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California Real Estate Headline Roundup

Posts Tagged ‘NAHB’

The Norris Group Real Estate News Roundup 3/2/10

Tuesday, March 2nd, 2010

Today’s News Synopsis:

Based on results from a recent poll, 68 percent of U.S. citizens support the government’s involvement in the housing market. Fannie Mae announced plans to buy 150,000 to 200,000 delinquent loans from MBS trusts this month. Economist Jan Hatzius believes that we will not see an interest rate increase any time in the near future. Realtors advise that staging is a critical component of selling a home.

In The News:

NAHB – “Poll Shows Strong Support for Government Housing Initiatives” (3-1-10)

“Americans remain strongly committed to federal support for home buyers, according to a recent survey of U.S. households. Roughly 68 percent of those polled said the government should continue to support housing, and 65 percent believe the government should be doing more to keep families from losing their homes to foreclosure.”

Press Enterprise – “New Homes sip, don’t gulp, water” (3-2-10)

“The study found that homes built in 2009 consume 20 percent less water than homes built in 1990, with each house saving on average over 15,000 gallons a year. Also homes built to 2011 standards will further lower indoor water use by 21 percent, saving another 12,000 gallons a year.”

Housing Wire - “Fannie to Buy up to 200,000 Delinquent Mortgages in March” (3-2-10)

“Government-sponsored enterprise (GSE) Fannie Mae (FNM: 1.00 +1.01%) said Monday it expects to purchase from 150,000 to 200,000 delinquent loans out of single-family mortgage-backed security (MBS) trusts during March.”

Bloomberg – “Home-Price Drop in U.S. Supports Low-Rate Outlook: Chart of Day” (3-2-10)

“A possible relapse in home prices that had Fed policy makers concerned late last year may now be coming to pass, underscoring forecasts by economists such as Jan Hatzius that an interest-rate increase is a long way off.”

Inman – “Real estate Darwinism” (3-2-10)

“Today’s brokers and agents who survive and lead us out of this current mess are going to be those most willing to change. They will share three key attributes: they will be the most competent in their craft, utilize all available technology, and be the most dedicated to customer service. Undoubtedly, these changes will be fundamental. Externally, technology will continue to drive our industry change, and internally, change will be in the form of technology and reduced commissions. Sounds simple, but the transformation to the brokerage of 2020 will be drastic.”

Realty Times – “Focusing on the Median Price Can Be Misleading” (3-2-10)

“Many observers have noted that the rise in the median does not necessarily indicate a rise in prices in general. Rather, it is reflective of more activity at higher price ranges than had been experienced in the recent past. In many market areas, for the past year to year and-a-half the greatest activity – practically frenzy in some areas – has been at the bottom of the price ranges. This is not a surprise. Smaller condominiums and starter homes were generally what constituted the first wave of foreclosures on loans that never should have happened. More recently, though, the number of sales has increased in higher price ranges. As the effects of high unemployment and a staggering economy spread throughout the land, there are more sales – many of them distressed sales – of larger homes, ones that people expected to live in a long time.”

Realty Times – “Sellers: Staging is a Must” (3-2-10)

“As a seller, you want your home to make a positive first impression. In order to do this, you repair, clean, and strategize marketing for your open houses, but home staging takes it one step further. It allows the buyer both the mental space to imagine their own belongings in the rooms and the ability to get excited about the life they could have in your home.”

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The Norris Group Real Estate News Roundup 2/17/10

Wednesday, February 17th, 2010

Today’s News Synopsis:

 CBIA announced that housing affordability has decreased in 22 of California’s 28 metropolitan areas. The Commerce Department reports that housing and apartment construction increased by 2.8 percent last month. According to SFAR, there is a 3.5 month supply of housing inventory in the San Francisco market. A survey shows that large investment companies are spending more on REIT investments.

In The News:

CBIA – “California Housing Affordability Continues Slide in Fourth Quarter, CBIA Announces” (2-17-10)

“Housing affordability in California continued to fall throughout most of the state during the fourth quarter of 2009, the California Building Industry Association said today. The quarterly National Association of Home Builders/Wells Fargo Housing Opportunity Index found that homes were less affordable in 22 of the state’s 28 metro areas included in the report.”

