Western States Drive Reverse Mortgage Volume Up 15% in December
The old real estate mantra “location, location, location” is equally important when it comes to reverse mortgage volume, as western states posted the highest annual growth hikes in December, according to a new report.
Reverse mortgage volume grew 15.2% year-to-date in December 2013 compared to 2012, recording 60,929 total units, according to data compiled by Reverse Market Insight (RMI).
In terms of states that posted the highest annual volume gains in December, Arizona and California led the way with increases of 60.7% and 36.4%, respectively.
The recovery progress of both states following the housing downturn contributed significantly to their high volume growth.
“Phoenix was a poster child for housing price declines and powered the Arizona volume increase—a boom following a bust,” RMI noted. “California’s volume resurgence was more broadly based, from the coastal areas more insulated from home price declines to the inland areas that dropped >50%.”
When looking at total number of units, California still topped out at #1 with 9,335 recorded in December, while Texas ranked at #2 with 5,091 units—an increase of 7.5% compared to December 2012.
The competitive landscape year-to-date in December 2013 saw several shifts among the top-10 reverse mortgage lenders.
American Advisors Group ranked #1 at 6,659 units, moving up from the #2 spot achieved in December 2012.
Proficio Mortgage, which ranked #13 in December 2012, moved ahead in the rankings in the course of the year, achieving the #5 spot in RMI’s latest report.
“As the saying goes, location is everything in the real estate business,” RMI writes. “If your longtime marketing areas aren’t producing after the recent product changes, it’s time to redefine your focus for 2014.”
Written by Jason Oliva
