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The Norris Group Real Estate News Roundup 2/24/10

Wednesday, February 24th, 2010

Today’s News Synopsis:

The MBA reports that mortgage loan application volume decreased 8.5 percent from last week. According to the Commerce Department, purchases of new single-family homes decreased by 11.2 percent in January. Informa Research Services announced that the average interest rate on 30-year fixed-rate jumbos dropped to 5.79%. Freddie Mac’s net losses for 2009 ended at $25.7bn.

In The News:

Mortgage Bankers Association – “Mortgage Applications Decrease in Latest MBA Weekly Survey” (2-24-10)

“The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending February 19, 2010.  The Market Composite Index, a measure of mortgage loan application volume, decreased 8.5 percent on a seasonally adjusted basis from one week earlier.  On an unadjusted basis, the Index decreased 7.3 percent compared with the previous week.”

Los Angeles Times – “Jumbo mortgage market is beginning to thaw” (2-24-10)

“Two weeks ago, the average interest rate on 30-year fixed-rate jumbos dropped to 5.79%, a nearly five-year low, according to rate tracker Informa Research Services of Calabasas. It edged up to 5.88% on Tuesday, still very attractive by historical standards. The average is down from well above 7% in late 2008.”

Washington Post - “New home sales hit record low in January” (2-24-10)

“Purchases of new single-family homes dropped 11.2 percent in January from December to a seasonally adjusted annual rate of 309,000, the Commerce Department reported. Sales fell in every region of the country except the Midwest, and the raw number of new homes on the market rose for the first time in nearly three years.”

Inman - “CAR: Home prices up, sales down” (2-24-10)

“Median home prices increased 15 percent year-over-year in January, according to a report by the California Association of Realtors. Closed escrow sales of existing, single-family detached homes fell 10.6 percent year-over-year, to a seasonally adjusted annualized rate of 539,040 units, and fell 3 percent month-to-month, the report said.”

Housing Wire – “The GSEs Might Save Mortgage Rates After the Fed After All!” (2-24-10)

“Fed purchases since January 2009 consumed most of the new pass-through supply coming into the market from Fannie and Freddie (and a chunk of Ginnie’s too); Its demand has been a powerful tractor-beam pulling the spread between pass-through yields and mortgage rates over other high quality debt instruments to historic lows; Removing that demand could allow pass-through yields and mortgage rates to widen dramatically”

Housing Wire – “Backlog of California Homes Declines in January” (2-24-10)

“Nationwide, the credit rating agency Standard & Poor’s (S&P) estimated the “shadow inventory” of bank-repossessed properties, as well as distressed mortgages facing foreclosure, will take nearly three years to clear at the current national sales rate. As for the total amount of homes in the shadow inventory, Amherst Securities places the total at 7m. The Royal Bank of Scotland found 2.7m, and First American CoreLogic counted 1.7m.”

Housing Wire – “Freddie Mac’s Losses Narrow in Q409″ (2-24-10)

“Freddie Mac (FRE: 1.22 +1.67%) posted a loss of $7.8bn, or $2.39 per share, in Q409, bringing the government-sponsored enterprise’s (GSE) total loss in 2009 to $25.7bn. But Freddie said its net worth as of December 31, 2009 was $4.4bn, and no additional funding was required from the Treasury Department under the terms of the purchase agreement for the fourth quarter.”

Housing Wire – “NAR to Congress: Turn Fannie and Freddie into Non-Profits” (2-24-10)

“A trade organization for real estate agents, the National Association of Realtors (NAR) is recommending to Congress that the government-sponsored enterprises (GSEs) Fannie Mae (FNM: 1.02 +2.11%) and Freddie Mac (FRE: 1.22 +1.67%) be converted into non-profit secondary market authorities.”

Bloomberg - “Toll Says Loss Narrowed as Homebuilder Reduced Costs” (2-24-10)

“Toll Brothers Inc., the largest U.S. luxury-home builder, said its first-quarter loss narrowed as costs fell 31 percent. Orders almost doubled. The net loss for the three months ended Jan. 31 shrank to $40.8 million, or 25 cents a share, from $88.9 million, or 55 cents, a year earlier, the Horsham, Pennsylvania-based company said today in a statement. The average estimate of 10 analysts in a Bloomberg survey was for a loss of 29 cents a share.”

Looking Back:

One year ago, the CBIA announced that housing production fell to a record low. Ben Bernanke claimed that 2010 could be a year of recovery, if foreclosures stabilized. Case-Schiller reported that home prices declined at a record pace in the 4th quarter of 2009.

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The Norris Group Real Estate News Roundup 2/23/10

Tuesday, February 23rd, 2010

Today’s News Synopsis:

The NAR predicts that the commercial real estate market will not recover until after 2011. In California, single family home sales decreased by 3 percent during January. The Standard & Poor’s index shows that national home prices increased slightly during December. 702 banks made the ‘Problem List’ for the FDIC in 2009.

In The News:

NAR - “No Meaningful Recovery in Commercial Real Estate Before 2011″ (2-23-10)

“Lawrence Yun, NAR chief economist, said commercial real estate almost always lags the economy. ‘Because of the lingering impact from the deep recession over the past two years, vacancy rates will trend higher and many commercial property owners will need to make rent concessions,’ he said.”

