Why Isn’t Real Estate Rebounding? James Saccacio, CEO RealtyTrac
A BRIEF INTRODUCTION TO REALTYTRAC ©RealtyTrac Inc. 2011 , Not for Distribution
<ul><li>RealtyTrac publishes the country’s largest database of foreclosure and bank-owned properties </li></ul><ul><ul><li...
WHO RELIES ON REALTYTRAC DATA ©RealtyTrac Inc. 2011 , Not for Distribution
WHO RELIES ON REALTYTRAC DATA ©RealtyTrac Inc. 2011 , Not for Distribution
WHAT WE’LL COVER TODAY <ul><li>Why is real estate not rebounding? </li></ul><ul><li>In-depth look at Shadow Inventory </li...
WHY IS REAL ESTATE NOT REBOUNDING? ©RealtyTrac Inc. 2011 , Not for Distribution
LOW CONSUMER CONFIDENCE SOURCE:  RealtyTrac and Trulia Homebuyer Survey April 2011 ©RealtyTrac Inc. 2011 , Not for Distrib...
WEAK DEMAND ©RealtyTrac Inc. 2011 , Not for Distribution
GOVERNMENT INTERVENTION <ul><li>2008-2010: Neighborhood Stabilization Program </li></ul><ul><ul><li>$7 billion awarded to ...
SLOPPY FORECLOSURE PRACTICES Artificial drop-off in foreclosure activity triggered by robo-signing ©RealtyTrac Inc. 2011 ,...
LONGER FORECLOSURE TIMELINES Texas timeline has stayed consistent  N.Y. timeline longest in country ©RealtyTrac Inc. 2011 ...
IN-DEPTH LOOK AT SHADOW INVENTORY ©RealtyTrac Inc. 2011 , Not for Distribution
SHADOW INVENTORY OF SUPPLY ©RealtyTrac Inc. 2011 , Not for Distribution
SHADOW INVENTORY OF SUPPLY 33 Percent Jump in Default Notices in August ©RealtyTrac Inc. 2011 , Not for Distribution
SHADOW INVENTORY OF SUPPLY SOURCE:  Mortgage Bankers Association Q2 2011 National Delinquency Survey ©RealtyTrac Inc. 2011...
SHADOW INVENTORY OF SUPPLY Loans with an LTV of at least 125 percent as of Sept 2011 ©RealtyTrac Inc. 2011 , Not for Distr...
SHADOW INVENTORY OF SUPPLY ©RealtyTrac Inc. 2011 , Not for Distribution
SHADOW INVENTORY OF SUPPLY Avg. REO prices 40% lower than avg. prices of non-foreclosures ©RealtyTrac Inc. 2011 , Not for ...
SHADOW INVENTORY OF SUPPLY 19 Percent Increase from Q1 to Q2  ©RealtyTrac Inc. 2011 , Not for Distribution
SHADOW INVENTORY OF SUPPLY Tied record-high for short sale discount in Q2 2011 ©RealtyTrac Inc. 2011 , Not for Distribution
IMPLICATIONS FOR THE HOUSING MARKET ©RealtyTrac Inc. 2011 , Not for Distribution
ESTIMATED ABSORPTION RATES ©RealtyTrac Inc. 2011 , Not for Distribution <ul><li>15-month supply of bank-owned REOs </li></...
THE MOST DEPRESSED HOUSING MARKETS ©RealtyTrac Inc. 2011 , Not for Distribution SOURCE:  CoreLogic, Zelman & Associates
FURTHER TO FALL BEFORE BOTTOM? SOURCE:  Robert J. Schiller ©RealtyTrac Inc. 2011 , Not for Distribution
A SOLUTION TO SHADOW INVENTORY ©RealtyTrac Inc. 2011 , Not for Distribution
RETIRING THE FORECLOSURE CRISIS ©RealtyTrac Inc. 2011 , Not for Distribution
QUESTIONS & DISCUSSION ©RealtyTrac Inc. 2011 , Not for Distribution
THANK YOU! James J. Saccacio CEO, RealtyTrac 949-502-8300 Ext. 104 [email_address] ©RealtyTrac Inc. 2011 , Not for Distrib...
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Why Isn't Real Estate Rebounding?

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In this presentation given to the North Dallas Chamber of Commerce, RealtyTrac CEO James Saccacio shows how the real estate recovery has been stalled by low consumer confidence, weak demand, government intervention, sloppy foreclosure practices and the infamous shadow inventory.

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  • This spring, more than half of Americans adults surveyed — 54 percent — believed that the recovery in the housing market would not happen until 2014 — or later! And America’s view of the housing market has gone from bad to worse.   A year earlier, only 34 percent said the housing market would turn around by 2014. So attitudes have soured among potential homebuyers and investors. They were telling us that the housing recovery was still a long way off.   Indeed, the housing market is years away from full recovery, and 2012 and 2013 will look similar to this year as the industry grapples with levels of distressed properties never seen before.   The housing recovery hinges on many things, but I would like to share with you five areas that, I believe, are holding the real estate market down.
  • Why Isn't Real Estate Rebounding?

