California Real Estate Headline Roundup

Posts Tagged ‘RealtyTrac’

By Bruce Norris .

Negative Equity Decreases to Almost Single-Digits

Thursday, September 25th, 2014

 

 

 

Today’s News Synopsis:

Mortgage rates decreased slightly after being at high numbers for four months; 30-year rates now stand at 4.2% and 15-year rates 3.36%.  Negative equity decreased in the second quarter to almost single-digits while borrower equity increased by $1 trillion.  The median price for distressed homes increased in August both month-over-month and year-over-year.

In The News:

Housing Wire - “Nevada Supreme Court ruling could jeopardize first mortgage liens” (9-25-14)

“Matt Martin Real Estate Management is sounding the alarm that a recent decision by the Nevada Supreme Court could substantially impact the security of first mortgage lien holders.”

DS News“Underwater Rate Dips; Borrower Equity Jumps by $1 Trillion” (9-25-14)

“The nation’s negative equity rate dipped closer to single digits in the year’s second quarter, though nearly one in five borrowers remain poorly positioned, according to new data released Thursday.”

Bloomberg“U.S. Mortgage Rates Drop From a Four-Month High” (9-25-14)

“Mortgage rates in the U.S. dropped from a four-month high, reducing borrowing costs as demand for housing improves.  The average rate for a 30-year fixed mortgage was 4.2 percent this week, Freddie Mac said in a statement today.”

Housing Wire - “Black Knight: Delinquency rate jumps almost 5% to highest since February” (9-25-14)

“The mortgage delinquency rate jumped nearly 5% in August, reaching its highest point since February, the Data and Analytics division of Black Knight Financial Services reported in its “first look” at August 2014.”

DS News“CFPB Official Discusses New Servicing Rules” (9-25-14)

“A recurring theme during many of the six labs at the Five Star Conference earlier this week was compliance and how it has changed the mortgage and real estate industries in the last few years.”

OC Housing News - “People who lost their homes in foreclosure moved in next door” (9-25-14)

“What happens to people who lose their house in foreclosure? Do they end up homeless and destitute? Do they resort to a life of crime or prostitution? Is foreclosure the end of modern civilization as we know it?  People who were trying to prevent foreclosures proffered all of these fallacious reasons why we needed to stop foreclosures and give delinquent borrowers principal reductions or free houses.”

Mortgage Professional America - “Minority mortgages hit 13-year low” (9-25-14)

“The share of mortgages made to African-American and Hispanic borrowers to buy homes has hit a 13-year low, according to recently released federal data collected from mortgage lenders under the Home Mortgage Disclosure Act.”

DS News - “Distressed Home Sale Prices Increase in August” (9-25-14)

“The August median price of U.S. distressed homes climbed both monthly and annually, according to RealtyTrac’s August 2014 U.S. Residential and Foreclosure Sales Report released on Sept. 25.”

Housing Wire“Home-price growth in August slows in 18 of 20 largest housing markets” (9-25-14)

“Home-price growth is slowing even as the sales of homes under $200,000 slip and the share of home sales above the $500,000 price point grow, according to the August home report from RealtyTrac.”

Realty Times“Education Thwarting Homeownership For Younger Households” (9-25-14)

“Was it worth it? That may be the question being asked by about 5.9 million households between the ages of 20 to 40 who incurred student college loan debt and are still paying it down today to the tune of about $250 or more each month.”

Realty Trac“Student Loan Debt Curbing Housing Market” (9-25-14)

“The residential real estate market’s foundation is beginning to wobble. And crushing student debt is curbing the nascent real  estate recovery, according to a new report by John Burn Real Estate Consulting.”

 

On Friday, October 24, Bruce Norris will be presenting the 7th annual I Survived Real Estate 2014.

Bruce Norris of The Norris Group will be holding his Property Buying Boot Camp Tuesday-Thursday, November 11-13.

 

Looking Back:

In a big news story, Governor Jerry Brown signed a bill into law that would increase the minimum wage to $10 an hour.  U.S. home sales increased 7.9% in August after having plummeted 14.1% in July.  In addition, home prices also made a comeback in one-fifth of the top markets in the United States.

 

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.

Housing Starts Decrease Almost 15% with the Decrease in Multifamily Production

Thursday, September 18th, 2014

 

 

Today’s News Synopsis:

Housing starts decreased by 14.4% last month with the decrease in multifamily production.  Mortgage rates increased again to a 3-month high with 30-year rates now at 4.23% and 15-year rates at 3.37%.  In a recent announcement by the Federal Reserve, tapering will be completed by the end of next month, meaning an end to the bond-buying program.

In The News:

DS News - “Report: Home Sales Down, Prices Up For August” (9-18-14)

“Home sales in August remained below last year’s pace for yet another month as prices inched higher, RE/MAX reported on September 16.”

NAHB“Multifamily Decline Pushes Nationwide Housing Starts Down 14.4 Percent in August” (9-18-14)

“Led by a steep 31.7 percent decline in multifamily production, nationwide housing starts fell 14.4 percent to a seasonally adjusted annual rate of 956,000 units in August, according to newly released figures from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau.”

Mortgage Professional America - “The taper is nearly complete — lock your borrowers in while rates are low” (9-18-14)

“The Federal Reserve said yesterday that its bond-buying program will end in October as scheduled. So does that mean mortgage rates will see an immediate spike? The short answer is: not yet.”

DS News “Real Estate Investors Discuss Buying Hot Spots” (9-18-14)

“With so many single-family distressed homes out there on the market, real estate investors are aware of the need to choose carefully which homes to buy – and it’s more than just the house itself that figures into the equation when buyers are making that determination.”

Housing Wire - “Freddie Mac: Mortgage rates move to 3-month high” (9-18-14)

“Mortgage rates shot up for the week ended Sept. 18, making their biggest one-week gain so far this year, the latest Freddie Mac Primary Mortgage Market Survey found.”

OC Housing News“Low mortgage rates fail to overcome buyer reluctance” (9-18-14)

“I would like to own a Lexus LS 460. It’s a beautiful and luxurious automobile; however, I am reluctant to buy one because the price is just too high. They could lower the interest rate to zero, and I would be unlikely to buy a car that costs that much. No matter how much people may want something, if the price is too high, they will be reluctant to buy it.”

DS News“CFPB Has Caused Businesses to Heavily Emphasize Compliance” (9-18-14)

“With the mortgage industry becoming more heavily regulated in the last four to five years, those who work within the industry have had to place an increased emphasis on compliance.”