Mortgage Bankers Association – “Mortgage Applications Decrease in Latest MBA Weekly Survey” (2-17-10)

“The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending February 12, 2010.  The Market Composite Index, a measure of mortgage loan application volume, decreased 2.1 percent on a seasonally adjusted basis from one week earlier.  On an unadjusted basis, the Index decreased 0.5 percent compared with the previous week.”

Los Angeles Times – “Housing construction rises 2.8 percent in Janury” (2-17-10)

“The Commerce Department said Wednesday that construction of new homes and apartments rose 2.8 percent last month to a seasonally adjusted annual rate of 591,000 units. That was better than the 580,000 annual pace that economists were forecasting.”

Housing Wire – “Continental Conflicts Arising Over Banker Pay” (2-17-10)

“The majority of banking executives oppose government intervention in setting bank compensation parameters, according to a bank executive survey conducted from Nov. 17-Dec. 3, 2009 by US audit firm Grant Thornton. The sentiment, however, is not as greatly embraced abroad. The survey found 96% of 246 respondents do not agree the government should play a role in determining compensation, while 61% do not think a requirement to evaluate compensation will reduce excessive risk-taking.”

Housing Wire – “San Francisco Inventory at 3.5 Month Supply” (2-17-10)

“Despite a lull in luxury home sales, prices are up and inventory is down in the San Francisco market, according to a joint research report released by the Rosen Consulting Group and the San Francisco Association of Realtors. The report said there is a 3.5-month supply of single-family homes on the market, down from 5.8 months in January 2009. Condo inventory was at a 4.1-month supply, down from 9.5 months in January 2009.”

Housing Wire – “FHFA Proposes New Performance Goals for Fannie, Freddie” (2-17-10)

“The FHFA required, as the first goal for single-family housing, that 27% of the total number of mortgages purchased by Fannie and Freddie be of low-income family housing. The FHFA defined low-income as not exceeding 80% of the area median income.”

Inman - “5 arguments for open houses” (2-17-10)

“Want to pick a fight in a roomful of real estate agents? Ask them whether they think open houses are worthwhile. We did the virtual equivalent of that, sending out an online request for comments from real estate agents about the effectiveness of open houses — and they responded by filling up the old inbox faster than we could clean it out. Their responses range from passionate conviction that open houses are ‘a must,’ to cynical observations that they’re of benefit to no one other than to agents who are trolling for new clients.”

Realty Times – “Investor Report: REITs” (2-17-10)

“New York and London-based research firm Preqin reports that 62 percent of the large investment companies it surveyed said they plan to buy into – or add to their holdings – of private equity REITs, or real estate investment trusts. That’s up from 45 percent in a similar survey Preqin conducted in early 2009.”

Looking Back:

One year ago, the NAHB reported that builder confidence reached an all-time low. CBIA claimed that the pace of new home sales was continuing on a decreasing trend. The California government ended 20,000 jobs. S&P estimated that commercial real estate defaults would reach 3.5 percent by the end of 2009.

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The Norris Group Real Estate News Roundup 2/16/10

Tuesday, February 16th, 2010

Today’s News Synopsis:

According to MDA Dataquick, the median home price in Southern California decreased by 6 percent from December. CBIA reports that home sales in new communities decreased by 15 percent from last month. John Burns estimates that 5 million houses and condominiums with delinquent mortgages will end up in foreclosure over the next few years. TransUnion reports that mortages over 60 days delinquent increased to 6.89% in quarter four of 2009.

In The News:

NAR - “NAR’s HouseLogic: The Logical Source for Today’s Homeowners” (2-16-10)

“Today the National Association of Realtors® launched HouseLogic, a new, comprehensive consumer Web site about all aspects of homeownership. HouseLogic helps homeowners make smart decisions and take responsible actions to maintain, protect and increase the value of their homes. The free Web site helps homeowners plan and organize their home projects and provides timely articles and news; home improvement advice and how-to’s; and information about taxes, home finances and insurance.”

