202) 363-2069 or john@campbellsurveys.com.

New Study to Analyze Future Direction of Home Purchase Market

Inside Mortgage Finance is sponsoring a new study that examines the current characteristics and future direction of the housing market as it relates to the mortgage industry. The research will be based on a nationwide survey of real estate agents and brokers that was fielded last week by Campbell Communications. Early results reveal that investors have emerged as the primary buyers of damaged real estate owned while first-time homebuyers are key buyers of homes through short sales.

The study, Real Estate Agents Report on Home Sales and Mortgages, also will include ratings of mortgage lenders as well as actions that servicers and asset managers can take to improve their handling of troubled mortgages. A copy of the survey being used can be found at Campbellsurveys.com  Click here.