Inman“Heat map shows baby boomers and millennials on the move” (9-18-14)

“RealtyTrac has analyzed Census Bureau data to map the migration patterns of baby boomers and millennials from 2007 to 2013 in more than 1,800 counties.”

Housing Wire“Fitch: Rise of nonbank servicers threatens private-label RMBS” (9-18-14)

“The precipitous growth of nonbank mortgage servicers in recent years presents a threat to the performance of private-label residential mortgage-backed securitizations, Fitch Ratings said in a new report.”

DS News - “Analyst Predicts Home Price Decline In Report to White House” (9-18-14)

“Former Goldman Sachs executive Joshua Pollard sent a sobering 18-page report to the White House on September 17 warning of a potential downturn in home prices that could put the country back into a recession before the ripples of the previous one settle.”

 

Hard Money Loan Closed

Lancaster, California hard money loan closed by The Norris Group private lending. Real estate investor received loan for $85,000 on a 3 bedroom, 1 bathroom home appraised for $130,000.

San Juan Capistrano Hard Money Loan closed by the Norris Group

 

Bruce Norris of The Norris Group will be presenting Secrets To Becoming Wealthy with InvestClub for Women in Cerritos TONIGHT.

On Friday, October 24, Bruce Norris will be presenting the 7th annual I Survived Real Estate 2014.

Bruce Norris of The Norris Group will be holding his Property Buying Boot Camp Tuesday-Thursday, November 11-13.

 

Looking Back:

Mortgage applications saw an 11.2% increase over the previous week according to the Mortgage Bankers Association.  According to the latest FNC Residential Price Index report, home prices were at their highest in three years with a 0.7% increase in July.  However, housing starts were below expectations, having risen by only 0.9% to 891,000.

 

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.

New Jersey Among Top Five States With Highest Foreclosure Rates

Friday, September 12th, 2014

 

 

 

Sources:

Index Shows Employment Growth Slow But Steady
Judicial Foreclosure States Seeing Faster Gains in Home Asking Prices



Today’s News Synopsis:

Aaron Norris gives highlights from the news of the week in this week’s real estate headline roundup video.  Consumer sentiment is at its highest in over a year, having increased over two points and now stands at 84.6.  Recent cuts in home prices are the latest sign pointing to a change in the housing market.  With the recent increase in foreclosures, New Jersey is now among the top five states with the highest foreclosure rates.

In The News:

Bloomberg“Bank Moves to Avoid Overseas Swap Rules Watched by U.S. Treasury” (9-11-14)

“The Treasury Department is monitoring Wall Street efforts to escape U.S. swap-trading restrictions for overseas derivatives, according to a department official.”

Housing Wire - “Here’s why mortgage rates won’t hit 2014 expectations” (9-12-14)

“Mortgage rates have continuously defied expectations in 2014, according to an article in the Washington Post.  Back at the end of 2013, the market was trying to predict where rates would go in 2014, with most experts predicting rates to steadily increase.”

OC Housing News“Federal program to avoid foreclosure a dismal failure” (9-12-14)

“Federal officials touted their foreclosure avoidance programs as an alternative that would keep borrowers in their homes. Apparently, paying for a house is no longer requisite for keeping it, just signing some papers and getting a name on title is enough to make the property a sacrosanct family home.”

DS News“Report: Consumer Sentiment Highest in 14 Months” (9-12-14)

“Consumer sentiment ticked up in September to its highest point in more than a year, according to an early reading.  The Thomson Reuters/University of Michigan’s Index of Consumer Sentiment edged up more than two points in a preliminary September reading, putting it at a 14-month high of 84.6.”

Los Angeles Times“Housing price cuts point to a shift in Southland market” (9-12-14)

“The latest sign that buyers are gaining leverage in Southern California’s housing market: Price cuts are back.  The number of homes with reduced asking prices has risen sharply in recent months, a reversal from last year’s sellers’ market, when list prices seemed more like a floor than a ceiling.”

Inman - “California Regional MLS makes strides toward statewide MLS” (9-12-14)

“With the goal of building a statewide multiple listing service in mind, California Regional MLS has embarked on an initiative to ink data-share deals directly with MLSs throughout the Golden State.”

Housing Wire - “Bipartisan Policy Center Housing Summit in Washington starts Monday” (9-12-14)

“On Monday morning, the Bipartisan Policy Center will kick off its 2014 Housing Summit in Washington, D.C.  The two-day event will feature leading housing policy and economic experts from around the country. The agenda can be viewed here.”

DS News - “Spike in Foreclosures Puts New Jersey Among Nation’s Top Five” (9-12-14)

“Foreclosure activity skyrocketed in New Jersey for the month of August, giving the Garden State the fourth highest foreclosure rate in the nation, according to RealtyTrac’s monthly U.S. Foreclosure Market Report for August 2014 released September 11.”

 

Hard Money Loan Closed

Oxnard, California hard money loan closed by The Norris Group private lending. Real estate investor received loan for $200,000 on a 4 bedroom, 2 bathroom home appraised for $364,000.

Oxnard Hard Money Loan closed by the Norris Group

 

Bruce Norris of The Norris Group will be speaking at the SRC YPN Lunch & Learn on Tuesday, September 16, 2014.

Bruce Norris of The Norris Group will be presenting Secrets To Becoming Wealthy with Robert Hall and Associates on Tuesday, September 16, 2014.

Bruce Norris of The Norris Group will be presenting his California Real Estate Market Update with Paramount Club Market on Wednesday, September 17, 2014.

Bruce Norris of The Norris Group will be presenting Secrets To Becoming Wealthy with InvestClub for Women on Wednesday, September 17, 2014.

Bruce Norris of The Norris Group will be presenting Secrets To Becoming Wealthy with InvestClub for Women in Cerritos on Thursday, September 18, 2014.

 

Looking Back:

The Mortgage Bankers Association reported mortgage applications decreased by 13.5% from the previous week.  Mortgage rates did not show much signs of change with 30-year rates remaining at 4.57% and 15-year rates at 3.59%.  Unemployment claims also dropped to 292,000, their lowest in over 7 years.

 

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.

