Today’s News Synopsis:
Southern California saw a 3.6% increase in home prices, an increase not seen in 16 months. This comes with the decrease in distressed properties to their lowest level in four years. The Mortgage Bankers Association reported a 9.2% increase in mortgage applications. Star Wars creator George Lucas proposed a plan to build low-income housing on his ranch after having been denied to build a digital production studio there.
In The News:
Housing Wire – “Home affordability in California reaches 24-year high” (5-16-12)
“Home affordability in California reached a 24-year high in the first quarter of 2012, with 56% of homebuyers able to afford a median-priced, existing single-family home in the state, the California Association of Realtors said. That is up from a home affordability rate of 55% in the fourth-quarter of last year and 53% in the first quarter of 2011.”
Mortgage Bankers Association – “Q1 2012 Commercial/Multifamily Mortgage Originations Up 36 Percent from Q1 2011″ (5-16-12)
“First quarter 2012 commercial and multifamily mortgage loan originations were 36 percent higher than during the same period last year and 12 percent lower than the fourth quarter of 2011, according to the Mortgage Bankers Association’s (MBA) Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations.”
DS News – “Housing Permits Drop, Starts Increase; Permits Hit 15-Month Low” (5-16-12)
“Housing permits dipped in April for the first time in four months, the Census Bureau and Department of Housing and Urban Development reported jointly Wednesday, but housing starts improved. Both indicators remained far above year-earlier levels.”
Bloomberg – “Housing Starts Join U.S. Factories Topping Forecasts” (5-16-12)
“Housing starts and industrial production exceeded forecasts in April, pointing to strength in the U.S. economy at the start of the second quarter.”
Housing Wire – “Mortgage applications rise 9.2% on refinancing activity” (5-16-12)
“Mortgage applications increased 9.2% for the week ending May 11 as more investors fearing Europe’s debt crisis fled to U.S. Treasury securities, an industry trade group said Wednesday.”
Bloomberg – “Southern California Home Prices Rise as Distress Declines” (5-16-12)
“Home prices in Southern California climbed last month from a year earlier for the first time in 16 months as sales of distressed properties, which usually sell at a discount, dropped to the lowest level in four years.”
Housing Wire – “George Lucas proposes affordable housing plan” (5-16-12)
“The film emperor may be striking back. For 25 years, filmmaker George Lucas tried to persuade his Marin County, Calif., neighbors to let him build a digital production studio on his ranch there, but the area’s residents thwarted the plan. So Lucas has come up with an alternative for his Grady Ranch property: To build low-income housing on it”
DS News – “Average U.S. Households Almost Out of Financial Distress” (5-16-12)
“The Consumer Distress Index, published by CredAbility, found that the average U.S. household is under less financial stress these days, most likely due to factors such as added jobs and the mild winter weather this year.”
Mortgage Bankers Association – “Delinquencies Decline in Latest MBA Mortgage Delinquency Survey” (5-16-12)
“The delinquency rate for mortgage loans on one-to-four-unit residential properties decreased to a seasonally adjusted rate of 7.40 percent of all loans outstanding as of the end of the first quarter of 2012, a decrease of 18 basis points from the fourth quarter of 2011, and a decrease of 92 basis points from one year ago, according to the Mortgage Bankers Association’s (MBA) National Delinquency Survey.”
Hard Money Loan Closed
West Covina, California hard money loan closed by The Norris Group private lending. Real estate investor received loan for $245,000 on a 5 bedroom, 2 bathroom home appraised for $383,000.
California Real Estate Investor Events:
The Norris Group posted a new event. Bruce Norris of The Norris Group will be at the Apartment Owners Association Million Dollar Trade Show on Saturday, May 17, 2012.
The Norris Group posted a new event. The Norris Group will hold its REO Boot Camp on May 22-24, 2012.
The Norris Group posted a new event. Bruce Norris of The Norris Group will be at the Cutting Edge Financial Tactics Brunch on Saturday, June 02, 2012.
Looking Back:
MDA DataQuick reported 6,789 houses and condos sold in the Bay Area during April 2011. TransUnion claimed the national mortgage delinquency rate fell to 6.19% in the first quarter of 2011. The United States was expected to reach the $14.29 trillion debt limit Monday. National mortgage debt decreased by nearly $400 billion from 2007 to 2010, according to Frank Nothaft of Freddie Mac.
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.
About Bruce Norris
Bruce Norris is an active investor, hard money lender, and real estate educator with over 30 years experience. Bruce has been involved in over 2,000 real estate transactions as a buyer, seller, builder and money partner.
Tags: bruce norris, California Association of Realtors, Census Bureau, Consumer Distress Index, CredAbility, delinquency, Department of Housing and Urban Development, home prices, mortgage applications, mortgage bankers association, National Delinquency Survey, southern california, the norris group, Weekly Mortgage Applications Survey