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California Real Estate Headline Roundup

Posts Tagged ‘Real Capital Analytics’

The Norris Group Real Estate News Roundup 1/26/12

Thursday, January 26th, 2012

Today’s News Synopsis:

New U.S. home sales declined 2.2% in December according to Bloomberg.  In other news, 30-year mortgage rates increased for the first time from their lowest recorded level, having come about after the Federal Reserve promised to keep interest rates near 0.  In a recent vote in the Senate, Obama was allowed to raise the debt ceiling to $16.4 trillion.

In The News:

Bloomberg – “Foreclosure Properties Fall to 20% of Home Buys” (1-25-12)

“Foreclosure and distressed sales fell to 20 percent of U.S. home purchases in the third quarter of last year as legal scrutiny of property seizures reduced the number of deals, according to RealtyTrac Inc.”

DS News - “Illinois AG Sues S&P” (1-26-12)

“Illinois Attorney General Lisa Madigan filed a lawsuit against Standard & Poor’s (S&P) this week alleging the ratings agency inflated ratings of mortgage-backed securities investments, an act Madigan believes stemmed the financial crisis.”

Bloomberg - “Sales of U.S. New Homes Unexpectedly Decline in December” (1-26-12)

“Sales of new U.S. homes unexpectedly declined in December for the first time in four months, capping the slowest year on record for builders.”

NAHB - “Remodeling Market Index Rises to Five-Year High” (1-26-12)

“Remodeling sentiment rose to the highest level in five years, according to the National Association of Home Builders’ (NAHB) Remodeling Market Index (RMI) for the fourth quarter of 2011. Released today, the RMI increased to 46.6 in the fourth quarter from 41.7 in the third quarter.”

Bloomberg – “30-Yr Mortgage Rates Rise From Record Low” (1-26-12)

“Rates for U.S. 30-year mortgages climbed from the lowest level on record after Federal Reserve officials pledged to keep their benchmark interest rate near zero through at least late 2014 to help bolster the economy.”

Housing Wire - “Unemployed homebuilders migrate to multifamily jobs” (1-26-12)

“Single-family housing starts plummeted in 2011, but construction workers are finding jobs anyway by migrating to multifamily projects.”

Los Angeles Times - “Recovery roadblock?  Mortgage burdens keep job seekers from moving” (1-26-12)

“In what could end up becoming a vicious cycle of economic hurt, struggling homeowners who aren’t relocating for new jobs may stymie employers’ long-range growth.  So says a report from outplacement consultancy Challenger, Gray & Christmas Inc., which finds that about 7.5% of job hunters who found new positions ended up moving to a new home for work in the latter half of 2011.”

CNN Money - “First-time unemployment claims climb” (1-26-12)

“After plunging the week before, first-time claims for unemployment benefits ticked up last week.  The Labor Department reported Thursday that 377,000 people filed for initial unemployment benefits in the week ended Jan. 21, up 21,000 from a revised reading of 356,000 claims the week before.”

San Francisco Chronicle - “Economy gains as businesses spend more, fire less” (1-26-12)

“Businesses are growing more confident in the economy, investing in more equipment and laying off fewer workers.  Government figures on manufacturing and unemployment claims released Thursday raised hopes on the eve of a report on how much the economy grew in the October-December quarter.”

Bloomberg - “Commercial Property Sales Rose to More Than $220 Billion in U.S. Last Year” (1-26-12)

“Commercial property sales rose 57 percent to more than $220 billion U.S. last year, led by retail properties and garden apartments, Real Capital Analytics Inc. said in a report today.”

Housing Wire – “Senate clears $1.2 trillion debt ceiling raise” (1-26-12)

“The Senate voted 44-52 Thursday clearing President Obama to raise the debt ceiling by $1.2 trillion.  The ceiling will go to $16.4 trillion and, according to some estimates, may be breached again around the time of the November elections.”

Hard Money Loan Closed

Hesperia, California hard money loan closed by The Norris Group private lending. Real estate investor received loan for $40,000 on a 2 bedroom, 1 bathroom home appraised for $67,000.

