U.S. Foreclosure Activity Increases 8% in January Biggest Jump since May 2012

California Foreclosure Starts
California Foreclosure Starts

Bank Repossessions Decrease 4% to Lowest Level Since July 2007 Foreclosure Starts Increase More Than 50 Percent Annually in MD, CT, NJ, CA

IRVINE, Calif. — RealtyTrac® released Thursday its U.S. Foreclosure Market Report™ for January 2014, which shows foreclosure filings — default notices, scheduled auctions and bank repossessions — were reported on 124,419 U.S. properties in January an 8 percent increase from December but still down 18 percent from January 2013. The report also shows one in every 1,058 U.S. housing units had a foreclosure filing during the month.

January marked the 40th consecutive month where U.S. foreclosure activity declined on an annual basis, but the annual decline of 18 percent was the smallest annual decline since September 2012, and the 8 percent monthly increase was the biggest month-over-month increase since May 2012.

“The monthly increase in January foreclosure activity was somewhat expected after a holiday lull, but the sharp annual increases in some states shows that many states are not completely out of the woods when it comes to cleaning up the wreckage of the housing bust,” said Daren Blomquist, vice president at RealtyTrac. “The foreclosure rebound pattern is not only showing up in judicial states like New Jersey, where foreclosure activity reached a 40-month high in January, but also some non-judicial states like California, where foreclosure starts jumped 57 percent from a year ago, following 17 consecutive months of annual decreases.”

High-level findings from the report:

  • A total of 57,259 U.S. properties started the foreclosure process for the first time in January, up 10 percent from the previous month but still down 12 percent from January 2013 — the 18th consecutive month where foreclosure starts have decreased annually.
  • Counter to the national trend, January foreclosure starts increased from a year ago in 22 states, including Maryland (up 126 percent), Connecticut (up 82 percent), New Jersey (up 79 percent), California (up 57 percent), and Pennsylvania (up 39 percent).
  • Scheduled foreclosure auctions (which are also foreclosure starts in some states) increased 13 percent in January compared to the previous month but were still down 8 percent from a year ago — the 38th consecutive month where U.S. scheduled foreclosure auctions have decreased annually.
  • Counter to the national trend, scheduled foreclosure auctions increased from a year ago in 27 states, including Oregon (up 326 percent), Connecticut (up 223 percent), Maryland (up 113 percent), New York (up 73 percent), and Nevada (up 73 percent).
  • Scheduled foreclosure auctions in New York were at the highest monthly level since October 2010 — a 39-month high — and scheduled foreclosure auctions in Nevada were at the highest level since February 2012 — a 23-month high.
  • There were a total of 30,226 U.S. bank repossessions (REO) in January, down 4 percent from the previous month and down 40 percent from January 2013 to the lowest level since July 2007 — a 78-month low.
  • Counter to the national trend, 12 states posted annual increases in REO activity in January, including New York (up 118 percent), Oklahoma (up 93 percent), Connecticut (up 75 percent), New Jersey (up 26 percent), and Maryland (up 11 percent).
  • States with the highest foreclosure rates in January were Florida, Nevada, Maryland, Illinois, and New Jersey.
  • Among the nation’s 20 most populated metropolitan statistical areas, the highest foreclosure rates were in Miami, Tampa, Chicago, Baltimore and Riverside-San Bernardino in Southern California. Only four of the 20 largest metro areas posted annual increases in foreclosure activity: Baltimore (up 119 percent), New York (up 40 percent), Washington, D.C. (up 38 percent), and Philadelphia (up 14 percent).

New York Repossessions
New York Repossessions

Local broker quotes
“Ohio’s foreclosure rate increased 23 percent for the month of January 2014 compared to December of 2013, but the added inventory is being absorbed quickly in the market due to low available inventory of single-family home listings,” said Michael Mahon, executive vice president/broker at  HER Realtors, covering the Cincinnati, Columbus and Dayton, Ohio markets.  “Despite this increase in foreclosure activity, all signs in Ohio point to continued, positive growth of appreciation in single-family home prices as well as homeowner equity for 2014.”