CAR - “January sales and price report” (2-23-10)

“Existing, single-family home sales decreased 3 percent in January to a seasonally adjusted rate of 539,040 units on an annualized basis compared with December 2009. The statewide median price of an existing single-family home decreased 6.3 percent in January to $287,440, compared with December 2009. C.A.R.’s Unsold Inventory Index fell to 5.8 months in January, compared with 7.3 months in January 2009.

Los Angeles Times – “Home prices show small gain in December” (2-23-10)

“The Standard & Poor’s/Case-Shiller index of home prices in 20 metropolitan areas increased 0.3% from November on a seasonally adjusted basis, with 14 cities posting gains. Compared with a year earlier, the index was down 3.1% in December, but the year-to-year rate of decline moderated in all 20 cities.”

Housing Wire – “FDIC ‘Problem’ Banks Increased 27% in Q409″ (2-23-10)

“By the end of 2009, 702 banks made the ‘Problem List’ for the Federal Deposit Insurance Corp. (FDIC), a marked increase of 27% from 552 at the end of Q309. Additionally, the total amount of assets of insured institutions increased $137.2bn to $13.7trn in Q409. Bank investments in mortgage-backed securities (MBS) also increased by $44.8bn, overall, to $1.4trn.”

Housing Wire – “Lowe’s Profits Top $200m for Q409″ (2-23-10)

“Lowe’s Companies (LOW: 22.81 -1.13%), the world’s second largest home improvement retailer, reported profits of $205m, or $0.14 per share, for its fiscal fourth quarter ending January 29. The Q409 results are up 26.5% from one year ago, when Q408 net earnings were $162m, or $0.11 per share. For the fiscal year ending January 29, 2010, net earnings were $1.78bn, or $1.21 per share, down 18.8% from one year ago, when North Carolina-based Lowe’s earned $2.195bn. In Q309, Lowe’s reported net earnings of $344m.”

Housing Wire – “11.3m Homeowners Now Underwater: First American” (2-23-10)

“11.3m homeowners now owe more on their mortgages than the value of their home at the end of Q409, with the Sand States taking four of the top five negative equity, or underwater, markets according to research released by First American CoreLogic.”

MGIC - “MGIC to Lower Mortgage Insurance Rates for Good Credit Borrowers” (2-23-10)

“The new rates will be lower for borrowers with a credit score of 720 or greater and higher for borrowers with credit scores between 620 and 679. No change is expected for those with a score between 680 and 719, according to a form 8-K filed today with the Securities Exchange Commission.”

Housing Wire – “Home Depot Posts $342m Q4 Profit” (2-23-10)

“Home improvement retailer Home Depot (HD: 30.75 +1.42%) reported a profit of $342m, or $0.20 per share, for its fiscal year fourth quarter ending January 31. That’s an improvement from last year’s fiscal fourth quarter, when Home Depot lost $54m, or $0.03 per share. But it’s lower than Home Depot’s Q309 net earnings of $689m, or $0.41 per share. Home Depot said its sales performance was driven by gains in kitchen and bath, paint, flooring and plumbing as well as its international businesses.”

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The Norris Group Real Estate News Roundup 2/19/10

Friday, February 19th, 2010

Today’s News Synopsis:

According to the MBA, the delinquency rate for one-to-four unit residential properties decreased to 9.47 percent. President Obama is starting a $1.5 billion housing support program for California, Arizona, Nevada, Florida and Michigan. A homeowner mentality survey from Zillow shows that 20 percent of homeowners believe their homes decreased in value during 2009. The Federal Reserve recently bought $11.3bn in mortgage-backed securities from Freddie Mac, Fannie Mae, and Ginnie Mae.

In The News:

MBA - “Delinquencies, Foreclosure Starts Fall in Latest MBA National Delinquency Survey” (2-19-10)

“The delinquency rate for mortgage loans on one-to-four-unit residential properties fell to a seasonally adjusted rate of 9.47 percent of all loans outstanding as of the end of the fourth quarter of 2009, down 17 basis points from the third quarter of 2009, and up 159 basis points from one year ago, according to the Mortgage Bankers Association’s (MBA) National Delinquency Survey. The non-seasonally adjusted delinquency rate increased 50 basis points from 9.94 percent in the third quarter of 2009 to 10.44 percent this quarter.”

CNN - “Housing help for unemployed, underwater borrowers” (2-19-10)

“Under pressure to do more for troubled homeowners, President Obama announced Friday a $1.5 billion program to help borrowers in the five states hit hardest by the housing crisis. The initiative calls for pumping money into state housing agencies in California, Arizona, Nevada, Florida and Michigan to fund programs to prevent foreclosure for people who are unemployed or who owe more than their homes are worth.”

Housing Wire – “Some Homeowners Overly Cynical on Home Property Values: Zillow” (2-19-10)

“According to the quarterly survey, one in five, or 20%, of the 2,200 homeowners surveyed believed their property value increased during 2009. That’s the lowest percentage in seven quarters. In reality, 28% of homes increased in value during the year, according to Zillow’s Fourth Quarter Real Estate Market Reports.”

Housing Wire – “Capital Returns on Commercial Real Estate Reach Record Low: IPD” (2-19-10)

“The report monitors the trends in underlying market value and returns of $76.5bn of assets held by real estate funder managers in the US. Capital returns fell 23.9% in 2009 for a total decline of 33.4% from the peak of real estate values in December 2007. Capitalization rates – or the ratio between the net income from the asset and its original price – sunk another 140 bps over 2009 to 7.1%, the highest level in six years.”