California Real Estate Investor Events:

Bruce Norris of The Norris Group will be at the Advanced Investing Skills and Strategies 2.5 on February 4, 2012.

The Norris Group posted a new event.  Bruce Norris of The Norris Group will be at the 2012 Kick Off Brunch on February 18, 2012.

Looking Back:

The MBA reported mortgage application volume fell 12.9% the week of January 21, 2011. According to the Commerce Department, new home sales dropped 7.6% year over year. $1.5 trillion in commercial debt was set to mature by 2014. A total of 58,020 loan modifications were canceled, said the Treasury Department.

For more information about The Norris Group’s California hard money loans or our California Trust Deed investments, visit the website or call our office at 951-780-5856 for more information. For upcoming California real estate investor training and events, visit The Norris Group website and our California investor calendar. You’ll also find our award-winning real estate radio show on KTIE 590am at 6pm on Saturdays or you can listen to over 170 podcasts in our free investor radio archive.

 

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The Norris Group Real Estate News Roundup 1/11/12

Wednesday, January 11th, 2012

Today’s News Synopsis:

In an updated news story, Michael J. Willimas, the Chief Executive for Fannie Mae, resigned yesterday and will step down as soon as a sucessor is found.  The latest report from the Lender Processing Services showed a decrease in home values of only 8%, and an overall slowdown in decreasing values.  The latest survey from the Mortgage Bankers Association showed an increase in mortgage applications.

In The News:

Housing Wire - “LPS index shows home value declines slowing down” (1-11-12)

“The latest home price index from Lender Processing Services (LPS: 15.3001 -0.52%) shows a slight 0.8% decline in home prices in October. Early data also suggest home price declines stabilized even more in November with a slight dip of 0.5% nationally.”

Mortgage Bankers Association - “Mortgage Applications Increase in Latest MBA Weekly Survey” (1-11-12)

“Mortgage applications increased 4.5 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending January 6, 2012.  The results include an adjustment to account for the New Year’s Day holiday.”

Housing Wire – “The fight over Bernanke REO rental plan shows political divide” (1-11-12)

“Chairman Ben Bernanke’s plan to fix housing is feeding an ongoing national debate about the appropriate role of the Federal Reserve in America’s housing recovery.”

Realty Times - “Mortgage Rates Remaining Low While European Troubles Persist” (1-11-12)

“It may be a New Year, but European troubles continue to persist which is helping mortgage rates to remain low. Markets remain quiet as investors await fourth quarter earnings which will begin to be released..”

Bloomberg - “Lennar Rises After Reportign New-Home Orders Climbed 20% from Year Earlier” (1-11-12)

“Lennar Corp. (LEN), the third-largest U.S. homebuilder by revenue, rose in New York trading after reporting a 20 percent jump in new orders for the fourth quarter from a year earlier.”

Housing Wire - “FHFA disputes claims of inadequate FHLB oversight” (1-11-12)

“The Office of the Inspector General released a report Wednesday contending Federal Housing Finance Agency supervision of troubled Federal Home Loan Banks is unclear and inconsistent.”

San Francisco Chronicle – “Fed Says U.S. Economic Growth Improves While Hiring Limited” (1-11-12)

“The U.S. economic expansion improved last month across most of the country while  hiring was limited and housing remained stagnant, the central bank said.”

Bloomberg - “U.S. Property Deals May Climb to $300 Billion This Year, Real Capital Says” (1-11-12)

“U.S. commercial property deals are likely to climb 50 percent to $300 billion this year as loan maturities force asset sales and the economy grows, Real Capital Analytics Inc. said in its annual list of market predictions.”

NAHB – “Voters Place High Value on Homeownership, Oppose Policies That Make It More Difficult to Own a Home” (1-11-12)

“By an overwhelming margin, American voters strongly value homeownership and would oppose efforts to weaken or eliminate the mortgage interest deduction or diminish a federal role to help qualified home buyers obtain affordable 30-year mortgages, according to a new nationwide survey gauging likely voters’ attitudes towards homeownership and housing policy issues.”

