Today’s News Synopsis:
Fed Governor Sarah Raskin expects 2.25 million foreclosures to occur this year and the next. Fiserv believes home prices will drop 7.1% over the next 12 months. According to the CAR, 66% of first time home buyers can afford an entry-level home in California. Josh Levin of Citigroup predicts housing demand may not catch up to supply until 2014.
In The News:
Xinhuanet – “Fed: Projections remain grim for future U.S. home foreclosures” (11-13-10)
“The U.S. Federal Reserve’s projections remain very grim for the foreseeable future, as it expected about 2.25 million foreclosure filings this year and again next year, and about 2 million more in 2012, Fed Governor Sarah Raskin said on Friday.”
CAR – “First-time buyer housing affordability improves slightly in Q3” (11-15-10)
“The percentage of first-time buyers who could afford to purchase an entry-level home in California stood at 66 percent in the third quarter of 2010, according to C.A.R.’s First-time Buyer Housing Affordability Index (FTB-HAI). In the second quarter of 2010, the Index was a revised 65 percent and was 64 percent in the third quarter of 2009.”
CNBC – “Is It Time to End the Mortgage Tax Deduction?” (11-15-10)
“Home buyer tax credits and mortgage bailouts included, the mortgage-interest deduction is the biggest ongoing boon to the housing market and one of the costliest deductions in the U.S. tax code. It will slice an estimated $131 billion out of tax revenue in 2012.”
Housing Wire – “Flagstar closes sale of $474 million non-performing loans” (11-15-10)
“Flagstar Bancorp (FBC: 1.28 -3.03%) completed the sale of about $474 million residential first mortgage, non-insured, non-performing loans, as the largest bank holding company in the Midwest sheds underperforming assets.”
Housing Wire – “Fiserv expects another big drop in home prices next year” (11-15-10)
“Despite national gains in home prices through the second quarter, Fiserv, a financial services technology provider, said it expects a 7.1% drop over the next 12 months with some markets falling into a double-dip.”
Housing Wire – “BarCap: US Treasurys holdings increase 23% in 3Q” (11-15-10)
“Holdings of U.S. Treasurys increased 23.2%, or $41.1 billion, at the top 50 bank holding companies in the third quarter, according to investment bank Barclays Capital.”
Housing Wire – “S&P predicts more home price declines through 2011” (11-15-10)
“Standard & Poor’s analysts believe home prices will drop between 7% and 10% through 2011, erasing any improvements prices have recently made.”
Housing Wire – “Monday morning cup of coffee” (11-15-10)
“The Council of the District of Columbia approved the Saving DC Homes from Foreclosure provision that requires lenders to engage in a four-month mediation period with delinquent borrowers to discuss payment options before foreclosure.”
Bloomberg – “U.S. Housing Excess Seen Lasting Four More Years: Chart of the Day” (11-15-10)
“So many U.S. homes are unoccupied these days that demand may not catch up with the supply until 2014, according to Josh Levin, an analyst at Citigroup Inc. Last quarter’s vacancy rate was 10.96 percent, near a peak of 11.05 percent in the second quarter.”
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California Real Estate Investing News is a post from: The Norris Group