Today’s News Synopsis:
The number of closed banks is now at 22 with the closure of five more banks last Friday. The home ownership rate is at its lowest in 15 years at 65.5%, while at the exact same time the number of families renting is now at its highest in 15 years, showing that more people are renting than buying. The decision to allow principal reduction on mortgages provided by Fannie Mae and Freddie Mac is being postponed by the FHFA.
In The News:
Bloomberg – “Debt ‘Bubble’ in Property Is Like 2007, Sterlicht Says” (4-30-12)
“Competition to buy high-quality commercial real estate has led to a debt “bubble” in some U.S. property sectors, said Barry Sternlicht, chief executive officer of Starwood Capital Group LLC.”
DS News – “Regulators Shut Down Five Banks Friday, Raising 2012 Tally to 22″ (4-30-12)
“After what seemed to be a slow month for bank closings, with just one closing April 20 for the entire month, the FDIC announced five bank closings Friday, raising the national tally of failed banks to 22 so far this year.”
Realty Times – “Real Estate Outlook: Sales Declined in March “ (4-30-12)
“Good weather and a drop in unemployment aren’t having the positive affect on home sales that builders would like. According to the latest figures from HUD and the U.S. Commerce Department, the sales of newly built, single-family homes declined 7.1 percent for the month of March.”
Housing Wire – “FHFA delays principal reduction ruling” (4-30-12)
“The Federal Housing Finance Agency delayed its decision to allow principal reduction on Fannie Mae and Freddie Mac mortgages. American Banker first reported the development Friday. A spokesperson confirmed the delay.”
DS News – “Homeownership Rate Falls to 15-Year Low” (4-30-12)
“The nation’s homeownership rate (seasonally adjusted) dropped to 65.5 percent in the first quarter, its lowest level since the first quarter of 1997, the Census Bureau reported Monday.”
Inman – “Zillow’s new Android app only for rentals” (4-30-12)
“Property search and valuation site Zillow today released its first mobile application devoted solely to rentals.”
Housing Wire – “American family rentals reach 15-year high” (4-30-12)
“The nation’s rental and homeowner housing vacancy rates declined in the first quarter as supply conditions in the rental sector tightened and the proportion of families renting reached a 15-year high.”
Wall Street Journal – “Housing Ends Slide but Faces a Long Bottom” (4-30-12)
“Nearly six years after home prices started falling, more U.S. housing markets appear to be nearing a new phase: a prolonged bottom. Hitting a bottom, of course, isn’t the same as a full-fledged recovery, which is still years off for many housing markets—as well as for millions of people who purchased homes or took cash out during the bubble.”
DS News – “Consumer Spending Slows Sharply in March; Savings Rate Edges Up” (4-30-12)
“Consumer spending grew just 0.3 percent in March, down from the 0.9 percent growth in February, the Bureau of Economic Analysis reported Monday.”
Housing Wire – “Federal Reserve: Banks to increase real estate loan exposure” (4-30-12)
“Borrower demand for prime residential mortgage loans is strengthening, causing some banks to anticipate increasing their exposure to such loans over the next year.
Bloomberg – “Fed Says Banks Eased Loan Standards As Demand Increased” (4-30-12)
“U.S. banks saw increased demand for lending in the first quarter and made loans easier to get, according to a Federal Reserve survey.”
Hard Money Loan Closed
Loma Linda, California hard money loan closed by The Norris Group private lending. Real estate investor received loan for $105,000 on a 3 bedroom, 2 bathroom home appraised for $167,000.
The Norris Group posted a new event. Bruce Norris of The Norris Group will be at the Real Estate Investor Rewind for SJREI at Dublin on Wednesday, May 02, 2012.
The Norris Group posted a new event. Bruce Norris of The Norris Group will be at the Real Estate Investor Rewind for SJREI at South Bay on Thursday, May 03, 2012.
The Norris Group posted a new event. Bruce Norris of The Norris Group will be at the All in or Fold in Northern California on Saturday, May 05, 2012.
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.
Tags: bruce norris, Bureau of Economic Analysis, Capital Economics, Census Bureau, Department of Commerce, fannie mae, FDIC, Federal Housing Finance Agency, Federal Reserve Board, freddie mac, the norris group