Housing Wire – “Fed MBS Purchases 96% Complete With Another $11bn” (2-19-10)

“The Fed bought a total of $11.3bn in mortgage-backed securities (MBS) – $4.47bn Freddie Mac (FRE: 1.23 +0.82%) MBS, $3.97bn Fannie Mae (FNM: 1.02 0.00%) MBS and $2.85bn Ginnie Mae MBS, according to a summary of purchases. The New York Fed also sold $300m of MBS in the same week, bringing the net purchases to $11bn, the same as last week.”

Housing Wire – “Fannie Mae Approves Four New Mortgage Insurers” (2-19-10)

“Fannie Mae (FNM: 1.02 0.00%) approved four new mortgage insurers for conventional first mortgage loans, according to a letter sent to lenders. With the new approvals, Fannie is ready to accept loans with mortgage insurance from Essent Guranty, MGIC Indemnity Corp., PMI Mortgage Assurance Co. (PMAC) and Republic Mortgage Insurance Company of North Carolina.”

Bloomberg - “Fed Discount-Rate Move Signals End to Emergency Steps” (2-19-10)

“The Federal Reserve Board sent its most explicit signal yet that the emergency supply of liquidity to financial markets is done and the most aggressive monetary policy easing in its 96-year history will eventually reverse. Chairman Ben S. Bernanke and his colleagues at the Board of Governors raised the rate charged to banks for direct loans by a quarter-point to 0.75 percent, effective today. It was the first increase in the discount rate since June 2006.”

Inman - “Home-price declines ease in December” (2-19-10)

“National home prices were down 3.7 percent from a year ago in December, a ’significant improvement’ over November’s 5.3 percent decline, according to a home-price index compiled by First American CoreLogic.”

Realty Times – “Clean Homes Show Better–Five Areas To Scrub to Make Yours Sparkle” (2-19-10)

“Tile. When you’re showing your house, hopefully, you’ll get lots of foot traffic. This, however, can lead to very dirty flooring and grout. Yes, you can supply those footies and the sign placed by the door asking buyers to remove their shoes or put the footies on before entering your home, but, the truth is, not all will comply. Still, the tile and the condition of the grout will matter to buyers should they decide to make an offer. There are certainly many products to get the dirt out of those tiny grout lines; one that I’ve had success with is called Heavy Duty Acidic Cleaner for tile.”

Looking Back:

One year ago, the NAR reported that broker activity decreased by 6 percent in the 4th quarter of 2008. Research from the NAHB showed that 62.4 percent of all new and existing homes that were sold in the final quarter of 2008 were affordable to citizens earning the median income. Statistics collected by DQNews displayed that the median home price in the Bay Area dropped to approximately $300,000. California’s legislative branch approved of a plan for tax increases, spending cuts and borrowing to close a $40 billion deficit.

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The Norris Group Real Estate News Roundup 2/5/10

Friday, February 5th, 2010

Today’s News Synopsis:

According to First American CoreLogic, 12 percent of mortgages in Sacramento, El Dorado, Placer and Yolo were seriously distressed in December. ZipRealty reports the national home inventory increased by 2.9 percent last month. The Department of Labor announced that the unemployment rate decreased to 9.7% in January. The FTC proposed a new rule which would prohibit third-party mortgage companies from charging upfront fees for foreclosure rescue and modification services.

In The News:

Sacramento Bee – “12% distress rate seen for region’s mortgages” (2-5-10)

“Twelve percent of mortgages in Sacramento, El Dorado, Placer and Yolo counties were seriously distressed in December, the newest warning that trouble is not abating, according to Orange County-based market analyst First American CoreLogic.”

The Washington Post – “Official says Fed might buy more mortgage-backed securities” (2-5-10)

“The Federal Reserve would consider reopening its program to support the mortgage market if interest rates spiked or the economy showed new weakness, Federal Reserve Bank of New York President William C. Dudley said in two new interviews. The Fed is buying $1.25 trillion in mortgage-backed securities in its effort to prop up the economy but has said it will end those purchases March 31.”

Inman - “For-sale inventory rises in January” (2-5-10)

“Monthly for-sale home inventory increased in January for the first time in 18 months, according to a report by national real estate brokerage company ZipRealty. The number of homes for sale increased 2.9 percent from December, an additional 15,818 homes, to a total of 567,265 single-family homes and condominiums listed in 27 metropolitan areas across the country. December saw 2009’s greatest fall in month-to-month inventory, down 4.83 percent.”

Housing Wire – “HUD Connects Sustainable Housing With Job Creation” (2-5-10)

“The new HUD initiative comes as the US unemployment rate lingers near historic highs. The unemployment rate dropped slightly to 9.7% in January from recent 10% highs, according to the US Department of Labor.”

Housing Wire – “Beazer Posts Quarterly Profit After $101m Tax Refund” (2-5-10)

“Homebuilder Beazer Homes (BZH: 4.16 +1.22%) reported income of $44.5m, or $1.09 per share, in its fiscal year first quarter that ended on December 31, 2009. It’s the second consecutive profitable quarter for the Atlanta-based builder. In its fiscal year Q409 that ended Sept. 30, Beazer reported a $35.3m profit. In the year-ago quarter, Beazer reported a loss of $79.2m.”

