The Norris Group Blog

California Real Estate Headline Roundup

Archive for February, 2011

By Bruce Norris .

The Norris Group Real Estate News Roundup 2/28/11

Monday, February 28th, 2011

Today’s News Synopsis:

MDA DataQuick reports 30.9% of all houses and condos sold in California during January were bought without a mortgage. The NAR claims pending home sales fell 2.8% in January. Approximately 25% of homeowners who sought assistance from Obama’s mortgage assistance program successfully had their payments reduced. A survey from Fannie Mae shows 19% of delinquent borrowers are considering a strategic default.

In The News:

MDA DataQuick - “Record Portion of California Homes Bought With Cash” (2-28-11)

“Last month 30.9 percent of all new and resale houses and condos sold statewide were bought without a mortgage – the highest level in at least 23 years, according to San Diego-based DataQuick Information Systems, whose statistics go back to 1988. Last month’s cash figure was up from 28.9 percent of sales in December and 28.5 percent a year earlier.”

NAR - “Pending Home Sales Decline in January” (2-28-11)

“The Pending Home Sales Index,* a forward-looking indicator, declined 2.8 percent to 88.9 based on contracts signed in January from a downwardly revised 91.5 in December. The index is 1.5 percent below the 90.3 level in January 2010 when a tax credit stimulus was in place.”

The Wall Street Journal“Only 1 in 4 Got Mortgage Relief” (2-28-11)

“Just one in four of the 2.7 million homeowners who sought to participate in the Obama administration’s signature mortgage assistance program have succeeded in getting their monthly payments reduced.”

Housing Wire“Fannie Mae’s mortgage portfolio, delinquency rate decline in January” (2-28-11)

“Fannie Mae’s gross mortgage portfolio dropped at a compound annualized rate of 16.4% in January, according to the latest monthly report from the government-sponsored enterprise.”

Housing Wire“Fewer distressed borrowers consider defaulting on mortgage debt” (2-28-11)

“Only 19% of delinquent borrowers polled by Fannie in January said they are ‘seriously considering’ a strategic default. That compares to 25% in January of 2010.”

Housing Wire“Fitch Ratings: Lack of new CMBS leads to limited master servicers” (2-28-11)

“The number of loans in commercial mortgage-backed securities handled by master servicers and rated by Fitch Ratings rose by 5.2% in 2010, although the total amount of the loans fell by 1.2% to $1.51 trillion.”

Housing Wire“Warren Buffett sees housing recovery to start within a year” (2-28-11)

“Warren Buffett anticipates a recovery in the housing market to begin within one year and the investment guru said in his biennial letter to investors that mortgages written by his subsidiaries performed better than most of the competition through the financial crisis.”

Realty Times“Closing Costs Explained” (2-28-11)

“Loan Origination and Points: You may have agreed to pay ‘points’ in order to get a lower interest rate. Think of this as pre-paid interest. For each point purchased, the loan rate is typically reduced by 1/8%. An origination fee is what you must pay the lender to write and process your loan. This can be up to several thousand dollars.”

For more information about The Norris Group’s California hard money loans or our California Trust Deed investments, visit the website or call our office at 951-780-5856 for more information. For upcoming California real estate investor training and events, visit The Norris Group website and our California investor calendar. You’ll also find our award-winning real estate radio show on KTIE 590am at 6pm on Saturdays or you can listen to over 170 podcasts in our free investor radio archive.

The Norris Group Real Estate News Roundup 2/25/11

Friday, February 25th, 2011

Today’s News Synopsis:

The NAR has been caught inflating home sales statistics, and the Commerce Department says new home sales decline 13% in January. FHA REO Inventory has increased 47% from last year. First time homebuyers who received the $7,500 tax credit will be expected to pay it back.

In The News:

Bloomberg - “Home Prices in U.S. Decline 4% on Foreclosures, FHFA Says” (2-24-11)

“U.S. home prices fell 4 percent in the fourth quarter from a year earlier as record foreclosures sapped the confidence of homebuyers, according to the Federal Housing Finance Agency.”

Bloomberg - “Sales of New U.S. Homes Dropped More Than Economists Forecast in January” (2-24-11)

“Sales declined 13 percent to a 284,000 annual pace, figures from the Commerce Department showed today in Washington. The median estimate of economists surveyed by Bloomberg News projected a decrease to a 305,000 rate. Demand dropped 37 percent in the West and 13 percent in the South.”

Housing Wire“FHA REO inventory up 47% from one year ago” (2-22-11)

“The Federal Housing Administration held 60,739 properties repossessed through foreclosure on its books as of December 2010, up 47% from the year before.”

Housing Wire“MERS rights upheld in largest foreclosure state” (2-23-11)

“An appellate judge in California last week upheld the rights of the Mortgage Electronic Registration Systems to the deed of trust, giving MERS the right to foreclose, according to court documents.”

Time - “Did Realtors Inflate Home Sales by 1.6 million in 2010?” (2-22-11)

“The National Association of Realtors said that existing home sales rose 2.7% in January from December, and were up 5.3% from a year ago. It was the first time in seven months that sales rose from the same month a year before. But before you put your home on the market, consider this: It appears the NAR may be inflating homes sales numbers, and not just for this January, but for years.”

Wall Street Journal“Realtors’ Former Top Economist Says Don’t Blame the Messenger” (2-12-09)

“Mr. Lereah, who says he left NAR voluntarily, says he was pressured by executives to issue optimistic forecasts — then was left to shoulder the blame when things went sour.”

Yahoo - “Obama pushes multibillion-dollar mortgage pact: report” (2-23-11)

“The Obama administration is trying to push a settlement that could force the largest U.S. banks to pay for reductions in loan principal worth billions of dollars following breakdowns in mortgage servicing”

Bloomberg - “U.S. House Republicans Move to End Foreclosure Aid Programs” (2-24-11)

“U.S. House Republicans plan to move forward with bills that would end anti-foreclosure programs put in place by the administration of President Barack Obama, saying they are doing more harm than good.”

New York Daily News“Payback time for first-time homeowners who took advantage of 2008 tax credit” (2-23-11)

“It sounded like a great deal: become a first-time homebuyer and pocket up to $7,500 in a tax credit. But if you bought that house in 2008 and received the credit, you’re required to start paying it back – now.”

For more information about The Norris Group’s California hard money loans or our California Trust Deed investments, visit the website or call our office at 951-780-5856 for more information. For upcoming California real estate investor training and events, visit The Norris Group website and our California investor calendar. You’ll also find our award-winning real estate radio show on KTIE 590am at 6pm on Saturdays or you can listen to over 170 podcasts in our free investor radio archive.