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Business, Stock Market, Commodities and Real Estate News - Part 2

Picking Stock Market Winners the Easy Way

Picking winners in the Stock Market can be confusing, complex and time intensive sometimes but here’s a system that isn’t really new but it can get you moving in the right direction.

Every week the government and other entities release economic reports that cover all areas of the economy – from retail sales to housing, to international trade to consumer sentiment.

In fact, on virtually any given day there could be anywhere from one to a handful of reports.

And while the financial media does cover them, they usually focus on headline numbers without doing a deeper dive.

This is unfortunate because within these reports often exists money-making details that can quickly be uncovered with just an extra few minutes of reading.

For example, in the Employment Situation report, it details what sectors saw the most new jobs or labor force expansion, and which ones contracted.

I can remember countless times where that report got me into the right sectors and industries at the right time before anybody else was talking about them.

In fact, I still remember getting into housing in early 2012 while everybody else was staying as far away from it as possible. But, after seeing construction jobs continue to rise in report after report after report, I knew the housing market had turned. And that was one of the first alerts to the housing recovery – for those who knew where to look.

But the headline number and the obligatory one-or-two-sentence write ups on many news sites missed the best part of the story by not going the extra mile (or paragraph).

Well here we are again, with more stock-picking insight, straight from last week’s Employment Situation report. Last week it showed that some of the biggest job creation came from these three industries:

1) Retail Trade +36,000
(up 322,000 over the past year)

2) Food Services and Drinking Places +29,000
(up 376,000 over the past year)

 

Zacks employment strategy

Oil and Gas Stocks Best Bets

Oil stock prices continued heading south but one investor is betting big time on gas futures, spending about $1 Billion for just over 19 million shares. 

It was a week where oil prices tumbled to their lowest close in more than 4 months but natural gas futures gained for the first time in 3 weeks. On the news front, the top story came from billionaire investor Carl Icahn’s 8.18% stake buy in natural gas exporter Cheniere Energy Inc.

Overall, it was a mixed week for the sector. While West Texas Intermediate (WTI) crude futures dived 6.9% to close at $43.87 per barrel, natural gas prices gained 3% to $2.80 per million Btu (MMBtu). (See the last ‘Oil & Gas Stock Roundup’ here: Crude Slump Batters Exxon, Chevron Profits.)

Oil prices extended their losing streak and fell for the sixth straight week, the backdrop being another increase in the number of crude-directed rigs. An upwardly moving rig count has underlined concerns about an expansion in the commodity’s global supply glut. The recent turn of events in Greece, Iran and China also created pressure. Finally, a stronger dollar has made the greenback-priced crude more valuable for investors holding foreign currency.

Meanwhile, natural gas fared much better amid predictions of strong summer cooling demand with majority of the central and southern U.S. reeling under extreme heat. The U.S. Energy Department’s weekly inventory release – showing a smaller-than-expected increase in the commodity’s supplies – also helped to push up prices.

Recap of the Week’s Most Important Stories

1.    Shares of Houston-based natural gas company Cheniere Energy Inc. jumped more than 8% following the announcement that Carl Icahn has taken a 8.18% stake in the company. The activist investor spent slightly more than $1 billion to accumulate 19.4 million shares of Cheniere Energy.

 

Zacks comments on Oil & Gas

 

It’s one of the “Sin” segment of stocks that some investors would prefer not to invest in but the dividend returns are nothing to sneeze at. They’re well established companies with good track records and have been paying a decent dividend for years. It’s worth taking a look.

For many companies, brand awareness is the make or break factor that contributes to their success. In the alcoholic beverage industry, the same rules apply. Brown-Forman (NYSE:BF.B), Anheuser-Busch InBev (NYSE:BUD), and Diageo plc (NYSE:DEO) have survived all these years because they own widely known brands such as Jack Daniels, Bud Light, and Captain Morgan. The growth at these companies has slowed considerably over the years, but due to the nature of the business, there is a large barrier to entry. For many of these brands, the process of making the alcohol takes years, so it is quite difficult for competitors to enter the market and become immediately successful. Although the growth has slowed, similar to tobacco stocks, the alcoholic beverage companies continue to generate stable cash flow that is in return handed over to investors, a trend that looks to be ongoing for years to come.

In this article I will highlight three dividend companies in the alcoholic beverage industry and focus on their results from the latest quarter as well as their dividend growth potential.

 

See more on beer, whiskey, wine

Top Dividend Stock for Retirement Portfolio

Planning for your retirement can be as easy as finding a top rated company that’s been around for a long time, has increased and paid out a dividend forever and you can pick it up on the cheap right now.

