Today’s News Synopsis:
MDA DataQuick reports 19,412 houses and condos sold in Southern California last month. Freddie Mac believes home sales will rise 5% in 2011. President Barack Obama revealed the White House’s deficit reduction plan, which aims to reduce the nation’s deficit by $4 trillion in 12 years. Home Depot sales show Americans are doing more home improvement.
In The News:
MDA DataQuick – “Southland Home Sales Still Slow, Prices Edge Down” (4-13-11)
“A total of 19,412 new and resale houses and condos sold in Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange counties in March. That was up 35.1 percent from 14,369 in February, and down 5.2 percent from 20,476 in March 2010, according to DataQuick of San Diego.”
NAR - “Realtors® Applaud Bill to Speed Lender Response to Short Sales” (4-13-11)
“A new bill to improve the process for approving short sales may soon bring relief to distressed home owners who are unable to keep their homes and hope to avoid foreclosure. The bill, introduced in the U.S. House yesterday and strongly supported by the National Association of Realtors®, would impose a deadline of 45 days on lenders to respond to short sale requests.”
Los Angeles Times – “Americans doing more home improvement projects” (4-13-11)
“Home Depot Inc., the largest home improvement retailer, in February reported its first annual sales increase since 2006, before the housing market crashed. The home improvement business is stabilizing despite the continued weakness of the housing market, Home Depot Chief Executive Frank Blake said at the time.”
Bloomberg - “Banks Must Pay Victims of Botched Foreclosures, Regulators Say” (4-13-11)
“The 14 largest U.S. mortgage servicers must pay back homeowners for losses from foreclosures or loans that were mishandled in the wake of the housing collapse, the first of a set of sanctions regulators are seeking against the companies. ”
Bloomberg - “JPMorgan Says Foreclosure Accord With Federal Reserve, OCC May Come Today” (4-13-11)
“The bank took a $1.1 billion charge and may add as many as 3,000 employees to comply with the consent agreement, Chief Executive Officer Jamie Dimon and Chief Financial Officer Doug Braunstein told reporters on a conference call today after the bank reported a 67 percent increase in net income. The accord involves the Office of the Comptroller of the Currency and the Federal Reserve, the bankers said.”
Housing Wire – “Freddie Mac expects strong spring home buying” (4-13-11)
“Freddie Mac said home sales will increase 5% in 2011 compared to 2010 — a projected 4.9 million home sales. The agency estimates that number will rise 12.2% to 5.5 million homes sales in 2012.”
Housing Wire – “Obama deficit reduction plan would impact tax itemization of home purchases” (4-13-11)
“President Barack Obama revealed the White House’s deficit reduction plan Wednesday, saying his administration aims to reduce the nation’s deficit by $4 trillion over the next 12 years by using a mix of higher taxes on the wealthiest Americans, reductions in defense spending, tax code changes and health care savings.”
Housing Wire – “Fitch: Increasing interest rates bad for investors, home affordability” (4-13-11)
“Elevated rates would expose trading-oriented investors to heightened price volatility, particularly those that are highly leveraged, funded through repo markets or mark-to-market their holdings, according to the report. In a rising rate scenario, U.S. banks’ current MBS holdings of roughly $1.3 trillion would face either mark-to-market losses or, if held on a long-term basis, lower net interest income.”
Orange County Register – “Forecast: Irvine rents to rise in ’11″ (4-13-11)
“Irvine experienced positive net absorption in 2010 of 2,930 units, more than doubling the total net absorption from 2009. This increase in demand helped boost occupancy 2.9 percentage points to 95.5 percent, the third-highest among Orange County submarkets. Average monthly rental rates increased 1.8 percent to $1,699 per month. Same-store rents, however, declined 0.1 percent.”
Orange County Register – “Most volatile U.S. home market? Not O.C.!” (4-13-11)
“Orange County’s best appreciation rate was 21.2 percent in Jan. 2005. CoreLogic’s national index best year-over-year mark? Plus 17.6 percent in March 2005. Biggest loss among the 45 towns since ’05? Miami, off 34.9 percent year-over-year in Feb. 2009.”
Looking Back:
One year ago, MDA DataQuick reported 20,476 new and resale homes sold in Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange counties sold in March. Schwarzenegger signed a bill allowing taxpayers to be exempt from paying for forgiven mortgage debt. In 2008 and 2009, the income needed to buy a median-priced home decreased in 93 percent of U.S. markets. According to IAS, national house prices fell 0.6% in February 2010.
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