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California Real Estate Headline Roundup

Posts Tagged ‘BarCap’

The Norris Group Real Estate News Roundup 1/26/10

Tuesday, January 26th, 2010

Today’s News Synopsis:

CBIA reports that 36,209 building permits were issued in California last year. The 30-year mortgage rate decreased by 0.4 percent in December. DBRS expects loan servicers to allow more principal reductions as more attempted modifications fail. According to RealFacts, the average  Orange County apartment rent fell 6.7% during the 4th quarter of 2009.

In The News:

CBIA - “It’s Official: California Housing Production Reached New Low in 2009″ (1-26-10)

“California homebuilders put up the lowest number of homes for a single year in 2009, beating the previous low that was set in 2008, the California Building Industry Association announced today.  CBIA said just 36,209 permits were issued statewide last year for new homes, apartments, condominiums and townhomes, down 44 percent from 2008 and down a whopping 83 percent – 176,751 units – compared to 2004, the peak of the latest cycle.”

Housing Wire – “Mortgage Insurer MGIC Loses $1.3bn in 2009″ (1-26-10)

“The Wisconsin-based mortgage insurer posted a total $1.3bn net loss in all of 2009, more than double the $525.4m net loss in all of 2008.”

Housing Wire – “Mortgage Rates Dip in December, Stay Above 5 Percent” (1-26-10)

“The average interest rate for a 30-year fixed-rate mortgage (FRM) of $417,000 or less was 5.05% in December, down from 5.09% in November. The average interest rate on 15-year, FRM of $417,000 or less was 4.54%, down from 4.63% in November.”

Housing Wire – “Going Forward, BarCap Expects Mixed Results from REITs” (1-26-10)

“Analysts at Barclays Capital (BarCap) project mixed results from the real estate investment trust (REIT) sector, as the companies begin releasing their Q409 and year-end earnings reports. On average, the analysts expect fourth quarter funds from operations per share (FFOPS) for the REIT sector to increase 6.1% year-over-year, but decline 28.1% on an operating basis, which they define as excluding non-recurring items.”

Housing Wire – “Home Prices Continue to Improve in November” (1-26-10)

“Annual home price declines were in the single digits in November 2009, as the Standard & Poor’s (S&P)/Case-Shiller home price indices continue a 10-month run of improved results. The monthly indices track existing home prices every month on a year-over-year basis in 20 markets, broken down in 10-city and 20-city composites. The 10-city composite declined 4.5% and the 20-city composite declined 5.3% in November 2009 compared to November 2008.”

Housing Wire – “DBRS Expects Re-Defaults to Drive Principal Forgiveness” (1-26-10)

“With more than half of all modified loans expected to re-default in 2010, servicers are likely to increase the use of principal forgiveness, as an option to bring these continually distressed mortgages current, rating agency DBRS said in commentary yesterday.”

Bloomberg - “Fed Weighs Interest on Reserves as New Policy Rate“ (1-26-10)

“Federal Reserve policy makers are considering adopting a new benchmark interest rate to replace the one they’ve used for the last two decades. The central bank has been unable to control the federal funds rate since the September 2008 bankruptcy of Lehman Brothers Holdings Inc., when it began flooding financial markets with $1 trillion to prevent the economy from collapsing. Officials, who began a two-day meeting at 2 p.m. today in Washington, have said they may replace or supplement the fed funds rate with interest paid on excess bank reserves.”

Orange County Register – “Lake Forest has biggest O.C. rent cuts” (1-26-10)

“The average rent in that city was $1,347 a month during the fourth quarter vs. $1,520 in the fourth quarter of 2008. That compares to an average decrease of $105 countywide, according to RealFacts. The average  Orange County apartment rent fell 6.7% to $1,473 during the final three months of last year.”

Orange County Register – “4 O.C. cities top CA. home price gains” (1-26-10)

“The overall median price in December  was $496,070, down 0.6% from November, but up 12.1% from the prior year. Sales were up 4.5% from November and up 17.9% from December 2008.”

Looking Back:

One year ago, the NAR reported that existing home sales had increased by 6.5 percent within one month. Statistics from First American Corelogic showed that home prices fell in 38 U.S. states. Banks disposed of over $1 billion in loan and construction debt within one quarter. Distressed home sales represented 50 percent of the Southern California housing market.

