The Norris Group Blog

California Real Estate Headline Roundup

Posts Tagged ‘Case-Schiller’

By Bruce Norris .

The Norris Group Real Estate News Roundup 11/30/10

Tuesday, November 30th, 2010

Today’s News Synopsis:

According to Case-Schiller index, property values increased 0.6% year over year.  On the other hand, Freddie Mac reports that home prices decreased 3.1% from the 3rd quarter of 2009. Zillow claims interest rates increased to 4.3% last week.

In The News:

Bloomberg - “Home Prices in U.S. Cities Rose Less Than Forecast” (11-30-10)

“The S&P/Case-Shiller index of property values climbed 0.6 percent from September 2009, the smallest gain since January, the last time prices declined year over year, the group said today in New York. The increase was smaller than the 1 percent median forecast in a Bloomberg News survey of economists.”

San Francisco Chronicle – “Consumer confidence in Nov. hits 5-month high” (11-30-10)

“A monthly survey shows Americans’ confidence in the economy rose in November to the highest level in five months amid more hopeful signs.”

Housing Wire – “Zillow: 30-year mortgage rates trend upward to 4.3%” (11-30-10)

“Reversing last week’s trend, the 30-year, fixed-mortgage rate increased for the week ending Tuesday to 4.3%, according to the Zillow Mortgage Marketplace weekly update. The rate rose from 4.27% the week prior.”

Housing Wire – “MGIC changes underwriting guidelines in response to market conditions” (11-30-10)

“Starting Dec. 1, MGIC will insure mortgages with a debt-to-income ratio up to 45% if the borrower has a credit score equal to or greater then 740. The loan must also be either a fixed-rate product or minimum 5-year adjustable-rate.”

Housing Wire – “Freddie Mac: Home values down 3.1% in 3Q” (11-30-10)

“U.S. home values fell 3.1% in the third quarter from last year, according to the Freddie Mac conventional mortgage home price index.”

Bloomberg - “Banks in U.S. Resisting Calls to Repurchase Fannie Mae, Freddie Mac Loans” (11-30-10)

“The two government-owned mortgage companies are enforcing contracts that require lenders to buy back loans that didn’t meet underwriting standards. At the end of September, the companies reported, banks hadn’t responded to $13 billion in buyback requests. A third of those were at least four months old and Freddie Mac has begun to assess penalties for the delays. ”

Orange County Register – “Late pay on O.C. mortgages stabilizes” (11-30-10)

“According to CoreLogic’s latest late-mortgage report, 7.29% of Orange County home-loan borrowers as of September are 90 days-plus late with their house payments.”

Looking Back:

One year ago, Edward Pinto expected 20 percent of FHA’s mortgage loans to default. The Federal Reserve bought $16 billion worth of mortgage-backed securities in one week. According to Michael Barr, Over 650,000 mortgage modifications were being processed, and over 375,000 borrowers would receive permanent modifications by the end of 2009. A survey from Barclay’s showed that as a U.S. citizen’s net worth increases so does the proportion of their wealth invested in real estate.

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 event 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 200 podcasts in our free investor radio archive.

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The Norris Group Real Estate News Roundup 6/29/10

Tuesday, June 29th, 2010

Today’s News Synopsis:

Standard & Poor claims U.S. home prices rose 0.8 percent in April. According to the MBA, independent mortgage bankers and subsidiaries made an average profit of $1,135 on each loan they originated in 2009.  Congress is still debating over legislation that would eliminate the HVCC in 90 days if passed. The House voted 409-5 to extend the closing deadline for the tax credit to Sept. 30.

In The News:

Los Angeles Times – “Home prices rise in 20 major cities as buyers rush to obtain tax credit” (6-29-10)

“Prices rose 3.8% in April compared with April 2009 and were up 0.8% from March, when the data aren’t adjusted for seasonal fluctuations, according to the Standard & Poor’s/Case-Shiller index of 20 metropolitan areas. California cities continued to appreciate, according to the nonseasonally adjusted index, with Los Angeles and San Diego up 0.7% in April and San Francisco up 2.2%.”

Mortgage Bankers Association – “Production Profits Rebounded in 2009, According to MBA Study of Independent Mortgage Bankers and Subsidiaries” (6-29-10)

“Independent mortgage bankers and subsidiaries made an average profit of $1,135 on each loan they originated in 2009, compared to $305 per loan in 2008, according to the Mortgage Bankers Association (MBA)’s Annual 2009 Mortgage Bankers Production Survey released today.”

Housing Wire – “Senator Yanks Financial Reform Support Due to Last Minute Bank Tax Change” (6-29-10)

“Senator Brown sent a letter to sponsors Sen Christopher Dodd (D-CT) and Rep Barney Frank (D-MA) citing the addition of a $19bn bank tax included in the House, but not the Senate versions, as the reason for pulling support. The bill reconciled late last week.”