Dividend growth investors for a more secure retirement are a special breed. We see value when there may not be as much value as we would like. We see an opportunity to increase our income right now when a dividend aristocrat like Johnson & Johnson (NYSE:JNJ) is already correcting by 10% or more.

The focus is income for retirement, and my approach is to avoid timing the market and by taking advantage of what I consider fair pricing for a super juggernaut stock like JNJ.

Well, to my naive approach I see a stock that is not going out of business, is part of everyone’s lives around the world, has a name brand that is recognized by just about everyone, and has paid and increased its dividend for more than 25 consecutive years (52 years to be exact), through good and bad times and has even beaten wall street estimates this quarter.

Yes the company had guided lower back in April, so the results seems to have disappointed some analysts. That being said, it was less than a month ago that even Jim Cramer suggested that JNJ could unlock 50% more growth within the company itself by perhaps breaking the company up into three separate entities. That may or may not happen, but I believe that even if the company stays the way it is, dividend growth investors can now take advantage of an accidental high yield of 3.07% due to the drop in the share price from its 52-week highs.

 

Read more about J&J

The constantly changing market always presents opportunities to make a profit. The key is to always be prepared for the coming changes and get in early.

The S&P 500 Index (NYSEARCA:SPY) – often used as a measure of the overall market – is trading at the highest multiples it has seen in over a decade. At roughly 17 times forward earnings, value investors are having a more difficult time than ever looking for names in which to invest. With that in mind, I have laid out what sectors are “must-avoids” as they are the most expensive as well as a few sectors that look like they could be the beneficiary of a value-oriented comeback in the market.

As I laid out in significantly more detail in one of my latest articles, Value Is About To Make A Comeback In A Big Way, I anticipate that value stocks are about to outperform growth stocks over the next five years for the following reasons:

  • Value has lagged growth since mid-2010, with the gap widening especially over the past year.

  • Value has been shown to outperform over longer periods of time.

  • Fearful investors will flee expensive growth stocks in anticipation of a market correction.

  • Most importantly of all, however, growth will significantly underperform value in a rising-rate environment.

See more here

Investment Strategies When Interest Rates Rise

Low interest rates are great for us as consumers as it makes it easier to make our mortgage payments, car loans and ongoing credit card debt. But it’s not so great when we’re looking for the best return on our investments. Walter Davis has some answers about investing when rates begin to rise.

As I travel across the country meeting with financial advisors and their clients, a common concern I hear voiced is “how can I position my portfolio for when the inevitable happens and interest rates start to rise?” In response, I state that certain types of alternative investments are well suited to help prepare portfolios for rising interest rates in the future, while also potentially adding value in the present.

Specifically, I highlight four different types of alternatives for clients to consider:

  • Senior loans (also known as bank loans, senior secured loans and/or leveraged loans) – Senior loans are loans made by banks to non-investment grade companies, commonly in relation to leveraged buyouts, mergers and acquisitions. The loans are called “senior” because they are contractually senior to other debt and equity, and are typically secured by collateral.

Given that the loans are made to non-investment grade companies, the yield associated with them tends to be higher than on investment grade corporate bonds.1 For example, as of the end of May, senior loans were yielding 5.51% versus a yield of 2.99% on investment grade corporate bonds.

See the full article by Walter Davis

 

Commodities Ready for Rebound?

The picture for the Commodities Markets in the last month shows some pretty bleak numbers.  Precious metals, Oil, Ag and Livestock are all down, down and down. But we all know that nothing lasts forever, not even bad news.  Here’s the report below from Credit Suisse Asset Management

Commodities were lower in July, driven by macroeconomic factors and supply fundamentals, according to Credit Suisse Asset Management.

The Bloomberg Commodity Index Total Return performance was negative for the month, with 21 out of 22 Index constituents trading lower.

Credit Suisse Asset Management observed the following:

  • Energy was the worst performing sector, down 14.47%, led lower by WTI Crude Oil. In addition to continued increased OPEC production, towards the end of the month there was also a slight rise in U.S. rig counts.
  • Agriculture decreased 11.11%, led lower by Kansas City Wheat and Chicago Wheat as limited rainfall in the U.S. Midwest supported harvest progress. Sugar also weighed on the sector as recent rainfall in Thailand contradicted expectations that El Nino would limit sugar crop growth.
  • Industrial Metals declined 7.30%, led lower by Copper as concerns that the recent volatile decline in the Chinese equity market may further dampen economic growth, decreasing demand expectations for the sector.
  • Precious Metals ended the month 6.37% lower. Improved U.S. economic data, including lower jobless claims and higher housing starts, bolstered expectations that the Federal Reserve may raise interest rates later this year as the economy continues to recover. The prospect of higher interest rates strengthened the U.S. dollar and reduced safe haven demand for gold and silver.
  • Livestock decreased 2.17%, led lower by Live Cattle, as the United States Department of Agriculture reported further supply increases compared to the same time last year.