Rick Sharga, Vice President of Auction.com Joins Bruce Norris on the Real Estate Radio Show #399

Friday, September 12th, 2014

Rick_Sharga

 

Rick Sharga

Executive Vice President of Auction.com

(Full Bio)


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On Friday, October 24, the Norris Group proudly presents its 7th annual award-winning black-tie event I Survived Real Estate. An incredible lineup of industry experts will join Bruce Norris to discuss perplexing industry trends, head-scratching legislation, and opportunities emerging for real estate professionals. Proceeds from the event benefit Make a Wish and St. Jude Children’s Research Hospital. This event could not have been possible without the generous help of the following platinum partners: Auction.com, HousingWire, PropertyRadar, the Apartment Owners Association, the San Diego Creative Real Estate Investors Association and President Bill Tan, InvestClub for Women and Iris Veneracion, San Jose Real Estate Investors Association and Geraldine Barry, MVT Productions, and White House Catering. For event information, visit isurvivedrealestate.com.

Bruce Norris is joined this week by Rick Sharga. Rick is the executive vice president of Auction.com. Bruce has known him for many years, going all the way back to RealtryTrac and Carrington.

Auction.com is really quite a success story. Bruce happens to know a builder who had some unsold inventory in Riverside, and he gave the young man a chance to auction the property. This was in the middle of 2005. Auction.com, in its current iteration, started in 2007. There have been predecessor real estate disposition corporations as well as land auction companies the owners have founded, but these were shut down when they took on a new investor and started Auction.com in 2007. This was just in time for the mortgage market to melt down and there to be thousands of foreclosed properties that needed to be disposed of quickly. There are a lot of other existing auction companies too. These all could have exploded, but Auction.com was of the few that did. Bruce asked how this occurred, to which Rick said there are a couple reasons. The founders are particularly adept at shifting as the market needs shift. They run a very tight shift in terms of the auction operation itself, so we can execute and grow more rapidly than the other companies.

Sometimes the secret sauce comes down to being better capitalized. At the time when expansion was needed, they had adequate capital to handle the expansion. What a lot of people do not realize is how expensive it is to run an auction and that there is risk involved because typically an auction company does not get paid unless there is a successful transaction. You can go broke pretty quickly if you do not know how to manage that cash flow. When Auction.com got into the business during California’s downturn, there were ballroom auctions. This is what auctions did at the time. Rick said he spoke to a group of realtors earlier, and he had to explain to them that when the company was founded it was taking on huge portfolios of properties from enormous financial institutions and selling them off at these gigantic ballroom auctions where there would be thousands of people and properties changing hands in the course of a day. That business model was very effective for what it needs to do. It really did not have a role for the realtor at that time, so what they are doing now is figuring out how to work better within the realtor agent broker community. However, this is how the company started.

One of the insights the CEO had was the opportunity to take this business and make it more of an online marketplace, creating an eBay for real estate. This is one of the huge differentiators between Auction.com and virtually every other auction company in the country. Bruce said the Norris Group really thought of starting an auction company. They held an auction in 2007/2008, and he and his sons along with a few others worked harder on that than anything he had ever worked hard on in his life. They had 15 properties to sell, and they sold one. At this point they were so happy to not be in the auction business. His sons were a little disappointed, but Bruce told them he had never been more proud of a failure in his life. There was nothing they could have done that they knew how to do any harder. They did not know something that they should have done because it is not easy.

It was not easy to get a crowd there, and this is why Bruce looks at this business and sees how it had to change. It has had to invent itself a few times over. From what Rick said, it is about to do it again because all of the inventory that was obvious, such as the REOs, is not true now. Typically what happens to the auction business cycle is you might have a chance to explode like Lazum did when they had the HUD auction contract or Kennedy Wilson. When things go back to normal and the builders don’t sell their things, you have an auction for this. All of this is not the obvious inventory anymore. They have been diversifying, and step one of that was to move into the commercial space. This is a very vast growing part of the business right now. Last week they had a one-day auction where they sold over $140 million worth of commercial properties in one day online. Bruce saw this and wondered if they were still going to do single-family homes. Last year they sold 35,000 properties, and it was about $7 ½ billion in sales. The overwhelming majority of these were residential properties.

If you are looking at where the market is going, then you need to diversify. Rick said because of this they are moving into commercial as well as moving very specifically into commercial properties that are not distressed. This is a pre-cursor to where they hope to go in the residential market. They think it is better to start with the commercial market simply because you are typically dealing with more sophisticated buyers and sellers as well as working with fewer properties. You can kind of get the bugs out of the system early on. When you do launch something broadly to the residential market, it really needs to be pretty seamless and almost idiot-proof so that the average internet user can participate.

Something that has been very difficult for the whole industry and is something they would have to overcome is the stigma of one saying their house is for sale and would have to auction tomorrow, and nobody is pleased. The younger you get the less automatic that stigma becomes. Rick said they are about to see the next generation of homeowners enter the market having grown up purchasing everything online. They have become very familiar with sites like eBay. Auction.com typically refers to themselves as eBay real estate. A lot of those beliefs will diminish, but the other thing that is a very real possibility and not inconceivable is in the future every property on Auction.com may not be a traditional auction. There could be some properties up there that are listed for a certain amount of money on which you can make an offer as opposed to the traditional auction methodologies. They continue to test all sorts of different ways for doing business online.

What attracted Rick to the company in the first place was his belief that it is inevitable for properties to change hands online. Ultimately, the internet will have the kind of efficiency, transparency, and reach that makes it inevitable for people to buy and sell homes on the internet. In a way it is very smart for him to keep referring to eBay since this is a site that Bruce trusts. He bought something, and it showed up. This means somebody actually had it, he paid for it, and nothing bad happened in the interim. This is the model that people can understand. It is a legitimate transaction and you do not physically have to be there and go into an escrow room. This is a transition that is really not easy for an entire industry to take on.

One of the main reasons Auction.com recruited Rick was because they needed to be a trusted brand in that equation. People need to believe if they are going to Auction.com it will be a legitimate transaction and that they have done some diligence before a property goes online. They can also trust what is going to happen. They are seeing a lot of real estate documentation becoming digitized. Companies like DocuSign are getting a lot of traction, as well we are looking at financing being available online. You will be able to do 90-95% of what you need to do from your iPad while you are watching your kid’s soccer game. It will be a whole different way of doing business in the real estate industry than what anyone grew up doing.

Bruce said one of the things he realized when they attempted that auction was they did not have a pool of anybody who was a buyer. Rather, they were starting from scratch. Now, as you go on and on, when Auction.com has a property for sale they already know they have the huge audience that will look at whatever they have. When you are looking at some of the things that differentiate companies, they probably spent $40-$50 million last year on marketing properties. This is done in order to make sure that when they have the properties up they are getting bidders. Part of the equation is also how good they assets are you are trying to sell. For some properties, no matter how many people they target they are not going to find anybody raising their hands. This is the nature of the business, but this is also one of the reasons it is so expensive to be a successful auction company. You spend a lot of money, energy, and time to try to attract buyers to each event.

