Home values across the United States fell 6.2% in the second quarter from a year earlier with a slight 0.4% gain from the first quarter, according to Zillow. The average home values hit $171,600 during the three months ended June 30, but remain nearly 30% below the peak of June 2006, according to the online real estate services firm.
Employers took 1,532 mass layoff actions in June involving 143,444 workers, seasonally adjusted, as measured by new filings for unemployment insurance benefits during the month, the U.S. Bureau of Labor Statistics reported today. Each mass layoff involved at least 50 workers from a single employer. The number of mass layoff events in June decreased by 67, or 4 percent, from May, and the number of associated initial claims decreased by 96, or less than 1 percent. In June, 341 mass layoff events were reported in the manufacturing sector, seasonally adjusted, resulting in 35,693 initial claims; both figures decreased over the month.
Delinquencies on loans within commercial mortgage-backed securities hit a record high in July as new late payments increased and fewer loan resolutions were made, Fitch Ratings said Friday.
Last month, the ratings agency noted $3 billion in new delinquencies, which outpaced the $1.4 billion in resolutions made on CMBS loans during that period. This combination of factors prompted a 37-basis point increase to a CMBS delinquency rate of 9.01%, surpassing the previous record of 8.81% set in May.
Commercial and multifamily mortgage originations grew 107% in the second quarter compared to the year-ago period as financials on all property types experienced greater stability and demand, according to the Mortgage Bankers Association.
Between the first and second quarters, originations jumped about 52%, with demand for loans backed by health care, hotel, retail, multifamily, office and industrial properties growing significantly over the year-ago quarter.
The number of pending home sales and the average price for a closed home sale both dropped in King County (where Seattle locates) last month.
The Northwest Multiple Listing Service (NWMLS) reported 2,933 pending sales in July, compared with 3,008 in June but up from 2,133 in July 2010. The average price of a closed home sale fell to $410,618 in King County last month from $412,836 in June. In June 2010, the average price of a closed home sale was $460,821.
The U.S. economy got a break Friday morning with the nation adding 117,000 jobs in July and the unemployment rate slipping to 9.1% from 9.2% in June, the government said. This positive news from the Labor Department arrived a day after the Dow Jones plunged by 500 points, on concerns over the European debt crisis and gloomy consumer sentiment.
After climbing in early 2010, home prices have dropped once again, and have reached a new eight-year low. According to data from the S&P Case-Shiller Index, prices are down by 3.5% year-over-year, and by 32% from their peak in 2006. Sales activity is also down, by 12.9% year-over-year, albeit from a high level in 2010 that was stimulated by a home-buyer tax credit. The nation’s homeownership rate has dropped from a peak of 69% in 2006 to 66.4% as of Q1 2011, a rapid decline drop in such a short time period.
What is driving this downturn? Two dominant factors: Negative consumer psychology and still-high foreclosure activity.