    1. 1. Why Isn’t Real Estate Rebounding? James Saccacio, CEO RealtyTrac
    2. 2. A BRIEF INTRODUCTION TO REALTYTRAC ©RealtyTrac Inc. 2011 , Not for Distribution
    3. 3. <ul><li>RealtyTrac publishes the country’s largest database of foreclosure and bank-owned properties </li></ul><ul><ul><li>Data from over 2,200 counties, covering over 92% of U.S. housing units </li></ul></ul><ul><li>#1 Foreclosure site – over 2 million foreclosure and bank-owned properties nationwide </li></ul><ul><li>Unmatched property evaluation and transactional tools </li></ul><ul><ul><li>HomeScore, Equity & Loan Info, Property Analyzer, Online Offers, Foreclosure-MLS Match, and much more </li></ul></ul><ul><li>90 Million Assessor Property Records just added! </li></ul>ABOUT REALTYTRAC ©RealtyTrac Inc. 2011 , Not for Distribution
    4. 4. WHO RELIES ON REALTYTRAC DATA ©RealtyTrac Inc. 2011 , Not for Distribution
    5. 5. WHO RELIES ON REALTYTRAC DATA ©RealtyTrac Inc. 2011 , Not for Distribution
    6. 6. WHAT WE’LL COVER TODAY <ul><li>Why is real estate not rebounding? </li></ul><ul><li>In-depth look at Shadow Inventory </li></ul><ul><li>A proposed solution </li></ul><ul><li>Questions and discussion </li></ul>©RealtyTrac Inc. 2011 , Not for Distribution
    7. 7. WHY IS REAL ESTATE NOT REBOUNDING? ©RealtyTrac Inc. 2011 , Not for Distribution
    8. 8. LOW CONSUMER CONFIDENCE SOURCE: RealtyTrac and Trulia Homebuyer Survey April 2011 ©RealtyTrac Inc. 2011 , Not for Distribution
    9. 9. WEAK DEMAND ©RealtyTrac Inc. 2011 , Not for Distribution
    10. 10. GOVERNMENT INTERVENTION <ul><li>2008-2010: Neighborhood Stabilization Program </li></ul><ul><ul><li>$7 billion awarded to states and local governments to purchase and redevelop foreclosures and abandoned homes </li></ul></ul><ul><li>2009: Modification Incentives (HAMP): 2009 </li></ul><ul><li>2010: Short Sale Incentives (HAFA): 2010 </li></ul><ul><li>2011: Help for unemployed homeowners (EHLP) </li></ul><ul><ul><li>Up to $50,000 to help unemployed borrowers pay mortgage </li></ul></ul><ul><li>Numerous state laws extending foreclosure process </li></ul><ul><ul><li>Texas is one of a few exceptions with no big changes to state foreclosure law </li></ul></ul>©RealtyTrac Inc. 2011 , Not for Distribution
    11. 11. SLOPPY FORECLOSURE PRACTICES Artificial drop-off in foreclosure activity triggered by robo-signing ©RealtyTrac Inc. 2011 , Not for Distribution
    12. 12. LONGER FORECLOSURE TIMELINES Texas timeline has stayed consistent N.Y. timeline longest in country ©RealtyTrac Inc. 2011 , Not for Distribution
    13. 13. IN-DEPTH LOOK AT SHADOW INVENTORY ©RealtyTrac Inc. 2011 , Not for Distribution
    14. 14. SHADOW INVENTORY OF SUPPLY ©RealtyTrac Inc. 2011 , Not for Distribution
    15. 15. SHADOW INVENTORY OF SUPPLY 33 Percent Jump in Default Notices in August ©RealtyTrac Inc. 2011 , Not for Distribution
    16. 16. SHADOW INVENTORY OF SUPPLY SOURCE: Mortgage Bankers Association Q2 2011 National Delinquency Survey ©RealtyTrac Inc. 2011 , Not for Distribution
    17. 17. SHADOW INVENTORY OF SUPPLY Loans with an LTV of at least 125 percent as of Sept 2011 ©RealtyTrac Inc. 2011 , Not for Distribution
    18. 18. SHADOW INVENTORY OF SUPPLY ©RealtyTrac Inc. 2011 , Not for Distribution
    19. 19. SHADOW INVENTORY OF SUPPLY Avg. REO prices 40% lower than avg. prices of non-foreclosures ©RealtyTrac Inc. 2011 , Not for Distribution
    20. 20. SHADOW INVENTORY OF SUPPLY 19 Percent Increase from Q1 to Q2 ©RealtyTrac Inc. 2011 , Not for Distribution
    21. 21. SHADOW INVENTORY OF SUPPLY Tied record-high for short sale discount in Q2 2011 ©RealtyTrac Inc. 2011 , Not for Distribution
    22. 22. IMPLICATIONS FOR THE HOUSING MARKET ©RealtyTrac Inc. 2011 , Not for Distribution
    23. 23. ESTIMATED ABSORPTION RATES ©RealtyTrac Inc. 2011 , Not for Distribution <ul><li>15-month supply of bank-owned REOs </li></ul><ul><li>24-month supply of default & auction properties </li></ul><ul><li>21-month supply of delinquent properties </li></ul><ul><li>36- to 45-month supply of distressed property </li></ul><ul><li>Based on 265,000 distressed properties sold each quarter </li></ul>SOURCE: RealtyTrac
    24. 24. THE MOST DEPRESSED HOUSING MARKETS ©RealtyTrac Inc. 2011 , Not for Distribution SOURCE: CoreLogic, Zelman & Associates
    25. 25. FURTHER TO FALL BEFORE BOTTOM? SOURCE: Robert J. Schiller ©RealtyTrac Inc. 2011 , Not for Distribution
    26. 26. A SOLUTION TO SHADOW INVENTORY ©RealtyTrac Inc. 2011 , Not for Distribution
    27. 27. RETIRING THE FORECLOSURE CRISIS ©RealtyTrac Inc. 2011 , Not for Distribution
    28. 28. QUESTIONS & DISCUSSION ©RealtyTrac Inc. 2011 , Not for Distribution
    29. 29. THANK YOU! James J. Saccacio CEO, RealtyTrac 949-502-8300 Ext. 104 [email_address] ©RealtyTrac Inc. 2011 , Not for Distribution

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