Housing Wire – “Amendment to Eliminate HVCC Still Alive in Financial Reform Bill” (6-29-10)

“An amendment to the Wall Street Reform Bill that would eliminate the Home Valuation Code of Conduct (HVCC) survived congressional debates last week, according to one representative’s office. A congressional conference last week took place to reconcile both versions of the House and Senate financial reform bills. As it stands now, the HVCC would be eliminated 90 days after the bill is signed.”

Bloomberg - “Volcker Rule May Give Goldman, Citigroup Until 2022 to Comply” (6-29-10)

“Goldman Sachs Group Inc. and Citigroup Inc. are among U.S. banks that may have as long as a dozen years to cut stakes in in-house hedge funds and private- equity units under a regulatory revamp agreed to last week. Rules curbing banks’ investments in their own funds would take effect 15 months to two years after a law is passed, according to the bill. Banks would have two years to comply, with the potential for three one-year extensions after that.”

Bloomberg - “U.S. House Extends Closing Deadline for Homebuyer Tax Credit” (6-29-10)

“The U.S. House of Representatives voted to give homebuyers who qualified for a federal tax credit more time to settle on their pending purchases. The House voted 409-5 to extend the deadline for closing home purchases to Sept. 30. The program initially required borrowers who signed contracts before April 30 to complete paperwork by July 1 to get a tax credit of as much as $8,000.”

Orange County Register – “O.C. brokers raking in more cash” (6-29-10)

“Dollars earned by brokers from Orange County home sales jumped 27.3% in May over broker revenues generated the same month a year ago. It was the first May in five years in which broker revenues increased from year-earlier levels, according to new data from the Southern California Multiple Listing Service.”

Orange County Register – “1 in 4 transactions a short sale” (6-29-10)

“Of the 2,778 homes sold through the MLS, 672 or 24.2% of them were so-called ‘short sales.’ By comparison, homes seized by lenders through foreclosure accounted for 13% of all May sales, or one out of every eight. Altogether, ‘distressed sales’ accounted for almost 40% of all homes sold through the MLS in May.”

Looking Back:

One year ago, the House of Representatives passed legislation that required new homes to be built 30 percent more energy efficient than mandated in the 2006 International Energy Conservation Code. The federal regulator for Fannie Mae and Freddie Mac claimed that home prices were bottoming.

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.

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The Norris Group Real Estate News Roundup 6/14/10

Monday, June 14th, 2010

Today’s News Synopsis:

Christopher Cagan from First American predicts a dip in housing prices in the near future. A study from Harvard University seems to show that high unemployment is fueling the foreclosure crisis. Christopher Thornberg of Beacon Economics believes the recession is currently over, but he expects economic conditions to get worse over the next two years. REIS Inc predicts U.S. apartments may lead a rebound in commercial real estate.

In The News:

Orange County Register – “‘Double dip’ decline seen for housing” (6-13-10)

“In the short to near term, I expect a double dip.  This is the logical aftermath of the sugar shot from the Federal first time buyer tax credit.  It borrowed buyers from the future, and we are now going into that future.  Also we are not too far from the end of the traditional SoCal buying season.  I have already seen asking prices reduced 5% or so in May from April.”

Wall Street Journal – “Trading Down: Can It Still Bankroll Your Retirement?” (6-13-10)

“Trading down to a smaller home is a retirement-planning staple. According to an April study by the Society of Actuaries, 20% of not-yet retirees say they plan to downsize after the last child leaves the nest.”

Los Angeles Times - “Home shortages could develop as recovery unfolds” (6-13-10)

“A housing deficiency isn’t a sure thing, but the potential is certainly there, says David Crowe, chief economist at the National Assn. of Home Builders, who paints a rather ominous scenario in which house and apartment builders won’t be able to keep up with the demand. Wherever the new households come from — adult children moving out for the first time or leaving the nest a second or third time after returning to Mom and Dad’s to weather the economic storm, roommates uncoupling and going their separate ways or young couples starting families — most of them are typically renters. Therefore, the multifamily sector is apt to feel the pinch first, if only because it takes so much longer to build apartments than houses.”

Bloomberg - “U.S. Housing Market Recovery Dependent on Jobs Growth, Harvard Report Says” (6-14-10)

“Job growth will be the key factor in whether the U.S. real estate market can extend a recovery after the end of the federal homebuyer tax credit, according to a Harvard University study. High unemployment is fueling the foreclosure crisis and discouraging the household formation that drives property demand, according to the State of the Nation’s Housing report issued today by Harvard’s Joint Center for Housing Studies.”

Housing Wire – “Monday Morning Cup of Coffee” (6-14-10)

“The Federal Bureau of Investigation (FBI) is preparing a nationwide crackdown on mortgage fraud, with arrests expected to count in the hundreds, beginning as early as this week, the Financial Times reported.”