Housing Wire – “FHFA considers paycut for new Fannie, Freddie CEOs” (1-11-12)

“The Federal Housing Finance Agency is taking into consideration what government employees are paid when determining the future compensation for the CEOs at Fannie Mae and Freddie Mac.”

San Francisco Chronicle - “Bernanke Doubles Down on Fed Bet Defied by Recession: Mortgages” (1-11-12)

“Ben S. Bernanke is signaling his willingness to double down on a three-year bet  that’s failed to revive housing, showing the extent of the Federal Reserve  chairman’s effort to wrest a recovery from the deepest recession.”

FINS - “Fannie Mae CEO Michael Williams Out” (1-11-12)

“Fannie Mae Chief Executive Michael J. Williams resigned Tuesday, saying he will depart as soon as the mortgage-finance giant’s board names a successor.”

Hard Money Loan Closed

Hesperia, California hard money loan closed by The Norris Group private lending. Real estate investor received loan for $48,000 on a 3 bedroom, 2 bathroom home appraised for $80,000.

California Real Estate Investor Events:

The Norris Group posted a new event.  Bruce Norris will be speaking at the Apartment Owners Association-Discover Wealth Strategies for 2012 Los Angeles on January 12, 2012.

The Norris Group will be at the Women’s Council of Realtors on January 18, 2012.

Looking Back:

The Charles Schwab Corp. was required to pay $119 million dollars to settle claims that they were deceptive in their YieldPlus fund.  Following the release of their earnings for 2010, Goldman Sachs made several changes to the divisions in their business, according to Housing Wire.  DSNews reported that four major banks had been asked by New York City Comptroller John C. Liu to evaluate their recent mortgage and foreclosure processes following the then recent robo-signing scandal.

For more information about The Norris Group’s California hard money loans or our California Trust Deed investments, visit the website or call our office at 951-780-5856 for more information. For upcoming California real estate investor training and events, visit The Norris Group website and our California investor calendar. You’ll also find our award-winning real estate radio show on KTIE 590am at 6pm on Saturdays or you can listen to over 170 podcasts in our free investor radio archive.

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The Norris Group Real Estate News Roundup 10/20/11

Thursday, October 20th, 2011

Today’s News Synopsis:

A big story in the world of real estate is the decrease in existing home sales by 3%.  Freddie Mac recently announced 30-year mortgage rates are continuing to remain steady at just a little over 4%.  The San Francisco Chronicle reported a slowdown in the commercial real estate market, as well as jobless claims declined slightly last week.

In The News:

Housing Wire - “Existing home sales fall 3% in September” (10-20-11)

“Existing home sales fell 3% in September, but remain above year ago levels, the National Association of Realtors said Thursday.”

NAHB - “Presidential Hopefuls Must Address Housing Issues” (10-20-11)

“As noted by the Wall Street Journal, MSNBC and other media outlets, the Republican presidential candidates let a great opportunity slip away during Tuesday night’s presidential debate to explain how they would address the nation’s housing problems in order to get the housing market and economy back on track, according to the National Association of Home Builders (NAHB).”

Bloomberg - “Wells Sees ‘Opportunity’ as BofA Cuts Loans” (10-20-11)

“Wells Fargo & Co. (WFC), the biggest U.S. home lender, may earn higher profits in the U.S. mortgage market as rivals flee from angry homeowners, more powerful regulators and billions of dollars in losses.”

Los Angeles Times - “Average 30-year mortgage rate remains above 4%, Freddie Mac says” (10-20-11)

“The typical rate for a 30-year mortgage has leveled off at a bit over 4%, a widely watched survey shows.  Lenders were offering the standard 30-year home loan at an average of 4.11% early this week, a statistically insignificant drop from 4.12% last week, Freddie Mac said Thursday.”

San Francisco Chronicle - “Commercial Real Estate Deals Decline in U.S. as Rebound Cools” (10-20-11)

“The U.S. commercial real estate market has slowed in the past three months as  the sputtering economy and a pullback in debt financing limited deals, cooling a  recovery from Washington to California.”

