Today’s News Synopsis:
According to MDA DataQuick, home sales decreased by 13.3 percent in Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange County. The Federal Reserve plans to leave interest rates at the current record low. Research from Trulia and RealtyTrac shows that 43% of U.S. adults will consider buying foreclosed property. A survey from JBREC shows that 57 percent of home builders expect to receive more revenue in 2010 than 2009.
In The News:
DQNews - “Southland home sales and prices up” (12-15-09)
“A total of 19,181 new and resale homes sold in Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange counties last month. That was down 13.3 percent from October’s 22,132, and up 14.7 percent from 16,720 for November 2008, according to MDA DataQuick of San Diego.”
San Francisco Chronicle – “Fed is expected to leave rates at record low” (12-15-09)
“The Federal Reserve is expected to leave interest rates at a record low this week. The big question is whether Chairman Ben Bernanke and his colleagues will hint about when they will reverse course and start boosting rates.”
Wall Street Journal – “Remaking Fannie and Freddie: Six Mistakes to Avoid” (12-15-09)
“While economic theory suggests that duopolies can be highly competitive, there are strong disagreements on whether this applies to Freddie Mac and Fannie Mae.…While additional GSEs would undoubtedly enhance competition, it is important to recognize the trade-off between concerns over excess profits and market liquidity.”
Inman - “Zillow rolls out rental search” (12-15-09)
“One in four people who plan to move in the next three years say they intend to look at both for-sale and rental properties, Rascoff said, citing a poll by Harris Interactive.”
Housing Wire – “Fewer Buyers Consider Foreclosures: RealtyTrac, Trulia” (12-15-09)
“Fewer homebuyers are likely to consider purchasing a foreclosed property in the future, according to a survey conducted by the online real estate companies Trulia.com and RealtyTrac. Conducted in early November, 43% of US adults indicate they are at least somewhat likely to consider purchasing a foreclosed home, a drop from 55% in the same survey conducted in May.”
Housing Wire – “After ‘09 Housing Bottom, Builders Optimistic for ‘10″ (12-15-09)
“While Fitch maintains a negative outlook for US homebuilding in 2010, the John Burns Real Estate Consulting (JBREC) monthly builder survey showed optimism among 264 home building industry executives from public and private companies. The belief that builders will have increased community count, better orders and slightly higher prices has 57% of respondents planning for more revenue in 2010 than in 2009.”
Bloomberg - “Mortgage Originations to Fall 16% in 2010 as Stimulus Ends” (12-15-09)
“Mortgage originations probably will decline 16 percent next year as the homebuyer tax credit expires and the Federal Reserve winds down purchases of mortgage-backed bonds, according to a report by Keefe, Bruyette & Woods Inc.”
Looking Back:
One year ago, the NAHB reported that builder confidence was at an all time low. Zillow estimated that home price reductions would add up to a total of $2 trillion in losses. Research from HomeDex showed that the median price per square foot decreased to $196.
Tags: bruce norris, DataQuick, fannie mae, Federal Reserve, freddie mac, harris interactive, JBREC, John Burns, MDA, mortgage, real estate, RealtyTrac, trulia, zillow