Today’s News Synopsis:
Forty percent of national home sales in 2009 were foreclosures or short sales. Economists and real estate experts are complaining that Obama’s $75 billion foreclosure prevention program has damaged the market. The CIRB reports that builder permits for single-family houses fell 3.5 percent. According to The Institute for Supply Management, most companies showed an increased rate of expansion in December.
In The News:
San Francisco Chronicle – “Foreclosures weigh on home appraisals” (1-4-09)
“Roughly 40 percent of all home sales this year were foreclosures or short sales, meaning the property sold for less than the mortgage. In some markets, like Las Vegas and Phoenix, they’ve hit more than 50 percent.”
New York Times – “U.S. Loan Effort Is Seen as Adding to Housing Woes” (1-4-09)
“The Obama administration’s $75 billion program to protect homeowners from foreclosure has been widely pronounced a disappointment, and some economists and real estate experts now contend it has done more harm than good.”
Market Watch – “Low rates didn’t cause bubble, Bernanke says” (1-3-09)
“it was lax supervision of toxic mortgages by the Fed and other bank regulators — along with excessive flows of capital around the globe — that inflated the bubble, setting up the world economy for what may have been the worst economic crisis in modern history, Bernanke said.”
Bloomberg - “GMAC Said to Discuss U.S. Aid Package of $3 Billion or More” (1-4-09)
“GMAC Inc., the home and auto lender that counts the U.S. government as the largest stakeholder, is discussing with the Obama administration a third bailout of $3 billion to $4 billion, said a person familiar with the matter.”
Bloomberg - “Companies in U.S. Expand at Fastest Pace Since 2006″ (1-4-09)
“Companies in the U.S. expanded in December at the fastest pace in almost four years, signaling the economic recovery is gaining speed heading into 2010. The Institute for Supply Management-Chicago Inc. said today its barometer rose to 60, exceeding the most optimistic estimate of economists surveyed by Bloomberg News and the highest level since January 2006. The gauge, in which readings greater than 50 signal expansion, showed companies boosted production and employment as orders climbed.”
Orange County Register – “Did housing’s troubles double?” (1-4-09)
“Well, things don’t look so harsh when your spyglass is 10 years long and short-run bumps and bruises are smoothed out. The median selling price for all residences in Orange County in the Zeros was $431,000, roughly double the pricing of the 1990s.”
Orange County Register – “O.C. builders near worst year since WW II” (1-4-09)
“Through November, local building permits for single-family homes filed by developers fell 3.5% from what had been the slowest year since World War II, the Construction Industry Research Board reports.”