Housing Wire – “Poverty rates continue to rise, southern states hardest hit” (10-20-11)

“Poverty rates rose to 15.3% in 2010 from 14.3% 2009 as the nation’s economic malaise and housing crisis persist, according to Census Bureau data released Thursday.”

DS News - “Proposed Bill Would Offer Visas to Foreign Homebuyers in U.S.” (10-20-11)

“Foreigners may get an added bonus when they invest in residential real estate in the U.S. – a visa.  Sens. Charles Schumer (D-New York) and Mike Lee (R-Utah) are proposing a bill that would offer residence visas to foreigners when they spend at least $500,000 in the U.S. residential real estate market, according to the Wall Street Journal.”

Los Angeles Times - “New jobless claims continue modest decline” (10-20-11)

“The number of workers filing for new unemployment benefits dipped slightly last week, a sign the job market is improving, albeit very slowly.  The Labor Department said Thursday initial jobless claims filed in the week ending Oct. 15 dropped to 403,000 from an upwardly revised 409,000 in the prior week. That’s down from the summer high of more than 430,000, but still far from comforting given that employers haven’t stepped up their hiring much.”

Looking Back:

Mortgage application volume decreased 10.5% from the previous week, said the Mortgage Bankers Association. RealPoint reported CMBS delinquencies increased 1.3% in August 2010. The Federal Reserve’s Beige Book showed economic growth continued in September 2010. Fannie Mae expected total economic growth for 2010 to equal approximately 2.5%.

For more information about The Norris Group’s California hard money loans or our California Trust Deed investments, visit the website or call our office at 951-780-5856 for more information. For upcoming California real estate investor training and events, visit The Norris Group website and our California investor event calendar. You’ll also find our award-winning real estate radio show on KTIE 590am at 6pm on Saturdays or you can listen to over 170 podcasts in our free investor radio archive.

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The Norris Group Real Estate News Roundup 2/4/11

Friday, February 4th, 2011

Resources:

Yahoo! and Zillow go live with largest online real estate network

Failure to Raise U.S. Debt Ceiling would be Dangerous, Top Obama Aid Says

Costs for home mortgages rise as Fannie, Freddie hike fees 

Mortgage modifications increase 42% in 2010: Hope Now 

DBRS finds half of mortgage modifications redefault

Senate committee considers foreclosure mediation program

Today’s News Synopsis:

The Labor Department reports the economy added 36,000 jobs in January. The Congressional Oversight Panel expects future losses on commercial real estate loans to cost between $200 billion and $300 billion. Orange County construction unemployment increased to 22.5%.

In The News:

Washington Post – “Housing finance changes likely to mean less government backing for some buyers” (2-4-11)

“The Obama administration is likely to recommend reducing the size of mortgages eligible for government backing, according to current and former officials”

Housing Wire – “Nonfarm payrolls add 36,000 jobs, unemployment down to 9%” (2-4-11)

“The Labor Department’s Bureau of Labor Statistics said the economy added 36,000 jobs during the first month of 2011 with gains in manufacturing and retail. Employment levels fell in the construction, transportation and warehousing sectors with little change in most other industries.”

Housing Wire – “Multifamily delinquency rate in CMBS climbs to 17.4%, highest ever recorded by Fitch” (2-4-11)

“The delinquency rate in the multifamily sector rose to 17.4% in January, up from 15.63% the prior month and at the highest level since Fitch began tracking CMBS delinquencies.”

Housing Wire – “Easing tax burdens on investors could stem CRE losses: COP” (2-4-11)

“Future losses on commercial real estate loans could cost between $200 billion and $300 billion, but easing certain tax levies against investors could alleviate the problem, according to the Congressional Oversight Panel.”