Nelson Louie, Global Head of Commodities for Credit Suisse Asset Management, said: “Major macroeconomic headlines, such as the Greek debt negotiations and the decline in Chinese equity markets, raised global growth concerns. Although the turmoil surrounding the impasse in Greece impacted consumer confidence across the Eurozone, preliminary Purchasing Managers’ Index data showed that economic growth in Europe only lost slight momentum in July. The European Central Bank’s easing measures may continue to support future growth prospects. In China, economic data reflected declines in the manufacturing sector amid decreased consumer demand and weakened equity market conditions. However, the Chinese government has also shown resolve in its commitment to supporting the economy through various stimulus measures.”

Christopher Burton, Senior Portfolio Manager for the Credit Suisse Total Commodity Return Strategy, added, “Meanwhile, in the U.S., inflation expectations remain below the U.S. Federal Reserve’s 2% target. However, the pace of economic progress in the U.S. versus the rest of the world increased expectations of divergent central bank policy. Macroeconomic factors may also continue to affect commodity demand expectations. So far, in the current phase of the business cycle, most U.S. asset classes have outperformed relative to non-U.S. asset classes. Central bank efforts may broaden the economic recovery into other regions, which may be supportive of commodity demand longer-term.”

About the Credit Suisse Total Commodity Return Strategy

Credit Suisse’s Total Commodity Return Strategy is managed by a team with over 28 years of experience, and seeks to outperform the return of a commodities index, such as the Bloomberg Commodity Index Total Return or the S&P GSCI Total Return Index, using both a quantitative and qualitative commodity research process. Commodity index total returns are achieved through:

  • Spot Return: price return on specified commodity futures contracts;
  • Roll Yield: impact due to migration of futures positions from near to far contracts; and
  • Collateral Yield: return earned on collateral for the futures.

As of July 31, 2015, the Team managed approximately USD 10.0 billion in assets globally.

Credit Suisse AG

Credit Suisse AG is one of the world’s leading financial services providers and is part of the Credit Suisse group of companies (referred to here as ‘Credit Suisse’). As an integrated bank, Credit Suisse is able to offer clients its expertise in the areas of private banking, investment banking and asset management from a single source. Credit Suisse provides specialist advisory services, comprehensive solutions and innovative products to companies, institutional clients and high net worth private clients worldwide, and also to retail clients in Switzerland. Credit Suisse is headquartered in Zurich and operates in over 50 countries worldwide. The group employs approximately 46,000 people. The registered shares (CSGN) of Credit Suisse’s parent company, Credit Suisse Group AG, are listed in Switzerland and, in the form of American Depositary Shares (CS), in New York. Further information about Credit Suisse can be found at www.credit-suisse.com.

Asset Management

In its Asset Management business, Credit Suisse offers products across a broad spectrum of investment classes, including hedge funds, credit, index, real estate, commodities and private equity products, as well as multi-asset class solutions, which include equities and fixed income products. Credit Suisse’s Asset Management business manages portfolios, mutual funds and other investment vehicles for a broad spectrum of clients ranging from governments, institutions and corporations to private individuals. With offices focused on asset management in 19 countries, Credit Suisse’s Asset Management business is operated as a globally integrated network to deliver the bank’s best investment ideas and capabilities to clients around the world.

All businesses of Credit Suisse are subject to distinct regulatory requirements; certain products and services may not be available in all jurisdictions or to all client types.

Important Legal Information

This document was produced by and the opinions expressed are those of Credit Suisse as of the date of writing and are subject to change without obligation to update. It has been prepared solely for information purposes and for the use of the recipient. It does not constitute an offer or an invitation by or on behalf of Credit Suisse to any person to buy or sell any security. Any reference to past performance is not a guide to future performance. The information and analysis contained in this publication have been compiled or arrived at from sources believed to be reliable but Credit Suisse does not make any representation as to their accuracy or completeness and does not accept liability for any loss arising from the use hereof.