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The Norris Group Real Estate News Roundup 1/21/10

Thursday, January 21st, 2010

Today’s News Synopsis:

MDA DataQuick reports that 7,828 new and resale houses and condos were sold in the Bay Area during December. According to OCC, seriously delinquent loans of 60 or more days increased to 6.2 percent of the servicing portfolio. Radar Logic’s study of 25 metropolitan markets shows that home sales increased by 46.7%. Freddie Mac’s weekly survey shows that mortgage rates on 30-year U.S. loans fall to 4.99%.

In The News:

DQNews - “Bay Area December home sales strongest in three years” (1-21-10)

“A total of 7,828 new and resale houses and condos were sold in the nine-county region last month. That was up 13.8 percent from 6,878 in November, and up 13.6 percent from 6,889 for December 2008, according to MDA DataQuick of San Diego.”

OCC - “OCC and OTS Mortgage Metrics Report” (1-21-10)

“Overall, mortgage performance continued to decline as a result of continuing adverse economic conditions including rising unemployment and loss in home values. The percentage of current and performing mortgages fell to 87.2 percent of the servicing portfolio. Seriously delinquent mortgages— loans 60 or more days past due and loans to delinquent bankrupt borrowers—rose to 6.2 percent of the servicing portfolio. Foreclosures in process increased to 3.2 percent, while new foreclosure actions remained steady for the third consecutive quarter at 369,209. Of particular note, delinquencies among prime mortgages, the largest category of mortgages, continued to climb. The percentage of prime mortgages that were seriously delinquent in the third quarter was 3.6 percent, up 19.6 percent from the second quarter and more than double the percentage of a year ago.”

Housing Wire – “BarCap Expects ‘Little Bite’ from FHA Underwriting Changes” (1-21-10)

“Recently-announced underwriting changes to the Federal Housing Administration’s (FHA) mortgage insurance program might be ‘all bark, little bite’ according to commentary Thursday by Barclays Capital (BarCap) researchers. The FHA changes include increases in the mortgage insurance premium, increased downpayment for low FICO borrowers, reduced ability to roll closing costs into the loan and increased lender recourse to FHA lenders.”

Housing Wire – “Radar Logic Says Housing Market is Poised for Recovery” (1-21-10)

“Residential real estate showed some signs of life in November, according to Radar Logic’s monthly Residential Property Index (RPX). November home sales volume increased year-over-year in all of the 25 metropolitan markets the RPX report covers. Sales volume increased 46.7% year-over-year and 1.5% month-over-month.”

Housing Wire – “PNC Posts $2.4bn Gain, 61 Permanent HAMP Mods in 2009″ (1-21-10)

“The PNC Financial Services Group (PNC: 55.70 -5.26%) reported a Q409 net income of $1.1bn, or $2.17 per diluted common share, an increase from the $559m gain in Q309. The company’s net income for the year reached $2.4bn, or $4.36 per diluted common share, compared to $914m, or $2.44 per share, in 2008.”

Housing Wire – “Investors Ask Fed for $1.4bn of TALF Loans to Buy Legacy CMBS” (1-21-10)

“The Federal Reserve Bank of New York on Wednesday received requests for $1.45bn of government loans to buy securities backed by commercial mortgages.”

Bloomberg - “BlackRock Proposes New Consumer Bankruptcy Option” (1-21-10)

“Consumers need a new type of bankruptcy that would better aid homeowners and be fairer for mortgage-bond investors than the existing U.S. loan-modification program, BlackRock Inc. Vice Chairman Barbara Novick said. BlackRock, the world’s largest asset manager, proposes creating a bankruptcy option under which terms of a consumer’s mortgage can be eased, though only after other debts are eliminated, Novick said in a telephone interview. Judges would need to follow a formulaic approach, she said.”

Bloomberg - “Homebuilders Turn to Private Equity for Financing” (1-21-10)

“More than 40 U.S. homebuilders have teamed up with private equity firms to acquire and complete unfinished subdivisions as banks cut construction lending. The investments will pay off for the builders and their investors if the prices are low enough and the locations are in areas where demand is recovering, said Megan McGrath, a home building industry analyst at Barclays Capital Inc. in New York.”