DQNews - “Southland home sales, median price edge above year-ago level” (2-16-10)

“Southern California home sales eked out a modest gain in January compared with a year earlier but fell sharply – as they normally do – from December. The median price paid rose above the year-ago level for the second consecutive month, but fell 6 percent from December as foreclosures and lower-cost inland markets claimed a higher share of sales, a real estate information service reported. A total of 15,361 new and resale homes closed escrow last month in Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange counties. That was down 31.2 percent from December’s 22,328, but up 0.9 percent from 15,227 in January 2009, according to MDA DataQuick of San Diego.”

CBIA - “California New-Home Market Ends 2009 in Lackluster Condition, CBIA Announces” (2-16-10)

“The monthly CBIA/Hanley Wood Market Intelligence (HWMI) New-Home Sales and Pricing Report showed that sales in new-home communities of 10 units or more were 15 percent below December 2008. While the decline was disappointing, it remains an improvement from most months in 2009 in which year-over-year declines were substantially larger. During December, 1,372 new homes and condominiums were sold in the subdivisions tracked by Costa Mesa-based HWMI, compared to 1,607 in December 2008. Sales of single-family homes were down by 25 percent, while sales of townhomes and ‘plexes’ – duplexes, triplexes, etc. – were off by 5 percent and sales of condominiums were 18 percent higher than a year ago.”

San Francisco Chronicle – “Resale prices steady for San Francisco condos” (2-16-10)

“San Francisco’s median resale condominium prices from November through January stayed steady from the same period a year ago, leading some analysts and real estate agents to conclude that values have settled into a range where they are likely to remain for some time. According to city data analyzed by the Polaris Group, a San Francisco real estate firm that crunches housing numbers, the median price for a resale condo in the city – as opposed to a newly built unit – was $638,000 in the threemonth period ending Jan. 31.”

Wall Street Journal – “Foreclosures Seen Still Hitting Prices” (2-16-10)

“The John Burns study estimates that five million houses and condominiums on which mortgages are now delinquent will go through foreclosure or related procedures that put them on the market over the next few years. That would represent the bulk of the estimated 7.7 million households behind on their mortgage payments.”

Housing Wire – “BofA Makes 12,700 HAMP Modifications Permanent” (2-16-10)

“Bank of America (BAC: 15.16 +4.91%) reported 12,700 permanent modifications under the Home Affordable Modification Program (HAMP) through January, an increase from 3,200 a month earlier. The US Treasury Department launched HAMP in March 2009 to provide capped incentives to servicers for the modification of loans on the verge of foreclosure. Through December, servicers provided 66,000 HAMP permanent modifications.”

Housing Wire – “Mortgage Delinquencies Rise for 12th Straight Quarter: TransUnion” (2-16-10)

“Mortgage delinquencies of 60 or more days rose for the 12th straight quarter, hitting a record high 6.89% in Q409, according to market research by credit bureau TransUnion. The rate of deceleration seen in previous quarters in the rise in delinquencies appears ’short lived,’ the credit bureau said. Year-over-year, the delinquency rate is up about 50% from 4.58% delinquent in Q408.”

Housing Wire – “Borrowers Overwhelmingly Pick Fixed-Rate Refinancings in Q4″ (2-16-10)

“Freddie Mac (FRE: 1.23 +0.82%) reported Monday that 95%of refinance loans during the last quarter of last year were of the fixed-rate variety. And while traditional 30-year fixed-rate mortgages are still the most preferred product among refinancings, 15-year fixed-rate mortgages gained favor among borrowers who previously held 30-year fixed-rate mortgages, balloon mortgages and adjustable-rate mortgages (ARMs), the GSE said in a statement.”

Bloomberg - “U.S. Homebuilder Confidence Rises More Than Forecast” (2-16-10)

“The National Association of Home Builders/Wells Fargo index of builder confidence increased to 17, higher than anticipated, from 15 the prior month, the Washington-based group said today. Readings below 50 mean most respondents view conditions as poor. ”

Looking Back:

One year ago, Congress considered making improvements to the $7,500 tax credit under the $789 billion economic stimulus package. A prediction was made that the 5 biggest banks would soon loose over $524 million.

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

Wednesday, February 10th, 2010

Today’s News Synopsis:

The MBA reports that mortgage application volume decreased by 1.2 percent from last week. According to the NAHB, there were approximately 234,000 homes for sale at the end of 2009. Statistics from Zillow show that the national median price was $186,200 in Q409 of 2009. The total number of FHA-insured single-family mortgages in default reached 531,671 in Q409 of 2009.