“Foreclosure activity in Oklahoma is continuing to wind down,” said Sheldon Detrick, CEO of  Prudential Detrick/Alliance Realty covering the Oklahoma City and Tulsa, Okla., markets.  “I wouldn’t say it’s over, but it’s definitely winding down, which has resulted in multiple offers on every REO that is listed with many of them selling for higher than the listing price.”

Florida, Nevada and Maryland post top state foreclosure rates
Florida foreclosure activity in January increased 19 percent from December but was down 13 percent from January 2013 — the sixth consecutive month with an annual decrease in foreclosure activity following passage of foreclosure fast track legislation there in July. Despite the downward trend in foreclosure activity, Florida still posted the nation’s highest state foreclosure rate: one in every 346 housing units with a foreclosure filing.

Florida foreclosure starts jumped 43 percent from December to January, but were still down 33 percent year over year, while scheduled foreclosure auctions increased 28 percent from December and also were up 28 percent from a year ago to the highest monthly level since October 2010 — a 39-month high.

Florida Foreclosure Auctions
Florida Foreclosure Auctions

Scheduled foreclosure auctions in Nevada were at a 23-month high in January thanks to a 43 percent month-over-month spike in the numbers, which were up 73 percent from January 2013. Nevada foreclosure starts and bank repossessions were still down from a year ago, but the state still posted the nation’s second highest foreclosure rate: one in every 533 housing units with a foreclosure filing.

Maryland overall foreclosure activity increased on a year-over-year basis for the 19th consecutive month in January, helping the state post the nation’s third highest foreclosure rate for the month: one in every 543 housing units with a foreclosure filing.

Other states with foreclosure rates among the nation’s 10 highest in January were Illinois (one in every 603 housing units with a foreclosure filing), New Jersey (one in every 619 housing units), Connecticut (one in every 752 housing units), Delaware (one in every 818 housing units), South Carolina (one in every 850 housing units), Ohio (one in every 885 housing units), and California (one in every 921 housing units).

Report methodology
The RealtyTrac U.S. Foreclosure Market Report provides a count of the total number of properties with at least one foreclosure filing entered into the RealtyTrac database during the month — broken out by type of filing. Some foreclosure filings entered into the database during the month may have been recorded in previous months. Data is collected from more than 2,200 counties nationwide, and those counties account for more than 90 percent of the U.S. population.

To read the full report click here. https://www.realtytrac.com/content/foreclosure-market-report/january-2014-foreclosure-market-report-7982

 




Rio Nuevo Meeting Highlights

Rio Nuevo LogoThe following highlights were distributed from the February 11th Rio Nuevo meeting:

The board called for a special meeting on February 27 to hear the final bids for the TCC Arena remodel.  The project manager presented the construction schedule which shows the project totally completed by the end of 2014.  The special meeting will also review the new seats bids and expects to finalize the construction budget and authorize the start of construction.

The Board also approved an Intergovernmental Agreement with the city of Tucson to allow them to utilize the Rio Nuevo contractors to repair some of the deferred maintenance items that were called to the City’s attention and approved by the mayor and council.  The city will pay all those costs directly.

The Board unanimously adopted an ethics policy designed to govern the board and board behavior by adhering to a strict ethical standard for achievement, communication, and managing conflicts of interest.  The entire document can be reviewed on the website.

The District was presented with the new name scholarship entries forwarded by members of the city council.  All but one city council member has forwarded three finalists for the scholarship award.  The final names will be reviewed by the entire board, once forwarded from the city council.

The Rialto Theatre board and Executive Director updated the Rio Nuevo board on their recent accomplishments and return to profitability.  The Rialto is now one of the top 50 live music clubs in the US according to PollStar.  The Rialto presented the District with a proclamation thanking the District Board for its commitment to music and live entertainment. The Rialto annual gala event is this Saturday, February 15.

