More Fixer-Upper Homes Listed for Sale

James Woodard
Sun, 13 Nov 2016 21:00:00 -0800
Lifestyle

In today's market, about 12 percent more homes are listed as "fixer-uppers" than were referred to as such five years ago. The number of similar listings has been rising steadily since 2011.
Updated: Mon Nov 14, 2016

In today's market, about 12 percent more homes are listed as "fixer-uppers" than were referred to as such five years ago. The number of similar listings has been rising steadily since 2011.

Rising home prices and tough buyer competition may be giving sellers more flexibility to list their home for sale "as-is" without needing to fix it up first. There are even more among high-priced homes in hot markets, according to a new Zillow analysis.

The report identified the number of fixer-upper homes listed for sale beginning in 2011 and ending in 2015, and compared them to overall for-sale inventory trends. To identify fixer-uppers, Zillow mined historical listing descriptions for phrases like "fixer-upper," "TLC" and "needs work," it was reported by the National Association of Realtors.

"Nationally, expensive fixer-uppers, or those priced within the top third of their markets, saw the biggest surge in inventory over the last five years, rising nearly 35 percent. Conversely, affordably priced fixer-uppers, or those valued within the bottom tier, increased less than 3 percent."

Q: What are real estate leaders saying about the election of Donald Trump?

A: Generally they are pledging cooperation with the president-elect. For example, here's a statement from David H. Stevens, president and CEO of the Mortgage Bankers Association:

"On behalf of the Mortgage Bankers Association, I want to congratulate Donald Trump on being elected the next President of the United States. Today our industry is operating in the safest and soundest lending environment ever designed.

"MBA will work with President-Elect Trump and his Administration, as well as with the new Congress, with the goal of advancing an agenda that restores housing as a lead economic driver for individual wealth creation and the nation as a whole. Therefore, it is critical that President Trump focus on three main areas — ensuring an adequate supply of affordable housing, bringing first time homebuyers back into the housing market and ensuring certainty in regulations."

Q: Are mortgage rates moving up?

A: Yes. Freddie Mac released the results of its Primary Mortgage Market Survey, showing average fixed mortgage rates increasing to their highest level since late June, it was reported.

The 30-year fixed-rate mortgage averaged 3.54 percent with an average 0.5 point for the week ending November 3, 2016, up from last week when it averaged 3.47 percent. A year ago at this time, the 30-year FRM averaged 3.87 percent.

The 15-year FRM this week averaged 2.84 percent with an average 0.5 point, up from last week when they averaged 2.78 percent. A year ago at this time, the 15-year FRM averaged 3.09 percent.

Sean Becketti, chief economist, Freddie Mac, added this note:

"A jump last week in the PCE — the price index tracked most closely by the Fed — raised the prospect that inflation might not be completely dead after all. Investors reacted by driving the yield on the 10-year Treasury to its highest point since June. The 30-year mortgage rate jumped 7 basis points to 3.54 percent, the largest 1-week increase in over six months."

Q: Are distressed homes still selling rapidly?

A: Sales of distressed homes have dropped in recent months. ATTOM Data Solutions, a source for housing data and the new parent company of RealtyTrac, released its third quarter of 2016 U.S. Home Sales Report.

The report shows that distressed sales — including bank-owned sales, sales of homes actively in foreclosure, and short sales — accounted for 12.9 percent of all U.S. single family home and condo sales in the third quarter of this year, down from 15.0 percent in the previous quarter and down from 15.9 percent in Q3 2015 to the lowest share of distressed home sales since Q3 2007, when distressed sales accounted for 12.3 percent of all home sales.

To find out more about Jim Woodard and read features by other Creators Syndicate writers and cartoonists, visit the Creators Syndicate website at www.creators.com. Jim Woodard's email: storyjim@aol.com.