Housing Wire – “Negative GDP Growth in Q3? Really?” (6-14-10)

“Thornberg essentially noted in his speech that while the recession is over, for now, we’re not there yet in terms of a sustainable economic recovery. He exhorted attendees to enjoy 2010, as he expects the year to be a relatively good one compared to what we may see in 2011 and 2012.”

Housing Wire – “Subprime Mortgage Performance Improving as Delinquencies Drop” (6-14-10)

“The performance of historical subprime mortgages is improving according to two separate reports from Moody’s Investors Service and the Royal Bank of Scotland (RBS). And the rate of homeowners behind on their subprime mortgage is lower across all levels of days past due, albeit at different speeds.”

Housing Wire – “Fiserv Sees Buyer ‘Optimism’ Behind Home Price Increases” (6-14-10)

“Home prices trended up in more than 40% of metropolitan areas (155 of 384 markets) in Q409, including markets in California, Ohio, Michigan and Washington DC, according to analysis of price trends by financial data services provider Fiserv. On average, home prices were down 2.5% in Q409 from the year-ago quarter, which Fiserv noted could be due to continued high unemployment levels, rising interest rates and a high volume of distressed property in markets like Florida, Arizona and Nevada. The data studied for the quarterly report is based on the Fiserv Case-Shiller Indexes.”

Bloomberg - “Equity Residential May Start California Project Within a Year” (6-14-10)

“Equity Residential, the largest publicly traded U.S. apartment landlord, may start building a new development in California within the next year, Chief Executive Officer David Neithercut said. U.S. apartments may lead a rebound in commercial real estate as the economy adds jobs, property research firm Reis Inc. said in May. Vacancies probably will peak at 8.2 percent in 2010 and start to decline in 2011.”

Orange County Register – “Portola Hills homes quickest to sell” (6-14-10)

“The ‘hardest’ O.C. town to find a home to buy in terms of ‘market time’ (supply of homes for sale vs. new purchase deals inked in past month) is Portola Hills at 1.3 months to theoretically sell all for-sale homes at the current buying pace. Or, looking at it another way: quickest to sell. A year ago, this town was at 0.6 months.”

Orange County Register – “Home demand off 20% without tax break” (6-14-10)

“March and April’s surge due to the housing credit robbed May and June of normal activity. There is nothing cyclical about the recent swings in demand, but it is making its way back to normal. It should be back on track by July. Demand, the number of new pending sales over the prior month, decreased by 136 in the past two weeks and now totals 3,167. That is after a 603 home drop two weeks ago. For the first time since March 2008, demand is less than the prior year with 485 fewer pending sales.”

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.

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The Norris Group Real Estate News Roundup 5/26/10

Wednesday, May 26th, 2010

Today’s News Synopsis:

The Commerce Department reports sales of new single-family homes rose 14.8 percent in April. Mortgage application volume increased 11.3 percent on a seasonally adjusted basis from one week earlier. The NAR predicts commercial vacancy rates will increase from 16.9 percent in the first quarter of this year to 17.6 percent in the first quarter of 2011. According to Freddie Mac, home prices declined 1.1% in quarter 1 of 2010 compared to the same quarter one year ago.

In The News:

Washington Post - “New home sales jump 14.8 percent in April” (5-26-10)

“The sales of new single-family homes rose 14.8 percent in April compared with the previous month to a seasonally adjusted annual rate of 504,000, according to Commerce Department data. It was up 47.8 percent compared to the same period a year ago.”

Mortgage Bankers Association - “Mortgage Refinance Applications Continue to Increase, Purchase Applications Decline Further in Latest MBA Weekly Survey” (5-26-10)

“The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending May 21, 2010. The Market Composite Index, a measure of mortgage loan application volume, increased 11.3 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 10.3 percent compared with the previous week.”

NAR - “Commercial Real Estate Vacancies to Peak Near Early 2011″ (5-26-10)

“With an elevated level of sublease space available, vacancy rates in the office sector are projected to increase from 16.9 percent in the first quarter of this year to 17.6 percent in the first quarter of 2011, but should ease later next year. Annual office rent is likely to fall 2.3 percent this year and decline another 2.1 percent in 2011. In 57 markets tracked, net absorption of office space, which includes the leasing of new space coming on the market as well as space in existing properties, is forecast to be a negative 24.6 million square feet this year and then a positive 25.5 million in 2011.”

Mortgage Bankers Association – “MBA Study Examines Industry Risk Management Practices That Contributed to Housing Crisis” (5-26-10)

“Multiple factors including poor data, incomplete performance metrics, and, short-term focus and unrealistic optimism among senior business managers contributed to the collapse in the US housing and mortgage markets, according to a study released today by the Mortgage Bankers Association (MBA).”

