Today’s News Synopsis:
According to the NAR, home sales increased in 32 states from the 3rd quarter of 2009. Statistics from the CBIA show that the construction industry currently provides only one sixth of the jobs it provided in 2005. Some speculate that Fannie and Freddie’s purchasing of debt could get rid of all mortgage debt within a year. RealtyTrac reports that foreclosure filings increased by 15 percent from last year.
In The News:
NAR – “Fourth Quarter Existing-Home Sales Surge in Most States, Prices Up in More Areas” (2-11-10)
“Sales increased from the third quarter in 48 states and the District of Columbia; 32 states saw double-digit gains. Year-over-year sales were higher in 49 states and D.C.; all but three states had double-digit annual increases. Total state existing-home sales, including single-family and condo, jumped 13.9 percent to a seasonally adjusted annual rate 1 of 6.03 million in the fourth quarter from 5.29 million in the third quarter, and are 27.2 percent above the 4.74 million-unit level in the fourth quarter of 2008. Distressed property accounted for 32 percent of fourth quarter transactions, down from 37 percent a year earlier.”
CBIA – “Study Shows Housing Industry is Vital to California’s Economic Recovery” (2-11-10)
“Preliminary numbers from the report found that new housing construction in California contributed $14.3 billion dollars to the state’s economy in 2009 and supported nearly 80,000 jobs, representing just a fraction of the $67.7 billion dollars and 487,000 jobs that the industry had contributed in 2005. The report also found that every dollar spent on new housing construction in California generates another $0.8 in total economic activity and that each job created through residential construction supports an additional 1.2 jobs.”
Inman – “ZipRealty: Fewer sellers slash prices” (2-11-10)
“Fewer sellers cut their list prices for the fifth straight month in January, according to a report by real estate brokerage ZipRealty. The report covered 27 of 36 U.S. metropolitan areas in which the brokerage operates. The statistics in the monthly report reflect the brokerage’s multiple listing service data as of Jan. 4.”
Bloomberg – “Fannie, Freddie Loan Purchases May Spur ‘Wad of Cash’” (2-11-10)
“Fannie Mae and Freddie Mac’s plan to step up purchases of delinquent loans may boost prepayments on their securities to rates that in some cases would erase all of the debt within a year. Yields over government notes on some of their bonds fell to 17-year lows on speculation the move would lead to reinvestments in the mortgage market. ”
Bloomberg – “U.S. Foreclosure Filings Top 300,000 for 11th Month” (2-11-10)
” U.S. foreclosure filings rose 15 percent in January from a year earlier and exceeded 300,000 for the 11th consecutive month as modification programs failed to keep delinquent borrowers in their homes, RealtyTrac Inc. said. A total of 315,716 properties received a notice of default, auction or bank seizure last month, or one in 409 households, the Irvine, California-based seller of default data said today in a statement. Filings fell 10 percent from December.”
Bloomberg – “Mortgage Rates on 30-Year U.S. Loans Fall to 4.97%” (2-11-10)
“Mortgage rates in the U.S. fell for the fifth time in six weeks, making home purchases and refinancing more affordable. The rate for 30-year fixed U.S. home loans fell to 4.97 percent for the week ended today from 5.01 percent, mortgage finance company Freddie Mac said in a statement today. The average 15-year rate was 4.34 percent, according to the Mclean, Virginia-based company.”
Bloomberg – “TARP Watchdog Says Commercial Real Estate Loans Pose Danger” (2-11-10)
“Commercial real estate loans have the potential to go sour and wreck the U.S. economy unless regulators prepare now, according to a report today from a watchdog Congress created for the government’s financial bailout program. The report should be a ‘red flag’ that prompts regulators to increase preparations for staving off another banking crisis, said Elizabeth Warren, a Harvard law professor and chairman of the Congressional Oversight Panel of the Troubled Asset Relief Program. The panel was created in October 2008 to monitor the Treasury’s efforts to rescue the banking system from the worst financial crisis in decades. ”
Looking Back:
One year ago, the MBA reported that mortgage applications decreased by 44 percent from 2008. A budge proposal in California would have significantly increased income, sales, gas taxes, and car fees. 76 percent of all U.S. homes declined in value in 2008, but only 57 percent of homeowners recognized this decline.
California Real Estate Investing News is a post from: The Norris Group