There are several types of auctions that are possible, and Bruce wondered if they ever used absolute auctions. Rick said they rarely use an absolute auction. This is the type of auction where whatever the winning bid is, the seller will be compelled to sell for that amount. This is something the buyer would love to have, especially if they are the only bidder. Virtually 100% of their auctions are reserve auctions, which means that unless the bid reaches that reserve amount, the seller is not obliged to sell the property. They try to help the bidders get as close to the reserve as possible, and a fair amount of sales take place below the reserve. It is interesting to watch these things unfold from the operations center that they have as bidding activity reaches the end of the auction.

In the documentation they have, they are informing other bidders in writing that they are allowed to bid on behalf of the seller up to a certain point. They never bid beyond the reserve number, and they are very careful about bidding close to the reserve because they really don’t want to be the winning bidder. It is a little confusing and sometimes off-putting for people who aren’t familiar with how auctions work, but it is essentially how the negotiation process works in an auction. It is the best way so far to get buyers’ bids close enough to the reserve price for the sellers to legitimately consider the offer. They are actively exploring other approaches that will make that unnecessary simply because it is a little bit of a controversial practice and makes some people uncomfortable. Bruce said he can understand this from a buyer’s and a seller’s point of view. If it could be resolved in a way that everybody is happy, that would be nice.

On trustee sales in California, it went from no one doing it other than the individual trustees to Auction.com owning it. Bruce asked if this is true across the country that you have really started to dominate most states that have trustee sale processes. Rick said they have done trustee sales in virtually every state that does non-judicial foreclosures. They are probably still very active in about ten. In some cases there is simply not enough volume to really warrant staging a full formal auction. In the order of whether or not this should be a big surprise, amazingly enough when you put professional auctioneers in place and have them auction off property, they sell them at higher prices. The servicers’ lenders seem to appreciate this because it minimizes losses. Once they were able to put their stake in the ground and show the lenders and servicers and trustees that they could get a better result for them. It really did take off like wildfire.

It also did not hurt anything that they started doing this at the same time lenders and servicers started getting serious about selling property at these foreclosure sales. For a number of years, virtually everything was going REO. You had very few of these sales taking place as they were scheduled. The pricing is getting a little more realistic since prices have been trending up and a little of it was being at the right place at the right time. Talking about trustee sales, usually the local laws require a live auction at a location. Bruce asked if this is why these are not being done online exclusively, and Rick said this is exactly correct. For this reason they are marketing the properties online. They are conducting auctions they believe are much more open than a typical trustee sale has been over the years where you see a mysterious guy with a clipboard surrounded by four local investors. A lot of the investors said early on that they really didn’t care for the fact that they were there because they were getting more competition and prices were going up. On the other hand, they appreciated the fact that they would often bring coffee and doughnuts.

Bruce asked which side is more repetitive for Auction.com, the sellers or the buyers. Rick said initially it has been the sellers. They were dealing mostly with large financial institutions, which would have had repetitive inventory. What they were seeing is what they hoped would happen, which was more of a marketplace effect where the buyers who were used to coming to site and buying multiple times over the course of the year are now approaching them to sell the properties. This happens when their business models change or they have a property in their portfolio that does not fit their business model. They do have repeat buyers and a VIP program that gives buyers the opportunity to get a personal account manager at Auction.com to help them through the process or alert them to properties that fit their models. They are seeing repeat buyers, but this marketplace where buyers ultimately become sellers is fascinating to watch and necessary for the future of the business.

To have repetitive business, it will not be B of A’s REO pool anymore, but rather the clientele that does much less volume but does it often. Rick said this is an interim step before they enter the mainstream market. Their goal is to work with all the institutional and individual investors who bought properties on their platform encouraging them to resell the properties back to them when they are ready. Bruce asked about the availability of financing and how this works for investors or an occupant buyer. Bruce asked if it is available for both these groups, to which Rick said they are working on this. There was a point in time when the majority of their buyers were owner-occupants. Right now a lot of the inventory they have requires cash. This is at the sellers’ discretion and something they do not control. This makes it difficult for owner-occupants to participate in a meaningful way.

A sister company called Auction Finance that provides bridge loans, which are lines of credit from $500,000 to $5 million, for residential property purchases in about nine states. They are priced similarly to hard money loans, although terms are probably a little more favorable. However, they are in the same general ballpark, although the terms are probably not any better than what an investor can get from the Norris Group, who does a fine job with hard money loans. They are trying to provide some financing and will be making some announcements shortly about some new financing options they will be promoting.

Bruce asked Rick if he sees the effect of hedge funds in his auction world as far as being a dominant buyer or presenting him with potentially a large amount of properties they want to exit. Rick said they have been selling to virtually every major hedge fund they can think of who has been participating in the single-family rental space. If you go down the list starting at the biggest, they are all buying from Auction.com. Some are turning around and starting to resell properties that may not fit their portfolio. They may have decided to exit a certain geography.

They have not seen any of the hedge funds start jettisoning large portfolios of properties. Rick knows people keep wandering when this will happen, although he is skeptical we are going to see it the way people believe it will happen. A lot of the hedge fund investment strategies look like long-term holds. You do not hold a real estate investment trust if you are going to turn the properties very quickly. You do not issue securities if you are going to dispose the properties quickly, and you do not go public if you are planning to sell off the property. He does not expect that we are going to see a lot of short term sales from the hedge funds, although ultimately you will start to see the properties be sold off in small chunks over time. Their areas of concentration have changed where they were in California and Phoenix, Arizona, then later they exited to Las Vegas and Atlanta because of pricing. Right now they are seeing the southeastern part of the country, especially Illinois and Indiana of all places. Indiana is emblematic of a long-term whole strategy since the investors they have talked to did not anticipate home price appreciation on the properties. They are looking at really good returns on rental, but also long-term holds.

Bruce asked if there was anything that surprised Rick in 2014, whether it was volume, price aggression, or lack of these things. Rick said he wished he could say he was surprised, although he was a little surprised at not seeing a little bit more new home building activity. However, he basically predicted this year would be flat and home price appreciation would slow down dramatically. Credit is tighter than he expected it to be this late in the year, although it was pretty easy to predict that credit was not going to be widely available to the average borrower. Rick said he is of the opinion that they are going to see homeownership rates dip a little bit before they finally settle down and start to come back.