Housing Wire – “FTC Rule Bans Up-Front Fees on Mortgage Modifications” (2-5-10)

“The Federal Trade Commission proposed a new rule to prohibit third-party mortgage companies from charging upfront fees for foreclosure rescue and modification services. The FTC brought 28 cases against companies that charge a fee, promising the borrower a modification from the lender. The cases allege these companies never provided the services promised and that they misrepresent their affiliation with the government and other housing assistance programs, including the Home Affordable Modification Program (HAMP).”

Housing Wire – “Fed MBS Purchases 94% Complete with Another $12bn” (2-5-10)

“The Fed bought a total of $17.6bn in mortgage-backed securities (MBS) – $5.6bn Freddie Mac (FRE: 1.16 0.00%) MBS, $9.3bn Fannie Mae (FNM: 0.97 -1.02%) MBS and $2.7bn Ginnie Mae MBS, according to a summary of purchases. The New York Fed also sold $5.6bn of MBS in the same week, bringing the net purchases to $12bn, the same as last week.”

Realty Times – “Housing Affected by Demographic Trends” (2-5-10)

“The Urban Land Institute predicts there will be two major changes beginning in this new decade in our country that will affect the housing market. The first is that home appreciation will slow. The report predicts annual appreciation of 1 percent to 2 percent. The second change is that the record-high U.S. homeownership rate will decline from 69 percent to 62 percent.”

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The Norris Group Real Estate News Roundup 1/22/10

Friday, January 22nd, 2010

Today’s News Synopsis:

According to DataQuick, 41,837 new and resale houses and condos were sold statewide in December. New York’s Federal Reserve bought $12 billion of MBS from Fannie Mae and Freddie Mac. First American CoreLogic reports that national home prices decreased by 5.7% from November 2008 to November 2009. A proposal from President Barack Obama to limit bets made by banks with their own capital may encourage banks to sell some private-equity businesses and to stop investing in buyouts.

In The News:

DQNews - “California December Home Sales” (1-21-10)

“An estimated 41,837 new and resale houses and condos were sold statewide last month. That was up 16.7 percent from 35,860 in November, and up 10.6 percent from 37,836 for December 2008. An increase in sales from November to December is normal for the season. California sales for the month of December have varied from a low of 25,585 in 2007 to a peak of 65,793 in 2004, the average is 44,708. MDA DataQuick’s statistics go back to 1988.”

Housing Wire – “Fed Buys Another $12bn of Agency MBS” (1-22-10)

“The Federal Reserve Bank of New York bought $12bn of mortgage-backed securities (MBS) from mortgage giants Freddie Mac (FRE: 1.17 -10.69%), Fannie Mae (FNM: 0.99 -7.48%) and Ginnie Mae in the week ending January 20. Gross purchases totaled $16.36bn — $1.3bn of Freddie MBS and $12.8bn of Fannie MBS — before $2.25bn of MBS sales during the same time frame, according to details released Thursday by the NY Fed.”

Housing Wire – “First American Home Price Index Down 5.7%” (1-22-10)

“National home prices declined 5.7% year-over-year in November, according to First American CoreLogic’s LoanPerformance Home Price Index (HPI). That’s an improvement from October’s year-over-year decline of 7.6%, but prices also declined 0.2% in November compared to October. Excluding distressed sales, prices declined 5.1% year-over-year in November, compared to a 5.7% decline in non-distressed sales prices in October.”

Housing Wire – “FHA Opens HAMP for Borrowers at Default’s Door” (1-22-10)

“The Federal Housing Administration will provide early loss mitigation assistance for borrowers before they fall behind on their mortgage payments. According to the Helping Families Save Their Home Act of 2009, the FHA has the authority to use loss mitigation tools for delinquent borrowers facing ‘imminent default.’”

Housing Wire – “Frank Says Committee to Recommend ‘Abolishing’ Fannie, Freddie” (1-22-10)

“House Financial Services Committee Chairman Barney Frank (D-Mass.) called for the abolition of the government-sponsored enterprises (GSEs) Fannie Mae (FNM: 0.99 -7.48%) and Freddie Mac (FRE: 1.17 -10.69%) during a committee hearing Friday.”

Housing Wire – “SunTrust Boosts Reserve for Mortgage Repurchases, Posts Q409 Loss” (1-22-10)

“SunTrust Banks (STI: 24.55 +0.08%) posted a net loss of $316.4mfor the fourth quarter of 2009, and a full-year net loss of $1.73bn, compared with $741m of net income in the previous year. Loss expectations in the mortgage unit drove the results, as the company bolsters its reserve for expected mortgage loan repurchases.”

Bloomberg - “Obama Proposal May Force Banks to Sell Buyout Units” (1-22-10)

“JPMorgan Chase & Co. and Goldman Sachs Group Inc. may have to sell some private-equity businesses and stop investing in buyouts under a proposal by President Barack Obama to limit bets made by banks with their own capital. Obama asked Congress yesterday to prohibit banks from owning or making investments in private-equity and hedge funds that ‘are unrelated to serving customers.’ While financial institutions could still manage the assets on behalf of clients, they wouldn’t be able to invest in their own funds or those run by firms such as Blackstone Group LP and KKR & Co.”

Inman - “2010: a time of stabilization” (1-22-10)

“Pat Lashinsky, CEO and president of national real estate brokerage company ZipRealty, said he expects some stabilization and ‘a little bit of rebounding’ in the housing market compared to last year.”

