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Median Price of Homes Purchased Rose 2.3 Percent to $110,000, 2011 American Housing Survey Finds

WASHINGTON, July 11, 2013, Homeowners in the U.S. paid a median price of $110,000 for their homes, according to a 2011 American Housing Survey profile released today. This is an increase of 2.3 percent from the $107,500 reported in the 2009 survey. The median purchase price of homes constructed in the past four years was higher at $235,000, down 2.1 percent from the $240,000 reported for new construction in 2009.

The profile released today provides information on the nation’s housing costs, mortgages and a variety of other physical and financial characteristics about housing in the U.S. The statistics come from the American Housing Survey, which is sponsored by the Department of Housing and Urban Development (HUD) and conducted by the U.S. Census Bureau, and is the most comprehensive housing survey in the United States. National data are collected every odd-numbered year and metropolitan area data are collected on a rotating basis. The Census Bureau also released profiles for 29 selected metro areas.

“The last five years remind us how central housing is to each of us personally, to the fiscal health of our cities and counties, and the national economy. For 40 years, the American Housing Survey has provided a unique set of data that connects the detailed characteristics of who is living in homes to the detailed characteristics of the homes themselves,” said Kurt Usowski, HUD’s Deputy Assistant Secretary for Economic Affairs. “From the American Housing Survey, we can see why people chose to move, how often homes need repairs, and the extent to which housing costs are outpacing income growth. All this information can help inform policymaking around continued recovery in the U.S. and in metropolitan areas around the country.”

“We are pleased to have the opportunity to collaborate with HUD on these profiles,” said the Census Bureau’s Arthur Cresce, Jr., Assistant Division Chief for Housing Characteristics. “Analysts in government and business study the nation’s housing very closely and the AHS yields a wealth of information that can be used by professionals in nearly every field for planning, decision-making, and market research.”

Some highlights for the U.S. include:

Physical Characteristics

  • The median year occupied homes were built in the U.S. was 1974.
  • Nationally, piped gas was the most prevalent home heating source, used by 50.4 percent of occupied homes. Electricity was used by 35.3 percent.
  • Among owner-occupied homes in the U.S., 46.3 percent had working carbon monoxide detectors.
  • Among all U.S. homes, 72.5 percent of owner-occupied units had central air.

Financial Characteristics

  • Median monthly expenditures for homeowners in the U.S. totaled $151 for real estate taxes, $121 for electricity and $58 for property insurance.
  • Among U.S. owner-occupied homes, 65.4 percent had a regular and/or home equity mortgage and 23.4 percent had a refinanced primary mortgage.
  • The median monthly mortgage payment for homeowners was $1,015 in 2011.

For a complete set of tables from the American Housing Survey, definitions, sample design, and more, see <http://www.census.gov/housing/ahs/>.

U.S. Dept. of Housing and Urban Development

U.S. Census Bureau

Brian Sullivan

Robert Bernstein

Office of Public Affairs

Public Information Office

202-402-7527

301-763-3030

brian.sullivan@hud.gov

pio@census.gov

CB13-125
Press kit

SOURCE:

U.S. Census Bureau
http://www.census.gov

 

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2013 Mid-Year Outlook: Economic Growth On the Road to “Normal”

 

Strengthening Housing Market Pushing Economy Forward

WASHINGTON, June 13, 2013 – The U.S. may be well into a prolonged period of steady economic growth, but it hasn’t yet reached its full potential, according to Fannie Mae’s (OTC Bulletin Board: FNMA) Economic & Strategic Research Group. Fiscal headwinds are expected to keep growth to below 2.0 percent for the first half of the year, with gradual strengthening in the second half of 2013 and into 2014. However, as fiscal drags wane, growth should continue to move in the positive direction amid an ongoing recovery in housing, rising household wealth, and expanded energy production.

“At the outset of the year, we forecasted that 2013 would witness sustainable but below-par growth as the economy begins its transition to more normal levels. Halfway through the year, our view is little changed,” said Fannie Mae Chief Economist Doug Duncan. “We expect approximately 2.1 percent growth over the course of 2013, up from the anemic pace of 1.7 percent in 2012. This is consistent with the incremental improvement seen over the past few years but still below the economy’s potential. Our forecast calls for growth to push past 2.5 percent in 2014, boosted largely by tailwinds from the strengthening housing market.”

Housing was largely positive entering the spring/summer season, with various indicators such as home prices, home sales, and homebuilding activity showing signs of long-term improvement toward normal levels. Despite rising mortgage rates during the past month, which have affected refinance originations, affordability conditions remain high and should not present a significant obstacle to potential homebuyers.