For the next couple of years, there are just tremendous opportunities for rental property owners. The reason for this is their occupant ownership is declining. The last question would be if it is the new national intent to take the emphasis away from owning a home to occupying an affordable one. We will get into the whole scope of creating affordable rentals for people. Rick does not think we will get back to where we were back in the Great Depression era where homeownership rates were below 50%. We found out when we get to 70% homeownership rates, we have unfortunately put a lot of people into houses who really cannot afford them. We will probably settle in around 64-65% when it is all said and done. For the next few years, because of affordability, tight credit, and lack of inventory at the low end of the market, as well as psychological scarring among the millennials, there will likely be a heavier than average percentage of the population in rental properties.

We have never seen the set of charts that exist in California for anything like 2014 in years past. He will do a lot of research to figure out why, but one of the things for which there is not a chart is uncertainty. You are looking at whether or not you should own a home, and there is a whole generation that may look at that and say they are not sure. Rick said the Fannie Mae study that goes out and interviews people, specifically about if they want to become homeowners, showed that 75% of renters do eventually want to be homeowners but they delayed it. This percentage is down from about 83% a couple years ago. The aspiration is still there in large numbers, although it is still a little weaker than it used to be. What Rick thinks is a gating factor in younger potential homebuyers is issues with jobs. Forget about student loan debt for a minute, which makes affordability and qualifying for a loan a problem. The 25-35 year old age cohort really took a beating during the recession, and a lot of them are in jobs they really do not want to keep very long. You do not want a 30-year financial commitment if you do not want to commit to your job for more than the next ten months. The job market has a lot to do with the housing market and the delaying we are seeing in terms of home purchases.

The Norris Group would like to thank its gold sponsors for supporting I Survived Real Estate: Adrenaline Athletics, Coldwell Banker Town and Country, Elite Auctions, In A Day Development, Inland Valley Association of Realtors, Investor Experts, Jennifer Buys Houses, Keystone CPA, Las Brisas Escrow, LA South REIA, Leivas Associates, Pilot Limousine, Primary Residential Mortgage, Northern California Real Estate Investors Association, North San Diego Real Estate Investors, Real Wealth Network, Realty 411 Magazine, Rick and LeAnne Rossiter, Personal Real Estate Magazine, SONOCA Corporation, Southpointe Companies, Spinnaker Loans, Tony Alvarez, and uDirect IRA Services, and the Council of Multiple Listing Services. See isurvivedrealestate.com for video of the live event and more on our sponsors.

Rick Sharga on the Norris Group Real Estate Radio Show

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.

Ruling Over Risk Retention Nearing Completion

Thursday, September 11th, 2014

 

 

 

 

Today’s News Synopsis:

Freddie Mac reported mortgage rates have not shown much sign of increase with 30-year rates still at 4.12% and 15-year rates at 3.26%, only a .02% increase for both.  A ruling by financial regulators regarding risk retention has almost reached completion, a rule which once passed will reduce risk and tighten standards on mortgages.  According to the latest report from RealtyTrac, foreclosures increased on a monthly basis but decreased year-over-year.

In The News:

Housing Wire“Freddie Mac: Mortgage rates continue to remain low” (9-11-14)

“Mortgage rates continue to barely move, slightly edging higher for the week ended Sept. 11. Rates remain low, according to the Freddie Mac Primary Mortgage Market Survey.”

DS News - “Risk Retention Rule Nearing Completion” (9-11-14)

“Financial regulators said Tuesday they hope to finish their work on a rule aimed at tightening mortgage standards and reducing risk by the end of this year.”

OC Housing News“High prices hurting new home sales” (9-11-14)

“In June I reported new and resale home sales slumped in the prime selling season this year. In July I reported the June new home sales numbers plummeted from June’s poor showing. Part of the reason for weak sales is ongoing weakness in the economy, and part of the reason is that new home prices are just too high.”

Los Angeles Times“Mortgage demand slows despite low rates, but credit card use soars” (9-11-14)

“With mortgage rates at record lows for the year, you might figure that demand for home loans would be high — but at this point Americans seem more interested in loading up their credit cards..”

Housing Wire“Improved monthly Case-Shiller shows housing recovery weaker than thought” (9-11-14)

“The new Case-Shiller house price index is a substantial improvement on its predecessors because it offers a monthly read, and that monthly read shows that housing prices have actually been dropping, rather than just slowing in gains, according to Capital Economics.”

DS News“Report: Foreclosure Filings Rise Monthly, But Fall Annually” (9-11-14)

“The number of foreclosure filings in the nation has increased month-over-month but declined year-over-year, according to RealtyTrac’s monthly U.S. Foreclosure Market Report for August 2014 released today.”

Los Angeles Times - “Riverside County development to test vigor of area’s housing recovery” (9-11-14)

“After stalling amid the housing bust, a 1,400-home development in Riverside County is coming back to life.”

Mortgage Bankers Association - “Applications for New Home Purchases Decreased in August” (9-11-14)

“The Mortgage Bankers Association (MBA) Builder Application Survey (BAS) data for August 2014 shows mortgage applications for new home purchases decreased by 9 percent relative to the previous month.  This change does not include any adjustment for typical seasonal patterns.”

Bruce Norris of The Norris Group will be speaking at the SRC YPN Lunch & Learn on Tuesday, September 16, 2014.

Bruce Norris of The Norris Group will be presenting Secrets To Becoming Wealthy with Robert Hall and Associates on Tuesday, September 16, 2014.

Bruce Norris of The Norris Group will be presenting his California Real Estate Market Update with Paramount Club Market on Wednesday, September 17, 2014.

Bruce Norris of The Norris Group will be presenting Secrets To Becoming Wealthy with InvestClub for Women on Wednesday, September 17, 2014.

Bruce Norris of The Norris Group will be presenting Secrets To Becoming Wealthy with InvestClub for Women in Cerritos on Thursday, September 18, 2014.

 

Looking Back:

Richmond, California agreed to form a joint powers of authority in order to use eminent domain to seize underwater properties.  JP Morgan cut back on strict lending standards in markets where prices were increasing and the economy was booming.  Residential mortgage-backed securitizations continued to increase and reached almost $20 billion.

September 11

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.