Inman - “Mortgage fraud reports level off” (1-22-10)

“After six years of double-digit growth, reports of suspected cases of mortgage fraud by lenders leveled off in the first half of 2009 but remained at a historically high level, acccording to a government report released today. The Financial Crimes Enforcement Network (FinCEN) said depository institutions reported 32,926 cases of suspected mortgage fraud in the first half of 2009, an increase of less than 1 percent from the same period in 2008.”

Looking Back:

One year ago, DQNews reported that 37,836 new and resale houses and condos were sold statewide during December 2008. The MBA’s weekly survey showed that mortgage application volume had decreased by 17.6 percent from November to January. The Commerce Department reported that home and apartment construction decreased by 15.5 percent in December 2008.

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The Norris Group Real Estate News Roundup 12/18/09

Friday, December 18th, 2009

Today’s News Synopsis:

DQNews reports that a total of 35,860 new and resale houses and condos were sold in California during November. The median selling price for Bay Area homes fell by 0.8 percent last month. According to First American Corelogic, approximately 1.7 million homes are in shadow inventory. Deutsche Bank expects that U.S. home prices will decrease another 10 percent.

In The News:

DQNews - “California November Home Sales” (12-17-09)

“An estimated 35,860 new and resale houses and condos were sold statewide last month. That was down 13.1 percent from 41,280 in October, and up 11.5 percent from 32,163 for November 2008. A decline in sales from October to November is normal for the season. California sales for the month of November have varied from a low of 25,578 in 2007 to a peak of 60,326 in 2004, while the November average is 40,377. MDA DataQuick’s statistics go back to 1988.”

DQNews - “Bay Area home sales and median price top last year again” (12-18-09)

“The median price paid for all new and resale houses and condos that closed escrow in the nine-county Bay Area last month was $387,000. That was down 0.8 percent from $390,000 in October but up 10.6 percent from $350,000 in November 2008, according to MDA DataQuick of San Diego.”

NAR - “Four out of 10 Recent Buyers Relied on FHA Loans, Says NAR” (12-18-09)

“According to the most recent Realtors® Confidence Index, 39 percent of recent buyers purchased a home with a Federal Housing Administration-insured loan. Realtors® who took part in the November survey also reported that the number of first-time home buyers continued to climb to 51 percent.”

Housing Wire – “Moody’s See Decelerating Jumbo Declines Around Falling House Prices” (12-18-09)

“During a revision of Moody’s Investors Service loss projections for U.S. prime jumbo residential mortgage backed securities (RMBS) issued between 2005 and 2008, the credit rating agency finds that the growth in new delinquency levels beyond the Q210 is expected to decline. On average, Moody’s is now projecting cumulative losses of 3.8% for 2005 securitizations, 8.0% for 2006 securitizations, 10.9% for 2007 securitizations and 12.3% for 2008 securitizations, reported as a percentage of original balance.”

Housing Wire – “Months Later, Thornburg Servicing Portfolio to Sell” (12-18-09)

“Similarly, now-bankrupt Thornburg Mortgage left behind significantly more valuable assets months after the credit crisis took its toll on the ultra-prime jumbo mortgage lender. One of these assets — a $11.1bn of residential loan servicing rights portfolio — is going up for sale by Interactive Mortgage Advisers (IMA) as part of the sale of assets under Thornburg’s bankruptcy.”

Housing Wire – “Deutsche Sees House Prices Falling Another 10 Percent” (12-18-09)

“Today, Deutsche Bank researchers say these predictions will likely become a reality, with the total peak-to-trough decline of US home prices hitting nearly 40%. In the current outlook, they say home prices will drop a further 10 to 12% from current levels.”

Housing Wire – “TenantAccess Helps Handle Shadow Inventory” (12-18-09)

“After FirstAmerican Corelogic found 1.7m homes in the shadow inventory, TenantAccess will offer a range of programs to manage this backlog of residential foreclosures.”

Orange County Register – “Is Irvine still a buyer’s market?” (12-18-09)

“While the inventory of resale homes continues to dwindle in Irvine and multiple offers above asking price aren’t rare, America’s Safest City remains a buyer’s market, according to Altos Research’s Market Action Index.”

Orange County Register – “South O.C.’s $1 million-plus short sales” (12-18-09)

“Here’s how it breaks down – There are currently a total of 32 homes in south coast cities that are short sales priced at $1 million or higher: 10 in Laguna Beach, 11 in Dana Point and 12 in San Clemente. These are situations where the homeowner is taking a loss on their home by selling it for less than they owe on the loan. However, there are a total of 198 foreclosures in these cities – 27 in Laguna Beach, 56 in Dana Point and 115 in San Clemente.”

Looking Back:

One year ago, median home prices in the Bay Area sunk to an 8-year low. The FDIC reported that bank reserves were falling behind on the number of bad loans they held. The Federal Reserve bought $2.4 billion in debt from Fannie Mae and Freddie Mac.

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The Norris Group Real Estate News Roundup 11/24/09

Tuesday, November 24th, 2009

Today’s News Synopsis:

The CIRB reports that homebuilders pulled 6 percent less permits from September. American banks decreased lending by 2.8 percent in the third quarter. The FOMC suspects that the economy will take 5 years to return to an acceptable rate of growth.  According to First American CoreLogic, 23 percent of all US homes are less valuable than the mortgages owed on them.

