Foreclosures and Delinquencies Declining
For the state of Missouri, there were 2,370 homes in foreclosure in July, representing a 38 percent decline from the previous July and a 7 percent drop from June. The state has reported a delinquency rate at 8.18 for the second quarter of 2011. This compares to a national delinquency rate of 8.44 percent. During normal market conditions, there are 1.1 percent of delinquent borrowers.
Missouri is also dealing with appraisers that use both foreclosures and distress sales for comps when determining estimates. Missouri is one of four states discussing possible legislation to have Missouri real estate owned foreclosures and other distressed sales excluded in comps for appraisals.
City Snapshot: Columbia
Columbia is the fifth largest city in Missouri and it is located in the middle of the state. Its economic numbers for the first half of the year was a mixed bag with unemployment at 6.5 percent. This sits below the state's 8.7 percent and the nation's 9.1 percent rate.
This unemployment number is one of the lowest in the state and with the University of Missouri and the local public school system in the city; its population continues to grow.
Columbia has moderate job growth and its foreclosures peaked in 2010; they are currently trending downward. The foreclosures are still above historic levels while the city's real estate has not had large decreases. The housing market is experiencing continuous weakness as recent home prices have gone down .44 percent in the second quarter 2011 as compared to the first quarter of the year.
For the past five years, home prices have been pretty flat with a .03 percent rise. The city's service-based economy fares positively as compared to other communities and the real estate market is believed to see a rebound when both consumer and business confidences return.
Unemployment Declines, Effects from Weather Disasters
In July, Missouri's unemployment rate dipped one tenth of a point to 8.7 percent reported the Missouri Department of Economic Development (MDED).
Since the beginning of the year, Missouri has seen its unemployment rate decrease eight-tenths of a point. Missouri's nonfarm payroll dropped 400 jobs but jobs overall from a year over year July comparison, there was the addition of .002 percent jobs or the additional payroll positions numbering 5,500.
June unemployment numbers have been revised and MDED is now reporting that the state projects a loss of 3,000 jobs from May to June. These numbers include the effects of Joplin's tornado, which has affected 9,000 jobs.
The state is also recovering from recent flooding and on Aug. 21 six northwest state counties had been declared disaster areas. They include Andrew, Atchison, Buchanan, Holt, Lafayette and Platt. Residents will also be entitled to 26 weeks of Disaster Unemployment assistance.
Home Prices Decline
For the second quarter, Missouri's large cities saw home price declines. St. Louis had a 3.4 percent decrease, Kansas City at 4.2 percent and Jefferson City with a 2.35 percent decline. Columbia saw the smallest decline for the second quarter with a .44 percent decline.
Joplin, which had been hit with the tornado, saw its home prices drop 2.8 percent.
Jefferson City, the capital of Missouri, had seen four successive quarters of home price increases.
Overall, the state saw decreases in its home prices. In Missouri, purchase-only prices dropped 8.1 percent as compared to 2010's second quarter. This ranks the state as No. 11 for the sharpest declines. Nationally, there was a 5.9 percent decrease.
Missouri's unemployment numbers, home price declines, and foreclosures are moving the state into a good position but it hasn't recovered yet.
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