Housing Wire – “Freddie Sees House Prices Down Slightly in Q110″ (5-26-10)

“Home prices declined 1.1% in Q110 compared to the same quarter one year ago, according to purchase-only edition of Freddie Mac’s (FRE: 1.17 +1.74%) Conventional Mortgage Home Price Index (CMHPI). Compared to Q409, prices are down 2.1%. However, despite the declines, prices in some regions of the country are still above 2005 levels.”

Bloomberg - “Toll Brothers Buys Land as Quarterly Home Orders Rise” (5-26-10)

“Toll Brothers Inc., the largest U.S. luxury homebuilder, increased its land holdings for the first time in four years in anticipation of a recovery in the market.”

Orange County Register – “4 big local landlords cut rent 5.3%” (5-26-10)

“Equity Residential, Essex Property, AIMCO and AvalonBay — own a combined 39,577 units in Southern California. (That’s a visual taste of their Orange County offerings above. Click for larger images!) Thanks to my trusty spreadsheet, this foursome’s collective SoCal rents — factoring in their relative number of local units owned — dropped 5.3% vs. a year ago. (RealFacts, which surveys numerous owners of large complexes, had Orange County rents down 4.8% in the year ended in the first quarter.)”

Orange County Register – “O.C. real estate giant to split into two companies” (5-26-10)

“The legacy component, consisting mainly of its title insurance and other insurance-related businesses, will be renamed First American Financial, trading on the New York Stock Exchange under the symbol of FAF. The newer, technologically advanced real estate and consumer data and analysis businesses formerly known as First American CoreLogic will form the second company, operating simply as CoreLogic. Its stock symbol will be CLGX.”

Bloomberg - “Home Prices in U.S. Cities Rise Less Than Forecast” (5-25-10)

“Home prices in 20 U.S. cities rose less than forecast in March from a year earlier, a sign the housing recovery is cooling. The S&P/Case-Shiller home-price index of property values in 20 cities increased 2.3 percent from March 2009, the group said today in New York. The median forecast of economists surveyed by Bloomberg News projected a 2.5 percent advance. Nationally, prices last quarter dropped 3.2 percent from the previous three months.”

Bloomberg - “Home Prices Decline 3.1% in First Quarter, FHFA Says” (5-25-10)

“U.S. home prices fell 3.1 percent in the first quarter from a year earlier as record foreclosures added to the inventory of houses on the market. The annual drop was double the 1.5 percent decline in the fourth quarter, the Federal Housing Finance Agency said today in a report. Measured from the prior three months, prices fell 1.9 percent in the first quarter, the Washington-based agency said.”

Housing Wire – “Moody’s Says Court Ruling Gives FDIC Broad Powers Over Failed Bank Assets” (5-25-10)

“A ruling by the Eleventh Circuit Court of Appeals is giving the Federal Deposit Insurance Corp. (FDIC) broad-reaching powers to dispose of the assets of failed banks, according to Moody’s Investors Service. In its latest credit outlook report, the rating agency said the ruling is likely to up the risk to bank-sponsored asset-backed securities (ABS), as recourse to compensation will be diminished, leaving involved parties little alternative than to sue the FDIC in instances of alleged grievance over the handling of these assets.”

Housing Wire – “Freddie Production Stays Flat Despite Delinquent Buy-Outs, Analyst Says” (5-25-10)

“The aggregate unpaid principal balance of Freddie’s mortgage-related investments portfolio grew by $3.9bn in the month, due to delinquent mortgage buyouts from Participation Certificate (PC) pools first announced in February. The total portfolio size is back to year-end 2009 levels, but securities holdings are down $61bn to accommodate the loan purchases. Net production of Freddie pass-throughs this year — including the effect of the buy backs — is flat, according to Jim Vogel, a strategist at FTN Financial, a financial services provider for the investment and banking community.”

Housing Wire – “New $3bn Foreclosure Prevention Program Added to Wall Street Reform Bill” (5-25-10)

“The Senate passed the Restoring American Financial Stability Act last week, approving a new program that would reduce mortgage payments for the unemployed. The program would provide $3bn from the Troubled Asset Relief Program (TARP) to lend up to $50,000 to unemployed homeowners, who could reasonably resume making payments again within two years. The program was modeled after the Homeowners’ Emergency Mortgage Assistance Program (HEMAP) in Pennsylvania.”

Looking Back:

One year ago, the S&P/Case-Shiller home-price index decreased 18.7 percent from March 2008. Freddie Mac estimated that the U.S. housing slump would end in June 2009. Orange County building industry lost 32,300 construction jobs from the September 2007 peak. President Obama signed a $500 million fraud protection bill.

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.

