Today’s News Synopsis:
According to the NAR, pending home sales decreased by 16 percent from October to November. The Mortgage Bankers Association believes that the third quarter of 2009 likely marked the end of the recession, but expects to see continuous trouble in the real estate market. Lockhart predicts there will be another spike in foreclosure activity. Realtors warn that buying REO properties can be risky for business.
In The News:
NAR - “Pending Home Sales Down from Surge but Higher than a Year Ago” (1-5-09)
“The Pending Home Sales Index,* a forward-looking indicator based on contracts signed in November, fell 16.0 percent to 96.0 from an upwardly revised 114.3 in October, but is 15.5 percent higher than November 2008 when it was 83.1.”
Mortgage Bankers Association – “Commercial/Multifamily Real Estate Market Continues to Feel Effects of Economic Downturn” (1-5-09)
“The Mortgage Bankers Association (MBA) today released its Commercial Real Estate/Multifamily Finance Quarterly Data Book for the third quarter of 2009. Though technically the third quarter likely marked the end of the recession, strains on various parts of the commercial/multifamily real estate market continue to be felt. This analysis focuses on the overall state of the economy and the resulting impacts on real estate fundamentals, mortgage originations, mortgage debt outstanding and mortgage performance in the third quarter.”
Sacramento Bee – “Aid offered to first-time homebuyers” (1-5-09)
“Roseville has been awarded $1.3 million to help first-time buyers who meet an income qualification to buy bank-owned homes, according to the city’s Web site. To qualify for the down-payment assistance, households need to earn less than 80 percent of the area median income, adjusted for household size. For example, the maximum income for a two-person household is $46,600 and four-person household is $58,250.”
CNBC - “Time To Reduce Mortgage Principal Payments: Lockhart” (1-5-09)
“Although the latest Case-Shiller Index indicates the housing market has been improving for the last five months, there could be another spike in foreclosures, said Lockhart. While banks and investors have already marked down mortgages on their books, he said, that benefit has not yet been passed onto homeowners.”
Bloomberg - “Silicon Valley ‘Bloodbath’ Leaves Entire Office Buildings Empty” (1-5-09)
“Silicon Valley is beset by the biggest office property glut since the dot-com bust, leaving the U.S. technology hub with empty high-rises and office parks that make it impossible for landlords to sustain average rents. More than 43 million square feet (4 million square meters) — the equivalent of 15 Empire State Buildings — stood vacant at the end of the third quarter, the most in almost five years, according to CB Richard Ellis Group Inc. San Jose, Sunnyvale and Palo Alto have 11 empty office buildings with about 3 million square feet of the best quality space.”
Inman - “Foreclosure.com files for bankruptcy” (1-5-09)
“The parent company of Foreclosure.com and a stable of more than 150 other Web sites says its doors will remain open after two lawsuits forced it to file for Chapter 11 bankruptcy protection”
Inman - “REOs are risky business” (1-5-09)
“Bank-owned, foreclosed properties — also known as REOs — represent a huge opportunity for real estate agents and buyers alike, but can also pose a huge risk for your business.”
Realty Times – “Real Estate Outlook: 2010 Stark Contrast to 2009″ (1-5-09)
“Home sales have been rising for months, thanks in part to the federal tax credit programs; new home starts and permits are up in most parts of the country; and prices generally are trending up in most of the markets that got shell-shocked in the bust.”
Realty Times – “Part 1: 10 Essentials For Avoiding A Bad Real Estate Agent When Selling Your Home” (1-5-09)
“If performance and track record mean anything to you, make sure you ask each Realtor to bring a current copy of their MLS ‘inventory report’ for the last 2 years so you can see for yourself how many homes they have actually “sold!” This will also reveal exactly how many homes they have Active, In Escrow, Closed, Expired and so on. The inventory report is basically a report card that almost nobody ever asks for, but every agent could easily provide. The results are real, tangible, and will separate the top producers from the casual part timers and other poor performing real estate agents.”
Realty Times – “Compound Advantages in 2010″ (1-5-09)
“Compound interest is interest on interest. That is, interest on the original amount, the principal, and also interest charged on accumulating interest. For instance, with semi-annual compounding, the amount of interest charged over six months is added to the balance to create a new amount on which to calculate interest. Compounding is a savings boost for investors, but a debt accelerator in mortgages and other compound-interest debts.”
Tags: broker, bruce norris, foreclosure, lockhart, MBA, mortgage, mortgage bankers association, N.A.R., NAR, national association of realtors, real estate, realtor, reo