Certain information contained in this document constitutes “Forward-Looking Statements” (including observations about markets and industry and regulatory trends as of the original date of this document), which can be identified by the use of forward-looking terminology such as “may”, “will”, “should”, “expect”, “anticipate”, “target”, “project”, “estimate”, “intend”, “continue” or “believe”, or the negatives thereof or other variations thereon or comparable terminology. Due to various risks and uncertainties beyond our control, actual events, results or performance may differ materially from those reflected or contemplated in such forward-looking statements. Readers are cautioned not to place undue reliance on such statements. Credit Suisse has no obligation to update any of the forward-looking statements in this document.

Certain risks relating to investing in Commodities and Commodity-Linked Investments: 

Exposure to commodity markets should only form a small part of a diversified portfolio. Investment in commodity markets may not be suitable for all investors. Commodity investments will be affected by changes in overall market movements, commodity volatility, exchange-rate movements, changes in interest rates, and factors affecting a particular industry or commodity, such as drought, floods, weather, livestock disease, embargoes, tariffs and international economic, political and regulatory developments. Commodity markets are highly volatile. The risk of loss in commodities and commodity-linked investments can be substantial. There is generally a high degree of leverage in commodity investing that can significantly magnify losses. Gains or losses from speculative derivative positions may be much greater than the derivative’s original cost. An investment in commodities is not a complete investment program and should represent only a portion of an investor’s portfolio management strategy.

Copyright © 2015, CREDIT SUISSE GROUP AG and/or its affiliates.  All rights reserved.

CONTACT: Justin Perras, Communications, T: (212) 538-2206; E: justin.perras@credit-suisse.com

RELATED LINKS
http://www.credit-suisse.com

NAR Report on Rising Home Prices

The crazy price increases of the early 2000’s are gone . Values since that time have dropped dramatically and finally stabilized and now we’re seeing a more normal market with regard to rising prices. The report below from the National Association of Realtors highlights where values have increased.

A promising climb in home sales throughout the country amidst insufficient supply caused home prices to steadily rise in most metro areas during the second quarter, according to the latest quarterly report by the National Association of Realtors®.

The median existing single-family home price increased in 93 percent of measured markets1, with 163 out of 176 metropolitan statistical areas2 (MSAs) showing gains based on closings in the second quarter compared with the second quarter of 2014. Thirteen areas (7 percent) recorded lower median prices from a year earlier.

The number of rising markets in the second quarter increased compared to the first quarter, when price gains were recorded in 85 percent of metro areas. Thirty-four metro areas in the second quarter (19 percent) experienced double-digit increases, a decline from the 51 metro areas in the first quarter. Nineteen metro areas (11 percent) experienced double-digit increases in the second quarter of 2014.

Lawrence Yun, NAR chief economist, says the housing market has shifted into a higher gear in recent months. “Steady rent increases, the slow rise in mortgage rates and stronger local job markets fueled demand throughout most of the country this spring,” he said. “While this led to a boost in sales paces not seen since before the downturn, overall supply failed to keep up and pushed prices higher in a majority of metro areas.”

Adds Yun, “With home prices and rents continuing to rise and wages showing only modest growth, declining affordability remains a hurdle for renters considering homeownership – especially in higher-priced markets.”

The national median existing single-family home price in the second quarter was $229,400, up 8.2 percent from the second quarter of 2014 ($212,000). The median price during the first quarter of this year increased 7.1 percent from a year earlier.

The five most expensive housing markets in the second quarter were the San Jose, Calif., metro area, where the median existing single-family price was $980,000; San Francisco, $841,600; AnaheimSanta Ana, Calif., $685,700; Honolulu, $698,600; and San Diego, $547,800.

The five lowest-cost metro areas in the second quarter were Cumberland, Md., where the median single-family home price was $82,400; YoungstownWarrenBoardman, Ohio, $85,000; Rockford, Ill., $94,700; Decatur, Ill., $96,000; and Elmira, N.Y., $98,300.

Total existing-home sales3, including single family and condo, increased 6.6 percent to a seasonally adjusted annual rate of 5.30 million in the second quarter from 4.97 million in the first quarter, and are 8.5 percent higher than the 4.89 million pace during the second quarter of 2014.

“The ongoing rise in home values in recent years has greatly benefited homeowners by increasing their household wealth,” says Yun. “In the meantime, inequality is growing in America because the downward trend in the homeownership rate means these equity gains are going to fewer households.”

At the end of the second quarter, there were 2.30 million existing homes available for sale4, slightly above the 2.29 million homes for sale at the end of the second quarter in 2014. The average supply during the second quarter was 5.1 months – down from 5.5 months a year ago.

Metro area condominium and cooperative prices – covering changes in 61 metro areas – showed the national median existing-condo price was $217,400 in the second quarter, up 3.1 percent from the second quarter of 2014 ($210,800). Fifty metro areas (82 percent) showed gains in their median condo price from a year ago; 11 areas had declines.