 




Real Estate Daily News Buzz – February 14, 2014

Reserve & White house Real Estate Daily NewsReal Estate Daily News Buzz is designed to give news snippets to readers that our (yet to be award winning) editors thought you could use to start your day. They come from various business perspectives, real estate, government, the Fed, local news, and the stock markets to save you time. Here you will find the headlines and what the news buzz for the day will be.

The Dow Jones industrial average climbed 63.65 points, or 0.4%, to 16,027.59. The Standard & Poor’s 500 index rose 10.57 points, or 0.6%, to 1,829.83. The NASDAQ composite rose 39.38 points, or 0.9%, to 4,240.67. Benchmark U.S. crude for March delivery slipped 2 cents to $100.35 a barrel on the New York Mercantile Exchange.

COMCAST STRIKES DEAL TO BUY TIME WARNER CABLE
LOS ANGELES (AP) — Comcast Corp. is buying Time Warner Cable Inc. for about $45.2 billion in a deal that combines the nation’s top two cable TV companies and would create a dominant force in both creating and delivering entertainment. The company is also presenting federal regulators with an equally outsized quandary: How should they handle a conglomerate that promises to improve cable TV and Internet service to millions of homes but also consolidates unprecedented control of what viewers watch and download? Comcast says the deal will provide faster, more reliable service to more customers and save money on TV programming costs. But industry watchdogs say the deal will give the company too much power and ultimately raise the price of high-speed connections. If the acquisition is approved, Comcast will serve some 30 million pay TV customers and 32 million Internet subscribers.

HUGE NV-CA THERMAL PLANT OPENS AS INDUSTRY GROWS
PRIMM, Nevada (AP) — A solar power plant sprawling over 5 square miles — the largest of its type in the world — has formally opened along the California-Nevada border. The Ivanpah Solar Electric Generating System uses nearly 350,000 mirrors — each roughly the size of a garage door — to gather the sun’s energy to make electricity. The $2.2 billion complex can produce enough power for 140,000 homes. But Ivanpah can also be seen as a cautionary tale, highlighting the inevitable trade-offs between the need for cleaner power and the loss of fragile, open land.

DUNKIN’ CONTINUES GROWTH MODE
Dunkin’ Brands added 790 new units last year, including 371 new Dunkin’ Donuts in the U.S., and the chain’s westward expansion brought its first California franchise sales. The company, which booked a 3.4% increase in same-store sales and an 8.5% jump in total revenue, also continued expanding its namesake and Baskin-Robbins brands overseas. “Going into 2014, we look to drive growth by strengthening worldwide awareness of our two brands through global marketing initiatives, such as our recently announced partnership with Liverpool Football Club,” said CEO Nigel Travis.

GM RECALLING NEARLY 780,000 OLDER COMPACT CARS
DETROIT (AP) — General Motors is recalling almost 780,000 older-model compact cars in North America because a faulty ignition switch can shut off the engines without warning and cause crashes. The company says six people have died in 22 crashes linked to the problem in Chevrolet Cobalts from the 2005 through 2007 model years, and Pontiac G5s from 2007. A heavy key ring or jarring from rough roads can move the ignition switch out of the run position, cutting off the engine and electrical power, GM said in statements and documents released Thursday by the U.S. National Highway Traffic Safety Administration. If that happens, the front air bags may not work if there’s a crash. GM says the six fatalities occurred in five front-end crashes, all of which happened off-road and at high speeds.

JANUARY WINTER STORMS ADDED CHILL TO ECONOMY
WASHINGTON (AP) — The winter storms barreling across much of the United States are undercutting the nation’s economy just when signs of stronger growth had begun to emerge. Retail sales tumbled in January after a smaller decline in December, the government said Thursday. The news came as another snowstorm blanketed a third of the country, likely ensuring that February will mark a third straight month of weak job growth. Some economists responded by lowering their overall growth estimates for the January-March quarter. Freezing weather usually slows the economy during winter before growth picks up once temperatures rise again. But the onslaught of snow days this winter could prolong the slowdown.

