Today’s News Synopsis:
Mark Zandi expects sales of new and existing homes to grow from between 5.5 million and 6 million this year to between 6 million and 6.5 million next year, and hit about 7 million in 2012. According to the IPD Quarterly Property Index, returns on commercial real estate investments reached 1.2% in Q110. Trulia reports real estate sellers made at least one price reduction on 22% of listings currently on the market in the US through April.
In The News:
NAR - “Commercial Market Still Struggling, But Realtors® Focus On Positive Trends” (5-14-10)
“While the commercial real estate market may not have fully recovered, National Association of Realtors® Chief Economist Lawrence Yun identified some developing, positive trends in the market that could eventually lead to recovery”
Inman - “Economist: Expect home-price weakness to persist” (5-14-10)
“With the economy on the mend, home sales could bounce back to their historical levels by 2012, although the bulging foreclosure pipeline is likely to keep prices in check, economist Mark Zandi of Moody’s Analytics told Realtors holding their annual midyear meeting in the nation’s capital. Zandi said he expects sales of new and existing homes to grow from between 5.5 million and 6 million this year to between 6 million and 6.5 million next year, and hit about 7 million in 2012.”
Housing Wire – “Congress Rejects Call to Axe Consumer Financial Protection Oversight” (5-14-10)
“Senators voted against an amendment by Sen. John Thune (R-SD), that would sunset the Bureau of Consumer Financial Protection, as the Senate rounds out its week tweaking the financial reform bill.”
Housing Wire – “Commercial Real Estate Delivers First Positive Return in 18 Months” (5-14-10)
“Returns on commercial real estate investments reached 1.2% in Q110, the first positive return in 18 months, according to the IPD Quarterly Property Index. The report monitors the trends in the underlying market value and returns of $76bn of assets held by real estate fund managers in the US. Returns fell to a record low in the 2009, bottoming out in Q109, according to IPD. Since then, US real estate has shown steady quarterly improvement. Pricing competition is even beginning to turn more aggressive amongst returning investors over the last two years, as the supply of prime real estate remains limited, according to IPD.”
Housing Wire – “Senate Votes to Impose Leverage and Risk-Based Capital Requirements” (5-14-10)
“As Congress continues to work through a growing list of amendments to S 3217, the Restoring American Financial Stability Act sponsored by Sen. Chris Dodd (D-CT), Senators approved on Thursday a measure to impose minimum leverage and capital requirements on both banks and nonbank financial firms. Senators unanimously consented to an amendment, sponsored by Sen. Susan Collins (R-ME), that mandates minimum leverage and risk-based capital requirements for insured depository institutions, depository institution holding companies, and nonbank financial companies under Federal Reserve supervision.”
Housing Wire – “Sellers Reduce Nearly 25% of List Prices on Trulia in 2010″ (5-14-10)
“Real estate sellers made at least one price reduction on 22% of listings currently on the market in the US through April, according to the real estate listings site, Trulia.com. The discounted listings through April increased 10% from March, when 20% of the properties received a price reduction. The average discount held at 10%, totaling $25bn in reductions.”
Housing Wire – “In California, Rates of Delinquency Vary, Mostly Driven by Negative Equity” (5-14-10)
“Mortgage performance in California — although not substantially different than that of the US — varies dramatically among regions within the state, according to a study of all securitized non-agency mortgages in the state by credit-rating agency Fitch Ratings.”
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