RealtyTrac Releases Newest List of Best and Worst Markets for Home-Flipping

Friday, August 29th, 2014

 

 

 

Sources:

New-Home Sales Down 2.4 Percent in July
Home Prices in 20 U.S. Cities Rose in June at a Slower Pace



Today’s News Synopsis:

Aaron Norris gives highlights from the news of the week in this week’s real estate headline roundup video.  The FHFA has proposed a new rule that would align in accordance with the Housing and Economic Recovery Act of 2008 to bring new changes to Fannie Mae and Freddie Mac.  The housing market is at its slowest point of the year right now when housing searches usually show declines, which could affect a turnaround in the housing market this year.  RealtyTrac just released the latest listings for the best and worst markets for flipping homes, San Francisco and Las Vegas being among the worst and Pittsburgh and Daytona Beach being among the best.

In The News:

DS News“Rule Proposed to Establish New GSE Housing Goals” (8-29-14)

“In accordance with the Housing and Economic Recovery Act of 2008, the Federal Housing Finance Agency (FHFA) announced on August 29 that it has proposed a rule to establish new housing goals for 2015 through 2017 for Fannie Mae and Freddie Mac.”

Bloomberg - “Housing Stumbling in Slowest Season for U.S.: Mortgages” (8-29-14)

“Just when the stumbling U.S. housing market could use a boost, it’s entering the slowest period of the year.  Online home searches, an indicator of demand, peak from March through August, according to Trulia, a real estate information firm that studied three years of its search activity.”

Mortgage Professional America“BOA wants to void $1.27bn Countrywide verdict” (8-29-14)

“After agreeing to pay nearly $17 billion to settle federal probes over its sale of mortgage bonds, Bank of America is trying to get out of a $1.27 billion penalty for defective loans sold by its Countrywide unit.”

Housing Wire - “Moody’s downgrades Ocwen’s servicer ratings” (8-29-14)

“The flagging reputation of Ocwen Financial Corporation (OCN) has taken another hit as Moody’s Investors Service has downgraded Ocwen Loan Servicing’s servicer quality ratings as a primary servicer of subprime mortgage loans and as a special servicer of residential mortgage loans from SQ2- to SQ3+.”

DS News - “Freddie Mac Reports Little Movement in Mortgage Rates” (8-29-14)

“Having hit their lowest level of 2014 last week, mortgage rates barely budged in the latest market report from Freddie Mac.”

OC Housing News“Are low house prices better than low mortgage interest rates?” (8-29-14)

“Whether low house prices or low interest rates are better is a matter of perspective. From a lender’s point of view today, low mortgage rates and high prices are better because they have so many underwater borrowers putting their capital at risk.”

Inman - “As Fed tapers, its European counterpart may just be getting started” (8-29-14)

“Here in the U.S. we enjoy the sturdiest economic situation in the world, no matter how creaky it may feel. But, to look outside … eyes wider and wider all the time.”

Housing Wire - “The best and worst markets for house flippers” (8-29-14)

“In the second quarter on average flippers bought properties for an 8% discount below their estimated market value (via automated valuation model) and re-sold them at an average 6% premium above their estimated market value, according to RealtyTrac.”

 

Bruce Norris of The Norris Group will be speaking at the SRC YPN Lunch & Learn on Tuesday, September 16, 2014.

Bruce Norris of The Norris Group will be presenting Secrets To Becoming Wealthy with Robert Hall and Associates on Tuesday, September 16, 2014.

Bruce Norris of The Norris Group will be presenting his California Real Estate Market Update with Paramount Club Market on Wednesday, September 17, 2014.

Bruce Norris of The Norris Group will be presenting Secrets To Becoming Wealthy with InvestClub for Women on Wednesday, September 17, 2014.

Bruce Norris of The Norris Group will be presenting Secrets To Becoming Wealthy with InvestClub for Women in Cerritos on Thursday, September 18, 2014.

 

Looking Back:

The Labor Department reported unemployment claims decreased by 6,000 from the previous week were at 331,000.  Mortgage rates decreased slightly the previous week with 30-year rates at 4.51% and 15-year rates at 3.54%.  Banks reported they earned $42.2 billion profit in the second quarter, a record amount.

 

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.

80% of Lenders Will Not Pursue Non-QM Loans According to Fannie Mae

Thursday, August 14th, 2014

 

 

 

Today’s News Synopsis:

New home purchase applications increased last month by 2% according to a recent survey released by the Mortgage Bankers Association.  Foreclosures also increased 2% month-over-month in July, although year-over-year they are down 16%.  Fannie Mae believes 80% of lenders will not be pursuing non-QM loans as they said the QM rules have had little impact on their business.

In The News:

Housing Wire“Cash sales drop to lowest level since May 2010″ (8-13-14)

“The share of homes purchased in cash continued its decline in May, falling to 34.4% of total home sales, which represents the lowest share of cash sales since May 2010.”

DS News - “Ocwen Hit with Class Action Suit” (8-14-14)

“A Pennsylvania law firm announced Wednesday it has filed a class action lawsuit against Ocwen, claiming the company misled shareholders about its practices and earnings.”

Bloomberg“Wells Fargo Tries Boosting Pay Amid Mortgage-Revenue Drop” (8-14-14)

“Wells Fargo & Co. (WFC)’s mortgage business, the largest in the U.S., is looking to halt a revenue slump by sweetening the payoff for employees amid a shift to new home purchases.  Loan officers’ top commission rate rose to 70 basis points, or 0.7 percentage point, from 63 basis points, according to a copy of the policy obtained by Bloomberg News.”

Housing Wire - “Fannie Mae: 80% of lenders won’t enter non-QM space” (8-14-14)

“For more than half a year, the mortgage finance industry grew to accommodate to the Consumer Financial Protection Bureau’s new Qualified Mortgage and Ability-to-Repay rules.”

Mortgage Bankers Association - “Applications for New Home Purchases Increased in July 2014″ (8-14-14)

“The Mortgage Bankers Association (MBA) Builder Application Survey (BAS) data for July 2014 shows mortgage applications for new home purchases increased by 2 percent relative to the previous month.”

OC Housing News“Tepid wage growth and rising house costs prices out low-income households” (8-14-14)

“Each prospective buyer investigates current financing terms as part of their process. Lenders apply current underwriting standards and determine the loan balance they will approve and down payment required before they will fund.”

Bloomberg - “More Money Down Adds to U.S. First-Time Buyer Blues: Economy” (8-14-14)

“The challenges facing prospective buyers of the least expensive homes in the U.S. are getting harder to overcome.  Already beset by stagnant wages, growing student debt and competition from investors who are snapping up listings, those looking to purchase moderately priced houses must also provide more cash up front.”