For an audio synopsis of the June 2013 Economic Outlook, listen to the podcast on the Economic & Strategic Research site at www.fanniemae.com. Visit the site to read the full June 2013 Economic Outlook, including the Economic Developments Commentary, Economic Forecast, Housing Forecast, and Multifamily Market Commentary.

Opinions, analyses, estimates, forecasts, and other views of Fannie Mae’s Economic & Strategic Research (ESR) Group included in these materials should not be construed as indicating Fannie Mae’s business prospects or expected results, are based on a number of assumptions, and are subject to change without notice. How this information affects Fannie Mae will depend on many factors. Although the ESR Group bases its opinions, analyses, estimates, forecasts, and other views on information it considers reliable, it does not guarantee that the information provided in these materials is accurate, current, or suitable for any particular purpose. Changes in the assumptions or the information underlying these views could produce materially different results. The analyses, opinions, estimates, forecasts, and other views published by the ESR Group represent the views of that group as of the date indicated and do not necessarily represent the views of Fannie Mae or its management.

Fannie Mae enables people to buy, refinance, or rent a home.

Visit us at: http://www.fanniemae.com/progress

Follow us on Twitter: http://twitter.com/FannieMae

SOURCE:

Fannie Mae

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Mayflower Study Reveals Americans’ Rising Faith in Housing Market

Mayflower reports 16 percent growth in residential moves during Q1

ST. LOUIS, April 3, 2013, With the economy stabilizing, Americans are feeling, once again, the bite of the moving bug.

Nearly half of Americans (47 percent) say they feel more comfortable purchasing a home today than at any other time in the past five years, results of a new survey by Mayflower show. And nearly a third say they are now ready to make a move.

Mayflower, America’s most recognized and trusted moving company, saw evidence of the change in attitude in its own first quarter 2013 results. Compared to first quarter 2012, residential moves were up 16 percent in the historically slowest moving months – January through March.

The new data are also consistent with other national data showing continued rises in existing home prices and sales. Growth appears to be the strongest in the West, where the Mayflower data showed 54 percent of survey respondents are now comfortable purchasing a house.

The data reflect an easing of the wariness Americans have felt in recent years in the aftermath of the bursting of the housing bubble in 2008. Although the average American reports moving six times throughout their adult life, nearly half of Americans (49 percent) say they have put off moving since the bubble burst nearly five years ago. Of those surveyed who had delayed a move, 37 percent cited economic instability as the main reason while another 31 percent blamed the declining real estate market.

Among those now interested in searching for a new home within the next year, the survey showed the desire for a new or better home is the leading motive. Other important motives include a desire for a more attractive neighborhood and the desire to become a homeowner.

Most mobile are the young, with half of Millennials (18-34 years old) more receptive to buying a home than renting and looking to move within the next year. While younger consumers would be more likely to move due to a change in employment or a growing family, half of adults over the age of 65 would consider moving in the next year because of retirement.

Despite the readiness to upgrade their living situations, Americans do acknowledge that moving is a stressful, and often dreaded, life event. Many survey respondents (44 percent) would rather go a week without Internet than move. Another 52 percent would prefer a trip to the dentist, and 15 percent even went as far as to say a root canal would be more enjoyable. Of all the stages of the moving process — planning, scheduling the move, packing, transporting the items and unpacking — 41 percent of people agree that packing is the most stressful part.

To ease the stress of a move, Mayflower offers a variety of services such as full-service moves that include packing, loading and transporting all of a customer’s belongings as well as PC and network assembly and the ability to track your belongings online from doorstep-to-doorstep. People who have had the opportunity to utilize a full-service moving company during their last move almost unanimously (98 percent) say they prefer it.

“We are ready to respond to the surge of moves with services, features and technology that make moves hassle-free and uncomplicated,” said Carl Walter , vice president of Mayflower Moving. “Moving is one of the most stressful and overwhelming times in a person’s life. We offer customers instant on-site estimates and personalized moving websites that significantly simplify the process.”

