The Norris Group Real Estate News Roundup 4/8/10

Today’s News Synopsis:

John Husing estimates that 10,500 new jobs will be created in Riverside during 2010. First American CoreLogic reports distressed sales accounted for 29 percent of the U.S. market. According to the Clear Capital Home Price Index, US home prices dipped 3.9% in the first quarter of 2010. The current rate for 30-year FRM loans is at 5.21%.

In The News:

The Press EnterpriseInland economy to improve in 2010: forecast” (4-7-10)

“Inland Southern California will start regaining some of the jobs it lost in the last two years, the area’s leading economist told a gathering of business leaders Wednesday. John Husing, whose forecast each spring is considered one of the clearest snapshots of the region’s economy, said Riverside and San Bernardino county residents will see about 10,500 new jobs created in 2010. If it happens, it would be the first annual growth for the area’s job base in three years.”

Housing Wire“Distressed Sales Reach 29% of Entire Market: First American” (4-8-10)

“Distressed sales, including short sales and real estate owned (REO) transactions, accounted for 29% of the entire US market in January, according to First American CoreLogic. It’s the highest level since April 2009 and close to the February number calculated by Clear Capital, another analytics firm, which released a report showing how those transactions are pressing home prices down. Distressed sales took the largest chunk of the market in January 2009 when 32% of sales fell into that category, according to First American.”

Housing Wire“REO Sales Push Home Prices Down 3.9% in March: Clear Capital” (4-8-10)

“After nine months of quarterly gains, US home prices dipped 3.9% from January to March as real-estate owned (REO) property takes more of the market, according to the Clear Capital Home Price Index. Home prices did grow 5.1% from last year, a sign that increases are flattening. In February, prices grew 5% on a yearly basis as well. All four US regions reported positive yearly gains for the first time since spring 2006. However, when Clear Capital analysts drilled down to the quarterly scale, they found renewed declines in regional prices.”

Housing Wire“Freddie Mac Mortgage Rates Continue Climb for Fourth Week” (4-8-10)

“The Freddie Mac (FRE: 1.34 0.00%) weekly survey put the average interest rate for a 30-year fixed-rate mortgage (FRM) at 5.21% with an average 0.6 point for the week ending April 8, up from the previous week, when the average was 5.08%, and up from the same time last year, when the average rate was 4.87%. It’s the highest average rate for 30-year FRM since August 13, 2009, when it averaged 5.29%. It is the fourth week Freddie’s rates have inched upward.”

Orange County Register “Homebuilder’s future in doubt?” (4-8-10)

“California Coastal Communities filed for Chapter 11 bankruptcy in October to gain more time to repay $182 million in debt due this spring. That debt grew to $204 million by the end of 2009, according an annual report the company filed with the Securities and Exchange Commission on March 30.”

Inman “ZipRealty: Data shows rising median price” (4-8-10)

“A monthly review of multiple listing service data in 26 market areas found that the median price of for-sale homes rose 1.07 percent in March, to $263,753, according to real estate brokerage company ZipRealty. Prices have been reduced on 40.35 percent of homes that were for sale in March, which is down slightly from February. And the median price reduction on for-sale homes fell 3.02 percent in March, to $20,200.”

Realty Times“Top 10 Home Buying Mistakes” (4-8-10)

“Going solo Buying a house is a complex transaction. It should be a team effort. You’ll need a real estate agent, lender, inspector, insurer, perhaps a lawyer and other team members to help you through each step of the way. Team build before you start the search. Love at first sight If you believe in fairy tales you probably shouldn’t be buying a home. You won’t live happily ever after if you emote your way through the home buying process. Your home should fit your real needs, not your yen for drama. Buy a home that fits your budget and your lifestyle. Be sure the home is in a community and neighborhood you desire. Visit neighborhoods several times before you buy to check out schools, noise and traffic patterns.”

Realty Times“Nonresidential Construction Industry Continues to Struggle” (4-8-10)

“Associated Builders and Contractors (ABC) reports that its Construction Backlog Indicator (CBI) sharply declined by 9 percent between November 2009 and January 2010. CBI has slipped 16.3 percent during the last year and currently stands at 5.5 months, the lowest point reported in the 15 months ABC has gathered data. CBI is a forward-looking indicator that measures the amount of construction work under contract to be completed in the future.”

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