Rising home prices weighed on affordability in the second quarter compared to the second quarter of last year despite an uptick in the national family median income ($66,637)5. To purchase a single-family home at the national median price, a buyer making a 5 percent downpayment would need an income of $49,195, a 10 percent downpayment would require an income of $46,605, and $41,427 would be needed for a 20 percent downpayment.

NAR President Chris Polychron, executive broker with 1st Choice Realty in Hot Springs, Ark., says Realtors® are reporting strong competition and limited days on market for available homes – especially at the entry-level price range. “Buyers should work with their Realtor® to deploy a negotiation strategy that helps their offer stand out,” he said. “If a bidding war occurs, it’s important for the buyer to stay patient and only counteroffer up to what he or she can comfortably afford. It’s better to walk away and wait for the right home instead of being in a situation where one has purchased a home above their means.”

Regional Breakdown
Total existing-home sales in the Northeast increased 10.3 percent in the second quarter and are 8.6 percent above the second quarter of 2014. The median existing single-family home price in the Northeast was $269,300 in the second quarter, up 5.2 percent from a year ago.

In the Midwest, existing-home sales jumped 13.4 percent in the second quarter and are 12.7 percent higher than a year ago. The median existing single-family home price in the Midwest increased 8.7 percent to $182,000 in the second quarter from the same quarter a year ago.

Existing-home sales in the South fell rose 1.1 percent in the second quarter and are 6.3 percent above the second quarter of 2014. The median existing single-family home price in the South was $202,900 in the second quarter, 8.7 percent above a year earlier.

In the West, existing-home sales climbed 8.1 percent in the second quarter and are 8.1 percent above a year ago. The median existing single-family home price in the West increased 9.6 percent to $325,200 in the second quarter from the second quarter of 2014.

The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1 million members involved in all aspects of the residential and commercial real estate industries.

NOTE: NAR releases quarterly median single-family price data for approximately 170 Metropolitan Statistical Areas (MSAs). In some cases the MSA prices may not coincide with data released by state and local Realtor® associations. Any discrepancy may be due to differences in geographic coverage, product mix, and timing. In the event of discrepancies, Realtors® are advised that for business purposes, local data from their association may be more relevant.

Data tables for MSA home prices (single family and condo) are posted at http://www.realtor.org/topics/metropolitan-median-area-prices-and-affordability/data. If insufficient data is reported for a MSA in particular quarter, it is listed as N/A. For areas not covered in the tables, please contact the local association of Realtors®.

1The Ann Arbor, MI MSA and Harrisburg-Carlisle, PA MSA will now be included in the single-family price report.

2Areas are generally metropolitan statistical areas as defined by the U.S. Office of Management and Budget. NAR adheres to the OMB definitions, although in some areas an exact match is not possible from the available data. A list of counties included in MSA definitions is available at:  http://www.census.gov/population/estimates/metro-city/List4.txt.

Regional median home prices are from a separate sampling that includes rural areas and portions of some smaller metros that are not included in this report; the regional percentage changes do not necessarily parallel changes in the larger metro areas. The only valid comparisons for median prices are with the same period a year earlier due to seasonality in buying patterns. Quarter-to-quarter comparisons do not compensate for seasonal changes, especially for the timing of family buying patterns.

Median price measurement reflects the types of homes that are selling during the quarter and can be skewed at times by changes in the sales mix. For example, changes in the level of distressed sales, which are heavily discounted, can vary notably in given markets and may affect percentage comparisons. Annual price measures generally smooth out any quarterly swings.

NAR began tracking of metropolitan area median single-family home prices in 1979; the metro area condo price series dates back to 1989.
Because there is a concentration of condos in high-cost metro areas, the national median condo price often is higher than the median single-family price. In a given market area, condos typically cost less than single-family homes. As the reporting sample expands in the future, additional areas will be included in the condo price report.

3The seasonally adjusted annual rate for a particular quarter represents what the total number of actual sales for a year would be if the relative sales pace for that quarter was maintained for four consecutive quarters. Total home sales include single family, townhomes, condominiums and co-operative housing.

Seasonally adjusted rates are used in reporting quarterly data to factor out seasonal variations in resale activity. For example, sales volume normally is higher in the summer and relatively light in winter, primarily because of differences in the weather and household buying patterns.

4Total inventory and month’s supply data are available back through 1999, while single-family inventory and month’s supply are available back to 1982 (prior to 1999, single-family sales accounted for more than 90 percent of transactions and condos were measured only on a quarterly basis).