The peak moving season begins in May and will continue until September. Mayflower offers these tips to help consumers save time and money throughout their move:

  • Move on a weekday. Weekends are the time when most people want to move, but on weekdays, moving trucks often go unused. Book a truck on a Monday or Tuesday and use the weekend to prep for the movers’ arrival.
  • Move in the early part or middle of the month. A lot of household moves happen at the end of the month, which means prices will be higher.
  • If given a choice, avoid moving in the summer, especially June and July. You can save big on your moving costs.
  • Book in advance. Once you know the date of your move, book your mover right away.
  • Do some of your own packing. You can easily pack clothes, blankets, pillows and other non-fragile items yourself. For the breakable items, considering letting professionals pack them to avoid having to replace broken items.
  • Consider a do-it-yourself option like a container. Portable moving and storage containers allow you to pack and load your things at your own pace. A professional will pick up your loaded container and deliver it to your new home, so you don’t ever have to drive a truck.
  • Look for a company that offers cash back options on your real estate transaction. Mayflower’s CityPointe® program allows customers to earn cash back on the price of the home they buy or sell simply by using a realtor from a carefully qualified list of agents. In some cases, the cash back can cover the cost of your move.
  • Bundle other services into the price of your move. Look for a carrier that can arrange for services like cleaning, PC and network assembly and disassembly, and ID theft protection. Bundling these services with the cost of your move can help you save hundreds of dollars compared to hiring separate companies for each service.

Survey Background and Methodology
Respondents to the survey were selected from Research Now’s Consumer panel to reflect a general distribution of the consumer population over 18 years of age. 1,020 respondents completed the survey without knowledge of Mayflower’s sponsorship. Demographic descriptions:

  • Millennial represents people between the ages of 18-34.
  • Gen X represents people between the ages of 35-49.
  • Boomer represents people between the ages of 50-64.
  • Pre-Boomer represents people older than 65 years old.
  • The Research Now panel represents a wide range of consumers, including a subgroup of respondents that have moved within the last five years.

About Mayflower
Mayflower is America’s most recognized and trusted moving company. Together with its sister company Mayflower Containers, Mayflower offers a full range of moving services from full-service to do-it-yourself moving and storage. With headquarters in suburban St. Louis, Mayflower maintains a network of 300 affiliated agencies. For more information about Mayflower Transit and its services, visit Mayflower.com or find us on Facebook: www.facebook.com/MayflowerMoving.

SOURCE:

Mayflower

 

 

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118 Experts Predict Annual Home Value Growth To Exceed Pre-Bubble Rates Over Next Five Years

Survey Benchmark Changes; Path of U.S. Zillow Home Value Index Predicted to Show Cumulative 22 Percent Increase Through 2017

SEATTLE, March 18, 2013, A nationwide panel of more than 100 professional forecasters expects home values to end 2013 up an average of 4.6 percent and rise cumulatively by 22 percent, on average, over the next five years, according to the first quarter Zillow® Home Price Expectations Survey. Additionally, a majority of panelists indicated support for policies that would allow certain underwater homeowners to refinance at today’s low rates.

The survey of 118 economists, real estate experts and investment and market strategists was sponsored by leading real estate information marketplace Zillow, Inc. (NASDAQ: Z) and conducted by Pulsenomics LLC. This is the first survey edition that utilized the U.S. Zillow Home Value Index (ZHVI)[i] as the reference benchmark for the panel’s home price expectations[ii].

Survey respondents predicted home values will rise another 4.2 percent on average in 2014, before moderating somewhat to annual appreciation rates between 3.6 percent and 3.8 percent for 2015, 2016 and 2017. On average, panelists predicted home values to rise 4.1 percent annually from 2013 through 2017, exceeding the pre-housing bubble (1987-1999) average annual appreciation rate of 3.6 percent. This is the first time the predicted average annual growth rate for the next five years has surpassed pre-bubble levels since the survey’s inception three years ago.

“The panel is quite bullish on home prices near-term, considering a pre-bubble average appreciation rate of 3.6 percent per year,” said Zillow Chief Economist Dr. Stan Humphries. “That said, their expectations are a bit shy of the home value gains of 5.5 percent that we saw in 2012, implying some moderation in the pace of gains. The panel expectations are consistent with continued strong home value growth this year fueled by tighter-than-normal inventory of for-sale homes and robust demand attributable to high affordability and a stronger general economy.”

The most optimistic quartile[iii] of panelists predicted a 6.1 percent increase in home values in 2013, on average, while the most pessimistic[iv] predicted an average increase of 3 percent. Through 2017, panelists predicted cumulative home value changes of 22 percent, on average. Expectations for cumulative home value change projections ranged from 34.2 percent among the most optimistic quartile to 11.7 percent among the most pessimistic, on average.

GSE Wind-Down Period and Refinance Options For Underwater Borrowers

The first quarter 2013 Zillow Home Price Expectations Survey asked the panel to indicate their view of a reasonable timeframe for “winding-down” government sponsored enterprises (GSEs) Fannie Mae and Freddie Mac; and to weigh in on the debate over the merits of providing new refinancing options to underwater homeowners who are current on their mortgage payments.