Housing Wire – “Hudson & Marshall to auction more than 700 homes in Southwest” (2-4-11)

“Several hundreds of real estate-owned properties in the Southwest United States are up for auction and, according to auction house Hudson & Marshall, that volume will be meeting equal demand. The firm is auctioning off more than 700 homes in Arizona, California and Nevada over the next two weeks.”

Housing Wire – “FDIC, SEC both name new general counsel” (2-4-11)

“The Federal Deposit Insurance Corp. named Michael Krimminger FDIC general counsel on Friday.”

Bloomberg - “U.S. Commercial Property Recovery Spares Economy” (2-4-11)

“Prices of commercial properties sold by institutional investors surged 19 percent in 2010, the second-biggest gain on record, according to an index developed by the MIT Center for Real Estate. Investments in office properties, the largest part of the market, more than doubled last year to $41.6 billion, according to Real Capital Analytics Inc., which tracks commercial property sales globally.”

Orange County Register – “Construction umeployment hits 22.5%” (2-4-11)

“Construction unemployment jumped to 22.5 percent. December’s construction unemployment was 20.7 percent.”

Orange County Register – “Bottom near for biggest O.C. properties” (2-4-11)

“I’m not quite sure where the apartment recession is. It’s definitely down in rents. There’s no doubt about that. (But) people are buying Southern California apartments like they’ll never be built again. And some of the smartest people I know — Donald Bren, the Lewis family — are building like mad.”

Looking Back:

One year ago, Marcus & Millichap annual apartment report placed San Diego in second place for stability and possible growth in 2010. Statistics from MDA DataQuick showed that 18,621 California homes sold for over 1 million dollars in 2009. Freddie Mac reported the rate for 30-year fixed rate mortgages increased to 5.01 percent. PMI predicted that home values were near to the bottom.

For more information about The Norris Group’s California hard money loans or our California Trust Deed investments, visit the website or call our office at 951-780-5856 for more information. For upcoming California real estate investor training and events, visit The Norris Group website and our California investor calendar. You’ll also find our award-winning real estate radio show on KTIE 590am at 6pm on Saturdays or you can listen to over 170 podcasts in our free investor radio archive.

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The Norris Group Real Estate News Roundup 9/9/10

Thursday, September 9th, 2010

Today’s News Synopsis:

Mortgage rates increased to 4.35 percent after weeks of record-breaking lows. Jobless claims fell 5.6% last wek, according to the Labor Department. Callahan & Associates reports credit unions originated $31.4 billion in mortgages during the first 2 quarters. Statistics from Real Capital Analytics show hotel purchases increased 136% during the first two quarters.

In The News:

Mercury News – “Mortgage rates edge up this week from decades low” (9-9-10)

“Mortgage buyer Freddie Mac says the average rate for a 30-year fixed loan was 4.35 percent, up from 4.32 percent the week before. It was only the second rise in the past 12 weeks. Last week’s was the lowest number since Freddie Mac began tracking rates in 1971.”

Orange County Register - “Real estate licenses fall for 30th month” (9-9-10)

“California real estate licenses dropped to 479,518 as of July, down by nearly 70,000 from an all-time high of 549,244 in November 2007.”

Housing Wire – “Weekly jobless claims fall 5.6% to 451,000″ (9-9-10)

“Initial jobless claims fell 5.6% for the week ended Sept. 4, coming in well below analysts’ estimates and marking the third-consecutive week of declines in the number of people filing for unemployment. The Labor Department said seasonally adjusted initial claims decreased by 27,000 to 451,000 from the previous week’s revised figure.”

Housing Wire – “Credit union mortgage originations down 43% from last year” (9-9-10)

“Credit unions originated $31.4 billion in mortgages through the first half of 2010, down 43% from the $55.3 billion completed in the same time last year, according to data compiled for HousingWire from research firm Callahan & Associates.”

Housing Wire – “Despite popular belief, research finds the US is not in double dip recession” (9-9-10)

“An expected decline in housing prices notwithstanding, academics are now arguing that the U.S. economy is not seeing another downturn, although that is the way it feels since recovery is so slow. During the latest recession, the U.S. shed 4.1% of gross domestic product from peak to trough. The unemployment rate more than doubled, rising to 10.% in October from 5% in December 2007, according to statistics from the Federal Reserve Bank of Cleveland.”