NEW GENDER OPTIONS FOR FACEBOOK USERS
MENLO PARK, Calif. (AP) — You don’t have to be just male or female on Facebook anymore. The social media giant has added a customizable option with about 50 different terms people can use to identify their gender as well as three preferred pronoun choices: him, her or them. Facebook said the changes initially cover the company’s 159 million monthly users in the U.S. and are aimed at giving people more choices in how they describe themselves, such as androgynous, bi-gender, intersex, gender fluid or transsexual. Facebook, which has 1.23 billion active monthly users around the world, also allows them to keep their gender identity private and will continue to do so.

US INVETSIGATES NC COAL ASH SPILL
RALEIGH, N.C. (AP) — Federal authorities have launched a criminal investigation into a massive coal ash spill into a North Carolina river, demanding that Duke Energy and state regulators hand over reams of documents related to the accident that left a waterway polluted with tons of toxic sludge. The U.S. Attorney’s Office in Raleigh issued grand jury subpoenas seeking records from Duke and the North Carolina Department of Environment and Natural Resources. The subpoenas seek emails, memos and reports related to the Feb. 2 spill into the Dan River and the state’s oversight of the company’s 30 other coal ash dumps in North Carolina.

JC PENNEY CFO HANNAH LEAVING THE COMPANY
PLANO, Texas (AP) — J.C. Penney has replaced its chief financial officer, the latest move by the struggling department store operator as tries to improve its results. Chief Financial Officer Ken Hannah, 45, is leaving the company and will be replaced by Ed Record, 45. He was previously chief operating officer at department store chain Stage Stores. The move is effective March 24. Record will be responsible for J.C. Penney Co.’s financial operations and will report to CEO Mike Ullman. Hannah will remain CFO during the transition process. The company did not give a reason for his departure.

BELIEVE IT, OR NOT: NEW ARGENTINE INFLATION INDEX
BUENOS AIRES, Argentina (AP) — In Argentina, the credibility of a new consumer price index unveiled Thursday is key to containing inflation and attracting investment from a world that has lost confidence in the government’s numbers. The new index’s first monthly report said consumer prices rose 3.7% in January compared to the month before. That’s 44% on an annual basis, and roughly four times the rate Argentina reported nearly every month for the previous seven years. Since January 2007, the government systematically underestimated inflation and thus overestimated economic growth, critics said. The new index was designed in consultation with the International Monetary Fund, which shamed the government last year by refusing to include its economic data in global reports.

VOTER-APPROVED ROAD REPAIR WORK ON BROADWAY CHANGED TO EVENING HOURS
TUCSON – To accommodate Tucson drivers, lessen traffic congestion, and stay on schedule, road repair work on Broadway Boulevard, between Country Club Road and Wilmot Road, will now take place between 7 p.m. and 5 a.m. on weekdays through March 3rd. This extensive project is part of the voter-approved $100 million, five-year street bond program, Proposition 409. Southern Arizona Paving and Construction Co., under contract with the City of Tucson Department of Transportation, will be performing the work. Travel lane restrictions will be in place during the work period. However, at least two lanes of travel will be maintained in both directions.
Read the TDOT news release: https://1.usa.gov/1j6fZVE
Road Recovery Bond Program: https://1.usa.gov/1lxdFvK

ADMISSION TO SAGUARO NATIONAL PARK IS FREE THIS WEEKEND
TUCSON – Saguaro National Park is one of 401 national park sites across the nation waiving entrance fees Saturday through Monday to celebrate President’s Day. The free admission applies to both the Tucson Mountain and Rincon Mountain Districts of the Park. Additional user fees, such as backcountry camping permit fees, still apply.
Saguaro National Park: https://1.usa.gov/1nuHU1Y

SCORE A DEAL ON CITY SURPLUS
TUCSON – Need a bus? How about some bicycles? Maybe some concrete pavers will help you finish a project? You can find these items and more on the City of Tucson’s surplus auction website.
View the items listed for bid: https://bit.ly/1br4W2N
Learn more about Tucson’s Public Surplus auctions: https://bit.ly/1jEdrzB