Today’s News Synopsis:
The Census Bureau reports that rental vacancy rates for Q3 of 2009 were at 11.1 percent. According to RealtyTrac, Chico, California had a 98 percent increase in foreclosures from Q3 of 2008. The Attorney General claims that 60 percent of the nation’s pay-option ARMs, originated between 2004 and 2008, are located in California. Wilber Ross Jr. believes that commercial real estate is headed for a major collapse.
In The News:
NAR - “NAR Commends Congressional Action to Extend Higher Mortgage Loan Limits” (10-30-09)
“NAR commends both houses of Congress for their quick action in continuing these higher limits during a time for recovery in the housing market and national economy. The higher limits, along with the home buyer tax credit extension, are necessary to keep the markets moving at this critical time”
Inman - “California official warns of loan resets” (10-30-09)
“Economists estimate that about 1 million pay-option ARMs will reset in the next four years, ‘dramatically worsening the foreclosure crisis,’ the attorney general’s office said in a letter to lenders. With 58 percent of all pay-option ARMs originated between 2004 and 2008, California will be the “epicenter of this crisis,” the letter said.”
Housing Wire – “Rental Vancancy Rate Up, Homeowner Rate Steady: Census” (10-30-09)
“The rental vacancy rate was 11.1% in Q309, an increase from 9.9% in Q309 and 10.6% in Q209, according to the latest data released by the Census Bureau. The homeowner vacancy rate held steady at 2.5% from Q209 to Q309, which is lower than Q308’s 2.8%. The homeownership rate was 67.6%, nearly even with the 67.9% in Q309 and 67.4% in Q209.”
Housing Wire - “Foreclosures Growing in Suburbs and Secondary, says RealtyTrac” (10-30-09)
“Foreclosures are beginning to flare up in suburban and secondary metro markets for Q309, according to a report from RealtyTrac. In several states, foreclosure activities drifted toward new focal points, such as smaller towns with previously self-sustaining industries. Chico, California in Sacramento Valley, and agricultural hub, had a 98% increase in foreclosures from Q308, according to the report.”
Housing Wire – “Genworth Earns $45m with Savings on Loan Modifications” (10-30-09)
“Mortgage insurer Genworth Financial (GNW: 10.62 +4.32%) reported a net income of $45m in Q309, compared to a net loss of $258m in Q308. Despite the overall earnings, Genworth registered $116m in net operating losses of its US Mortgage Insurance (US MI) segment, compared to $121m in losses in Q308.”
Housing Wire – “California AG Wants Pay Option ARM Answers” (10-30-09)
“California homeowners hold nearly 60% of the nation’s pay option ARMs originated between 2004 and 2008, the attorney general’s office said. Nationally, about 1m of these loans are schedule to reset in the next four years, creating higher payments for many loans on the brink of negative equity.”
Bloomberg - “Wilbur Ross Sees ‘Huge’ Commercial Real Estate Crash” (10-30-09)
“‘All of the components of real estate value are going in the wrong direction simultaneously,’ said Ross, one of nine money managers participating in a government program to remove toxic assets from bank balance sheets. ‘Occupancy rates are going down. Rent rates are going down and the capitalization rate — the return that investors are demanding to buy a property — are going up.’”
Bloomberg - “Simon Property Says FFO Increased in Third Quarter” (10-30-09)
“Simon Property Group Inc., the biggest U.S. shopping mall owner, said third-quarter earnings excluding items rose as the company cut expenses. Funds from operations climbed to $473.1 million, or $1.38 a share, from $463.9 million, or $1.61, a year earlier, the Indianapolis-based company said in a statement today. This year’s per share earnings were diluted by the sale of more than 40 million common shares. Analysts surveyed by Bloomberg predicted FFO of $1.32, according to the average of 16 estimates.”
Orange County Register – “More than half H.B. escrows are repos, short sales” (10-30-09)
The article contains 3 charts which include numbers for active listings and escrows in Huntington, CA.
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