5Income figures are rounded to the nearest hundred, based on NAR modeling of Census data. Qualifying income requirements are determined using several scenarios on downpayment percentages and assume 25 percent of gross income devoted to mortgage principal and interest at a mortgage interest rate of 4.0%.

NOTE: Existing-Home Sales for July will be released August 20, and the Pending Home Sales Index for July will be released August 27; release times are 10:00 a.m. EDT.

Information about NAR is available at www.realtor.org. This and other news releases are posted in the “News, Blogs and Videos” tab on the website. Statistical data in this release, as well as other tables and surveys, are posted in the “Research and Statistics” tab.

CONTACT: Adam DeSanctis, 202/383-1178, adesanctis@realtors.org

RELATED LINKS
http://www.realtor.org

The latest statistics from Corelogic shows that completed foreclosures continue dropping and are at their lowest numbers since 2007.  The numbers for mortgages in default over 90 days have also declined from a year ago.

CoreLogic® (NYSE: CLGX), a leading global property information, analytics and data-enabled services provider, today released its June 2015 National Foreclosure Report which shows that the foreclosure inventory declined by 28.9 percent and completed foreclosures declined by 14.8 percent since June 2014. The number of foreclosures nationwide decreased year over year from 50,000 in June 2014 to 43,000 in June 2015, representing a decrease of 63.3 percent from the peak of 117,119 completed foreclosures in September 2010, according to CoreLogic data.

Experience the interactive Multimedia News Release here:  http://www.multivu.com/players/English/71280543-corelogic-june-2015-foreclosures/

Completed foreclosures are an indication of the total number of homes actually lost to foreclosure. Since the financial crisis began in September 2008, there have been approximately 5.8 million completed foreclosures across the country, and since home ownership rates peaked in the second quarter of 2004, there have been approximately 7.8 million homes lost to foreclosure.

As of June 2015, the national foreclosure inventory included approximately 472,000, or 1.2 percent, of all homes with a mortgage compared with 664,000 homes, or 1.7 percent, in June 2014. The June 2015 foreclosure rate is the lowest since December 2007.

CoreLogic also reports that the number of mortgages in serious delinquency (defined as 90 days or more past due, including those loans in foreclosure or REO) declined by 23.3 percent from June 2014 to June 2015, with 1.3 million mortgages, or 3.5 percent, falling into this category. This is the lowest serious delinquency rate since January 2008. On a month-over-month basis, the number of seriously delinquent mortgages declined by 3.4 percent.

“The foreclosure rate for the U.S. has dropped to its lowest level since 2007, supported by a continuing decline in loans made before 2009, gains in employment, and higher housing prices,” said Frank Nothaft, chief economist for CoreLogic. “The decline has not been uniform geographically, as the foreclosure rate varies across metropolitan areas. In the Denver and San Francisco areas, the foreclosure rate has fallen to 0.3 percent, whereas in the Tampa market the rate is 3.5 percent and in Nassau and Suffolk counties it is an elevated 4.8 percent.”

“Serious delinquency is at the lowest level in seven and a half years reflecting the benefits of slow but steady improvements in the economy and rising home prices,” said Anand Nallathambi, president and CEO of CoreLogic. “We are also seeing the positive impact of more stringent underwriting criteria for loans originated since 2009 which has helped to lower the national seriously delinquent rate.”

Additional highlights as of June 2015:

  • On a month-over-month basis, completed foreclosures increased by 4.8 percent from the 41,000* reported in May 2015*. As a basis of comparison, before the decline in the housing market in 2007, completed foreclosures averaged 21,000 per month nationwide between 2000 and 2006.
  • The five states with the highest number of completed foreclosures for the 12 months ending in June 2015 were: Florida (102,000), Michigan (46,000), Texas (33,000), California (29,000) and Ohio (27,000). These five states accounted for almost half of all completed foreclosures nationally.
  • Four states and the District of Columbia had the lowest number of completed foreclosures for the 12 months ending in June 2015: South Dakota (32), the District of Columbia (107), North Dakota (313), Wyoming (499) and West Virginia (566).
  • Four states and the District of Columbia had the highest foreclosure inventory as a percentage of all mortgaged homes: New Jersey (4.7 percent), New York (3.7 percent), Florida (2.7 percent), Hawaii (2.5 percent) and the District of Columbia (2.4 percent).
  • The five states with the lowest foreclosure inventory as a percentage of all mortgaged homes were: Alaska (0.3 percent), Minnesota (0.4 percent), Montana (0.4 percent) Nebraska (0.4 percent) and North Dakota (0.4 percent).

