Friday, December 31, 2010
Tuesday, December 28, 2010
Friday, December 24, 2010
Monday, December 20, 2010
Sunday, December 19, 2010
Is this an indication of what to expect in 2011?
Strong Rebound in Pending Home Sales
Washington, DC, December 02, 2010
Pending home sales jumped in October, showing a positive uptrend since bottoming in June, according to the National Association of REALTORS®.
The Pending Home Sales Index,* a forward-looking indicator, rose 10.4 percent to 89.3 based on contracts signed in October from 80.9 in September. The index remains 20.5 percent below a surge to a cyclical peak of 112.4 in October 2009, which was the highest level since May 2006 when it hit 112.6.
Last October, first-time buyers were motivated to make offers before the initial contract deadline for the tax credit last November. The data reflects contracts and not closings, which normally occur with a lag time of one or two months.
Lawrence Yun, NAR chief economist, said excellent housing affordability conditions are drawing home buyers. “It is welcoming to see a solid double-digit percentage gain, but activity needs to improve further to reach healthy, sustainable levels. The housing market clearly is in a recovery phase and will be uneven at times, but the improving job market and consequential boost to household formation will help the recovery process going into 2011,” he said.
“More importantly, a return to more normal loan underwriting standards and removal of unnecessary underwriting fees for very low risk borrowers is needed and could quickly help in the housing and economic recovery,” Yun said. Recent loan performance data from Fannie Mae and Freddie Mac clearly demonstrates very low default rates on recently originated mortgages, much lower that the vintages of 2002 and 2003 before the housing boom.
- Posted using BlogPress from my iPhone
Washington, DC, December 02, 2010
Pending home sales jumped in October, showing a positive uptrend since bottoming in June, according to the National Association of REALTORS®.
The Pending Home Sales Index,* a forward-looking indicator, rose 10.4 percent to 89.3 based on contracts signed in October from 80.9 in September. The index remains 20.5 percent below a surge to a cyclical peak of 112.4 in October 2009, which was the highest level since May 2006 when it hit 112.6.
Last October, first-time buyers were motivated to make offers before the initial contract deadline for the tax credit last November. The data reflects contracts and not closings, which normally occur with a lag time of one or two months.
Lawrence Yun, NAR chief economist, said excellent housing affordability conditions are drawing home buyers. “It is welcoming to see a solid double-digit percentage gain, but activity needs to improve further to reach healthy, sustainable levels. The housing market clearly is in a recovery phase and will be uneven at times, but the improving job market and consequential boost to household formation will help the recovery process going into 2011,” he said.
“More importantly, a return to more normal loan underwriting standards and removal of unnecessary underwriting fees for very low risk borrowers is needed and could quickly help in the housing and economic recovery,” Yun said. Recent loan performance data from Fannie Mae and Freddie Mac clearly demonstrates very low default rates on recently originated mortgages, much lower that the vintages of 2002 and 2003 before the housing boom.
- Posted using BlogPress from my iPhone
Homebuying now is a no-brainer
You might not make a ton of money, but you're unlikely to ever score a better deal.
By Ali Velshi, CNN chief business correspondent
Monday December 13, 2010: 6:26 AM
(MONEY Magazine) -- Is now the right time to invest in a house?
Trick question. Actually, it's two questions.
Question No. 1: Is now the time to buy?
Question No. 2: Is buying a house a good investment?
The first answer is easy: With a few exceptions, if you have 20% to put down and good credit, now is a great time to buy. That's been the case all year, and I'd argue that we're probably closer to the end than to the beginning of the really great time. Let me explain.
Back in January home prices had dropped 28% from their peak. More important, interest rates were at historical lows. By locking in a mortgage for 15 or 30 years on a value-priced home, you were getting an incredible deal, even if home prices decreased. (I took my advice and bought a New York City apartment.)
At the time, I thought that prices and rates were more likely to rise than fall. I was half right: Home values have been inching up since the spring, but mortgage rates, incredibly, dropped further.
By August (the latest numbers available) the median home price had risen 1% over a year ago, but 30-year rates had dropped a half-point to 4.5%. Assuming 20% down and a 30-year mortgage, the total cost of owning a median-priced home is now down $16,000 from a year ago.
Home values may waffle over the coming year, but because Americans take out such large, long mortgages, rates are what really matter. And I am more likely to grow hair than see 30-year mortgage rates drop below 4%. It's far more likely that rates (and the cost of ownership) will rise.
Now for question No. 2: Is a house a good investment?
First, it depends on what you mean by investment. If your definition is strictly about dollars returned, a house probably won't be a great use of your capital. If you bought the median-priced house today with 20% down, to recoup your total costs (and I'm not including property taxes and maintenance here) over three decades, the home's value would have to rise about 3% a year.
