Today’s News Synopsis:
MDA Dataquick’s monthly report shows that 22,328 homes were sold in Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange County last month. AFIRE conducted a survey in which 51 percent of foreign investors claimed the US provides the best opportunity for capital appreciation. According to the NAHB, builder confidence decreased from last month. Fitch Ratings sees many positive signals for housing and other related industries which may soon lead to a strong recovery.
In The News:
DQNews - “Southland home sales, median price up over last year” (1-19-10)
“A total of 22,328 new and resale homes sold in Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange counties last month. That was up 16.4 percent from November’s 19,181, and up 12.1 percent from 19,926 in December 2008, according to MDA DataQuick of San Diego.”
Housing Wire – “New Home Builds Strengthen Though Sector Remains Weak: Fitch” (1-19-10)
“There are more positive signals and developments for housing and related industries than at any time in the past three years, Fitch Ratings analysts wrote in a quarterly outlook report, but despite having fewer competitors, public builders will continue to be challenged and need to maintain tight controls over costs and expenses in 2010.”
Housing Wire – “Washington Federal Earnings Drop 61% in Q409, Driven by Large REO Expenses” (1-19-10)
“Washington Federal, the parent company of Washington Federal Savings, reported $7.9m in earnings for Q409 or $0.07 per share. Earnings dropped 61% from $20.1m or $0.23 per share in Q408, due to higher credit costs including the provision for loan losses and real estate owned (REO) expenses. Those expenses reached $82.5m in Q409, a 128% jump from $46.2m in Q408.”
Housing Wire – “Foreign Investors Revive Optimism in US Real Estate” (1-19-10)
“AFIRE conducted the survey in Q409 among its nearly 200 members. Respondents own more than $842bn of global real estate, including $304bn in the US. In the survey, 51% of respondents said the US provides the best opportunity for capital appreciation, an increase from 37% in 2008, 26% in 2007 and 23% in 2006. It’s the highest positive perception for US real estate since the same number in 2003.”
Housing Wire – “Citi Posts $7.6bn Q4 Loss After TARP Repayment” (1-19-10)
“Citigroup repaid $6.2bn of Troubled Asset Relief Program (TARP) funds during Q409, exiting its loss-sharing agreement with the federal government. Excluding the TARP payment, Citigroup would have lost $1.4bn, or $0.06 per share, in Q409.”
Housing Wire – “Google Teams with Tech Firms for Online Mortgage Search Tool” (1-19-10)
“Search giant Google (GOOG: 587.62 +1.31%) is partnering with mortgage technology companies for the launch of a new feature that allows consumers to search for mortgage products and rates through its site.”
Bloomberg - “Treasury Delay on Home-Equity Debt Imperils Housing” (1-19-10)
“The U.S. Treasury Department has failed to win agreements to get struggling borrowers’ home- equity debt reworked, among the biggest roadblocks to reducing foreclosures that may reach a record 3 million this year. None of the lenders holding a combined $1.05 trillion of the debt has signed contracts requiring participation in the second-mortgage modification plan announced eight months ago. The largest banks remain ‘committed’ to joining, Meg Reilly, a department spokeswoman, said in an e-mail.”
Bloomberg - “Homebuilder Confidence in U.S. Unexpectedly Decreases” (1-19-10)
“The National Association of Home Builders/Wells Fargo index of builder confidence decreased to 15 from 16 the prior month, the Washington-based group said today. Readings below 50 mean most respondents view conditions as poor. The report showed traffic slowed to a 10-month low, indicating the government’s extension and expansion of its first-time buyer program has, so far, not drawn in new demand after propelling total sales to an almost three-year high in November. A projected record 3 million foreclosures this year may also pressure prices, making it more difficult for homebuilders to turn a profit.”
Looking Back:
One year ago, MDA Dataquick reported that statewide home sales from 2008 to 2009 increased by 25.7 percent. Home sales in Southern California increased by 50.5 percent from 2007 to 2009. The Commerce Department reported that home starts had decreased to an annual rate of 605,000.