The majority of panelists (59 percent) indicated that a reasonable and appropriate timeframe for winding-down the GSEs is within the next five years. On the opposite ends of the spectrum, 13 percent suggested a timeframe within the next two years, and 10 percent said they believe a period of more than 10 years is sensible.

Existing proposals that would facilitate refinancing of certain underwater borrowers include the Responsible Homeowner Refinancing Act of 2012, sponsored by Sens. Barbara Boxer (D-Calif.) and Robert Menendez (D-N.J.), and the Rebuilding Equity Act sponsored by Sen. Jeff Merkley (D-Ore.). The majority of respondents said they supported these types of policy initiatives.

“More than four of every five supporters of these refinancing proposals said they believe that borrowers who have demonstrated an ability to make their payments in recent years would pose little or no incremental risk to taxpayers if they refinanced. Two-thirds of supporters said they believe that the lower monthly payments would create a significant stimulus for the economy,” said Terry Loebs , founder of Pulsenomics LLC. “But the 41 percent of panel respondents who do not support these plans also hold strong views. More than two-thirds of them said they believe that rewriting loan contracts is bad policy in general, and that lowered monthly payments for borrowers ultimately translate into taxpayer and investor losses.”

Additional details regarding this portion of the survey are available at www.pulsenomics.com.

This is the 17th edition of the Home Price Expectations Survey. It was conducted from Feb. 22, 2013 through March 7, 2013 by Pulsenomics LLC on behalf of Zillow, Inc.

For full survey results and graphics, please visit Zillow Real Estate Research or www.pulsenomics.com.

About Zillow:
Zillow, Inc. (NASDAQ: Z) operates the largest home-related marketplaces on mobile and the Web, with a complementary portfolio of brands and products that help people find vital information about homes, and connect with the best local professionals. In addition, Zillow operates an industry-leading economics and analytics bureau led by Zillow’s Chief Economist Dr. Stan Humphries. Dr. Humphries and his team of economists and data analysts produce extensive housing data and research covering more than 350 markets at Zillow Real Estate Research. Zillow also sponsors the quarterly Zillow Home Price Expectations Survey, which asks more than 100 leading economists, real estate experts and investment and market strategists to predict the path of the Zillow Home Value Index over the next five years. The Zillow, Inc. portfolio includes Zillow.com®, Zillow Mobile, Zillow Mortgage Marketplace, Zillow Rentals, Zillow Digs™, Postlets®, Diverse Solutions®, Buyfolio™, Mortech™ and HotPads™. The company is headquartered in Seattle.

Zillow.com, Zillow, Zestimate, Postlets and Diverse Solutions are registered trademarks of Zillow, Inc. Buyfolio, Mortech, HotPads and Digs are trademarks of Zillow, Inc.

About Pulsenomics:
Pulsenomics LLC is an independent research and consulting firm that specializes in data analytics, new product and index development for institutional clients in the financial and real estate arenas. Pulsenomics also designs and manages expert surveys and consumer polls to identify trends and expectations that are relevant to effective business management and monitoring economic health.

[i] The Zillow Home Value Index is the median Zestimate® valuation for a given geographic area on a given day and includes the value of all single-family residences, condominiums and cooperatives, regardless of whether they sold within a given period. It is expressed in dollars, and seasonally adjusted.
[ii] Previously, the survey benchmark was the S&P/Case-Shiller U.S. National Home Price Index (single-family properties, not seasonally-adjusted). For a summary comparison of the survey benchmarks prepared by Pulsenomics, please click here.
[iii] Based on the 25 percent most optimistic panelists in terms of cumulative home price change through 2017.
[iv] Based on the 25 percent most pessimistic panelists in terms of cumulative home price change through 2017.

SOURCE:

Zillow, Inc.

 

 

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Almost Two in Three Renters Lack Renter’s Insurance

SAN FRANCISCO, March 11, 2013, Only 34% of Americans who rent their homes or apartments have renter’s insurance, according to a new survey released today by InsuranceQuotes.com, a Bankrate (NYSE: RATE) company.

InsuranceQuotes.com also found that 60% of Americans incorrectly pegged the annual cost of renter’s insurance at $250 per year or more. Twenty-one percent thought renter’s insurance cost a whopping $1,000 per year or more. The correct answer (according to the National Association of Insurance Commissioners) is $185 per year.