That's likely, but you'll almost certainly (we all hope) do much better than that in the stock market. The fact is, however, that that's the normal case for housing; the booms that began after World War II and in the late 1990s were the exceptions.
Of course, there are places where you might do better. I bought my condo in Manhattan, a small island that, by virtue of the business done on it, has a sustained demand for property. And smaller, energy-efficient housing in cities or inner suburbs around San Francisco or Chicago is likely to be in higher demand than big, outer suburban homes with long commutes to Las Vegas or Atlanta.
According to urban and environmental planning professor William Lucy of the University of Virginia, this move toward urbanization in American housing is the reversal of a trend that's been in place since 1945. Keep it in mind when making your buying decisions.
That said, the key point to remember is this: Buying a fairly priced home at today's rates may be the best deal you will ever get. And who knows? It may even turn out to be a good investment.
- Posted using BlogPress from my iPhone
Thursday, December 16, 2010
Wednesday, December 15, 2010
Thoughts on the IPad and the newspaper industry
I recently read an article pondering the long term affects of the iPad on the newspaper industry. For years we have been hearing that print media is dead; however, now with the advent of this hybrid digital print medium which has offered a new avenue to consume news we are left to wonder what the future holds for newspapers. I believe the new tablet technology and recent mass market introduction will force newspapers to once again adapt. The iPad and other tablets are exactly what newspapers need right now to continue to be a game player in our world of free, easily accessible news. In addition to news consumption, consumers are reaching to these new devices for the next big thing in real estate. Many real estate companies have begun developing apps for property searches so consumers can easily access and digest market information. The days of MLS books are long gone and computer based searches are falling quickly in line to be out dated. Tablet technology is exactly what the real estate market needs right now to efficiently guide consumers through the buying and selling process.
So what do you think: Is the iPad really the savior of the newspaper industry and how are you using your iPad to navigate the uncertain real estate waters?
— David Boehmig, president and founder, Atlanta Fine Homes Sotheby’s International Realty in Georgia
Tuesday, December 14, 2010
Five home buying myths
Good content from the Wall Street Journal:
By Iyna Bort Caruso
In the luxury real estate market, what you don’t know can undermine you. The soft market has produced waves of smarter, savvier buyers. It’s also spawned several misconceptions. How low can you go? What should you know? Here are five home-buying myths:
Myth #1: Buyers Can Name Their Price in Today’s Market
Historically low interest rates combined with low home prices make it an excellent time to buy, but some have unrealistic expectations based on global assumptions instead of local sales patterns. Many regions are bucking trends and gaining strength. Buyers who are stuck in a mindset of fire-sale prices are liable to miss out on investment opportunities. According to Vestards Rozenbergs of Baltic Sotheby’s International Realty in Riga, Latvia, when foreign buyers start searching, the most common myth is that the real estate market has collapsed and “prices should be lower than offered in reality.” However, he says, the demand for luxury homes, particularly in areas that have international “brand” recognition “is now increasing for the first time after the recession started.”
Myth #2: Wait Until the Market Hits Bottom
There is, of course, no way of ever knowing how low prices will go until they start creeping up again. Those who try to time the market often stay on the sidelines, waiting for some signal that prices have hit bottom instead of pouncing on the solid values out there. Gail Cook, of HCH Sotheby’s International Realty in Harvey Cedars, N.J., says, “Mortgage rates have never been this low in history. If you are not earning this kind of interest on your investments, why aren’t you looking into real estate where you can enjoy your investment? Make a deal that you and the seller are comfortable with and move on with it.”
Myth #3: The Internet is the Best Way to Find a Home
The Internet is a good starting point to begin a home search. But, says Cook, it is just that--a starting point. “The Internet gives buyers a shopping list of properties they can look at, but those buyers aren’t educated with the area so we have to start back at square one. ” How do you envision using the home? Are you buying for investment purposes or for personal use? Are you expecting to turn it over in a couple of years, or will it be your family home for the long term? Square footage, bedrooms, taxes and glossy images are just part of determining what kind of home is the right fit for a given lifestyle. Most buyers are savvy as far as finances go and how much they have to invest, Cook says, “but don’t have any idea of what they’re buying into. It’s an important education process we have to provide.”
Myth #4 All-Cash Transactions Drive the Luxury Home Market
A perception among buyers in the luxury home market is that transactions are often all cash and that offers by those who are financing don’t carry the same weight. Not so, says Jonathan Miller, president and CEO of Miller Samuel Real Estate Appraisers in New York. “It’s a false premise.” A buyer who comes with mortgage pre-approval, brings a substantial down payment or is flexible on closing dates will stack up well against the buyer who wants to leverage an all-cash transaction for a lower price. Terms are far more important today across all sectors but particularly in the high end market, Miller says. “The reality is that for a buyer, the terms they can provide are equally important to what the price is. These buyers are more attractive than they know.”
