Housing prices increased in almost 90% of US cities in Q The national foreclosure rate has fallen by 52% since its peak in 2010 4.5 million foreclosures have been completed since 2008
1 million homes (2.3 % of all mortgages) are still in foreclosure, and 2.3 million (5.6%) are seriously delinquent 2.2 trillion loss in property values for homeowners near foreclosed properties
24% of homeowners are under- equitied or underwater; over half are underwater by 20% or more.
Significant state- wide variation in the pace of recovery Pace of recovery influenced by presence of investors, low interest rates
Over 50% of home sales in 2012 and 2013 have been cash-only In some cases, private investors crowd out individual homeowners and nonprofit developers opinion/individual-investors-feeling-squeezed-out-by- bulk-buyers-7673
NSP funds are running out: need for new sources of capital for community revitalization Opportunities for public-private partnerships to address ongoing issues in distressed neighborhoods Local market characteristics and policies drive investor behavior
Different markets lead to different investor behavior Predominant Investor Type Market CharacteristicsInvestor Behavior Las Vegas Short-term holders (3-5 years) House prices on the rise, significant inventory, low property taxes; strong support system of realtors, property managers, etc. Investors rent until property appreciates in value, then sell; growing role of overseas investors Detroit‘Milkers’ (no expectation of appreciation or sale) Property taxes from 25-50% of market value, slow growth in property values post- Recession Investors collect rent on properties without paying property taxes, walk away when properties go into tax foreclosure
Recession-driven wealth losses undid decades worth of investment in black and Hispanic households Tighter post-recession credit standards disproportionately impact lower-income and minority communities Dodd-Frank regulations may impact delivery of credit to underserved communities