Bloomberg - “Bank Failures Should Destroy CEOs, Buffett Tells Fox” (1-21-10)

“President Barack Obama’s proposal to regulate banks should include a requirement that chief executive officers and their spouses forfeit their assets when companies fail, billionaire Warren Buffett said on Fox Business Network.”

Bloomberg - “Mortgage Rates on 30-Year U.S. Loans Fall to 4.99%” (1-21-10)

“Mortgage rates in the U.S. dropped for a third week, lowering borrowing costs for consumers and supporting government efforts to boost the housing market. The rate for 30-year fixed U.S. home loans fell to 4.99 percent for the week ended today from 5.06 percent, mortgage finance company Freddie Mac said in a statement today. The average 15-year rate declined to 4.4 percent from 4.45 percent, according to the McLean, Virginia-based company.”

Bloomberg - “U.S. Life Insurers May Face More Real Estate Losses” (1-21-10)

“U.S. life insurers, a group led by MetLife Inc. and Prudential Financial Inc., may face $15 billion in additional commercial real estate losses, most of which will be recognized in the next two years, Fitch Ratings said.”

Looking Back:

One year ago, the NAHB reported that builder confidence had decreased to a record low. Dataquick reported that foreclosures represented more than half of all sales.  Research from the Construction Industry Research Board showed that Orange County governments issued 3,156 building permits to homebuilders in 2008.

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The Norris Group Real Estate News Roundup 12/07/09

Monday, December 7th, 2009

Today’s News Synopsis

The MBA reports that delinquency rates increased during the third quarter for most mortgage investor groups. Bernanke claims that the recovery should continue for at least a year, but the U.S. still has some trouble to overcome. Six more banks were shut down Friday, which will cost the FDIC a total of $2.384billion.

In The News:

Mortgage Bankers Association – “MBA Report Shows Third Quarter 2009 Commercial and Multifamily Mortgage Performance Falls in Weakened Economy” (12-7-09)

“Delinquency rates continued to increase in the third quarter for most commercial/multifamily mortgage investor groups, according to the Mortgage Bankers Association’s (MBA) Commercial/Multifamily Delinquency Report.”

MSNBC - “Bernanke: Too soon to tell if recovery will last” (12-7-09)

“The Fed chief repeated his belief that the recovery will continue at least into next year. But he cautioned that the economy is confronting some ‘formidable headwinds’ — including a weak job market, cautious consumers and still-tight credit.”

Housing Wire – “TARP Costs Narrow as Treasury Sheds Capital One Investment” (12-7-09)

“Initial projections put the cost of the financial stabilization efforts at more than $500bn, which factored into the President’s budget in February. Of that projection, $300bn was expected directly from TARP, and another $250bn was included in the budget to cover needed resources beyond TARP’s $700bn.”

Housing Wire – “Fannie Prepays Plunge ‘Unexpected’ 6%: BarCap” (12-7-09)

“The prepayment rate among Fannie Mae (FNM: 0.91 -1.09%) 30-year notes slipped 6% ‘unexpectedly’ after the government-sponsored entity (GSE) suspended buyouts related to the Home Affordable Modification Program (HAMP), according to monthly commentary by Barclays Capital. The buyout delay in this month’s reporting period for Fannie indicates a spike in buyouts — and the prepayment speed — next month as mortgages are modified and withdrawn from mortgage-backed security (MBS) pools, according to researchers.”

Housing Wire – “Monday Morning Cup of Coffee” (12-7-09)

“Regulators shut down six banks Friday, bringing to total number of failed institutions to 130 this year. The total estimated cost to the Federal Deposit Insurance Corp.’s (FDIC) deposit insurance fund is $2.384bn.”

Housing Wire – “Mortgage Insurers Deny 20-25% of Claims: Moody’s” (12-7-09)

“Mortgage insurance rescission rates jumped to 20-25% in recent quarters, relative to historical 7% averages. Moody’s said mortgage insurers rescinded about $6bn of claims since January 2008 and could rescind another $2bn to $4bn of claims during the next few years.”

