Monthly Mortgage Market Share Archives

July 2018 Mortgage Market Share Report

 

July 27, 2018

A consistent theme this spring and early summer is that property values are increasing fast. There’s evidence of this in both the mortgage and deed transaction numbers in the second quarter. The last four years, mortgages securing between $75K and $200K are holding steady at around 600 and change. (see chart page 9) Mortgages securing between $200K and at the top end of the conforming market ($417K+) are steadily increasing over the same time period. (chart page 10) While the rate of increase isn’t overwhelming, it is consistent.

Further evidence of increasing prices can be found in the sales disclosure data for properties designated as the buyer’s primary residence. (chart page 14) The 318 sales disclosures in the $200K to $500K bracket during the second quarter are notably greater than any quarter since I began tracking this data. Digging deeper, the increase is spread mostly even through the $200K to $350K price range. The data for non-primary residences doesn’t show this appreciation at all. (chart page 15)

While I don’t think the increasing values indicate that we’re in a bubble, as long as the housing inventory remains constricted the appreciation will continue.

I’ve also heard that sales and lending are slowing down due to the inventory shortage. The transactions numbers don’t show that through the first six months. In fact, compared to 2017’s first half, deeds are up 3.4% – and a whopping 9.6% in the second quarter. I did peak at the first 16 days of July, and those deed recordings show a definite decline from last year. I’ll write more on that next month.

All of us here at John Bethell Title are delighted to finally be settled in our new surroundings! (I don’t miss my temporary career in site acquisition, construction management and furniture buying.) Many thanks to all our great clients for your patience and understanding during our transition! We couldn’t be more grateful!

~ John Bethell

June 2018 Mortgage Market Share Report

June 20, 2018

 

On June 11th the Federal Bureau of Investigation announced the arrests of 42 individuals in the United States, 29 in Nigeria and 3 others allegedly involved in a massive business email compromise (BEC) scheme. “Operation WireWire” succeeded in recovering approximately $14 million in fraudulent wire transfers and seized another $2.4 million in cash.  Read more about it here: https://www.fbi.gov/news/stories/international-bec-takedown-061118

BEC, also known as cyber-enabled financial fraud, is a sophisticated scam targeting employees at companies with access to large sums of money in order to trick them into wire transferring funds to bank accounts controlled by the perpetrators. These same criminals also exploit individuals including real estate purchasers and the elderly by convincing them to wire money to bank accounts controlled by the criminals.

John Bethell Title employs several layers of technical and verification processes to ensure that our clients’ funds are safe. Nevertheless, the reality is that business email is only as secure as the weakest link in the chain. Professionals that continue to use public domains (i.e. gmail, Hotmail & yahoo) for their business communication, or conduct business over unsecured public Wi-Fi networks, or fail to maintain updated name brand virus and spyware protection on all their devices, place all of us at risk.

When the market is as frenzied as it is now, it’s more important than ever to take the time to be careful. Tell your buyers to call and verify wire instructions. Let them know that John Bethell Title will not change wire instructions in the middle of a transaction. A healthy level of skepticism is required.

John Bethell Title will be hosting the Greater Bloomington Chamber of Commerce Business After Hours on Wednesday, July 18th from 5:30 to 7:30 p.m. You’re all invited to attend and check out our new digs. We’re eagerly looking forward it!

 

~ John Bethell

May 2018 Mortgage Market Share Report

May 30, 2018

The Monroe County purchase market, while a bit slower than last year, is still close to a post-recession high as measured by recorded deeds that represent an arms-length transaction. Here are the deed numbers from March 1st to May 22nd for each of the last three years:

                2018 – 621 deeds             2017 – 647 deeds             2016 – 637 deeds

For the entire year, 2017 and 2016 ended up virtually identical and are the highest two post-recession years. This year is a bit down but at the current pace will still be close to the post-recession high. Inventory is still low. Property values and interest rates are higher. Their effect up until this point seems minimal looking backwards. More likely, due to the lack of inventory, the market continues to lag its potential.

I’m delighted to report that our relocation is complete. Our team magnificently managed the conflicting priorities of getting moved quickly and efficiently with taking the best care of our clients along the way. I couldn’t be more proud of them. We still need to unpack a bit. And we’ll be painting the building in June. It’s nice to have the vast majority of things behind us.

~ John Bethell

March 2018 Mortgage Market Share Report

April 12, 2018

The purchase market is starting later in 2018 than last year. Our first quarter measures of recorded deeds and primary residence sales disclosures show year over year seven percent declines. Non-primary residence sales disclosures indicate a 17% decline. (charts pages 13-15). Most of this decline occurred in March when deed recordings fell from 214 in March 2017 compared to 166 last month – a 22% decline! Mortgage originations are also lagging year ago numbers. Refinances as a percentage of our new title orders are at the lowest rate that I can remember. Now that spring is finally making brief and occasional appearances, hopefully the market will accelerate.

The 2017 pay in 2018 real estate taxes are certified as of April 3rd. We are paying these taxes at closing and using the amounts as the basis for pro-rations ─ unless, of course, the Purchase Agreement provides otherwise.

Our relocation to 2626 South Walnut Street (The former AT&T Store behind Chase Bank, CVS & The Grease Monkey) will occur between May 1st and May 5th. We will conduct closings at our current location through May 4th. Closings scheduled or anticipated for May 7th or later, will occur in our new location.

It’s easy to remember. Cinco de Mayo is Saturday, May 5th. Closings before Cinco de Mayo will take place in our downtown location. Closings after Cinco de Mayo will take place in our new digs.

Monday morning May 7th is the only time that we anticipate less than full capacity to conduct closings. Both our main and direct dial phone numbers and all of our email addresses will remain the same.

Most importantly our WIRE TRANSFER instructions and procedures WILL NOT CHANGE. Any communication to the contrary that might be received is totally bogus! Please alert your clients.

In March we helped 336 people buy, sell or refinance their property. Our closing team produced seller side closing statements two or more days prior to closing in 96.6% of our transactions. We produced Monroe County title commitments in an average of 5.46 days. Our title team recently adjusted its back-end process and we’re confident that as a result our production time will decrease in the coming weeks.

~ John Bethell

January 2018 Mortgage Market Share Report

February 14, 2018

Despite the continuing acute home inventory shortage, the Monroe County 2018 purchase market is off to a good start. Through February 12th, our property records data base shows 189 recorded transactions so far this year. This compares favorably to the same period in 2017 when there were 183 transactions. The numbers of new contracts upon which we’ve received title orders show a similar comparison. Although it’s too early in the year to be one hundred percent confident about the market, indications are pointing to another great year!

The State of Indiana Department of Local Government Finance approved Monroe County’s 2017 pay in 2018 real estate tax budget on February 9th. Next, the county must publish the rates three times and make the new tax amounts available to us. Then they will be official and can be used for tax pro-rations. Most likely this will occur in the next four to six weeks. If you’re interested in the new tax rates, here’s a link: http://www.in.gov/dlgf/files/Monroe%20County%202018%20Certified%20Budget%20Order.pdf

Effective with all closings in our office on or after March 19th, 2018 we will be applying a twenty-five dollar increase to our search, examination and clearance fee for owner’s and refinance loan policies. We are preparing new rate sheets for dissemination to our clients that will be forwarded within the next week or so.

Our important team metrics continued to be good in January. And the seasonal slowdown allowed us to make real headway on a few important projects, as well. Our closing team produced seller side closings statements in two or more days prior to closing in 100% of our transactions. Our average title commitment production time for Monroe County orders was 3.7 days. And we helped 206 people buy, sell or refinance their properties.

~ John Bethell

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