In The News:

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

“The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending February 5, 2010. The Market Composite Index, a measure of mortgage loan application volume, decreased 1.2 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 0.6 percent compared with the previous week.”

Wall Street Journal – “Spec Houses Rise as Builders Bet on Buyers Before Tax Credit Ends” (2-10-10)

“Houses typically take between four and six months to build, so the window to start construction is closing quickly. And current inventory is low. At the end of 2009, there were 234,000 homes for sale, the lowest level since April 1971, according to the National Association of Home Builders. It’s difficult to measure the total number of spec homes nationwide. But according to a survey conducted by John Burns Real Estate Consulting, based in Irvine, Calif., home builders have about three finished homes with no buyer per community. That’s up slightly from 2.8 finished homes in November but much lower than the peak of six finished homes in July 2008.”

Mercury News – “Bay Area home prices may drop, real estate firm warns” (2-10-10)

“The median estimated value of all Santa Clara County homes at the end of the fourth quarter was $568,401, up a fraction from $564,360 in the third quarter, Zillow reported. In San Mateo County, prices have already begun to fall. The median estimated value of all homes was $635,264 in the fourth quarter, down 0.68 percent from $639,600 in the third quarter. Home values fell in San Mateo County from September through December, Zillow said, after four months of increases from May through August.”

Housing Wire – “Zillow Warns on Double Dip in House Prices” (2-10-10)

“The Zillow Home Value Index put the national median price at $186,200 in Q409, a 5% decrease from Q408. Compared to Q309, prices declined 0.5% during the last quarter of 2009. The index is a measure of median home values of all single-family residences, condominiums and cooperatives, both on the market and not for sale. Q409 marked the 12th consecutive quarter of year-over-year declines, Zillow said.”

Housing Wire – “Defaults on FHA Mortgages Pass 9 Percent” (2-10-10)

“The default rate in the single-family FHA portfolio reached 9.12% in Q409, climbing from 6.82% in Q408, according to the Federal Housing Administration December monthly report. The total number of FHA-insured single-family mortgages in default reached 531,671 in Q409, a 66% increase from 319,741 in Q408. In that same period, modifications on FHA-backed loans increased 54% to 23,973 in Q409.”

Housing Wire – “Feds Outline Mortgage Securities Exit Strategy” (2-10-10)

“And according to Federal Reserve chairman Ben Bernanke, a series of policy wind-down methods are being tested. The Fed may first drain excess reserves built up over many months through extraordinary asset-purchase programs, and then begin to raise interest rates. Or the Fed could pursue both options simultaneous to facilitate a quicker exit. Ultimately, economic developments will determine the exit process.”

Housing Wire – “Freddie Mac Will Buy Out 120-Day Delinquent Mortgages” (2-10-10)

“Government-sponsored mortgage securitizer Freddie Mac (FRE: 1.24 +3.33%) said today it will buy ’substantially all’ mortgages delinquent by at least 120 days from the company’s related fixed-rate and adjustable-rate mortgage (FRM and ARM) Participation Certificate (PC) securities. Freddie said the loan purchases will show up in the PC factor report published after March 4, 2010. The corresponding principal payments on affected PCs will pass through to FRM and ARM PC holders on March 15 and April 15, respectively.”

Housing Wire – “Option ARMs Don’t Measure Up in HAMP: BofA” (2-10-10)

“Of all mortgage collateral sectors, pay-option adjustable-rate mortgages (ARMs) are the least modifiable under a federally-subsidized modification program, according to research Monday by Bank of America Merrill Lynch (BofAML). Researchers found that, in general, collateral with higher delinquencies see higher modification rates. But despite the wave of option ARMs set to recast monthly payments over the next several years, these types of loan fall in ‘the least modifiable sector’ under the Home Affordable Modification Program (HAMP) because of their failure to measure up to eligibility requirements and net present value (NPV) test requirements.”

Orange County Register – “Expect more price cuts on high end homes” (2-10-10)

“Data from 2009 MLS sales for Laguna Beach show that last year started out extremely slow. February 2009 recorded a record low of only 6 residential properties sold for the entire month. By contrast, buying activity picked up enough by year end that December was the highest single month of sales since May 2006.”