In The News:

CBIA - “California Housing Starts Continue Decline in October, CBIA Announces” (11-24-09)

“According to statistics compiled by the Construction Industry Research Board (CIRB), homebuilders pulled permits for 2,815 total housing units in October, down 6 percent from September, and down 33 percent from October 2008. Permits for single-family homes totaled 2,017, down 9 percent from the previous month and down 14 percent from same period last year, while multifamily permits totaled 798, up 5 percent from September but down 57 percent from a year ago.”

Los Angeles Times – “Index shows moderate gain in home prices in September” (11-24-09)

“Home prices in 20 U.S. cities ticked up modestly in September, marking the fifth consecutive month of improvement, according to a closely watched national index released this morning. The Standard & Poor’s/Case-Shiller index increased 0.3% from the prior month on a seasonally adjusted basis, after a 1.1% rise in August. The index fell 9.4% from September 2008 and marked the narrowest year-over-year decline since the end of 2007.”

The Washington Post – “Decline in lending is largest since 1984″ (11-24-09)

“Lending by American banks plunged by 2.8 percent in the third quarter, the largest drop since at least 1984 and the fifth consecutive quarter in which banks have reduced lending, the Federal Deposit Insurance Corp. reported Tuesday morning.”

Housing Wire - “BarCap Acquires Commercial Real Estate Holdings Firm” (11-24-09)

“Barclays Capital, in a joint venture with Goff Capital, acquired Crescent Real Estate Equities Limited Partnership, or Crescent, from Morgan Stanley Real Estate Funding II.”

Housing Wire – “FOMC Sees Sustained Growth Five Years Away” (11-24-09)

“It will be at least five years before the economy experiences a sustainable rate of growth and levels of unemployment and inflation acceptable to the Federal Reserve, the Federal Open Market Committee said in its Nov. 4 meeting.”

Housing Wire – “FHFA Quarterly HPI Up Slightly in Q309″ (11-24-09)

“US house prices inched slightly higher in Q309 compared to Q209 in the Federal Housing Finance Agency’s (FHFA) seasonally adjusted purchase-only house price index (HPI). The HPI uses sales price information from mortgages acquired by the government-sponsored enterprises (GSEs), which increased 0.2% quarter-over-quarter. Year-over-year, the purchase-only HPI decreased 3.8% in the third quarter.”

Housing Wire – “Negative Equity, Not Job Loss, Primary Driver of Defaults” (11-24-09)

“if coming defaults are caused by unemployment, then the relevant response, says Goodman, would be to subsidize mortgage payments. On the other hand, if negative equity triggers defaults, then principal reduction must receive a higher priority in modification program waterfalls.”

Bloomberg - “Almost One in Four U.S. Homeowners Are ‘Underwater’” (11-24-09)

“The number of U.S. homes worth less than the debt owed on them reached almost 10.7 million, or 23 percent of all mortgaged properties, at the end of the third quarter, according to a report from First American CoreLogic.”

Orange County Register – “The biggest home seller mistakes” (11-24-09)

“Learn about your local market. What is selling and how long is it taking to sell? Find out what the trends are in your neighborhood. Is the market rising, falling or flat? How are local inventory levels?”

Looking Back:

One year ago, existing home sales decreased by 3.1 percent in October. The U.S. government announced a plan to spend 7.7 trillion dollars to ease credit problems. Downey Financial said it would file for bankruptcy.

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The Norris Group Real Estate News Roundup 11/20/09

Friday, November 20th, 2009

Today’s News Synopsis:

An amendment was passed which allows federal regulators to dismantle financial firms considered to be “too big to fail”.  According to PMI Group, new home sales decreased by 3.6 percent. The NAHB estimates that families earning the national median income can afford 70.1 percent of the new and existing homes sold in Q3 of 2009. First American CoreLogic reports that home prices declined by 9.8 percent in September from the previous year.

In The News:

NAR - “Commercial Real Estate Forecast Uncertain” (11-19-09)

“The first commercial mortgage bond deal in over a year shows the Federal Reserve’s efforts to sell securities through the TALF program can be fruitful, but the level of activity is well below what is required to resuscitate the commercial market. Credit availability needs to significantly rebound for any hope of a meaningful commercial recovery in 2010.”

DQNews - “California October Home Sales” (11-19-09)

“An estimated 41,280 new and resale houses and condos were sold statewide last month. That was up 2.6 percent from 40,216 in September, and down 2.4 percent from 42,293 for October 2008. California sales for the month of October have varied from a low of 25,832 in 2007 to a peak of 70,152 in 2003, the average is 44,451. MDA DataQuick’s statistics go back to 1988. ”

Mortgage Bankers Association – “Delinquencies Continue to Climb in Latest MBA National Delinquency Survey” (11-19-09)

“The delinquency rate for mortgage loans on one-to-four-unit residential properties rose to a seasonally adjusted rate of 9.64 percent of all loans outstanding as of the end of the third quarter of 2009, up 40 basis points from the second quarter of 2009, and up 265 basis points from one year ago, according to the Mortgage Bankers Association’s (MBA) National Delinquency Survey. The non-seasonally adjusted delinquency rate increased 108 basis points from 8.86 percent in the second quarter of 2009 to 9.94 percent this quarter.”