Orange County Register – “O.C. mechanics liens drop 23%” (12-7-09)

“The Real Estate Research Council of Southern California reports that in the third quarter the number of Orange County mechanics liens filed were 730 – that’s -23.4% vs. a year ago. Mechanics liens are typically filed when contractors working on a real estate property — home or commercial, new or old — go unpaid for their services.”

Orange County Register - “Hear why O.C. property tax collections jumped” (12-6-09)

“Considering the wave of the ugly economic news out there, we were surprised to learn that early Orange County property tax collections were up $54 million as the Dec. 10 deadline for first installment payments neared.”

Looking Back:

One year ago, the delinquency rate for one-to-four-unit residential properties stood at 6.99 percent. 500,000 jobs were cut within one month’s time. The U.S. Treasury offered a multi-billion dollar proposal to lower the interest rate on 30-year mortgages to 4.5 percent.

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The Norris Group Real Estate News Roundup 11/6/09

Friday, November 6th, 2009

Today’s News Synopsis:

Fannie recently developed the “Deed-for-Lease” program which allows qualified borrowers to deed their properties back to Fannie and continue to live in the house for up to 12 months. Fannie Mae is asking for $15 billion in support from the Treasury Department. Ronald Pressman from GE Capital Real Estate believes that the commercial real estate market is far from a recovery. The U.S. unemployment rate increased to 10.2 percent in October.

In The News:

Housing Wire – “BarCap Sees ‘Limited Use’ of Fannie’s Deed-for-Lease Program” (11-6-09)

“The Deed-for-Lease (D4L) program allows qualified borrowers to voluntarily deed the property back to Fannie and remain in the home on lease for up to 12 months. It targets borrowers that do not qualify for other workout alternatives like the Home Affordable Modification Program (HAMP), which allocates federal incentives to servicers that pursue modifications before foreclosure.”

Housing Wire – “Higher Unemployment Means Many More Distressed Properties to Come” (11-6-09)

“The US Conference of Mayors, a nonpartisan organization that represents cities with populations greater than 30,000, is sending out an industry warning that they expect employment rates to continue to climb in 2010, reaching levels as high as 15% in some municipalities. Servicers in these areas should prepare to face a much heavier distressed asset portfolio as borrowers struggle to cope with lose of income, says Dave Gatton, a director at the firm.”

Housing Wire – “Fannie Asks Treasury for $15Bn, May Sell Housing Tax Credits” (11-6-09)

“Financial fallout at mortgage giant Fannie Mae (FNM: 1.0299 -8.04%) continues to develop following the $19.8bn quarterly net loss, with the agency’s conservator confirming Fannie may sell as much as $2.6bn of low-income housing tax credits to investors and is requesting another $15bn in support from the US Treasury Department.”

Housing Wire – “Calif. Commercial Delinquency Rate Drops to 0.23%: CMBA” (11-6-09)

“The delinquency rate for commercial loans in California slipped 3bps from 0.26% to 0.23% in Q309, according to a survey conducted by the California Mortgage Bankers Association (CMBA).”

Housing Wire – “Fed Buys Another $16Bn of Agency MBS” (11-6-09)

“The Federal Reserve Bank of New York bought $16bn of mortgage-backed securities (MBS) from housing finance agencies Freddie Mac (FRE: 1.19 -4.80%), Fannie Mae (FNM: 1.03 -8.04%) and Ginnie Mae in the week ending November 4. The Fed bought $3.27bn from Freddie, $12.55bn from Fannie and $175m from Ginnie. For the first week in months, were no MBS sales listed in the week ending November 4.”

Bloomberg - “Commercial Property ‘Long Way’ From Rebound, GE’s Pressman Says” (11-6-09)

“The U.S. commercial property market is far from recovery and needs job growth, sustained low interest rates and further government support, said GE Capital Real Estate Chief Executive Officer Ronald Pressman. ”

Reuters - “Surge in temp jobs points to stronger U.S. economy” (11-6-09)

“U.S. temporary staffing — historically one of the first areas to show evidence of a jobs recovery — surged in October, adding about 34,000 jobs in a positive sign for the overall economy even as the overall employment rate rose above 10 percent.”

