Today’s News Synopsis:
Research from the Construction Industry Research Board shows that the number of home building permits taken in August was down 5 percent from July. The NAR reports that existing home sales decreased by 2.7 percent from July to August. A study showed that foreclosure prevention laws in California have failed to significantly help home owners. The Federal Reserve intends to continue its stimulus plan and will continue to buy mortgage securities.
In The News:
CBIA - “Housing Production Slips Again in August, CBIA Announces” (9-24-09)
“According to statistics compiled by the Construction Industry Research Board (CIRB), homebuilders pulled permits for 2,911 total housing units in August, down 5 percent from July. When compared to August of last year, production in 2009 was way down.”
NAR - “Existing-Home Sales Ease Following Four Monthly Gains” (9-24-09)
“Existing-home sales – including single-family, townhomes, condominiums and co-ops – declined 2.7 percent to a seasonally adjusted annual rate1 of 5.10 million units in August from a pace of 5.24 million in July, but remain 3.4 percent above the 4.93 million-unit level in August 2008. In the previous four months, sales had risen a total of 15.2 percent.”
MBA - “Commercial/Multifamily Mortgage Debt Outstanding Declines in Second Quarter 2009″ (9-24-09)
“The $3.47 trillion in commercial/multifamily mortgage debt outstanding recorded by the Federal Reserve was a decrease of $9.9 billion or 0.3 percent from the first quarter 2009. Multifamily mortgage debt outstanding grew to $914 billion, an increase of $6 billion or 0.7 percent from first quarter.”
San Francisco – “Foreclosure-mediation laws not much help” (9-24-09)
“Laws in California and other states requiring mortgage companies to talk to troubled homeowners before foreclosing on them are toothless, according to a study released Wednesday.”
Mercury News – “‘Equity share’ loans of up to $75K offered to Silicon Valley homebuyers” (9-24-09)
“Under the ‘equity share co-investment,’ or ESCO program, The Housing Trust will advance as much as $75,000 to first-time home buyers who make up to 140 percent of the region’s area median income, or about $147,700 a year for a family of four. The money will be used to match a buyer’s 5 percent to 15 percent down payment.”
Bloomberg - “Luxury Hotels in U.S. Risk Default as $850 Rooms Remain Empty” (9-24-09)
“Loans secured by more than 1,500 hotels with a total outstanding balance of $24.5 billion may be in danger of default, according to Realpoint LLC, a credit rating company that tracks commercial mortgage-backed securities. Some of the biggest loans, put on the company’s watch list because of late payments, decreasing occupancies or cash flow, were made to luxury properties where rooms can cost more than $850 a night.”
Bloomberg - “Fed Signals Growth Return Not Enough to End Stimulus” (9-24-09)
“While the economy has ‘picked up,’ the central bank’s planned asset purchases will help ensure a ‘gradual return to higher levels of resource utilization,’ the Fed’s Open Market Committee said yesterday. Policy makers committed to complete their $1.25 trillion in purchases of mortgage securities and extended the end-date of the program to March from December.”
Bloomberg - “New Home Sales in U.S. to Climb 30% in 2010, Goldman Sachs Says” (9-24-09)
“New U.S. home sales may jump 30 percent next year, buoyed by low mortgage rates and a ‘greater than 50 percent probability’ that Congress will extend a tax credit for first-time buyers, Goldman Sachs Group Inc. said.”
Orange County Register – “O.C. property investor seeks bankruptcy rescue” (9-24-09)
“Unable to pay off construction loans coming due, office developer Mammoth Equities LLC has filed four bankruptcy cases seeking to rescue half its properties from foreclosure. The San Juan Capistrano developer owes nearly $68 million on loans that came due or are about to come due on five California office buildings it owns, said senior Mammoth officer Joe Ryerson. He estimated that the collective value of those properties is about $41 million today.”
Inman - “Facebook app promotes property listings” (9-24-09)
“That caveat out of the way, CenterStage looks promising for spreading property listings information on Facebook. If you aren’t using Facebook, then CenterStage is a no-go. Though perhaps you could use it to jump-start a Facebook campaign.”
Looking Back:
One year ago, the NAR reported that existing home sales fell by 2.2 percent. Research from the CBIA showed that housing permits were down 61 percent from the previous year. The MBA’s mortgage application survey showed that mortgage applications fell by 10.6 percent from the previous week.