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The Norris Group Real Estate News Roundup 4/27/10

Tuesday, April 27th, 2010

Today’s News Synopsis:

The S&P Index shows home prices increased in February. Speculators believe the Federal Reserve will keep interest rates at the current low. The LexisNexis Mortgage Asset Research Institute reports that fraud increased by 7 percent last year. According to the FHFA, the average interest rate for a 30-year fixed-rate mortgage (FRM) of $417,000 or less was 5.09% this month.

In The News:

Business Week – “Home price index shows 1st annual gain in 3 years” (4-27-10)

“Home prices in February posted their first annual increase since the end of 2006, pumped up by a temporary tax credits for homebuyers. The Standard & Poor’s/Case-Shiller home price index released Tuesday eked out a 0.6 percent gain, half the increase analysts had expected. And on a more cautionary note, 11 of the 20 cities tracked by the index showed declines from February last year.”

The Press Enterprise – “Fed expected to keep rates at record lows” (4-27-10)

“Confidence is growing that the economic rebound will strengthen. And to make sure it does, the Federal Reserve is considered certain to hold interest rates at record lows when it meets this week. ”

San Francisco Chronicle – “Mortgage fraud incidents rise 7 pct last year” (4-27-10)

“Incidents of residential mortgage fraud increased last year, a sign that scammers are still targeting the industry despite more diligent efforts to find and report such activity. The number of mortgage fraud reports among loans made in 2009 grew 7 percent, a smaller increase than the 26 percent jump seen the previous year, according to a study released Monday by the LexisNexis Mortgage Asset Research Institute.”

Housing Wire – “State HFAs Submit Proposals to Spend $1.5bn Hardest Hit Fund” (4-27-10)

“Three of the five state Housing Finance Agencies (HFAs) receiving $1.5bn from the Treasury Department through the Hardest Hit Fund released proposals on how they would spend the money. In March, the Treasury cleared the HFAs of states where house prices dropped 20% from the peak to submit proposals to use the funds from the Troubled Asset Relief Program (TARP).”

Housing Wire – “FHFA Sees Interest Rates Dip, Hover Around 5% in March” (4-27-10)

“The average interest rate for a 30-year fixed-rate mortgage (FRM) of $417,000 or less was 5.09%, down from 5.13% one month ago. The average rate for a 15-year FRM of $417,000 or less was 4.57%, down from 4.65%. The FHFA measured interest rates on loans that closed between March 25 and 31. Since the rate is typically determined 30 to 45 days prior to closing, the report depicts market conditions prevailing in mid- to late-February, the FHFA said.”

Housing Wire – “Fannie Extends REO Discount Deadline” (4-27-10)

“Fannie Mae (FNM: 1.21 -3.20%) extended its seller assistance incentive on all of its HomePath properties this week. In February, Fannie began providing a 3.5% discount to buyers of its REO properties listed as part of its HomePath division. The discount can be used for closing cost assistance or the buyer’s choice of appliances.”

Housing Wire – “Goldman’s Tourre Denies Misleading Investors in Subprime RMBS CDO” (4-27-10)

“An executive at embattled Goldman Sachs (GS: 153.04 +0.66%) denied before a Senate panel today that he misled investors in a synthetic collateralized debt obligation (CDO) tied to the performance of subprime residential mortgage-backed securities (RMBS). The Securities and Exchange Commission (SEC) is charging investment bank Goldman and the executive director of its structured products group trading, Fabrice Tourre, for allegedly making misleading statements about the CDO transaction, ABACUS 2007-AC1.”

Bloomberg - “‘Tourists’ May Leave Real Estate as Rates Rise, Sternlicht Says” (4-27-10)

“If interest rates head higher, ‘you will see a pause that will take a lot of capital out,’ he said. Corporate bonds may benefit, according to Sternlicht. A rebound in the real estate market is being hampered by weak demand and commercial-mortgage-backed financing that declined 95 percent last year from its record level in 2007. Vacancies in the first quarter rose to the highest level since at least 2000 at the nation’s biggest malls, and climbed to a 16-year peak at office buildings, research firm Reis Inc. said earlier this month. “

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The Norris Group Real Estate News Roundup 3/30/10

Tuesday, March 30th, 2010

Today’s News Synopsis:

According to the Standar & Poor Index, national home prices decreased by 0.7 percent from last year. Fannie Mae and Freddie Mac estimate that mortgage rates will rise less than a quarter of a percentage point in the next three months. Interest rates on conventional 30-year FRMs increased to 5.13% in February. The US Treasury Department will allocate $600 million to HFA for foreclosure prevention programs in California, Florida, Arizona, Michigan and Nevada.

In The News:

Google - “Home prices post smallest annual decline in 3 yrs” (3-30-10)

“Home prices showed the smallest annual decline in almost three years in January, indicating there are surprising areas of strength in the housing market. The Standard & Poor’s/Case-Shiller 20-city home price index fell just 0.7 percent from last year on a seasonally adjusted basis. The index reading of 146.32 was almost in line with analysts expectations, according to a survey by Thomson Reuters.”

