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» DELINQUENCY, FORECLOSURE RATES FALL TO POST-CRISIS LOWS The national delinquency rate and foreclosure inventory rate both fell to post-crisis lows in May, Lender Processing Services (LPS) reported. At 6.08 percent, the national delinquency rate in May stood at the lowest level since May 2008, when the rate was 5.96 percent. Month-overmonth, delinquencies dropped 2.1 percent from April and plunged 12 percent from May 2012. At the same time, the foreclosure inventory rate slipped to 3.05 percent, which represents the lowest point since March 2009, when the rate was 2.90 percent. Foreclosures declined for 13 straight months as of May. Over the 12 months prior, LPS data show the nation's foreclosure inventory plunged 27 percent. From April to May, the decline was 3.9 percent. LPS also reported about 3.04 million mortgages were past due by at least 30 days but not yet in foreclosure as of the end of May. Of that total, about 1.34 million were 90-plus days delinquent but had yet to enter foreclosure. Properties in foreclosure pre-sale inventory numbered 1.52 million as of May, bringing the grand total of delinquencies and foreclosures to 4.56 million. Be confident that the industry is hearing your message. Advertise with DS News today. Call 214.525.6700 or visit DSNews.com. VISIT US ONLINE @ DSNEWS.COM HOME PRICE BOOST SENDS SALES DOWN IN JUNE By Mark Lieberman, Chief Economist for the Five Star Institute Existing-home sales fell 1.2 $230,300. The median price in percent in June to an annual June topped $200,000 for the The median price of second month in a row for the sales rate of 5.08 million as the an existing single- first time since July-August price of a single-family home rose 13.5 percent from a year 2008. family home has earlier—the strongest yearThe higher prices are been up on a yearly driven in part by relatively over-year gain since November 2005, the National Association basis for 16 months tight inventory. Recent of Realtors (NAR) reported. in a row but remains increases in mortgage rates Economists surveyed by could have the offsetting effect 7 percent below its of pushing prices down to keep Bloomberg expected the trade group's assessment of annual July 2006 peak of monthly payments affordable existing-home sales to jump while at the same time driving $230,300. to 5.27 million from May's them up as more buyers originally reported sales pace rush the market to complete of 5.18 million. May sales were revised down to transactions before rates rise further. 5.14 million in the latest report. Inventories continue to struggle with The median price of an existing home rose competition with sales of lower priced $11,100, or 5.5 percent, from May to June. At "distressed" homes. According to the NAR, $214,200, June's median price is the highest distressed homes—foreclosures and short sales recorded by NAR since June 2008. that typically sell at a reduced price—accounted The inventory of homes for sale rose to 2.19 for 15 percent of June sales, the lowest share since million from 2.15 million in May, translating NAR began its monthly tracking of such sales to a 5.2 month supply compared with May's 5.0 in October 2008. Distressed homes accounted month supply. Both the May inventory and for 18 percent of sales in May, unchanged months' supply were revised down from the from April, and they made up 26 percent of all previous month's report. existing-home sales in June 2012. Some of the The monthly decline in sales was only the increase in the median price can be attributed to second this year but was also the largest since the lower share of distressed homes sold in June. the sales pace fell by the same amount last NAR said 8 percent of June sales were December. The drop in sales came despite an foreclosures, and 7 percent were short sales, increase in April in NAR's Pending Home compared with 11 percent and 7 percent, Sales Index, which tracks contracts for existing respectively, in May. Foreclosures sold for an single-family homes. The index rose in April to average discount of 16 percent below market 105.7 from 104.1 in March and subsequently fell value in June, while short sales were discounted in May. 13 percent. By comparison, foreclosures sold in Nonetheless, the sales pace topped 5 million May for an average discount of 15 percent below for the second month in a row for the first time market value, while short sales were discounted since October-November 2007. June sales were 12 percent. 670,000, or 15.2 percent, ahead of sales a year According to NAR, the median time on earlier. Existing-home sales improved year-overmarket for all homes was 37 days in June, down year for 17 straight months. from 41 days in May and 70 days in June 2012. Sales of previously owned homes continue First-time buyers, the trade group to be plagued by tight inventory. The number of reported, accounted for 29 percent of homes on the market in June was down 180,000 purchases in June compared with 28 percent from a year earlier. The months' supply of homes in May and 32 percent in June 2012. Despite for sale—computed using the number of homes the recent increase in mortgage rates, all-cash for sale and the current sales pace—rose in June sales made up 31 percent of transactions in but was down 1.2 months from June 2012. The months' supply has been down year-over-year for June, down from 33 percent in May. All-cash sales were 29 percent in June 2012. 24 straight months. Regionally, existing-home sales fell in The median price of an existing single-family three of the four Census regions. The only home rose for the fifth straight month in June exception was the Midwest, where sales were and has been up on a yearly basis for 16 months flat at an annual rate of 1.21 million. The in a row. Even with the June price increase, the median price of an existing single-family home median sales price rose in all regions over the is down 7 percent from its July 2006 peak of month. 39

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