Inman - “Fannie: ‘Recovery is here’” (11-19-09)

“The deepest and longest recession since the Great Depression appears to be over, Fannie Mae economists say, projecting sales of new and existing homes will jump 11 percent next year and that national home prices will stabilize, remaining essentially flat.”

Housing Wire – “Freddie’s Weekly Mortgage Rates Near Record Lows” (11-19-09)

“Freddie Mac’s (FRE: 1.16 -1.69%) weekly survey of average interest rates put the 30-year fixed-rate mortgage (FRM) at 4.83% with an average 0.7 point for the week ending Nov. 12, down from the average rate of 4.91% the previous week. That’s a mere 5bps shy of Freddie Mac’s record low of 30-year FRM rates, reached twice in April this year. Last year, the rate was 6.04%.”

DQNews - “Bay Area median sale price tops year-ago level for first time since ‘07″ (11-19-09)

“The median price paid for all new and resale houses and condos that closed escrow rose to $390,000, up 6.8 percent from $365,000 in September and up 4 percent from $375,000 in October 2008. The last time the median sale price rose on a year-over-year basis was in November 2007, when it gained 1.5 percent, according to MDA DataQuick of San Diego.”

Bloomberg - “General Growth Makes $9 Billion Debt Restructure Deal” (11-19-09)

“General Growth Properties Inc. reached a deal with some of its largest lenders to restructure about $9 billion of mortgage debt through its Chapter 11 case.”

Bloomberg - “California Scales Back Bond Sale 45% Amid Prison Legal Issue” (11-19-09)

“California, the most indebted U.S. state, sold $743.3 million of tax-exempt bonds today, scaling back the offer by 45 percent because of legal issues raised yesterday about a project at San Quentin State Prison. ”

Bloomberg - “Bankruptcies Will Rise Next Year, Weil’s Miller Says” (11-19-09)

“U.S. companies will increasingly declare bankruptcy next year as high-yield debt matures, said Harvey Miller, the lawyer who handled the reorganizations of Lehman Brothers Holdings Inc. and General Motors Corp. Filings from commercial real estate firms will be part of that increase, said Miller, a lawyer with Weil Gotshal & Manges LLP, speaking today at a conference in New York. ”

Housing Wire - “Fed Buys Another $16Bn of Agency MBS” (11-20-09)

“The Federal Reserve Bank of New York bought another $16bn of agency mortgage-backed securities (MBS) in the week ending November 18.”

Housing Wire – “House Amendment Allows Dismantling of ‘Too Big to Fail’ Firms” (11-20-09)

“A House Financial Services Committee amendment that passed this week would empower federal regulators to dismantle financial firms considered ‘too big to fail.’ The amendment, authored by House Financial Services Subcommittee on Capital Markets, Insurance, and Government Sponsored Enterprises chair Paul Kanjorski (D-PA), was included to the Financial Stability Improvement Act with a vote of 38-29.”

Housing Wire – “ABCP Outstandings Slip 35% in 2009″ (11-20-09)

“Total US asset-backed commercial paper (ABCP) outstandings were at $455bn as of November 4, a 35% decline from the beginning of 2009, according to market commentary by Fitch Ratings.”

Housing Wire – “PMI Group Sees Mixed Housing Activity in September” (11-20-09)

“The seasonally adjusted rate of new home sales decreased for the first time in six months, down 3.6% to 402,000. PMI Group said this decline was due in part to concerns the first-time homebuyer tax credit would expire.”

Housing Wire – “Combined Loan to Values Swell to 107% in July 2009: Equifax” (11-20-09)

“The average CLTV, a ratio used to determine the risk of default when more than one loan is used, for current Alt-A loans ballooned from 75% in July 2005 to 107% in July 2009, according to the study. Home price declines and an increase in the popularity and size of second liens caused the rise, analysts reported.”

Housing Wire – “House Affordability Dips in Q309: NAHB” (11-20-09)

“Families earning the national median income could afford 70.1% of the new and existing homes sold in Q309, according to the National Association of Home Builders (NAHB) and Wells Fargo (WFC: 27.87 -1.59%) Housing Opportunity Index (HOI).”

Housing Wire – “Prices Down 9.8% in September: First American” (11-20-09)

“National home prices declined 9.8% year-over-year in September, according to First American CoreLogic’s home price index (HPI). In August, the year-over-year decline was 11.1% and on a month-over-month basis prices declined 0.4%, ending a five-month run of consecutive monthly price increases.”

Bloomberg - “D.R. Horton Shares Plunge as Losses Exceed Estimates” (11-20-09)

“D.R. Horton Inc., the second-largest U.S. homebuilder, dropped the most in more than a year after reporting a fourth-quarter loss that exceeded analysts’ estimates and saying the housing outlook remains difficult. The shares fell 15 percent. The net loss for the three months ended Sept. 30 was $231.9 million, or 73 cents a share, the Fort Worth, Texas-based company said today in a statement. The average estimate of 8 analysts in a Bloomberg survey was for a loss of 24 cents.”

Bloomberg - “U.S. Commercial Property Sales to Drop to $49 Billion” (11-20-09)

“U.S. commercial real estate deals are likely to fall to $49 billion in 2009, the lowest in records going back to 2001, Real Capital Analytics Inc. said today.”

