Today’s News Synopsis:
The Commerce Department reports housing starts decreased in December. However, Fannie Mae expects housing starts to triple by 2013, and the nation’s largest home builders announced plans to increase activity by 10%. RealtyTrac claims foreclosure starts in California decreased 33% in 2010.
In The News:
Mortgage Bankers Association – “Applications Increase in Latest MBA Weekly Survey” (1-19-11)
“The Market Composite Index, a measure of mortgage loan application volume, increased 5.0 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 6.4 percent compared with the previous week.”
New York Times – “U.S. Housing Starts Slowed Sharply in December” (1-19-11)
“Housing starts in the United States dropped to an annual rate of 529,000 units, the Commerce Department said on Wednesday, down from November’s 553,000 and well below forecasts of about 550,000 in a Reuters poll. At current levels, starts account for less than a quarter of their boom-time peaks.”
Housing Wire – “Bair pushes for foreclosure claims review panel” (1-19-11)
“Federal Deposit Insurance Corp. Chairman Sheila Bair wants a foreclosure claims commission set up, similar to the one established during the oil spill crisis in the Gulf of Mexico last year, to help homeowners victimized by improper foreclosures.”
Housing Wire – “December home sales down 5% over a year: RE/MAX” (1-19-11)
“After five consecutive months of declines, monthly home sales rose 13.2% in December from the prior month, according to the RE/MAX National Housing Report released Wednesday.”
Housing Wire – “Fannie Mae: Housing starts to triple by 2013 to nearly 1.5 million” (1-19-11)
“Despite the still fragile housing market, Fannie Mae expects housing starts to triple by 2013. According to the agency’s economic outlook, housing starts are predicted to increase 17.3% and hit 710,000 this year, with another 47% increase to 1.1 million in 2012 and another gain of 42% in 2013 to nearly 1.5 million.”
Housing Wire – “Foreclosures increase 2% in 2010, decline in hotspots” (1-18-11)
“ForeclosureRadar, which tracks foreclosure data on the West Coast, reported 338,999 foreclosure starts in California in 2010, down 33% from one year prior. Arizona filings fell 18% to 119,790, and Nevada filings fell 19% to 86,010.”
Bloomberg - “Biggest U.S. Homebuilders Take Over Market as New-Home Sales Begin Rebound” (1-18-11)
“D.R. Horton Inc., Lennar Corp. and Toll Brothers Inc. are among companies planning to boost their community counts by at least 10 percent this year after writing down property values, buying land at discounted prices and obtaining financing unavailable to smaller, closely held builders.”
Bloomberg - “Wells Fargo Refuses to Settle Fannie, Freddie Refund Demands” (1-18-11)
“Prodded by lawmakers, Fannie Mae and Freddie Mac have pressed banks including Wells Fargo to buy back mortgages that were based on faulty data about the homes and borrowers. Wells Fargo said today in its fourth-quarter report that demands from the government-owned mortgage companies declined for a second straight quarter and now stand at $1.5 billion.”
Bloomberg - “Global Commercial Property Investment May Rise 25% in 2011, JLL Reports” (1-18-11)
“Investment in commercial property may rise by 25 percent worldwide this year, after returning confidence produced the most deals in the fourth quarter since 2007, Jones Lang La Salle Inc. said.”
Looking Back:
One year ago, MDA Dataquick’s monthly report showed that 22,328 homes were sold in Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange County in one month . AFIRE conducted a survey in which 51 percent of foreign investors claimed the US provided the best opportunity for capital appreciation. Builder confidence decreased from the previous month. Fitch Ratings saw many positive signals for housing and other related industries which they believed would lead to a strong recovery.
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