Bloomberg - “Hotels Lure Investors as Lodging Surpasses U.S. Offices, Retail” (9-9-10)

“Sales of hotels jumped 136 percent in the first half of 2010 from a year earlier, the biggest gain among five commercial real estate categories tracked by New York-based Real Capital Analytics Inc. Those deals were based on transactions of at least $5 million and exclude hotels attached to casinos.”

Looking Back:

One year ago, mortgage loan application volume increased 17% in one week. Mortgages with 30+ days of delinquency increased to 3.89% in the 2nd quarter. Fitch Ratings estimated that 70 percent of the option ARMs would reset by 2011. Bankruptcy declarations from wealthy families increased 73% from 2008 to 2009.

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The Norris Group Real Estate News Roundup 7/7/10

Wednesday, July 7th, 2010

Today’s News Synopsis:

The MBA reports mortgage loan application volume increased 6.7 percent from last week. Delinquencies on home equity loans decreased to 4.12% in the first quarter. 89 percent of mortgage lenders intend to, or already, offer Web-based mortgage application services. The average price discount on foreclosed properties nationwide is 26 percent.

In The News:

Mortgage Bankers Association – “Mortgage Refinance Applications Increase in Latest MBA Weekly Survey” (7-7-10)

“The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending July 2, 2010.  The Market Composite Index, a measure of mortgage loan application volume, increased 6.7 percent on a seasonally adjusted basis from one week earlier.  On an unadjusted basis, the Index increased 6.5 percent compared with the previous week.”

CNet - “Freddie, Fannie reject energy retrofit loans” (7-7-10)

“The FHFA said it does not object to all energy retrofit loans, but specifically to those PACE or PACE-like energy loans that are essentially structured as property taxes and, therefore, have first lien. In the event of a foreclosure on the property, those loans are legally required to be paid off first before any money goes to the mortgage lender.”

Los Angeles Times – “Home equity loan delinquencies fall for first time in two years” (7-7-10)

“The percentage of home equity loans on which consumers were at least one payment late declined to 4.12% in the first quarter from 4.32% the previous quarter. Not since the first quarter of 2008, when the rate fell to 2.34% from 2.39%, had there been a decline. Missed payments on consumer loans overall improved for the third straight quarter, the ABA said in its quarterly Consumer Credit Delinquency Bulletin. Bank card delinquencies fell from 4.39% to 3.88% of all accounts — the first time since 2002 that card delinquencies were below 4%.”

Housing Wire – “When it Comes to Servicing Ginnie Mortgages, BofA Scores Again” (7-7-10)

“BofA-serviced Ginnie loans ranked among the lowest in terms of 60-day delinquencies (less than 1% in May), followed closely by Wells Fargo (WFC: 26.67 +6.04%) (just over 1%). Countrywide loans had the highest 60-day delinquency rate of around 3%”

Housing Wire – “Tech Developer’s Survey Finds Lenders Expect Surge in Online Mortgage Volume” (7-7-10)

“18% of mortgage lenders offer so-called ‘smart’ Web-based mortgage application services. The survey defines ‘smart’ software products as those that are interactive mortgage-application systems that are a fully transactional, Web-based solution that intelligently guides borrowers through the application, adjusting the questions for applicants according to responses. Of the remaining companies that current do not offer the service, 71% said they will adopt online mortgage application technology sometime in the future, while 14% said they would not. The remaining 15% responded they were unsure.”

Bloomberg - “U.S. Commercial Property Sales Trail Six-Year Average” (7-7-10)

“U.S. commercial real estate sales in the first half totaled about a quarter of the average of the previous six years as owners kept properties off the market, impeding investors with record funds for purchases. Buyers and sellers completed $34.2 billion of deals through June, or 26 percent of the average first-half dollar volume since 2004, according to preliminary figures from Real Capital Analytics. The total was about 12 percent of the 2007 peak, when $277.7 billion of properties changed hands in the same period, data from the New York-based real estate research firm show.”