Housing Wire - “Freddie Mac: Rates to revisit May 2014 lows?” (8-14-14)

“Mortgage rates dipped slightly for the week ended Aug. 14, reversing any increase made last week, according to the latest Freddie Mac Primary Mortgage Market Survey.”

DS News - “Foreclosure Filings Up in July” (8-14-14)

“Foreclosure activity on U.S. housing units showed a 2 percent increase in July from the previous month but was still down 16 percent from the same month last year, according to RealtyTrac’s July 2014 U.S. Foreclosure Market Report released on August 14.”

Mortgage Professional America “Reverse industry headed for a growth period — exec” (8-14-14)

“There are 10 million homeowners out there who are eligible for reverse mortgages, and that number is growing every day as the Baby Boomers reach retirement age.”

 

Hard Money Loan Closed

Menifee, California hard money loan closed by The Norris Group private lending. Real estate investor received loan for $115,000 on a 2 bedroom, 2 bathroom home appraised for $175,000.

Menifee Hard Money Loan closed by the Norris Group

 

Bruce Norris of The Norris Group will be holding his Property Buying Boot Camp Tuesday-Thursday, August 19-21.

Bruce Norris of The Norris Group will be presenting Secrets To Becoming Wealthy with Robert Hall and Associates on Tuesday, September 16, 2014.

Bruce Norris of The Norris Group will be presenting Secrets To Becoming Wealthy with the InvestClub for Women on Wednesday, September 17, 2014.

 

Looking Back:

According to the Mortgage Bankers Association, mortgage applications declined 4.7% from the previous week.  Foreclosure starts also decreased with the increase in mortgage modifications.  Two former bankers of JP Morgan Chase have been charged in what was known as the “London Whale” trade for losses brought about by false records and fraud.

 

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.

Increase in Jobs Tied to Increasing Home Prices in South and Midwest

Friday, August 8th, 2014

Sources:

Homeownership at near 20-year low, but some bright spots
Home price gains slow to 7.5% as forecast calls for further decline


Today’s News Synopsis:

Aaron Norris of The Norris Group gives some highlights from the news of the week in this week’s real estate headline roundup.  Trulia believes job growth in the Midwest and South are directly responsible for home price increases in the area.  RealtyTrac said they are more concerned about the track the housing recovery is on since 1/3 is still below affordability.  SIFMA has stated that if Fannie Mae and Freddie Mac are to raise guarantee fees, then they should do it slowly and steadily.

In The News:

Housing Wire“SIFMA says FHFA must raise g-fees but carefully” (8-8-14)

“Slow, steady and measured is how the Securities Industry and Financial Markets Association thinks the Federal Housing Finance Agency should approach raising Freddie Mac and Fannie Mae guarantee fees.”

Bloomberg“Corporate 1% in U.S. Gets Wealthier While Cash Piles Up” (8-8-14)

“Income inequality has company — make that companies. A new wealth gap is opening among U.S. corporations, where cash holdings are growing more concentrated as the rich get richer.”

DS News - “Job Growth Responsible for Home Price Gains” (8-8-14)

“The highest home price gains for July 2014 are in the Midwest and South, and those gains are more likely a result of job growth as opposed to other market influences, according to the Trulia Price Monitor.”

OC Housing News“Will home sellers’ motivation increase with the changing market?” (8-8-14)

“It’s no longer a seller’s market; wishful thinking and hope of a fall turnaround won’t change that basic fact.  Sellers are stubborn: even during the crash, many were unwilling to lower their prices to make a sale; after all, real estate only goes up, right?”

DS News - “Government Partnership Marks Five Year Anniversary” (8-8-14)

“To celebrate the five-year anniversary of the founding of the Partnership for Sustainable Communities, three government agencies released a report entitled “Five Years of Learning from Communities and Coordinating Federal Investments,” which details the progress made toward improving housing, environmental protection, and transportation systems in the last five years.”

Housing Wire - “Nationstar completes exit from reverse mortgage origination business” (8-8-14)

“Business is booming at Nationstar Mortgage (NSM), which reported quarterly net income of $67 million, or $0.74 per share, for the second quarter, a 174% increase over the $24 million or $0.27 per share in the first quarter 2014.”

Bloomberg - “Ginnie Mae Reviews Rules for Services as Nonbanks Expand” (8-8-14)

“Ginnie Mae President Ted Tozer, whose agency increasingly relies on nonbank mortgage companies, said he’s evaluating if they have enough easy-to-sell assets to survive in times of distress.”

Los Angeles Times - “China developer buys Robinsons-May site in Beverly Hills” (8-8-14)

“Establishing a major new beachhead in Hollywood, Wanda Group — China’s largest commercial property developer and owner of the AMC theater chain — said Friday it has bought the site of the former Robinsons-May department store in Beverly Hills and will invest $1.2 billion to build a mixed-use development on the plot. No sales price was revealed.”

DS News - “Affordability a Concern in Housing Recovery” (8-8-14)

“As the U.S housing market climbs back to healthy, a third of it is less affordable now than it’s been all century, according to RealtyTrac.  The firm’s latest housing affordability report  found that 34 percent of the 1,200 U.S. counties it surveyed are at their least affordable, on average, since 2000.”

 

Hard Money Loan Closed

Lancaster, California hard money loan closed by The Norris Group private lending. Real estate investor received loan for $85,000 on a 3 bedroom, 2 bathroom home appraised for $143,000.

Lancaster Hard Money Loan closed by the Norris Group

 

Bruce Norris of The Norris Group will be presenting Secrets To Becoming Wealthy with LAREIC on Tuesday, August 12, 2014.

Bruce Norris of The Norris Group will be holding his Property Buying Boot Camp Tuesday-Thursday, August 19-21.

Bruce Norris of The Norris Group will be presenting Secrets To Becoming Wealthy with the InvestClub for Women on Wednesday, September 17, 2014.

 

Looking Back:

Unemployment claims increased by 5,000 to 333,000 during the week according to the Labor Department, although they still did not exceed expectations.  Mortgage rates continued to remain where they were with 30-year rates at 4.40% and 15-year rates at 3.43%.  Home prices increased by 87% in the second quarter.

 

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.

New Home Sales Decrease Again in June

Thursday, July 24th, 2014

 

Today’s News Synopsis:

New home sales decreased again in June by 8.1%, the largest revision on record.  The number of homes seriously underwater decreased to 9.1 million, totaling 17.2% of homes in the nation.  Unemployment claims decreased by 19,000 to 284,000, the lowest in 8 years.

