Looking Back:
Analysts are claiming that an increase in the average family size could reduce demand for housing. The US Senate is proposing many new changes to the Restoring American Financial Stability Act. The Department of Labor reports that national unemployment levels increased to 9.9 percent. According to the US Census Bureau, the homeownership rate fell to 67.1 percent in the first quarter.
In The News:
USA Today – “Increase in household size could slow economic recovery” (5-7-10)
“The number of people living under one roof is growing for the first time in more than a century, a fallout of the recession that could reduce demand for housing and slow the recovery. The Census Bureau had projected the average household size would continue to fall to 2.53 this year. Instead, the average is likely to hit 2.63, a small but significant increase because it is a turnabout.”
Housing Watch – “Housing Bubble Was Whose Fault? Not the Fed’s, Says New Study” (5-7-10)
“Don’t blame the Federal Reserve for the country’s housing troubles. At least that’s what a controversial new study claims. Economic researchers from Harvard’s Kennedy School and the Wharton School of the University of Pennsylvania believe they’ve proved that reduced interest rates and lax regulations were not the primary cause of the housing bubble. The authors of the study instead point to the currently allowable mortgage interest tax deduction as the main culprit.”
Housing Wire – “GSE Wind-Down, Derivatives Reform Amendments Await Senate” (5-7-10)
“The US Senate added a number of amendments this week to S 3217, the Restoring American Financial Stability Act sponsored by Sen. Chris Dodd (D-CT), that aim to reform regulation of the financial markets. Many more amendments await consideration by the Senate, which plans to return to voting on Tuesday.”
Housing Wire – “Despite Job Growth, Unemployment Rises to 9.9%” (5-7-10)
“Payrolls in the US added 290,000 workers in April, according to data released today by the Department of Labor (DOL) Bureau of Labor Statistics. It marks an increase from the 162,000 jobs added in March. Despite the gain in employment, the overall unemployment rate rose to 9.9%. Additionally, the U-6 measure of both un- and under-employment continued to rise — inching up to 17.1% in April, from 16.9% last month.”
Bloomberg - “Beazer Homes Sells Debt as Issuance Falls to Lowest This Year” (5-7-10)
“Sales of U.S. corporate bonds fell 86 percent this week to the lowest this year amid rising investor concern that Greece’s debt crisis will spread to other European countries and beyond. Beazer Homes USA Inc., the Atlanta-based homebuilder, sold $300 million of notes and Lennox International Inc., the maker of heating and air-conditioning systems, issued $200 million of debt to lead $2.55 billion in corporate bond offerings, according to data compiled by Bloomberg.”
Orange County Register – “Hear why builders now focus on price” (5-7-10)
“Homebuilding is on the upswing, which is not terribly surprising considering how slow things had been in recent years. So we asked Mark Buckland, CEO of Southern California builder CityVentures, what he was seeing in the new-home market. Buckland tells ocregister.com in a podcast interview that this is clearly no boom. The region’s home pricing has stabilized at levels that are as much as half off the peak. That’s because builders have to actively compete with the resale housing market. What’s helping builders’ bottom line is that land prices and construction costs have come down so low that new homes can now be very price competitive.”
Housing Wire – “Falling back to 2000: Homeownership rate sinks” (5-7-10)
“The nation’s homeownership rate fell to 67.1 percent in the first quarter, a rate not seen since first-quarter 2000, according to a report from the U.S. Census Bureau and the U.S Department of Commerce. The rate reached its peak in 2004, when it was at 69.2 percent for both the second and fourth quarters.”
Housing Wire – “Clash over NAR’s MLS rules for photos, disclosures” (5-7-10)
“Multiple listing services are asking the National Association of Realtors to stand behind them if they choose to require that brokers submit photos or property disclosure forms with their for-sale listings. Many MLSs have had such rules in place for years, particularly for photos. But NAR staff members say the trade group’s existing MLS policy does not expressly grant MLSs such authority.”
Looking Back:
One year ago, the Federal government declared the California wage cuts, which would have saved $74 miilion, to be in conflict with the American Recovery and Reinvestment Act. Fannie Mae reported a first-quarter loss of $23.2 billion. The Labor Department reported that payrolls fell by 539,000 in April 2009.
Tags: beazer, bruce norris, bubble, Census Bureau, Chris Dodd, Department of Labor, economic, economy, employment, Federal Reserve, Harvard, housing, interest, Lennox, mortgage, real estate, S3217, tax