Realty Times – “Short Sale Tactics May Bring on Legal Liabilities For Agents” (7-7-10)

“Real estate agents know that short sales are likely to be time-consuming and frustrating. What many don’t know is that short sales carry high risks of legal liability for agents. One area of short sales that is fraught with liability is in the use of negotiators. In California, short sale negotiators must possess a real estate license and are subject to a variety of regulations. Moreover, a negotiator’s agency relation to the principals is frequently unclear and undisclosed. Undisclosed dual agency is a particular problem.”

Orange County Register – “O.C. builders hit by tax break’s demise” (7-7-10)

“The total number of O.C. sales contracts — the start of escrow for new home purchases — tumbled to 191, down from 218 in April, according to Costa Mesa-based Hanley Wood Market Intelligence, which tracks new home sales. May’s total was up a mere 3.8% from year-ago levels. By comparison, O.C. contracts had been up 39.7% in April. April 30 was the deadline to open escrow on a home purchase to qualify for the federal tax credit.”

Orange County Register – “Calif. has 4th largest foreclosure discount” (7-7-10)

“The company ranked of 44 states and Washington D.C. (other states don’t have enough data for valid analysis, according to Realtytrac) for the gap between pricing for homes sold somewhere in the foreclosure process vs. those that were not anywhere in foreclosure. As for fat foreclosure discounts, Ohio led the nation at 39.5%, followed by Kentucky at 35.2% and Illinois at 35.1%. The average sales price of properties nationwide that sold while in some stage of foreclosure in the first quarter was 26 percent below the average sales price of properties not in the foreclosure process.”

For more information about The Norris Group’s California hard money loans or our California Trust Deed investments, visit the website or call our office at 951-780-5856 for more information. For upcoming California real estate investor training and events, visit The Norris Group website and our California investor calendar. You’ll also find our award-winning real estate radio show on KTIE 590am at 6pm on Saturdays or you can listen to over 170 podcasts in our free investor radio archive.

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The Norris Group Real Estate News Roundup 5/24/10

Monday, May 24th, 2010

Today’s News Synopsis:

According to the NAR, Existing home sales increased 7.6 percent to a seasonally adjusted annual rate of 5.77 million units in April. The CIRB reports permits were pulled for 3,314 total housing units in April. Statistics from CAR show California home sales decreased 8.1 percent in April. The Federal Reserve doesn’t intend to sell any of its assets until after it begins raising interest rates.

In The News:

NAR - “Existing-Home Sales Continue to Improve in April” (5-24-10)

“Existing-home sales1, which are completed transactions that include single-family, townhomes, condominiums and co-ops, increased 7.6 percent to a seasonally adjusted annual rate of 5.77 million units in April from an upwardly revised 5.36 million in March, and are 22.8 percent higher than the 4.70 million-unit pace in April 2009. Monthly sales rose 7.0 percent in March.”

CBIA - “California Housing Starts Dip in April, CBIA Announces” (5-24-10)

“According to statistics compiled by the Construction Industry Research Board (CIRB), permits were pulled for 3,314 total housing units in April, down 6 percent from the same month a year ago and down 9 percent from March. Permits for single-family homes totaled 2,252, down 6 percent from April 2009 and down 5 percent from the previous month, while multifamily permits totaled 1,062, down 7 percent from a year ago and down 16 percent from March.”

CAR - “April 2010 sales and price report” (5-24-10)

“Home sales decreased 8.1 percent in April in California compared with the same period a year ago, while the median price of an existing home rose 21 percent, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) reported today.”

Wall Street Journal – “Mortgage Rates Decline” (5-24-10)

“The housing industry had been bracing for months for a period of rising mortgage rates, triggered by the end of the Federal Reserve’s $1.25 trillion mortgage-securities purchase program. Conventional wisdom held that mortgage rates would rise as the Fed pulled back from propping up the market. Instead, many in the industry now say rates could drift as low as 4.5% this summer from 4.86% now, instead of rising to 6% as some economists projected, making for significantly lower payments for Americans buying homes or refinancing their mortgages.”