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The Norris Group Real Estate News Roundup 1/19/10

Tuesday, January 19th, 2010

Today’s News Synopsis:

MDA Dataquick’s monthly report shows that 22,328 homes were sold in Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange County last month. AFIRE conducted a survey in which 51 percent of foreign investors claimed the US provides the best opportunity for capital appreciation. According to the NAHB, builder confidence decreased from last month. Fitch Ratings sees many positive signals for housing and other related industries which may soon lead to a strong recovery.

In The News:

DQNews - “Southland home sales, median price up over last year” (1-19-10)

“A total of 22,328 new and resale homes sold in Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange counties last month. That was up 16.4 percent from November’s 19,181, and up 12.1 percent from 19,926 in December 2008, according to MDA DataQuick of San Diego.”

Housing Wire – “New Home Builds Strengthen Though Sector Remains Weak: Fitch” (1-19-10)

“There are more positive signals and developments for housing and related industries than at any time in the past three years, Fitch Ratings analysts wrote in a quarterly outlook report, but despite having fewer competitors, public builders will continue to be challenged and need to maintain tight controls over costs and expenses in 2010.”

Housing Wire – “Washington Federal Earnings Drop 61% in Q409, Driven by Large REO Expenses” (1-19-10)

“Washington Federal, the parent company of Washington Federal Savings, reported $7.9m in earnings for Q409 or $0.07 per share. Earnings dropped 61% from $20.1m or $0.23 per share in Q408, due to higher credit costs including the provision for loan losses and real estate owned (REO) expenses. Those expenses reached $82.5m in Q409, a 128% jump from $46.2m in Q408.”

Housing Wire – “Foreign Investors Revive Optimism in US Real Estate” (1-19-10)

“AFIRE conducted the survey in Q409 among its nearly 200 members. Respondents own more than $842bn of global real estate, including $304bn in the US. In the survey, 51% of respondents said the US provides the best opportunity for capital appreciation, an increase from 37% in 2008, 26% in 2007 and 23% in 2006. It’s the highest positive perception for US real estate since the same number in 2003.”

Housing Wire – “Citi Posts $7.6bn Q4 Loss After TARP Repayment” (1-19-10)

“Citigroup repaid $6.2bn of Troubled Asset Relief Program (TARP) funds during Q409, exiting its loss-sharing agreement with the federal government. Excluding the TARP payment, Citigroup would have lost $1.4bn, or $0.06 per share, in Q409.”

Housing Wire – “Google Teams with Tech Firms for Online Mortgage Search Tool” (1-19-10)

“Search giant Google (GOOG: 587.62 +1.31%) is partnering with mortgage technology companies for the launch of a new feature that allows consumers to search for mortgage products and rates through its site.”

Bloomberg - “Treasury Delay on Home-Equity Debt Imperils Housing” (1-19-10)

“The U.S. Treasury Department has failed to win agreements to get struggling borrowers’ home- equity debt reworked, among the biggest roadblocks to reducing foreclosures that may reach a record 3 million this year. None of the lenders holding a combined $1.05 trillion of the debt has signed contracts requiring participation in the second-mortgage modification plan announced eight months ago. The largest banks remain ‘committed’ to joining, Meg Reilly, a department spokeswoman, said in an e-mail.”

Bloomberg - “Homebuilder Confidence in U.S. Unexpectedly Decreases” (1-19-10)

“The National Association of Home Builders/Wells Fargo index of builder confidence decreased to 15 from 16 the prior month, the Washington-based group said today. Readings below 50 mean most respondents view conditions as poor. The report showed traffic slowed to a 10-month low, indicating the government’s extension and expansion of its first-time buyer program has, so far, not drawn in new demand after propelling total sales to an almost three-year high in November. A projected record 3 million foreclosures this year may also pressure prices, making it more difficult for homebuilders to turn a profit.”

Looking Back:

One year ago, MDA Dataquick reported that statewide home sales from 2008 to 2009 increased by 25.7 percent. Home sales in Southern California increased by 50.5 percent from 2007 to 2009. The Commerce Department reported that home starts had decreased to an annual rate of 605,000.