“Renter’s insurance is a lot more affordable than most people think,” said Laura Adams , senior insurance analyst, InsuranceQuotes.com. “Most renters don’t realize that their landlord’s insurance usually only covers the structure and not the renter’s belongings. And even in a safe area, renters can fall victim to theft, fire, water damage or another calamity. Fifteen dollars a month is a small price to pay in order to protect your possessions and liability in a lawsuit.”

The InsuranceQuotes.com survey found that the most common reasons for lacking renter’s insurance are “my apartment or rental home has good security” (cited as an important reason by 57% of those who lack renter’s insurance), “renter’s insurance is too expensive” (52%) and “my landlord has insurance” (48%).

InsuranceQuotes.com also found that only 28% of those who have renter’s insurance received the recommended three or more policy quotes before purchasing.

Consumers can compare quotes for renter’s insurance and other types of insurance policies at www.InsuranceQuotes.com.

The survey was conducted by Princeton Survey Research Associates International (PSRAI) and can be seen in its entirety here:

http://www.insurancequotes.com/insurance-for-renters

PSRAI obtained telephone interviews with a nationally representative sample of 1,004 adults living in the continental United States. Telephone interviews were conducted by landline (500) and cell phone (504, including 254 without a landline phone). Interviews were done in English by Princeton Data Source from February 7-10, 2013. Statistical results are weighted to correct known demographic discrepancies. The margin of sampling error for the complete set of weighted data is plus or minus 3.5 percentage points.

About InsuranceQuotes.com:

InsuranceQuotes.com provides consumers with a free, easy way to shop for and compare insurance quotes online, and delivers information about auto, home, health and life insurance and other types of insurance.

For more information, visit InsuranceQuotes.com.

InsuranceQuotes.com is part of Bankrate Insurance. Other Bankrate Insurance companies include NetQuote.com and InsureMe.com.

For More Information:

Ted Rossman
Public Relations Manager, Bankrate, Inc.
ted.rossman@bankrate.com
917-368-8635

SOURCE:

InsuranceQuotes.com

 

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Nearly 2 Million American Homeowners Freed From Negative Equity In 2012

Phoenix, Los Angeles and Miami Metros Had Most Homeowners Freed Last Year, According to Zillow; At Least 1 Million Additional Homeowners Nationwide Expected To Be Freed In 2013

SEATTLE, Feb. 21, 2013, Negative equity continued to fall in the fourth quarter of 2012, dropping to 27.5 percent of all homeowners with a mortgage, compared with 31.1 percent one year ago, according to the fourth quarter Zillow® Negative Equity Reporti. Almost 2 million American homeowners were freed from negative equity over the course of the year.

Approximately 13.8 million homeowners with a mortgage were in negative equity, or “underwater,” at the end of the fourth quarter, owing more on their mortgages than their homes are worth. That was down from 15.7 million in the fourth quarter of 2011. American homeowners with a mortgage were collectively underwater by more than $1 trillion at the end of 2012.

In 2012, national home values rose 5.9 percent year-over-year, according to the Zillow Home Value Index (ZHVI)ii, to a median value of $157,400. This jump in home values, coupled with sustained high foreclosure rates, were the main drivers for receding negative equity. Among the nation’s 30 largest metro areas, those with the highest number of homeowners freed from negative equity last year were Phoenix (135,099 homeowners freed in 2012); Los Angeles (72,936 homeowners freed in 2012); Miami-Fort Lauderdale (70,484 homeowners freed in 2012); Dallas-Fort Worth (59,461 homeowners freed in 2012); and Riverside, Calif. (58,417 homeowners freed in 2012).

New this quarter, the Zillow Negative Equity Forecastiii predicts the negative equity rate among all homeowners with a mortgage will fall to at least 25.5 percent by the fourth quarter of 2013, freeing more than 999,000 additional homeowners nationwide. Of the 30 largest metro areas, the majority of these newly freed homeowners are anticipated to come from: Los Angeles (72,696 homeowners freed in 2013); Riverside (62,407 homeowners freed in 2013); Phoenix (43,044 homeowners freed in 2013); Sacramento (33,356 homeowners freed in 2013); and Dallas-Fort Worth (31,434 homeowners freed in 2013).

Zillow forecasts negative equity by applying anticipated appreciation or depreciation rates to a home, according to the most current metro and national Zillow Home Value Forecasts, and by assuming all other factors remain constant.