Bloomberg - “Fed Won’t Sell Mortgage-Backed Assets Until it Raises Rates” (5-24-10)

“The Federal Reserve doesn’t intend to sell any of its assets, including more than $1.1 trillion in mortgage-backed securities, until after it begins raising interest rates, the central bank said in a report to Congress.”

Housing Wire – “FDIC Sells $233m of Commercial Mortgage-Backed Notes” (5-24-10)

“The Federal Deposit Insurance Corp. (FDIC) sold $233m in notes backed by performing and non-performing commercial real estate loans from 22 financial institutions under receivership. The underlying mortgages bear an aggregate unpaid principal balance of $1bn.”

Bloomberg - “FHA Home-Financing Volume Sign of ‘Very Sick System’” (5-24-10)

“The FHA, which backs loans with down payments as low as 3.5 percent, insured $52.5 billion of home-purchase mortgages in the first quarter, compared with $46 billion of purchases of the debt by Fannie Mae and Freddie Mac, according to data compiled by Washington-based Potomac Partners. The FHA and Fannie Mae and Freddie Mac, which regulators seized in 2008, have been financing more than 90 percent of U.S. home lending after a retreat by banks and the collapse of the market for mortgage bonds without government-backed guarantees.”

Bloomberg - “Defaults on Apartment-Building Loans Set Record for U.S. Banks” (5-24-10)

“Defaults on apartment-building mortgages held by U.S. banks climbed to a record 4.6 percent in the first quarter, almost twice the year-earlier level, as more borrowers failed to repay debt approved near the market peak, said Real Capital Analytics Inc. in a report. Defaults on so-called multifamily mortgages rose from 4.4 percent in the fourth quarter and from 2.4 percent during the same period in 2009, the New York-based real estate research firm said today. Commercial-mortgage defaults also rose in the first quarter for loans against office, retail, hotel and industrial properties, Real Capital said.”

Bloomberg - “U.S. Subprime Hunt Targets Goldman, May Skip Cassano: Timeline” (5-24-10)

“Federal prosecutors don’t plan to bring charges against former American International Group Inc. executive Joseph Cassano after a two-year probe of the insurer’s collapse, according to a person familiar with the investigation. Justice Department investigators found there is insufficient evidence to charge Cassano, the former head of AIG’s Financial Products division, the person said.”

Inman - “3 fatal flaws of real estate negotiation” (5-24-10)

“Agents have a wealth of places both online and offline to find strategies that work. Agent blogging sites are rich with great suggestions, many of which are from the best agents in the business. Nevertheless, many of these strategies still use manipulation or one-upmanship. The result is that these old approaches often undermine the agent’s success.”

My Desert – “Short sales on the rise” (5-23-10)

“Real estate experts say they’re seeing spurts of multiple bids and cash buys on homes priced below $250,000 by investors with deep pockets, buyers from other states or residents with equity in their home, a move-up mentality or frazzled nerves from a volatile stock market.”

Washington Post – “Anger at the root of mortgage default problem, study finds” (5-22-10)

“Now White has published a paper based on the personal accounts of 356 strategic defaulters and homeowners on the verge of doing the same. His finding: People who intentionally default on their loans are not as economically rational or calculating in their decision-making as widely thought. In fact, he said, their decisions to pull the plug ‘may not turn out to be economically rational.’ But they walk anyway, in large part because they are at the end of their emotional rope. They have transitioned from feelings of anxiety and hopelessness to outright anger at their lenders, the government and a financial system they consider unfair.”

For more information about The Norris Group’s California hard money loans or our California Trust Deed investments, visit the website or call our office at 951-780-5856 for more information. For upcoming California real estate investor training and events, visit The Norris Group website and our California investor calendar. You’ll also find our award-winning real estate radio show on KTIE 590am at 6pm on Saturdays or you can listen to over 170 podcasts in our free investor radio archive.

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