Orange County Register – “1 in 4 Surf City home sales distressed” (11-6-09)

Three charts are displayed which contain data on Huntington Beach listings and escrows.

Inman - “15 best iPhone apps for mobile agents” (11-6-09)

“Home Tracker. You’ve seen a lot of homes and it can make your head spin. Home Tracker keeps track for you. Store information on each property such as address, ZIP code, price and size; add notes; take photos; rate the property condition, location and appeal; star your favorites; map the property; and best of all, e-mail the summary of home tours to your clients.”

Realty Times – “Is Your Agent Experienced in Distressed Properties?” (11-6-09)

“the National Association of Realtors (NAR) is coming to the rescue with real estate agents specifically schooled in those subjects. A new Short Sales and Foreclosure Certification Program (SFR) trains agents how to manage short-sales, foreclosures, and real estate owned (REO or bank owned) transactions, and keeps agents current on national and state-specific information and regulations on these issues.”

Wall Street Journal – “Broader U-6 Unemployment Rate Hits 17.5%” (11-6-09)

“The U.S. jobless rate jumped up 0.4 percentage point to 10.2% in October, the highest level since April 1983. The government’s broader measure of unemployment shot up even more, rising half a point to 17.5%.”

Wall Street Journal – “Real Time Economics” (11-6-09)

“The bad news is that the jobs situation seems to have stalled out after improving dramatically through the summer. Private payroll declines actually widened slightly in September and in October. Thus, while we still strongly believe based on anecdotes, surveys, and other statistics that the labor situation is improving and that job losses will come to an end within a few months, the payroll numbers themselves do not indicate much positive momentum. In contrast to the payroll survey results, the household survey data were unambiguously negative. The unemployment rate surged to 10.2%, as the household gauge of employment plunged by almost 600,000 on top of September’s 785,000 drop. –Stephen Stanley, RBS”

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The Norris Group Real Estate News Roundup 11/4/09

Wednesday, November 4th, 2009

Today’s News Synopsis:

The MBA’s weekly mortgage survey shows that loan application volume increased by 8.2 percent, on a seasonally adjusted bases, from last week. The FHA expects 24 percent of all loans insured in 2007 to default. The Federal Reserve’s FOMC announced that it will not buy the full $200 billion debt amount that it had previously planned to take. BarCap reports that the 30-plus day delinquency rate increased to 5.5 percent in October.

In The News:

Orange County Register – “Are we headed for the same real estate winter doldrums?” (11-4-09)

“Historically, over a 30 year trend, 70% of all Orange County homes sell in the first seven months of the year. Seasonality is the term used by real estate experts. Typically, most buyers are active in the spring and summer markets. Once Labor Day comes, they tend to focus on the holidays. Activity drops off each month. December is the slowest month.”

Mortgage Bankers Association – “Mortgage Refinance Applications Increase in Latest MBA Weekly Survey” (11-4-09)

“The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending October 30, 2009. The Market Composite Index, a measure of mortgage loan application volume, increased 8.2 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 7.9 percent compared with the previous week.”

Wall Street Journal – “FHA Digging Out After Loans Sour “ (11-4-09)

“Although the FHA has tightened credit standards, many of the 2007 and early 2008 mortgages are going bad. The agency expects defaults on 24% of all loans insured in 2007, and 20% of those backed in 2008.”

Housing Wire – “In This Corner: QuestSoft President and Founder Leonard Ryan” (11-4-09)

“Mortgage Disclosure Improvement Act (MDIA) is causing issues because most loan software products keep track of only the latest disclosure dates due to the complexity of the calculations. S.A.F.E. Act is causing the most internal personnel problems due to education and registration requirements that differ from state to state. Higher Priced Mortgage Loans (HPML) with the Home Mortgage Disclosure Act (HMDA) changes as of October 1 are becoming an out and out nightmare without automation because every time an Annual Percentage Rate (APR) changes or the note rate adjusts, the loan must be completely recalculated and possibly re-underwritten.”

Housing Wire – “Fed Won’t Purchase Full $200bn Agency Debt, FOMC Says” (11-4-09)

“The Federal Reserve’s Federal Open Market Committee (FOMC) said it won’t purchase as much agency debt as it previously announced. The $175bn of agency debt purchases is less than the previously announced $200bn, but the FOMC said the amount ‘is consistent with the recent path of purchases and reflects the limited availability of agency debt.’”