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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 11/17/09

Tuesday, November 17th, 2009

Today’s News Synopsis:

Home sales increased by 2.8 percent from September to October in six Southern California counties. The MBA reports that 6.7 million households with mortgages are behind on their payments, or are in the foreclosure process. TransUnion conducted a study of 27 million credit files and found that 6.25 percent are delinquent.

In The News:

Office of Thrift Supervision - “Federal Regulators Issue Final Model Privacy Notice Form” (11-17-09)

“Eight federal regulatory agencies today released a final model privacy notice form that will make it easier for consumers to understand how financial institutions collect and share information about consumers. Under the Gramm-Leach-Bliley Act (GLB Act), institutions must notify consumers of their information-sharing practices and inform consumers of their right to opt out of certain sharing practices. The model form issued today can be used by financial institutions to comply with these requirements.”

DQNews - “Southland home sales up again, drop in median price smallest in 2 years” (11-17-09)

“Last month 22,132 new and resale houses and condos closed escrow in Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange counties. That was up 2.8 percent from 21,539 in September and also up 2.8 percent from 21,532 a year earlier, according to MDA DataQuick of San Diego.”

Wall Street Journal – “Ten Questions on the Volatile Housing Market” (11-17-09)

“But more than 6.7 million U.S. households with mortgages, or about 13%, are behind on their payments or are in the foreclosure process, according to the Mortgage Bankers Association. Eventually, many of them will lose those homes, sending more supply onto the market. Unemployment has continued to rise, and the housing market is unlikely to show a sustained recovery until job growth resumes.”

Housing Wire – “TransUnion Sees Delinquency Rise for 11 Quarters” (11-17-09)

“Overall mortgage delinquency of 60 or more days reached a record 6.25% in TransUnion’s ongoing study of a random selection of 27m credit files from its national consumer database. The rate is up from 5.81% in Q209 and is expected by the credit bureau to come in just under 7% by year-end 2009.”

Housing Wire – “Home Improvement Stores See Sales Declines” (11-17-09)

“Earnings were down in Q309 at the country’s two largest home improvement chains, The Home Depot (HD: 26.99 -2.39%) and Lowe’s (LOW: 21.48 -1.20%) as homeowners and renters alike show reluctance to begin improvement projects amid continued financial stress and increasing joblessness.”

Housing Wire – “CIT Posts 10th Straight Quarterly Loss” (11-17-09)

“CIT Group, a lender to small- and mid-sized businesses, posted a Q309 loss of $1.03bn, or $2.47 per share, as the company attempts to emerge from bankruptcy protection by the end of the year.”

Bloomberg - “Insurers Face $23 Billion Loss on Commercial Property” (11-17-09)

“U.S. life insurers, a group led by MetLife Inc. and Prudential Financial Inc., may lose as much as $22.6 billion on investments in commercial real estate through 2011, Fitch Ratings said.”

Bloomberg - “FDIC Sells Most Real Estate Since 1994 on U.S. Banking Debacle” (11-17-09)

“The FDIC raised $727 million from building and land sales in the first nine months of 2009 compared with $1.16 billion in the whole of 1994, according to FDIC data. The Washington-based agency sold 1,706 properties, according to its Web site, the highest number since 2,045 in 1996.”

Bloomberg - “Homebuilder Confidence in U.S. Lower Than Forecast” (11-17-09)

“The National Association of Home Builders/Wells Fargo index of builder confidence held at 17 for a second month, the Washington-based association said today. A reading below 50 means most respondents view conditions as poor. The median forecast of economists in a Bloomberg News survey was for a reading of 19.”

NAHB - “2009-2010 Home Buyer Federal Tax Credit Fact Sheet” (11-17-09)

“Existing home owners who have been residing in their principal residence for five consecutive years out of the last eight and are purchasing a home to be their principal residence (“repeat buyer”), may be eligible for a tax credit of 10% of the home purchase price, up to a maximum of $6,500.”

Looking Back:

One year ago, the NAHB claimed that 56.1 percent of all new and existing homes that were sold were affordable to families who earned the national median income of $61,500 per year. Citigroup announced its plans to cut over 50,000 jobs. The FDIC hinted at a possible revisation of the $1.4 trillion debt-insurance program.

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