Inman - “Google makes yet another big move into real estate territory” (11-20-09)

“A couple weeks ago we noted the company’s move to include a real estate overlay on Google Maps, which put listings smack-dab in front of millions of Google users who likely had no idea the company has spent the last several years quietly aggregating this content. Now, today, search engine land reports that Google has taken this one step further to include a unique page for every listing that includes photos, a map (including Street View) property details, directions, transit information and more. It’s a listing detail page, basically.”

Looking Back:

One year ago, 7,613 houses and condos closed escrow in the Bay Area. Economists expected economic activity to drop by .6 to .8 percent. The Commerce Department reported that housing starts fell lower than any single month on record.

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The Norris Group Real Estate News Roundup 10/22/09

Thursday, October 22nd, 2009

Today’s News Synopsis:

WSJ reports that home inventories across the nation have decreased.According to FHA, home prices fell .3 percent from July to August. A survey from Point2 Technologies reveals that real estate agents and brokers are less confident in the market than they were in August.

In The News:

DSNews - “TARP Inspector Wants to Subpoena Treasury” (10-22-09)

“Special Inspector General Neil Barofsky lashed out at the U.S. Treasury Department for failing to implement clear recommendations from his office that would improve the program and refusing to come forth with critical details of fund usage. Barofsky even went so far as to threaten to subpoena documents from the Treasury and White House.”

Bank Investment Consultant – “Fannie Mae Offers Hand to Investors” (10-22-09)

“Fannie Mae is replacing a forbearance program for troubled borrowers with one that will make the breaks available to property investors and owners of second homes. In a forbearance, the government-sponsored enterprise reduces the monthly payment on a mortgage for up to six months. The current program only provides this relief for loans on owner-occupied properties.”

Wall Street Journal – “Waiting for the Next McMansion to Drop” (10-22-09)

“The Wall Street Journal’s quarterly survey of housing-market data in 28 major metro areas shows sharp drops in the number of homes listed for sale across the country. But the potential supply of homes is far larger because banks are likely to acquire significant numbers of foreclosed homes in some areas, notably Las Vegas, Atlanta, Detroit, Phoenix, Miami and other parts of Florida, and Sacramento, Calif., over the next few years.”

Sacramento Bee – “Home price index falls 0.3 percent in August” (10-22-09)

“The Federal Housing Finance Agency says prices fell 0.3 percent in August from July. The agency’s index, based on loans owned or guaranteed by Fannie Mae and Freddie Mac, is 3.6 percent below last year’s levels and 10.7 percent off its peak in April 2007.”

Inman - “Agent, broker confidence slips” (10-22-09)

“Real estate agents and brokers surveyed in September by Point2 Technologies were slightly less confident about the future than they were in August, but remained more optimistic than pessimistic overall. On a scale of one to 10, Point2’s Real Estate Confidence Index recorded a 5.83 reading at the national level in September, down from 5.88 in August. It was the first decline in the index since it was launched in June, the company said.”

Housing Wire – “Looming Refinance Needs Will Pressure CRE Market: RBS” (10-22-09)

“The commercial real estate (CRE) market will not likely post signs of recovery until mid-2010 and faces key challenges ahead, according to RBS Securities.”

Housing Wire – “PNC’s Mortgage Banking Profits Hold Steady at $91m” (10-22-09)

“PNC Financial Services Group (PNC: 50.65 +12.66%) earned net income of $559m, $1 per share, for Q309, compared with net income of $207m, $0.14 per share, in Q209. Mortgage banking revenue stayed even from the previous quarter, but originations plummeted from the year-ago period.”

Housing Wire – “HOPE NOW Pushes HAMP for Unemployed Homeowners” (10-22-09)

“The HOPE NOW Unemployment Committee collaborated with the Obama Administration to develop a new tool to help identify the eligibility of unemployed homeowners to for the Home Affordable Modification Program (HAMP). The US Treasury Department allocates capped incentives to servicers participating in HAMP to modify loans on the verge of foreclosure. Servicers lower the debt-to-income ratio of a qualified borrower to 31% with a HAMP modification.”

Housing Wire – “IRS Wrongly Gave Homebuyer Tax Credit to Resident Aliens, Minors: Watchdog” (10-22-09)

“The Treasury Inspector General for Tax Administration (TIGTA) believes the Internal Revenue Service (IRS) may have paid out millions of dollars in first-time homebuyer tax credits to individuals not eligible to receive the $8,000 credit. Nearly $4m of incorrectly paid credits were due to both alleged fraud and filing errors on claims by 580 taxpayers less than 18 years old.”

Bloomberg - “Wells Fargo, JPMorgan Benefit From Servicing Hedging” (10-22-09)

“Wells Fargo & Co. earned almost a third of its pretax quarterly profit by hedging mortgage- servicing rights, producing gains similar to those that have helped some of the biggest U.S. banks offset weaker consumer- lending businesses. Wells Fargo’s hedges outperformed writedowns it took on the so-called MSRs by $1.5 billion and JPMorgan Chase & Co. came out ahead by $435 million. The two banks, as well as Bank of America Corp. and Citigroup Inc., wrote down MSRs by at least $5 billion in the third quarter as mortgage rates fell by about 0.26 percentage point. ”

Bloomberg - “U.S. Housing to Bottom in March 2010 After 37% Drop” (10-22-09)

“The U.S. housing market will hit bottom by March 2010 as lower-priced properties recover more quickly than expensive homes, First American CoreLogic 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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