*May 2015 data was revised. Revisions are standard, and to ensure accuracy CoreLogic incorporates newly released data to provide updated results.

Judicial Foreclosure States Ranking (Ranked by Completed Foreclosures)

Non-Judicial Foreclosure States Ranking (Ranked by Completed Foreclosures)

Foreclosure Data for the Largest Core Based Statistical Areas (CBSAs) (Ranked by Completed Foreclosures)

Figure 1 – Number of Mortgaged Homes per Completed Foreclosure

Figure 2 – Foreclosure Inventory as of June 2015

Figure 3 – Foreclosure Inventory by State

For ongoing housing trends and data, visit the CoreLogic Insights Blog: http://www.corelogic.com/blog.

Methodology
The data in this report represents foreclosure activity reported through June 2015.

This report separates state data into judicial versus non-judicial foreclosure state categories. In judicial foreclosure states, lenders must provide evidence to the courts of delinquency in order to move a borrower into foreclosure. In non-judicial foreclosure states, lenders can issue notices of default directly to the borrower without court intervention. This is an important distinction since judicial states, as a rule, have longer foreclosure timelines, thus affecting foreclosure statistics.

A completed foreclosure occurs when a property is auctioned and results in the purchase of the home at auction by either a third party, such as an investor, or by the lender. If the home is purchased by the lender, it is moved into the lender’s real estate-owned (REO) inventory. In “foreclosure by advertisement” states, a redemption period begins after the auction and runs for a statutory period, e.g., six months. During that period, the borrower may regain the foreclosed home by paying all amounts due as calculated under the statute. For purposes of this Foreclosure Report, because so few homes are actually redeemed following an auction, it is assumed that the foreclosure process ends in “foreclosure by advertisement” states at the completion of the auction.

The foreclosure inventory represents the number and share of mortgaged homes that have been placed into the process of foreclosure by the mortgage servicer. Mortgage servicers start the foreclosure process when the mortgage reaches a specific level of serious delinquency as dictated by the investor for the mortgage loan. Once a foreclosure is “started,” and absent the borrower paying all amounts necessary to halt the foreclosure, the home remains in foreclosure until the completed foreclosure results in the sale to a third party at auction or the home enters the lender’s REO inventory. The data in this report accounts for only first liens against a property and does not include secondary liens. The foreclosure inventory is measured only against homes that have an outstanding mortgage. Generally, homes with no mortgage liens are not subject to foreclosure and are, therefore, excluded from the analysis. Approximately one-third of homes nationally are owned outright and do not have a mortgage. CoreLogic has approximately 85 percent coverage of U.S. foreclosure data.

Source: CoreLogic
The data provided is for use only by the primary recipient or the primary recipient’s publication or broadcast. This data may not be re-sold, republished or licensed to any other source, including publications and sources owned by the primary recipient’s parent company without prior written permission from CoreLogic. Any CoreLogic data used for publication or broadcast, in whole or in part, must be sourced as coming from CoreLogic, a data and analytics company. For use with broadcast or web content, the citation must directly accompany first reference of the data. If the data is illustrated with maps, charts, graphs or other visual elements, the CoreLogic logo must be included on screen or website. For questions, analysis or interpretation of the data, contact Lori Guyton at lguyton@cvic.com or Bill Campbell at bill@campbelllewis.com. Data provided may not be modified without the prior written permission of CoreLogic. Do not use the data in any unlawful manner. This data is compiled from public records, contributory databases and proprietary analytics, and its accuracy is dependent upon these sources.

About CoreLogic
CoreLogic (NYSE: CLGX) is a leading global property information, analytics and data-enabled services provider. The company’s combined data from public, contributory and proprietary sources includes over 4.5 billion records spanning more than 50 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, and the public sector. 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 North America, Western Europe and Asia Pacific. For more information, please visit www.corelogic.com.

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

CONTACT: For real estate industry and trade media: Bill Campbell, bill@campbelllewis.com, 212-995-8057; For general news media: Lori Guyton, lguyton@cvic.com, 901-277-6066

RELATED LINKS http://www.corelogic.com

Home Sales for Ultra Wealthy Picking Up Steam

The housing market has it’s ups and downs for all of us, even the ultra rich. With the high end market being flat about a year and a half ago,  it’s now on the uptrend and has been for over a year.  The super rich are now buying up these mega mansions for investment purposes and for other reasons as well.

A growing number of ultra high net worth (UHNW) individuals view homes as ‘opportunity gateways’, driving buying decisions that are based on potential opportunities from owning these luxury residential properties, according to the latest study by Wealth-X and the Sotheby’s International Realty® brand released today.