Bloomberg - “Cheap Mortgages May Last as Investors Replace Fed” (3-30-10)

“The Federal Reserve’s completion this week of its program to buy $1.25 trillion in mortgage bonds probably won’t mean significantly higher U.S. home loan rates as investors return to the market, replacing the Fed. Fixed mortgage rates likely will rise less than a quarter of a percentage point in the next three months, the smallest increase for the second quarter since a drop in 2005, according to estimates by Fannie Mae and Freddie Mac. The gain would add about $30 to the monthly payment for a $250,000 mortgage.”

Housing Wire – “FHFA Sees Mortgage Rates Level with February 2009″ (3-30-10)

“Conventional mortgage rates continued to rise in February, according to the Federal Housing Finance Agency’s (FHFA) monthly rate report (download here). The average interest rate entered on a conventional 30-year fixed-rate mortgage (FRM) of $417,000 or less ticked up 3 basis points (bps) in February to 5.13%, from 5.1% in January.”

Housing Wire – “Treasury Releases Additional $600m to Five New State Housing Finance Agencies” (3-30-10)

“The US Treasury Department will expand the Hardest Hit Fund for state Housing Finance Agencies (HFAs) by allocating $600m to five additional states. The Treasury launched the initial $1.5bn through the fund to prevent foreclosures and stabilize local housing markets where prices have dropped at least 20% from their peak. California, Florida, Arizona, Michigan and Nevada are each working on plans to fund principal-forgiveness, unemployment and second-lien reduction programs.”

Orange County Register – “Builder raises new O.C. home prices” (3-20-10)

“According to DataQuick’s latest stats, month ended March 8, builders sold in Orange County 101 homes, up 26% in a year as median selling price rose 6% to $523,500. Builder prices for local new homes are 39% below their February ‘05 top.”

Realty Times – “Mortgage Rates Rise Ahead of Fed MBS Exit, 30-yr to 4.875″ (3-20-10)

“FreeRateUpdate.com research shows 30-yr fixed mortgages are available today at 4.875 percent to well-qualified consumers paying a standard .07 to 1 point origination. Today’s rate is slightly higher (+0.125) than what’s been obtainable for most of March. It’s not just the 30-yr fixed rate that’s up, as a result of a decline in mortgage-backed securities prices late last week, conventional mortgage rates are up on almost every program.15-yr fixed mortgages, previously available at 4.125 with standard origination, are available today at 4.25. 5/1 adjustable rate mortgages, previously available at 3.625, are now at 3.75.”\

Realty Times – “Weekend Do-it-Yourself Projects” (3-20-10)

“Spring is here at last, and like many other homeowners you may be looking for simple do-it-yourself projects to spruce up your home or to increase its value. Keep reading to get ideas on a few weekend updates and upgrades that are sure to be worth your while.”

Looking Back:

One year ago, analysts predicted a 10 percent drop in O.C. office rent rates. An FHA spokesman claimed that 7.5 percent of HFA loans were seriously delinquent. In February of 2009, nearly 250,000 homeowners received either mortgage modifications or repayment plans from their lenders.

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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 1/7/10

Thursday, January 7th, 2010

Today’s News Synopsis:

Home equity delinquencies increased to 4.3 percent of all accounts. Many construction companies reported an increase in profit during the 4th quarter of 2009. REIS Inc. reports that U.S. apartment vacancies rose to 8 percent last quarter. According to Freddie Mac, mortgage rates decreased to 5.09 percent from last week.

In The News:

Housing Wire – “Lennar Posts Quarterly Profit, Expects $320M Tax Refund” (1-7-09)

“Miami-based homebuilder Lennar (LEN: 15.70 +14.60%) reported net earnings of $35.6m, $0.19 per share, for its fiscal year fourth quarter that ended Nov. 30 and said it will receive a tax refund of $320m as a result of legislation that temporarily allowed companies to recoup losses from taxes paid in profitable years.”

Housing Wire – “Invesco Mortgage Capital Planning Another Share Sale” (1-7-09)

“Seeing a growing appetite for deals from investors, Invesco Mortgage Capital (IVR: 22.37 -2.10%), a real estate investment trust (REIT), plans to offer 7m shares of its common stock for sale in order to fund the acquisition of residential and commercial mortgage-backed securities (RMBS and CMBS) and leveraged mortgage loans.”

Housing Wire – “Delinquency Grows in Home Equity Loans, Lines of Credit: ABA” (1-7-09)

“Housing-related loans continued to show stress. Home equity loan delinquencies hit another record in the quarter, jumping 29 bps to 4.3% of all accounts. Home equity lines of credit rose 20 bps to 2.12% of all accounts. Mobile home delinquencies increased to 3.63% of all accounts, from 3.53% the previous quarter.”

