Today’s News Synopsis:
The NAR reports that pending home sales increased during October by 3.7 percent. The California Board of Equalization claims that most homeowners will see a decline in property tax after a deflation of 0.237 percent. According to Real Estate Econometrics LLC, the commercial mortgage default rate on loans held by U.S. banks increased to 3.4 percent in the third quarter.
In The News:
NAR - “Nine Consecutive Gains for Pending Home Sales” (12-1-09)
“The Pending Home Sales Index,* a forward-looking indicator based on contracts signed in October, increased 3.7 percent to 114.1 from 110.0 in September, and is 31.8 percent above October 2008 when it was 86.6. The rise from a year ago is the biggest annual increase ever recorded for the index, which is at the highest level since March 2006 when it was 115.2.”
Sacramento Bee – “Most California property tax bills will fall slightly in 2010″ (12-1-09)
“The Board of Equalization said Monday that most California homeowners will see a slight decline in property tax bills, based on the board’s preliminary estimates of deflation at 0.237 percent.”
Housing Wire – “$1trn in Commercial Real Estate Equity Lost, Say Analysts” (12-1-09)
“Property values are down 40% and about $1trn commercial real estate (CRE) equity was lost since the sector peaked in 2007, according to research by Keefe, Bruyette & Woods.”
Housing Wire – “Lend America Out of Business” (12-1-09)
“The FHA’s action prevents Lend America and Ideal from originating and underwriting FHA-insured mortgages or participating in FHA’s single-family insurance program. FHA also charged $512,500 in civil money penalties in the wake of a civil lawsuit that HousingWire previously reported reveals a pattern of mortgage fraud spanning more than 20 years across a number of mortgage firms.”
Housing Wire – “Short Sale Incentives Coming in 2010, Treasury Says” (12-1-09)
“HAFA allows the borrower to receive pre-approved short sale terms before the property is listed and frees them from future liability for the debt. Also, servicers utilizing the program are prohibited from requiring a reduction in the real estate commission agreed to in the listing agreement. The borrower also receives a $1,500 incentive for relocation after the transaction. The servicer receives a $1,000 incentive to cover administration and processing costs, and investors will be paid a maximum of $1,000 for allowing up to $3,000 in short-sale proceeds to be paid out to subordinate lien holders. In total, each transaction under HAFA will cost the Treasury up to $3,500 of incentive payments.”
Housing Wire – “RealtyBid.com Discounts Fees in December” (12-1-09)
“RealtyBid.com, online home auction company, discounted its standard listing fee from $150 to $25 through the end of December. Real estate agents looking to market property listings through an online auction can take advantage of the offer. If the property sells, RealtyBid.com will cut its sales fee, or the buyer’s fee, from 1% to a flat fee of $500.”
Bloomberg - “Commercial Mortgage Defaults at U.S. Banks Reach 3.4%” (12-1-09)
“The commercial mortgage default rate on loans held by U.S. banks more than doubled to 3.4 percent in the third quarter as vacancies rose and rents declined, Real Estate Econometrics LLC said.”
Bloomberg - “Construction Spending in U.S. Unchanged After Falling in Sept.” (12-1-09)
“Construction spending in the U.S. was unchanged in October after declining five straight months as rising office and retail vacancies deterred the building of commercial projects. Spending in September, previously reported as an increase, fell 1.6 percent, according to Commerce Department data released today in Washington. Construction spending declined on office buildings and commercial projects, while homebuilding increased.”
Looking Back:
One year ago, the government announced its plans to spend $800 billion dollars on mortgage-backed securities and consumer-debt securities. Treasury yields dropped to record lows. Bernanke announced that the federal reserve was considering lowering interest rates.
Tags: agent, auction, bank, Board of Equalization, bruce norris, Commerce Department, commercial, construction, default, deflation, Econometrics, FHA, fraud, insurance, Lend America, mortgage, N.A.R., NAR, national association of realtors, property, real estate, RealtyBid.com