Median Housing Price Falls in the First Quarter

The median price for a home in the US fell to $169,000 in the first quarter, according to a report released by the National Association of Realtors.  The number represents a 14% drop from a year earlier. Median prices in metropolitan areas ranged from a low of $30,300 in Saginaw, MI to 570,000 in Honolulu, HI. The median price has been pulled down due to a number of factors including the surge of first-time homebuyers into the market and the large number of foreclosures being sold.

While it is very tempting to see these statistics as quite negative, they also come with some positives.  Yes, it is disconcerting to see the value of homes decline.  Yesterday we discussed the large number of people who are underwater on their mortgages, and declining home values will only serve to exacerbate the problem.  However, the influx of new buyers into the market is a positive sign for the industry.  New buyers will likely remain in the market, turning people who used to rent into prospective buyers and sellers.  The ultimate increase of prospective buyers should increase the demand within the market, leading to a stronger market in the long run.

 

Helping Seniors Avoid Foreclosure

 

Lisa Madigan, Illinois Attorney General

Lisa Madigan, Illinois Attorney General

At the NRMLA conference in Chicago, one of the speakers was Brenda Grauer, who works for the Office of the Illinois Attorney General.  During her presentation, I learned that the government is available as a resource for seniors trying to avoid foreclosure.

 

As previously discussed, generally in order for a reverse mortgage to be used to help a senior avoid foreclosure, the borrower needs to get a short pay from the bank.  The short pay reduces the amout the senior owes the bank, which can then be paid off through the reverse mortgage.  But banks are often reluctant to grant short pays.

Ms. Grauer explained how the Attorney General’s office is working with many lenders to try and help seniors (and others) receive short pays so that they can stay in their homes. The office is getting stays on orders of foreclosure, and, as of when she spoke, none of the people they were working with had lost their homes.  It seems that the Attorney General’s office is therefore a good place to go for seniors in search of resources or aid in avoiding foreclosures.  While all states have different resources available, it is a worthwhile call to make with nothing to lose and much to gain. 

The number for the Homeowner’s Helpline of the Office of the Attorney General in Illinois is 1-866-544-7151.