Housing Wire – “Beazer to Offer 18m Shares, $50m in Convertible Debt” (1-7-09)

“Beazer Homes (BZH: 5.06 +6.08%) will issue new common stock and convertible subordinate debt, the Atlanta-based homebuilder said in a pair of Securities and Exchange Commission (SEC) filings. According to the filings, Beazer will issue 18m shares of common stock and $50m in convertible subordinate debt which will convert to stock shares in 2013.”

Bloomberg - “Job Growth Erodes as Housing Bust Pushes Mobility to Record Low” (1-7-09)

“Some households are staying put because they owe more on their mortgages than their properties are worth; others have trouble selling houses in depressed areas, economists say. The S&P/Case-Shiller composite index of home prices in 20 U.S. metropolitan areas was down 29 percent in October from its July 2006 peak.”

Bloomberg - “Principal Cuts on Lender Menus as Foreclosures Rise” (1-7-09)

“While interest-rate reductions or extending loan terms reduce homeowners’ monthly payments, they don’t give much comfort to borrowers who owe more on their homes than their properties are worth. Borrowers who don’t have equity in their homes are more likely to hand over the keys when they run into trouble.”

Bloomberg - “Lennar Leads Builders Higher on Report of Unexpected Profit” (1-7-09)

“Lennar Corp. led U.S. homebuilders higher after the company reported an unexpected quarterly profit as it took advantage of a tax change in the way it accounts for land sales. A Standard & Poor’s measure of 12 home construction companies rose as much as 5.4 percent, the most since November. Lennar climbed as much as 13 percent. KB Home, M/I Homes Inc., Toll Brothers Inc. and D.R. Horton Inc. all gained.”

Bloomberg - “Mortgage Rates on 30-Year U.S. Loans Fall to 5.09%” (1-7-09)

“Mortgage rates in the U.S. fell for the first time in five weeks, lowering borrowing costs and offering a boost to potential buyers. The rate for 30-year fixed U.S. home loans fell to 5.09 percent for the week ended today from 5.14 percent, mortgage finance company Freddie Mac said. Rates hit a record low 4.71 percent the week of Dec. 3. This week’s average 15-year rate was 4.50 percent, Freddie Mac said in today’s statement. ”

Bloomberg - “Record U.S. Apartment Vacancies Force Landlords to Cut Rents” (1-7-09)

“U.S. apartment vacancies rose to a record 8 percent in the fourth quarter and rents fell the most in three decades as unemployment cut demand, according to Reis Inc.”

Looking Back:

One year ago, the Mortgage Bankers Association reported that mortgage applications were decreasing. Statistics from Default Research showed that foreclosures and defaults had significantly increased across California. Apartment rents fell and vacancy rates increased to a 4 year high. Freddie Mac reported that mortgage rates fell for the 9th week in a row.

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The Norris Group Real Estate News Roundup 12/29/09

Tuesday, December 29th, 2009

Today’s News Synopsis:

The S&P/Case-Schiller index shows that home prices increased in 20 major U.S. cities in October. A Bloomberg study shows that broker commissions decreased by 6.2 percent from last year. Steve Thomas of Altera Real Estate reports that Orange County home sales take half as much time in comparison to last year. O.C. distressed property sales decreased by 53 percent from last year.

In The News:

Bloomberg - “Home Prices in 20 U.S. Cities Rose for Fifth Month” (12-29-09)

“Home prices in 20 U.S. cities rose in October for a fifth consecutive month, putting the housing market and economy farther along the path to recovery. The S&P/Case-Shiller home-price index increased 0.4 percent from the prior month on a seasonally adjusted basis, after a 0.2 percent rise in September, the group said today in New York. The gauge was down 7.3 percent from October 2008, the smallest year- over-year decline since October 2007. The median forecast of economists surveyed by Bloomberg News anticipated a 7.2 percent drop.”

Bloomberg - “Housing Recovery Fails to Bolster Broker Commissions” (12-29-09)

“A surge in home purchases by first- time U.S. buyers is doing little to help real estate agents and brokers who close the deals. Commissions in 2009 fell to the lowest level in seven years, driven down by sales of low-priced homes to first-time buyers using the federal tax credit. Commissions through November dropped 6.2 percent from a year earlier to $40.6 billion, according to Bloomberg calculations based on the average commission rates from Real Trends Inc. and on home price and sales data from the National Association of Realtors.”

Inman - “Approach 2010 with curiosity, not dread” (12-29-09)

“Given the immense global economic expansion under way and the shortage of the commodity, its price ought to go up. Then again, given cost of production at $600 an ounce and doubled price, nobody knows at what point balance will appear. If you want an inflation indicator, watch inflation. Currency values are relative to each other, not absolute, and are effect, not cause. In the old days you could assume that a weak currency brought inflation, or that you got some benefit from having a strong currency. Today, China has no inflation problem and tries like hell to keep its currency cheap. Watch economies themselves.”