“As home values continue to rise and more homeowners are pulled out of negative equity in 2013, the positive effects on the housing market will be numerous. Freed from negative equity, homeowners will have more flexibility, and some will likely choose to list their home for sale, helping to ease inventory constraints and moderating sometimes dramatic, demand-driven price increases in some markets,” said Zillow Chief Economist Dr. Stan Humphries . “But negative equity is still very high, and millions of homeowners have a very long way to go to get back above water, even with current robust levels of home value appreciation in most areas. As a result, negative equity will remain a major factor in the market for the foreseeable future.”

These results are from the fourth quarter edition of the Zillow Negative Equity Report, which looks at current outstanding loan amounts for individual owner-occupied homes and compares them to those homes’ current estimated values. Loan data is provided by TransUnion®, a global leader in credit and information management. This is the only report that uses current outstanding loan balances on all mortgages when calculating negative equity. Other reports estimate current outstanding loan balance based on the most recent loan on a property (i.e., the original loan amount at time of purchase or refinance).

Metropolitan Area

Q4 2012: % of Homeowners w/ Mortgages in Negative Equity

# of Homeowners Freed From Negative Equity in 2012

Q4 2013: Forecasted Negative Equity Rate

Minimum # of Homeowners Expected to be Freed From Negative   Equity in 2013iv

UNITED STATES

27.5%

1,908,732

25.5%

999,601

New York

19.4%

17,394

19.1%

6,513

Los Angeles

24.3%

72,936

20.0%

72,696

Chicago

36.9%

41,208

37.3%

N/A

Dallas-Fort Worth,

Texas

24.2%

59,461

21.3%

31,434

Philadelphia

23.8%

1,462

23.1%

7,356

Washington, DC

28.0%

45,207

25.8%

24,911

Miami-

Fort Lauderdale, Fla.

39.6%

70,484

37.0%

23,674

Atlanta

49.5%

49,827

47.9%

17,255

Boston

16.9%

30,495

15.6%

10,765

San Francisco

23.3%

39,496

19.5%

25,776

Detroit

43.4%

57,396

41.4%

17,197

Riverside, Calif.

43.8%

58,417

34.5%

62,407

Phoenix

40.4%

135,099

34.8%

43,044

Seattle

33.5%

32,457

29.9%

23,441

Minneapolis-St. Paul,

Minn.

34.6%

29,518

32.8%

12,808

San Diego

28.3%

31,894

23.4%

22,788

Tampa, Fla.

41.5%

34,359

40.0%

7,775

St. Louis

26.9%

23,348

27.0%

N/A

Baltimore

27.7%

11,529

26.5%

6,265

Denver

20.0%

53,848

18.0%

10,509

Pittsburgh

14.0%

8,767

13.2%

3,403

Portland, Ore.

28.0%

26,355

24.7%

13,799

Sacramento, 

Calif.

41.7%

32,195

32.9%

33,356

Orlando, Fla.

45.3%

32,650

43.3%

7,286

Cincinnati

27.2%

16,034

26.8%

1,830

Cleveland

29.8%

13,818

29.1%

2,965

Las Vegas

59.2%

36,876

56.7%

8,435

San Jose

16.1%

17,330

13.2%

8,062

Columbus

28.8%

19,905

27.7%

3,620

Charlotte

33.0%

13,513

32.9%

325

About Zillow:
Zillow, Inc. (NASDAQ: Z) operates the largest home-related marketplaces on mobile and the Web, with a complementary portfolio of brands and products that help people find vital information about homes, and connect with the best local professionals. In addition, Zillow operates an industry-leading economics and analytics bureau led by Zillow’s Chief Economist Dr. Stan Humphries. Dr. Humphries and his team of economists and data analysts produce extensive housing data and research covering more than 350 markets at Zillow Real Estate Research. The Zillow, Inc. portfolio includes Zillow.com®, Zillow Mobile, Zillow Mortgage Marketplace, Zillow Rentals, Zillow Digs™, Postlets®, Diverse Solutions®, Buyfolio™, Mortech™ and HotPads™. The company is headquartered in Seattle.

Zillow.com, Zillow, Zestimate, Postlets and Diverse Solutions are registered trademarks of Zillow, Inc. Buyfolio, Mortech, HotPads and Digs are trademarks of Zillow, Inc.