The UHNW Luxury Real Estate Report: Homes As Opportunity Gateways reveals two trends that are fueling the rise in the number of ultra wealthy individuals who are buying luxury homes:

(1)  International home-buying by UHNW individuals (defined as those with at least US$30 million in assets) from emerging nations seeking a safe investment diversification.
(2)  Home-buying as part of a program to gain citizenship or residency status in foreign nations.

The report provides insight into the UHNW residential real estate opportunities in Sydney and Vancouver for buyers seeking safe investment diversification; and Malta, the Bahamas and Sao Paulo, which may appeal to ultra wealthy buyers who are seeking citizenship or residency through property investment.

The UHNW Residential Real Estate index, tracked by Wealth-X, rose to 115.2 in Q2 2015, an 8.3% rise year-on-year, and the sixth consecutive quarter in which the index has risen. The continued rise in the index reflects the confidence of UHNW individuals to invest in luxury residential real estate.

The index takes into account the full range of luxury residential properties that are owned by the world’s wealthiest individuals. Wealth-X data shows there are 211,275 UHNW individuals globally, who collectively hold nearly US$3 trillion in real estate assets, equal to 10% of their net worth.

Below are other key findings from the report:

  • 12% of second homes purchased by UHNW individuals in emerging countries (those who reside in BRICS nations) are located outside their country of residence.
  • Recent market fluctuations in emerging nations are leading a new generation of UHNW investors to consider investing in luxury residential real estate in Western markets.
  • Chinese UHNW individuals make up the third largest share of foreign UHNW homeowners in the United States, behind only Canada and the United Kingdom.
  • Twenty nations in Europe and the Americas now offer citizenship or residency programs to individuals willing to invest in domestic residential real estate.
  • Many residential real estate markets with such programs – including Sao Paulo, Malta, and the Bahamas – offer good long-term investment opportunities.

Wealth-X President David Friedman commented: “Wealth-X is pleased to partner with the Sotheby’s International Realty brand for this third luxury real estate report for 2015. This new joint study explores the trends and home-buying motivations of a distinct group of ultra wealthy individuals in the emerging markets. As their wealth grows, so will their investment fueled by various motivations, be it to diversify their portfolio or to gain citizenship or residency in a foreign country.”

According to Philip White, president and chief executive officer, Sotheby’s International Realty Affiliates LLC, this joint report was designed to provide an understanding of the trends driving buying decisions of ultra high net worth individuals around the world. “The research reveals trends that go beyond traditional motivations and help guide real estate investments that contribute to long-term wealth,” he said.  “It underscores the important role real estate plays in a larger strategy to build a valuable asset portfolio.”

Download the report here.

About Wealth-X
Wealth-X is the global authority on wealth intelligence, providing sales, marketing, strategy and compliance solutions to clients in the financial services, luxury, not-for-profit and education sectors. Its award-winning research and thought leadership are regularly cited by the world’s media such as CNBC, Financial Times, Thomson Reuters and BBC. Wealth-X has more than 250 staff in 10 locations, including Singapore, London and New York. (www.wealthx.com)

About Sotheby’s International Realty Affiliates LLC
The Sotheby’s International Realty network currently has approximately 17,000 sales associates located in approximately 800 offices in 61 countries and territories worldwide. Founded in 1976 to provide independent brokerages with a powerful marketing and referral program for luxury listings, the Sotheby’s International Realty network was designed to connect the finest independent real estate companies to the most prestigious clientele in the world. Sotheby’s International Realty Affiliates LLC is a subsidiary of Realogy Holdings Corp. (NYSE: RLGY), a global leader in real estate franchising and provider of real estate brokerage, relocation and settlement services.  In February 2004, Realogy entered into a long-term strategic alliance with Sotheby’s, the operator of the auction house.  The agreement provided for the licensing of the Sotheby’s International Realty name and the development of a full franchise system. Affiliations in the system are granted only to brokerages and individuals meeting strict qualifications. Sotheby’s International Realty Affiliates LLC supports its affiliates with a host of operational, marketing, recruiting, educational and business development resources. Each Office is Independently Owned and Operated. Franchise affiliates also benefit from an association with the venerable Sotheby’s auction house, established in 1744.

CONTACT: Wealth-X media contact: Fauzi Ahmad, +65 8653 6514, fahmad@wealthx.com; Sotheby’s International Realty Affiliates LLC media contact: Lindsey Scharf, +1 (973) 407-5596, lindsey.scharf@sothebysrealty.com

RELATED LINKS http://www.wealthx.com

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