Inman - “3 steps to a better marketing strategy” (12-29-09)

“Cummings points out that more wealth is created during recessions than at any other time. Recessions do end. While you can’t control when your market will shift, you can control your reaction to the market.”

Realty Times – “Washington Report: Estate Taxes” (12-29-09)

“If the Senate fails to pass a bill preserving current estate tax rates, as the House did before heading home for the holidays, the estate tax will totally disappear January first. While that might sound like outstandingly good news for people who want to pass along real estate to children or grandchildren tax-free, there’s a major complication here. If the estate tax disappears in 2010 because the Senate couldn’t get its act together in 2009, the disappearance will only be temporary, for one year. Then, under a legislative deal worked out nearly a decade ago, the estate tax will suddenly spring back to life in 2011 with higher tax rates and lower exclusions.”

Orange County Register – “Home-selling time sliced by half in 2009″ (12-29-09)

“The latest O.C. home inventory report from Steve Thomas at Altera Real Estate in Aliso Viejo — the last one for 2009 — tells you that the typical home officially on the market today takes half the time to sell than it did a year ago!”

Orange County Register - “Distressed homes for sale cut 53% in a year” (12-29-09)

“the number of O.C. distressed properties (homes listed by agents in the MLS system as foreclosures or short sales) was 2,537 last week — down 53% in a year.”

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The Norris Group Real Estate News Roundup 10/27/09

Tuesday, October 27th, 2009

Today’s News Synopsis:

The Senate is considering a proposal that would extend and cap the tax credit at $7,290. Interthinx estimates that mortgage fraud risk increased by 11 percent from quarter 2 to quarter 3 of 2009. Goldman Sachs claims that home price stabilization will not last, but Bank of America feels that the outlook for home prices is more positive.

In The News:

Los Angeles Times – “Campaign targets mortgage modification scams” (10-27-09)

“Wachter along with other industry experts still worry that rising unemployment and more foreclosures could stifle the rebound. Another unknown is whether a temporary federal tax credit for first-time buyers will be extended to help boost sales. First-time homebuyers can receive a credit of 10 percent of the sales price, up to $8,000. The real estate industry is lobbying Congress to extend the credit past the Nov. 30 deadline. Top Democrats in the Senate are pressing a plan that would prolong the credit but gradually phase it out over the next year.”

Housing Wire – “House Price Stabilize a Year Ahead of Schedule: RBS” (10-27-09)

“The US economy and housing market in particular are recovering well ahead of the schedule previously anticipated by analysts and market observers, according to commentary by Royal Bank of Scotland (RBS) economists.”

Housing Wire – “House Prices Post Seven Months of Yearly Improvement: Case-Shiller” (10-27-09)

“Home prices in the Standard & Poor’s (S&P)/Case-Shiller 10-City and 20-City Composite Home Price Indices, declined 10.6% and 11.3%, respectively, in August 2009 compared to August 2008.”

Housing Wire – “Mortgage Fraud Risk Surges 11% from Q209: Interthinx” (10-27-09)

“Fraud risk in the mortgage industry surged more than 11% from Q209 to Q309, according to a mortgage fraud risk index compiled by Agoura Hills, Calif.-based mortgage software developer Interthinx.”

Bloomberg – “MetLife, Lincoln May Avoid Commercial Mortgage Losses” (10-27-09)

“MetLife Inc., the biggest U.S. life insurer, and Lincoln National Corp. will probably sidestep commercial-mortgage losses because their biggest loans are ‘handily’ below property values, Barclays Plc said.”

Bloomberg – “Capmark Increased Office, Hotel Loans as Zell Saw Top” (10-27-09)

“In 2006 and 2007, Capmark originated $60 billion in commercial mortgage loans, most for office buildings, according to the Oct. 25 bankruptcy filing. While Capmark was lending, Zell was selling Equity Office Properties Trust at the top of the market for $39 billion, including debt.”

Bloomberg – “Goldman Sees ‘False Bottom,’ Merrill Sees ‘Treat’” (10-27-09)

“The stabilization in U.S. home prices won’t last, according to economists at Goldman Sachs Group Inc. in New York. Their counterparts at BofA Merrill Lynch Global Research see a ‘treat’ rather than a retreat”

Bloomberg – “Senate Close to Deal Replacing Homebuyer Tax Credit” (10-27-09)

“The deal would reduce the size of the tax credit to 10 percent of the sale’s price, capped at $7,290, the people said. The credit would be available on home purchases that are under contract by April 30, and borrowers would have 60 days more to close the sale. The existing credit is due to end Nov. 30.”

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