Real Estate News Shorts for the Week

Each week there are some interesting news releases that may not justify a complete article, so we bring them to you as a composite here.

Home Prices at Lowest Point in 10 Years

The National Association of Realtors reports that January home prices fell to a decade low, with the median home sale prices at $154,700. This is down from $219,000 in 2007, considered near the peak of the market.

With foreclosures picking up again after court cases and settlements with lenders over the robo-signing scandals, it is expected that distressed sales will continue to keep prices down or falling for at least the first half of 2012.

The rise in the number of existing home sales in January is in response to these record low home prices and the corresponding record low mortgage rates.

Million Dollar+ Foreclosures Rising

The rich may just be behind the rest of us, as after five years of the current bust cycle, the rich are now losing their homes at a faster rate than the rest of the country. Also, it seems that many of them are doing so voluntarily, a strategic default strategy.

In 2011, according to RealtyTrac.com, more than 36,000 homes with values of $1 million or higher were foreclosed on or served a notice of default. The $1 million+ share of the foreclosure market has risen by 115% since 2007, and the share of $2 million+ value foreclosures in the same period jumped by 273%.

These homeowners, unlike the lower priced end who can’t afford to keep their homes, can afford them but find that they don’t want to remain severely underwater on their mortgages for possibly years into the future. They are taking the strategic default approach to get rid of a non-performing asset.

HUD Secretary Says Mortgage Settlement a “Fair Deal”

Shaun Donovan, the Secretary of the U.S. Department of Housing and Urban Development, says that the mortgage settlement of around $26 billion is a fair deal for victim homeowners. Each is expected to receive around $2000. Responding to critics that say this isn’t enough for unfair foreclosure victims, Donovan says "Some have questioned whether $2,000 is enough redress for families who lost their homes improperly. The answer is obviously no. But that isn't what these payments are about."

He instead says that they are about holding lenders and servicers accountable for their actions.