Today’s News Synopsis:
According to RealtyTrac, foreclosure activity decreased by 8 percent in November. Hanley Wood Market Intelligence reports that Orange County builders had their first positive month in October, after 13 months of contract declines. A survey from HomeGain shows that 48 percent of agents and brokers believe that home prices will stay the same, and 24 percent believe that prices will increase. Data from the U.S. Treasury Department shows that 31,382 of the 1 million three-month modifications have become permanent.
In The News:
DSNews - “Foreclosure Activity Recedes for Fourth Straight Month: RealtyTrac” (12-10-09)
“The foreclosure tide appears to be subsiding, according to the latest numbers from RealtyTrac. The company said Thursday that foreclosure activity fell 8 percent in November, compared to October – it’s the fourth consecutive month that RealtyTrac’s data has shown a decrease in foreclosure filings.”
CBIA - “California New-Home Market Breaks into Positive Territory, CBIA Announces” (12-10-09)
“The monthly CBIA/Hanley Wood Market Intelligence (HWMI) New-Home Sales and Pricing Report showed that sales in new-home communities of 10 units or more were 25 percent above October 2008, a strong improvement from the lingering year-over-year decline last month and represents the first notable increase since the start of the housing downturn. During October, 2,294 new homes and condominiums were sold in the subdivisions tracked by Costa Mesa-based HWMI, compared to 1,838 in October 2008. Sales of single-family homes were up by 4 percent, while sales of townhomes and ‘plexes’ – duplexes, triplexes, etc. – were up 36 percent and sales of condominiums were 94 percent higher than a year ago thanks to strong sales at projects in the Los Angeles and San Francisco areas.”
Orange County Register – “Losing streak ends for O.C. builders” (12-10-09)
“Hanley Wood Market Intelligence says after 13 straight months of annual declines in new home sales contracts, Orange County builders recorded their first up month in October. According to the Costa Mesa research firm, homebuyers signed 90 contracts to buy a new Orange County home that month, up 13.9% from October 2008.”
Inman - “Survey: Hopeful on home prices” (12-10-09)
“Forty-eight percent of agents and brokers surveyed think home prices will stay the same and 24 percent think prices will go up, the company reported. That’s a slight increase from the third-quarter survey, when those numbers were 46 percent and 23 percent, respectively. This marks a major change from HomeGain’s first-quarter survey when 36 percent thought prices would remain flat and 11 percent thought prices would increase. The survey had 928 respondents.”
Housing Wire – “30,000 Trial HAMP Mods Go Permanent” (12-10-09)
“Of the 1m homeowners who have been offered three-month trial modification under the Home Affordable Modification Program (HAMP), 31,382 have received a permanent modification, according to from the US Treasury Department.”
Housing Wire – “Mortgage Volume to Decline in 2010, Says Dorado” (12-10-09)
“Mortgage origination volume will decline next year compared to 2009 levels, but the use of software-as-a-service (SAAS) applications will rise, San Mateo, Calif.-based SAAS developer Dorado Corporation said in its projections for next year. Dorado projects more than 30% of mortgages created next year will be originated with SAAS applications, which generally work as Web-based tools a developer hosts on its own servers and distributes access through subscription licenses.”
Housing Wire – “Treasury Used $364bn of TARP funds in 2009″ (12-10-09)
“The Treasury Office of Financial Stability (OFS) used $364bn of the $700bn available funds, mostly in investments according to the report, and $73bn of the TARP funds have already been repaid. Bank of America last week committed to repaying the $45bn it received through the program.”
Housing Wire - “Mortgage Rates Rise off Record Lows” (12-10-09)
“Freddie Mac’s (FRE: 1.12 +0.90%) survey put the 30-year fixed-rate mortgage (FRM) at 4.81% with an average 0.7 point for the week ending Dec. 10, up from the previous week when it was a record low average of 4.71%. A year ago, Freddie Mac put the 30-year FRM at 5.47%.”
Bloomberg – “Wells Fargo Cuts as Much as 30 Percent in Principal” (12-10-09)
“Wells Fargo & Co., the bank that gained a portfolio of option adjustable-rate mortgages when it bought Wachovia Corp. last year, cut the principal for delinquent borrowers in some loans by as much as 30 percent. Wells Fargo has forgiven an average of $46,000 in principal, or 15 percent, for the 43,500 option-ARM loans it has modified this year through September, said Franklin Codel, chief financial officer at the bank’s home-lending unit.”
Looking Back:
One year ago, Orange County tax collectors reported that property tax collections decreased by $145 million. One hundred twenty-seven financial companies received preliminary approval for $60.4 billion from TARP.