TransUnion is a registered trademark of Trans Union LLC.

i The data in the Zillow Negative Equity Report incorporates mortgage data from TransUnion, a global leader in credit and information management, to calculate various statistics. The report includes, but is not limited to, negative equity, loan-to-value ratios, and delinquency rates. To calculate negative equity, the estimated value of a home is matched to all outstanding mortgage debt and lines of credit associated with the home, including home equity lines of credit and home equity loans. All personally identifying information (“PII”) is removed from the data by TransUnion before delivery to Zillow. Overall, this report covers over 800 metros, 2,300 counties, and 22,900 ZIP codes across the nation.

ii The Zillow Home Value Index is the median Zestimate® valuation for a given geographic area on a given day and includes the value of all single-family residences, condominiums and cooperatives, regardless of whether they sold within a given period. The Home Value Index at the national level includes data from over 80 million homes in almost 3,000 counties and over 850 core-based statistical areas. It is expressed in dollars and is for a particular geographic region.

iii The Zillow Home Value Forecast is a conservative estimate of what negative equity rates will be a year from now. To forecast negative equity, we take the current home value of a house and appreciate it by the Zillow Home Value Forecast (ZHVF) for the MSA in which the home is located. In cases where there is no ZHVF available, we use the historical rate of home appreciation, and for metros that don’t have a historical rate of appreciation we use the historical rate of inflation at the national level. For homes that are not located in a metropolitan area, we use the forecasted national rate of appreciation. To calculate the level of home equity a year from now, we use the forecasted home value and the current outstanding debt balance, where we make no assumptions about a homeowner’s debt level a year from now. We also make no assumptions about foreclosure activity in the coming year. Therefore, this forecast is a very conservative one, as homeowners will likely continue to pay down their debt throughout the year and homes will likely continue to be foreclosed on, and both of these factors will contribute to a lower negative equity rate. The Zillow Negative Equity Forecast can therefore be considered a higher bound estimate of negative equity.

iv Some metro areas may be marked “N/A” in this column. Home values are expected to continue to fall in these metros, which will lead to a net increase in the number of homeowners with a mortgage who are in negative equity. While some homeowners in this metro will be freed from negative equity, we expect more homeowners to enter negative equity in the coming year when looking strictly at home value changes and not considering pay downs in mortgage principal or foreclosure activity.

SOURCE:

Zillow, Inc.
http://www.zillow.com

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CoreLogic Releases Q4 2012 Renter Applicant Risk Index Report

—Default Risk Among Renters Decreased Year Over Year—

IRVINE, Calif., Feb. 20, 2013, CoreLogic® (NYSE: CLGX), a leading residential property information, analytics and services provider, today released its fourth quarter 2012 CoreLogic SafeRent® Renter Applicant Risk (RAR) Index Report, formerly known as the Multifamily Applicant Risk (MAR) Index Report. Published quarterly, the RAR Index Report provides market-based benchmarks for evaluating credit quality and risk of default for renters applying for apartment homes in multifamily housing units. The index also includes data from single-family rentals. Using a mean of 100, an index value above 100 indicates decreased risk, and a value below 100 indicates increased risk.

According to the data, the risk of default among renters nationwide decreased year over year in the fourth quarter of 2012 with an index value of 103 compared to the fourth quarter of 2011 with an index value of 101. On a quarter-over-quarter basis, the risk of default increased in the fourth quarter 2012 compared to the third quarter of 2012 when the index value was 106. The increased risk from the third quarter to the fourth quarter of 2012 reflects a riskier applicant pool that is typical in seasonally slower periods of applicant traffic (See Figure 1).

Renter Trends

  • Lower-priced rentals see more significant decreases in rent amounts: Average rent amounts for Class A properties, defined as those with rents greater than $1100, increased 0.3 percent year over year. At the same time, rent amounts for Class B properties, defined as those between $750 and $1100, remained unchanged from one year ago, while rent amounts for Class C properties, defined as less than $750, decreased 0.9 percent year over year.
  • Dual applicants increase: In the fourth quarter of 2012, the number of transactions with two applicants increased across property class. On a year-over-year basis, dual-applicant transactions increased 3.9 percent for Class A properties, increased 2.8 percent for Class B properties and increased 0.3 percent for Class C properties.
  • Applicant income rises: Applicant income in the fourth quarter of 2012 increased an average of 1.7 percent among all property classes year over year and also increased over the previous quarter by .5 percent.
  • Fewer applicants declined: Compared to a year ago, property managers denied fewer applicants in the fourth quarter of 2012. Class A property managers denied 5 percent fewer applicants, Class B managers denied 1.3 percent fewer and Class C managers denied 0.6 percent fewer applicants.

Regional Renter Applicant Risk Index Data

Regionally, the Northeast and West had the highest RAR index value in the fourth quarter of 2012, both at 110, reflecting decreased default risk (see Figure 2). The Midwest had the lowest RAR index value at 98, reflecting increased risk, with a five-point decline from the previous quarter when the value was 103. The increased risk in the Midwest is reflective of increased risk seen in two Midwest Core Based Statistical Areas* (CBSAs) (see Figure 3).

