Today’s News Synopsis:
The NAHB reports U.S. home-builder sentiment rose in May to the highest level in more than 2-1/2 years. The FDIC has shut down 72 banks so far in 2010. Based on a survey of 3,000 Western Union customers, 45% of respondents with a modified mortgage indicated scheduling regular payments will prevent re-default. According to Altera Real Estate, current housing demand has reached 2005 levels, just before the turn in the housing market.
In The News:
North Bay Business Journal – “115 agencies statewide defer impact fees” (5-17-10)
“Assembly Bill 2604 allows local governments to defer until close of escrow the collection of fees used to fund construction of public improvements or facilities. Previously, the fees had to be deferred until issuance of the certificate of occupancy or building permits, unless the funds were needed immediately or within 12 months.”
CNBC - “Homebuilder Confidence Hits 2-1/2 Year High in May” (5-17-10)
“U.S. home-builder sentiment rose in May to the highest level in more than 2-1/2 years, boosted by a homebuyer tax credit and strengthening economy, the National Association of Home Builders said on Monday. ”
Housing Wire – “Monday Morning Cup of Coffee” (5-17-10)
“Regulators shuttered four banks on Friday, located in Georgia, Illinois, Michigan and Missouri. The closures are expected to cost the Federal Deposit Insurance Corp. (FDIC) Deposit Insurance Fund (DIF) $301.5m. They bring the running 2010 total to 72 banks closed so far this year. By the same week last year, only 33 banks had been shut down.”
Housing Wire – “Western Union Sees Borrowers Take Control of Mortgage Fate” (5-17-10)
“Based on a survey of 3,000 Western Union customers, 45% of respondents with a modified mortgage indicated scheduling regular payments will prevent re-default. Almost one-third believe modifying their mortgage will improve their debt situation. But Western Union noted a need for greater borrower education in terms of loss mitigation options. For example, approximately half of respondents with a mortgage do not fully understand the requirements to qualify for modification or refinance.”
Orange County Register – “Home demand off 5% as tax break ends” (5-17-10)
“Current housing demand has reached 2005 levels, just before the turn in the housing market. Demand, the number of new pending sales over the prior month, decreased by 209 homes over the prior two weeks and now totals 3,770, a 5% drop.”
Inman - “6 ways agents avoid ‘clunker’ clients” (5-17-10)
“One of the most important steps you can take to attract more high-quality new business is to know who is a good fit for your business and who is not. Because we are still experiencing a sluggish market in most areas, it’s tempting for agents to take almost any customer who wants to buy or sell a piece of real estate. This is a poor strategy in the long run, and here’s why: When you’re willing to work with almost anyone, you often say “yes” to clients who will never close a transaction.”
Looking Back:
One year ago, the months of unsold, Bay Area inventory of existing single-family homes priced above $1 million reached 14 months. The government considered lifting the $729,750 conforming loan limit in place for high-cost markets. Builder confidence increased for two straight months in May 2009.
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: bank, bruce norris, builder, construction, credit, economy, escrow, FDIC, modification, modify, mortgage, NAHB, real estate, refinance, tax, Western Union