Today’s News Synopsis:
The CBIA reports housing production decreased 56% from December, and the Commerce Department reports construction spending dropped 0.7%. A survey from Equity-Trax shows that short sales currently take around 4 to 9 months to complete. Lender Processing Services claims foreclosure starts fell 11.4% in January.
In The News:
CBIA – “California Housing Production Dips in January, CBIA Announces” (3-1-11)
“According to statistics compiled by the Construction Industry Research Board (CIRB), permits were pulled for 2,920 total housing units in January, down 5 percent from the same month a year ago and down 56 percent from December. Permits for single-family homes totaled 1,506, down 24 percent from January 2010 and down 55 percent from the previous month, while multifamily permits totaled 1,414, up 28 percent from a year ago but down 57 percent from December.”
Bloomberg – “U.S. Construction Spending Falls on Slump in Commercial Works” (3-1-11)
“The 0.7 percent drop brought the value of all projects down to a $791.8 billion annual rate, the lowest since August, Commerce Department figures showed today in Washington. Outlays on private non-residential works dropped 6.9 percent, the most since January 1994, which may in part reflect the influence of winter storms.”
Housing Wire – “Geithner wants Congress to act on Fannie, Freddie in next two years” (3-1-11)
“Treasury Secretary Timothy Geithner asked lawmakers Tuesday to pass legislation on Fannie Mae and Freddie Mac reform within the next two years.”
Housing Wire – “Short sales still take too long on average, report says” (3-1-11)
“Seventy-one percent of agents surveyed in a new study conducted by data analytics firm Equi-Trax Asset Solutions said it takes four to nine months on average to finish a short sale. About 10% of the transactions take more than 10 months, and 18.3% are finalized within the preferred three-month time frame, the report concluded after surveying 600 real estate agents.”
Housing Wire – “Freddie Mac mortgage purchases down 23% in January” (3-1-11)
“Mortgage purchases and issuances at Freddie Mac fell to $38.8 billion in January, down from $49.7 billion in December, according to Freddie’s latest monthly loan volume summary.”
Housing Wire – “Commercial real estate brought down failed banks in February” (3-1-11)
“Of the nonperforming loans on the balance sheets of the 12 banks that failed in February, 72% were for commercial real estate, according to analytics firm Trepp.”
Housing Wire – “Mortgage lenders move more foreclosures back into delinquent bucket: LPS” (3-1-11)
“The number of foreclosure starts fell about 11.4% in January from a month earlier, but delinquency rates rose slightly because many lenders are moving loans out of foreclosure and back into the seriously delinquent category, according to Lender Processing Services”
Bloomberg – “Commercial-Property Deals May Double in U.S. as Blackstone Bets on Rebound” (3-1-11)
“Blackstone Group LP’s planned $9.4 billion purchase of U.S. shopping centers and Ventas Inc.’s proposed $5.7 billion buyout of a health-care real estate investment trust, one of two multi- billion dollar health care REIT deals announced yesterday, may mean a wave of commercial real estate acquisitions is coming as buyers regain confidence in the market.”
One year ago, California officials considered implementing new builder fees. Home sales had generated $934 million from the previous year. Fannie mae lost 15.9 billion dollars during quarter 4 of 2009. Warren Buffet predicted the residential real estate market would begin to recover in 2011.
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.