Housing Wire – “CMBS Delinquencies Swell to 5.5% in October, says BarCap” (11-4-09)

“The 30-plus day delinquency rate jumped 41bps to 5.5% in October as current loans deteriorated and transferred to special servicers. For the past three months, delinquencies have grown an average of 34bps, and BarCap analysts expect the pace to increase through 2009 and into 2010.”

Housing Wire – “Pulte’s Closings Slip in Q309, Despite Merger” (11-4-09)

“Pulte Homes (PHM: 9.55 +3.47%) lost $361.4m, or $1.15 per share, in Q309, compared to $280.4m, or $1.11 per share, in Q308. Results were impacted by $86.7m in charges and transaction costs associated with Pulte’s merger with Centex Corporation, and $163.8m in inventory impairments and other land-related charges.”

Housing Wire – “GMAC’s Mortgage Unit Loses $747M in Q309″ (11-4-09)

“The Q309 loss was due primarily to legacy assets in GMAC’s mortgage operations. The unit experienced a pre-tax loss from continuing operations of $747m during the quarter. The loss is an improvement from Q308’s $1.9bn pre-tax loss from continuing operations”

Bloomberg - “Senate May Pass Homebuyer Tax Credit Extension Today” (11-4-09)

“The U.S. Senate may approve as early as today a $45 billion plan to expand a tax credit for first- time homebuyers, extend jobless benefits and provide tax refunds to money-losing companies.”

Bloomberg - “U.S. Home Price Slump to Last to Mid-2010, Pimco Says” (11-4-09)

“The slump in U.S. housing prices is unlikely to end before the middle of next year, and statistics portraying rising values are misleading, according to Pacific Investment Management Co. An S&P/Case-Shiller index for 20 metropolitan areas showed values rising 4.8 percent in the four months through August after a record 33 percent drop from its July 2006 peak. Such statistics are being distorted by U.S. efforts to reduce foreclosures, which are temporarily limiting sales of seized homes, said Scott Simon, Pimco’s mortgage-bond chief.”

Inman - “ZipRealty narrows losses” (11-4-09)

“ZipRealty Inc. edged closer to profitability during the third quarter, as transactions grew 30.6 percent and revenue by 12.8 percent from a year ago, the company said.”

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The Norris Group Real Estate News Roundup 10/19/09

Monday, October 19th, 2009

Today’s News Synopsis:

Gov. Arnold Schwarzenegger signed SB 94, which prevents prohibits any person from collecting an advance fee from a consumer for loan modification. According to Campbell Surveys, the national average home price rose 6% from August to September. MetroStudy anticipates a total of 562,000 housing starts in 2009.

In The News:

The Business Insider – “The FHA Is A Looming Disaster” (10-17-09)

“The FHA has expanded from guaranteeing just 2% of mortgages to over 20% in just a couple of years, dramatically raising its exposure to the still declining US housing market. The FHA still backs toxic, almost-no-money down mortgages. It will currently guarantee mortgages with as low as 3.5% downpayments.”

Inman – “State bans advance fees for loan mod help” (10-19-09)

“California has joined nearly two dozen other states in prohibiting foreclosure rescue companies from collecting advance fees for helping homeowners negotiate mortgage loan modifications. Gov. Arnold Schwarzenegger on Oct. 11 signed into law a bill, SB 94, that prohibits any person from demanding or collecting an advance fee from a consumer for loan modification or mortgage loan forbearance services.”

Associated Press – “Government unveils new mortgage help” (10-19-09)

“The administration said the new program would help to support low mortgage rates and expand resources for low and middle income borrowers who want to buy or rent a home. The program will feature two parts – a new bond purchase program to support new lending by housing finance agencies and a temporary credit and liquidity program to improve access by housing agencies to credit sources for their existing bonds.”

Housing Wire – “BarCap Expects $2bn of CMBS TALF Requests” (10-19-09)

“The October 21 Term Asset-Backed Securities Loan Facility (TALF) for commercial mortgage-backed securities (CMBS) will likely see an increase in subscription volume over last month, BarCap said in a research report Friday. Bid list activity of $4.8bn since the last CMBS-eligible TALF subscription date points to a likely increase in subscription volume over last month. Of this activity, $2.6bn — or 55% — is TALF-eligible, BarCap researchers said.”