Figure 2: Regional Renter Applicant Risk Index Data

Region

Q4 2012

Q3 2012

Change from Q3 2012 to Q4 2012

Q4 2011

Change from Q4 2011 to Q4 2012

Midwest

98

103

-5

97

1

Northeast

110

113

-3

110

0

South

100

103

-3

97

3

West

110

111

-1

107

3

U.S.

103

106

-3

101

2

The three CBSAs with the largest year-over-year increases in applicant risk were Chicago-Joliet-Naperville, Ill.-Ind.-Wis. (three-point value decline); Cleveland-Elyria-Mentor, Ohio (two-point value decline); and Dallas-Fort Worth-Arlington, Texas (one-point value decline). The CBSAs with the largest year-over-year declines in applicant risk were Denver-Aurora-Broomfield, Colo.; New York-Northern New Jersey-Long Island, N.Y.-N.J.-Pa.; and San Diego-Carlsbad-San Marcos, Calif., all with a four-point value increase (see Figure 3).

Figure 3: Core Based Statistical Area & Renter Applicant Risk Index Deltas

CBSAs With Largest Decreases

Q4 2012

Q4 2011

Change from Q4 2011 to Q4 2012

Chicago-Joliet-Naperville, Ill.-Ind.-Wis.

110

113

-3

Cleveland-Elyria-Mentor, Ohio

98

100

-2

Dallas-Fort Worth-Arlington, Texas

94

95

-1

CBSAs With Largest Increases

Q4 2012

Q4 2011

Change from Q4 2011 to Q4 2012

Denver-Aurora-Broomfield, Colo.

105

101

4

New York-Northern New Jersey-Long Island, N.Y.-N.J.-Pa.

124

120

4

San Diego-Carlsbad-San Marcos, Calif.

124

120

4

NOTE: CBSAs are selected from the Top 50 CBSAs based on   population and applicant volume.

* The CBSAs referred to within the Renter Applicant Risk Index Report may differ from the CBSAs referenced in other CoreLogic data reports. CBSAs are defined by the Office of Management and Budget (OMB) and CoreLogic may provide data either for the overall CBSA or a Metropolitan Division of a CBSA, depending upon the report. The particular CBSA used is identified in the report.

Methodology

The SafeRent Renter Applicant Risk (RAR) Index Report is published quarterly by CoreLogic. The RAR Index is calculated exclusively from applicant-traffic credit quality scores from the CoreLogic SafeRent statistical lease screening model, Registry ScorePLUS® and is based on an analysis of 39,000 properties representing nearly 6 million apartment homes and single-family rentals. The index provides a benchmark trend of national and regional traffic credit quality scores. The index value indicates the relative risk of an applicant pool fulfilling lease obligations. A risk index value of 100 indicates that market conditions are equal to the national mean for the Index’s base period of 2004. A risk index value greater than 100 indicates market conditions with reduced average risk of default relative to the index’s base period mean. A value less than 100 indicates market conditions with increased average risk of default relative to the index’s base period mean. Registry ScorePLUS is the multifamily industry’s only screening model that is both empirically derived and statistically validated. The statistical screening model was developed from historical resident lease performance data to specifically evaluate the potential risk of a resident’s future lease performance. The model generates scores for each applicant indicating the relative risk of the applicant not fulfilling lease obligations.

To receive local or regional renter applicant risk index data or if you have questions, contact CoreLogic SafeRent at smallon@corelogic.com.

About CoreLogic

CoreLogic (NYSE: CLGX) is a leading property information, analytics and services provider in the United States and Australia. The company’s combined data from public, contributory, and proprietary sources includes over 3.3 billion records spanning more than 40 years, providing detailed coverage of property, mortgages and other encumbrances, consumer credit, tenancy, location, hazard risk and related performance information. The markets CoreLogic serves include real estate and mortgage finance, insurance, capital markets, transportation and government. CoreLogic delivers value to clients through unique data, analytics, workflow technology, advisory and managed services. Clients rely on CoreLogic to help identify and manage growth opportunities, improve performance and mitigate risk. Headquartered in Irvine, Calif., CoreLogic operates in seven countries. For more information, please visit www.corelogic.com.

CORELOGIC, the CoreLogic logo, SAFERENT and REGISTRY SCOREPLUS are trademarks of CoreLogic, Inc. and/or its subsidiaries.

SOURCE: CoreLogic

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