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.”

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.

The MBA reports mortgage loan application volume decreased 2.9 percent last week. The House Financial Services Committee approved a bill to increase capital reserves in the Federal Housing Administration (FHA) and reduce risks to its insurance fund. Republicans voted against the Restoring American Financial Stability Act of 2010. New HUD regulations require all new lender applicants must hold at least $1 million.

In The News:

California Builder – “Selecting the Right Paint Color for Your Home” (4-28-10)

“A successful color scheme is a scheme that is pleasant to live with and reflects the moods and personalities of the people living in it. Creating living areas that allow us to rest and relax are just as important as creating other places that invigorate or stimulate us. Light and color affect our senses. Bedrooms, living rooms and kitchens all serve different needs.”

Mortgage Bankers Association – “Purchase Applications Increase, Refinance Applications Decline in Latest MBA Weekly Survey” (4-28-10)

“The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending April 23, 2010.  The Market Composite Index, a measure of mortgage loan application volume decreased 2.9 percent on a seasonally adjusted basis from one week earlier.  On an unadjusted basis, the Index decreased 1.9 percent compared with the previous week.”

Housing Wire – “House Committee Approves Bill to Tighten FHA Approval Standards” (4-28-10)

“The House Financial Services Committee approved a bill to increase capital reserves in the Federal Housing Administration (FHA) and reduce risks to its insurance fund. The bill will now move to the House floor for debate. The bill would amend the National Housing Act by increasing the cap of annual premium payments collected by the FHA from 0.50% to 1.5%. It would also hold approved lenders accountable for the FHA loans they write. Under the new bill, if the FHA pays out a claim on a mortgage it finds did not meet its underwriting standards or detects fraud involved with the origination of the loan, it could require that lender to pay reparations for the loss to the insurance fund.”

Housing Wire – “First American Title Launches AgentFirst iPhone, iPad Application” (4-28-10)

“First American Title Insurance launched a new application for the iPhone, iPad and iPod Touch devices that provides mobile access to real estate data including property information and characteristics, historic sales information, and tax information. First American Title Insurance said the data included in the AgentFirst app covers 97% of all US real estate transactions.”

Housing Wire – “Financial Reform Blocked in Senate, Again” (4-28-10)

“The Senate reconsidered S. 3217, the Restoring American Financial Stability Act of 2010, again today after Senate Republicans voted against debating the legislation on Monday. Once more, Republicans voted against debating the legislation today. The bill would create a consumer financial protection agency, impose a risk retention requirement on banks that sell and securitize mortgage loans, and bring greater transparency to the derivatives market.”

Housing Wire – “New FHA-Lender Restrictions Will Wreak Havoc: K&L Gates” (4-28-10)

“HUD finalized new regulations earlier in April that increase the net worth requirements of FHA-approved lenders and make these businesses liable for the oversight of mortgage brokers. Since, 1993, FHA required approved lenders to hold a net worth of at least $250,000. Effective immediately, all new lender applicants must hold at least $1m.”

Bloomberg - “‘Smart Capital’ Backs Real Estate, Zimpleman Says” (4-28-10)

“Principal Financial Group Inc. Chief Executive Officer Larry Zimpleman, whose firm owns or manages more than $30 billion of real estate assets, said new buyers are entering the U.S. commercial market and pushing up prices.”

Inman - “CalREDD announces plans to merge with MRMLS” (4-28-10)

“The California Association of Realtors today announced that calREDD, a service of CAR’s CALMLS subsidiary, plans to merge with Multi-Regional Multiple Listing Service Inc. (MRMLS) to form a 33,000-member multiple listing service that serves 22 Realtor associations.”

Looking Back:

One year ago, A survey from the NAHB showed that most baby boomers were planning to stay in their current residence for the rest of their lives. The S&P Index showed that home prices were declining at a slower rate. MDA Dataquick reported that notices of default rose in 76 of 84 CA Zip codes.