Housing Wire – “REO Demand Pushes Sept. Prices Up: Campbell Survey” (10-19-09)

“National average home prices rose 6% from August to September, driven by an increase in real estate owned (REO) sales prices and transaction counts, according to a monthly real estate market survey conducted by Campbell Surveys. Increased demand REO property increased in September. The average price of distressed REO property was $124,500 in September, up from $106,700 in August. Combined with move-in ready REO, distressed properties accounted for 31% of purchase transactions during the month”

Housing Wire – “Housing Start Projection Falls 37.9% in 2009, Says Metrostudy” (10-19-09)

“While housing start projections for 2009 are down 37.9% from the same period of 2008, research firm Metrostudy expects steady increases in construction starts next year. Metrostudy expects a total 562,000 housing starts for 2009, down 37.9% from 2008. That includes 438,000 single-family starts, which are down 30% from 622,000 in 2008.”

Housing Wire – “59% of New Home Sales Use Government Loans: John Burns” (10-19-09)

“Federally backed mortgages account for 59% of new home sales transactions with 96.5% to 100% loan-to-value (LTV) so far in 2009, according to the latest John Burns Real Estate Consulting homebuilder survey.”

New York Times – “Foreclosures Force Ex-Homeowners to Turn to Shelters” (10-18-09)

“Only three years ago, foreclosure was rarely a factor in how people became homeless. But among the homeless people that social service agencies have helped over the last year, an average of 10 percent lost homes to foreclosure, according to ‘Foreclosure to Homelessness 2009,’ a survey produced by the National Coalition for the Homeless and six other advocacy groups.”

Fort Wayne – “Adjustable mortgage rates to rise, raising foreclosure fears” (10-19-09)

“About 10 percent of all mortgages in this country are scheduled to adjust in the next few years, with the numbers peaking in mid- to late 2011, according to First American CoreLogic. Those loans are worth about $1 trillion, and nearly 20 percent of the borrowers who have them are already seriously behind on their monthly payments.”

DSNews – “California Bank Marks 99th Failure in 2009″ (10-19-09)

“San Joaquin brings the FDIC’s tally of failed banks in 2009 to just one away from the 100-mark. But the single collapse last week follows no bank closures the week prior – the first time that has happened since the week of June 8th. So, does the lull in the FDIC’s closure announcements mean the pace of bank failures is subsiding? Not likely.”

Reuters – “In wake of housing crisis, what lessons learned?” (10-16-09)

“Riverside, part of the thickly populated area known as the Inland Empire east of Los Angeles, has become synonymous with all the worst lending and spending practices of a property boom that busted and pushed the world’s No. 1 economy into its longest slump since the 1930s.”

IBTimesFX – “U.S. housing risks still lurk even as buyers return” (10-12-09)

“Bruce Norris, president of property investment firm The Norris Group, said inventory levels are ‘completely artificial, completely baloney … The delinquency rate (in California) has exploded, but inventory levels have gone down. In many of these cases the banks have simply avoided foreclosure.’”

CREJ – “NSP Funds’ Benefits Limited For California Municipalities” (10-12-09)

“According to Rick Sharga, senior vice president of RealtyTrac, there is a shadow inventory of 400,000 to 500,000 homes taken back by the banks but not yet processed for market sale. ‘Those properties are sitting on the sidelines and God forbid the banks decide one day to flood the market with them – that won’t happen – but they’re there and we’re going to have to get through them,’ Sharga said at a September real estate event hosted by The Norris Group.”

Reuters – “More Rough Times are Ahead for the U.S. Economy, Despite Recent Improvements in Durable…” (9-24-09)

“Thornberg cited real estate as a case in point. While home sales are up in some areas of the country, 6 to 7 percent of home mortgages nationally are 60 to 90 days delinquent. In California alone, 250,000 mortgages are 60 to 90 days late. And there’s more economic trouble on the horizon, he said, with rising unemployment and additional waves of foreclosures.”

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