In The News:

Housing Wire - “Home price increases boost PulteGroup revenue and profit in 2Q2014″ (7-24-14)

“PulteGroup (PHM) posted net income was $42 million, or $0.11 per share, after pretax charges of $88 million, or $0.14 per share, for insurance reserves and office relocation costs for the second quarter of 2014.”

DS News“Homes “Seriously Underwater” Down in Second Quarter” (7-24-14)

“In a positive sign for the housing market, RealtyTrac reported Thursday a decrease nationwide in homes that were classified as “seriously underwater”, down to  9.1 million homes in the second quarter of 2014, representing 17.2 percent of all homes nationwide.”

Mortgage Professional America“S&P may face fraud charges over mortgage bond ratings” (7-24-14)

“Standard & Poor’s may be looking at a securities fraud lawsuit over ratings it gave to commercial mortgage bonds.  S&P said Wednesday that it had received a notice from the Securities and Exchange Commission that its enforcement staff intended to recommend pursuing civil charges against the company.”

Bloomberg“Sales of U.S. New Homes Fell in June After Large Revision” (7-24-14)

“Fewer new U.S. homes were sold in June than forecast and May data showed the biggest downward revision on record, painting a more troubling picture of a housing market that is struggling to gain traction.”

Housing Wire - “Jobless claims drop to 8-year low” (7-24-14)

“Jobless claims plummeted by 19,000 filings to 284,000 for the week ended July 19, the lowest level for initial claims since Feb. 18, 2006 when there were 283,000 claims, the U.S. Department of Labor said.”

OC Housing NewsOwner-occupant sales stall while distressed sales plummet“ (7-24-14)

“In 2011, lenders aggressively pursued loan modifications to avoid foreclosures. They offered any deadbeat who would play along a sweetheart deal just to get some money back on otherwise non-performing loans.”

Bloomberg - “Hamptons Home Sales Rise as Buyers Find More Inventory” (7-24-14)

“Home sales in New York’s Hamptons, the Long Island vacation locale popular among financiers and celebrities, climbed in the second quarter as more inventory became available for buyers.”

Inman“Ellie Mae’s self-service mortgage platform targets ‘tech-savvy’ borrowers” (7-24-14)

“Ellie Mae is now offering mortgage lenders a consumer direct solution for its Encompass mortgage management platform that can guide homebuyers through a step-by-step application process in less than 15 minutes, giving borrowers greater control and insight throughout.”

Housing Wire - “Freddie Mac: Mortgage rates push buyers to market” (7-24-14)

“Although mortgage rates remained relatively still for the week ended July 24, they are still just above the lows for 2014, helping push more potential homeowners into the market, Freddie Mac’s latest Primary Mortgage Market Survey said.”

 

Bruce Norris of The Norris Group will be presenting Secrets To Becoming Wealthy with the Manfredi Group on Tuesday, July 29, 2014.

Bruce Norris of The Norris Group will be presenting Secrets To Becoming Wealthy with LAREIC on Tuesday, August 12, 2014.

Bruce Norris of The Norris Group will be speaking at the CMLS 2014 – Learning the In-and-Outs of Real Estate Forecasting From September 24-September 27, 2014.

Looking Back:

Sales of new homes increased by 8.3% to 497,000 the previous month with the decrease in home prices.  At the same time, mortgage applications decreased by 1.2% from the previous week according to the latest survey from the Mortgage Bankers Association.  Freddie Mac planned to sell nearly $500 million of mortgage-backed securities.

 

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.

Analysts More Optimistic About Housing Market

Friday, July 18th, 2014

Sources:

Consumers Expect Economic Improvement
NAR: One chart shows widening affordability gap


Today’s News Synopsis:

This week’s video is a slideshow of the news of the week in this weeks real estate headline roundup video.  The unemployment rate and economic growth are both affected by the labor force participation rate according to a recent study.  Analysts are more optimistic about the housing market despite it performing below expectations in the first half of 2014.  According to the latest Index of Consumer Sentiment, consumer confidence decreased to its lowest in four months and now stands at 81.3.

In The News:

DS News“Labor Force Participation Rate Problematic for Recovery” (7-18-14)

“Much has been made of the recent drop in the unemployment from its highs during the great recession to the where it currently sits at 6.1 percent.”

OC Housing News - “British legislators learned the housing bubble perils while Americans did not” (7-18-14)

“During the 00s lenders attempted foolish financial innovations that proved dismal failures; these loan products, deterioration of standards, and securitization of mortgages inflated massive housing bubbles in several countries around the world.”

Housing Wire - “Housing troubles continue drag on economy” (7-18-14)

“The trouble in the housing sector, specifically Thursday’s data on building permits, is holding down the economic outlook, expressed in the index of leading economic indicators which missed analyst expectations as it rose a lower-than-expected 0.3% in June.”

DS News“Consumer Sentiment Drops to Four Month Low” (7-18-14)

“A preliminary measure of consumer sentiment released Friday shows confidence in the economy has dropped to its lowest level in the last four months.”

Housing Wire - “NAR: Big banks exiting FHA loans is a ‘bad trend’” (7-18-14)

“As the Federal Housing Administration celebrates its 80th anniversary, the big banks are debating ending their lending relationships with the administration.”

Realty Trac - “What Homes Are the Best Real Estate Deals and Where to Find Them” (7-18-14)

“Last week RealtyTrac released an analysis of what profiles of homes offer the best potential for discount, and which markets have the most properties matching those hot discount profiles.”

DS News - “Analysts See Reasons for Housing Optimism” (7-18-14)

“Even though the first half of 2014 didn’t live up to the hope and hype, industry insiders are still calling for better days in the housing market for the rest of this year.”

Housing Wire - “4 charts show the problem: Wages can’t keep up with home prices” (7-18-14)

“While home-price increases have slowed, they are still trending higher, and have seen 26 months of consecutive year-over-year increases nationally.”

 

Bruce Norris of The Norris Group will be presenting his big event The Millionaire Maker in Costa Mesa Friday-Sunday, July 18-20, 2014.

Bruce Norris of The Norris Group will be presenting Secrets To Becoming Wealthy with the Manfredi Group on Tuesday, July 29, 2014.

Bruce Norris of The Norris Group will be presenting Secrets To Becoming Wealthy with LAREIC on Tuesday, August 12, 2014.

 

Looking Back:

Unemployment claims decreased by 24,000 to 334,000 and were at their lowest in ten weeks.  Mortgage rates decreased again after being at their highest in two years.  At the same time, inventory was shown to be on the rise according to a recent report from Realtor.com.

 

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.