The health of Middle Tennessee's housing market continues to improve, according to research firm CoreLogic. At the end of May, just 0.38 percent of all homeowners were in foreclosure — compared to 0.56 percent statewide and 1.29 percent nationally — while the 90-day mortgage delinquency rate has dropped more than 40 basis points since the end of 2014.
Research firm CoreLogic says cash sales for homes in Nashville-Davidson-Murfreesboro-Franklin decreased for April compared to the same period last year by 3.4 percent.
The number of cash sales in April represented 28.4 percent of overall sales.
In addition, cash sales in the Greater Nashville region were 5.3 percent lower in April than the national rate, according to CoreLogic news release.
Nationally, cash sales accounted for 33.7 percent of total home sales in April, down from 37.4 percent in April 2014. The year-over-year share has fallen each month since January 2013, making April 2015 the 28th consecutive month of declines.
Month over month, the cash sales share fell by 0.9 percentage points. Due to seasonality in the housing market, cash sales share comparisons are typically made on a year-over-year basis.
Nationwide, the cash sales share peak occurred in January 2011 when cash transactions accounted for 46.5 percent of total home sales. Before the housing crisis tied to the Great Recession, the cash sales share of total home sales averaged about 25 percent. If the cash sales share continues to fall at the same rate it did in April, the share should hit 25 percent by mid-2017, according to CoreLogic.
About 4.2 percent of Nashville-area homeowners owe more on their mortgages than their houses are worth, according to real estate research firm CoreLogic. That March 31 number amounts to almost 14,900 homes but is down significantly from the 20,787 homes — or 5.9 percent of the total — that were in negative equity a year earlier. Another 1.5 percent of all homes are considered to be "near negative equity," down from 2.9 percent in early 2014.
Nationally, CoreLogic says 10.2 percent of homeowners with mortgages were underwater at the end of the first quarter. That was down from 12.9 percent the year before.
Of the more than 50 million residential properties with a mortgage, approximately 9.7 million, or 19.4 percent, have less than 20 percent equity (referred to as "under-equitied"), and 1.3 million, or 2.7 percent, have less than 5 percent equity (referred to as near-negative equity). Borrowers who are "under-equitied" may have a more difficult time refinancing their existing homes or obtaining new financing to sell and buy another home due to underwriting constraints. Borrowers with near-negative equity are considered at risk of moving into negative equity if home prices fall.
The financial state of Nashville's homeowners continues to improve ever so steadily, according to the researchers at CoreLogic. (See the chart on the right.) At the end of March, barely 2.5 percent of all mortgages in Middle Tennessee were delinquent 90 days or more. That's down 70 basis points from a year earlier and a full point below the number of early 2014.
Improvement on the foreclosure side of the housing market have been a little harder to come by of late. But the 0.47 percent rate is close to a post-crash low and bode well both for continued housing price gains and for the profitabilty of banks and other home loan lenders.
The graphic below shows a slightly bigger picture in the Freddie Mac Multi-Indicator Market Index, which includes some payment data of the kind tracked by CoreLogic but also throws in information on a city's incomes, mortgage applications and overall job growth. Improvements in the last two of that trio have pushed Nashville's score to its highest point since before the Great Recession.
Nashville's MiMi gain in March was the fourth-best among the country's 100 largest cities. For more national perspective, click here.
Research firm CoreLogic says Nashville-area home prices, including distressed sales, rose 7.1 percent year over year in March. Take out transactions involving distressed properties and the 12-month price rise drops only a bit to 6.5 percent.
CoreLogic's latest national data set is here. It shows Tennessee as one of seven states where home prices are at record highs.
It's not necessarily a surprise, but it is encouraging. Real estate research firm CoreLogic's latest numbers show that more and more Middle Tennessee homeowners are becoming current on their payments. The 2.71 percent delinquency rate for February was 70 basis points better than that of a year earlier and just about a full point below the number from October of 2013. That trend has had a positive effect on local banks' earnings and is showing little sign of slowing down.
Forgive Nashville-area homeowners if they are discounting year-ago predictions of little or no price appreciation in 2015. Research firm CoreLogic reports that the market finished February with prices — including distressed sales — up 7.1 percent from the mark of a year earlier. Take out distressed sales and the year-over-year increase is still a very respectable 5.7 percent. Those numbers are right in line with stats from last summer.
The Nashville-area housing market finished 2014 with one out of 35 home mortgages being at least three months delinquent, according to research firm CoreLogic. That might sound like a lot but the 2.83 percent ratio is more than a full point below where it stood 15 months earlier. Similarly, the foreclosure rate among home loan lenders has come down steadily and is now below 0.5 percent. Here's how the region's numbers have trended over the past two years.
Housing market research firm CoreLogic says Nashville-area home prices were up 6.8 percent in January from a year earlier. That's down 0.9 percentage points from October and 1.3 points from July. Excluding distressed sales, the year-over-year price gain was 5.3 percent, also down almost a point from three months earlier.
Housing market research firm CoreLogic says Nashville-area home prices, including distressed sales, rose 7.9 percent in November compared to the year before. Taking out distressed sales, the year-over-year growth still came in at 6.8 percent. Both of those numbers are up from the month before and measure up pretty well compared the country's 10 biggest cities.
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