Myth #5: Condominium Living is Carefree Living
It is a widely held belief that condominium living is maintenance-free. While homeowners may say goodbye to snow removal and lawn care, there can be some “very bad financial consequences” when owners allow condos and homeowners associations to run themselves, says Patrick Hohman, the Louisville, Ky.-based author of “Condos, Townhomes and Home Owner Associations: How to Make Your Investment Safer.” Hohman says there have been instances of “stunning, multi-million dollar assessments within the entire complex…which meant special assessments up to several hundred thousand dollars per unit owner” in high end luxury buildings because the infrastructures started showing their ages, and there simply was not enough money in reserve for maintenance. Boards and associations that commission Reserve Studies, which entails both an engineering analysis and a financial analysis, anticipate and budget for major repairs. “When you buy into a condo, you may not have to do physical labor to maintain the property, but you still have to be alert,” Hohman says. Read quarterly newsletters, attend meetings. “Stay involved in the property. You’re trading physical labor for more mental labor. You have to be aware of what’s going on, like any investment.”
Property at top presented by Baltic Sotheby’s International Realty, property ID #4000015926. Tel: +37129129810
By Iyna Bort Caruso
In the luxury real estate market, what you don’t know can undermine you. The soft market has produced waves of smarter, savvier buyers. It’s also spawned several misconceptions. How low can you go? What should you know? Here are five home-buying myths:
Myth #1: Buyers Can Name Their Price in Today’s Market
Historically low interest rates combined with low home prices make it an excellent time to buy, but some have unrealistic expectations based on global assumptions instead of local sales patterns. Many regions are bucking trends and gaining strength. Buyers who are stuck in a mindset of fire-sale prices are liable to miss out on investment opportunities. According to Vestards Rozenbergs of Baltic Sotheby’s International Realty in Riga, Latvia, when foreign buyers start searching, the most common myth is that the real estate market has collapsed and “prices should be lower than offered in reality.” However, he says, the demand for luxury homes, particularly in areas that have international “brand” recognition “is now increasing for the first time after the recession started.”
Myth #2: Wait Until the Market Hits Bottom
There is, of course, no way of ever knowing how low prices will go until they start creeping up again. Those who try to time the market often stay on the sidelines, waiting for some signal that prices have hit bottom instead of pouncing on the solid values out there. Gail Cook, of HCH Sotheby’s International Realty in Harvey Cedars, N.J., says, “Mortgage rates have never been this low in history. If you are not earning this kind of interest on your investments, why aren’t you looking into real estate where you can enjoy your investment? Make a deal that you and the seller are comfortable with and move on with it.”
Myth #3: The Internet is the Best Way to Find a Home
The Internet is a good starting point to begin a home search. But, says Cook, it is just that--a starting point. “The Internet gives buyers a shopping list of properties they can look at, but those buyers aren’t educated with the area so we have to start back at square one. ” How do you envision using the home? Are you buying for investment purposes or for personal use? Are you expecting to turn it over in a couple of years, or will it be your family home for the long term? Square footage, bedrooms, taxes and glossy images are just part of determining what kind of home is the right fit for a given lifestyle. Most buyers are savvy as far as finances go and how much they have to invest, Cook says, “but don’t have any idea of what they’re buying into. It’s an important education process we have to provide.”
Myth #4 All-Cash Transactions Drive the Luxury Home Market
A perception among buyers in the luxury home market is that transactions are often all cash and that offers by those who are financing don’t carry the same weight. Not so, says Jonathan Miller, president and CEO of Miller Samuel Real Estate Appraisers in New York. “It’s a false premise.” A buyer who comes with mortgage pre-approval, brings a substantial down payment or is flexible on closing dates will stack up well against the buyer who wants to leverage an all-cash transaction for a lower price. Terms are far more important today across all sectors but particularly in the high end market, Miller says. “The reality is that for a buyer, the terms they can provide are equally important to what the price is. These buyers are more attractive than they know.”
Myth #5: Condominium Living is Carefree Living
It is a widely held belief that condominium living is maintenance-free. While homeowners may say goodbye to snow removal and lawn care, there can be some “very bad financial consequences” when owners allow condos and homeowners associations to run themselves, says Patrick Hohman, the Louisville, Ky.-based author of “Condos, Townhomes and Home Owner Associations: How to Make Your Investment Safer.” Hohman says there have been instances of “stunning, multi-million dollar assessments within the entire complex…which meant special assessments up to several hundred thousand dollars per unit owner” in high end luxury buildings because the infrastructures started showing their ages, and there simply was not enough money in reserve for maintenance. Boards and associations that commission Reserve Studies, which entails both an engineering analysis and a financial analysis, anticipate and budget for major repairs. “When you buy into a condo, you may not have to do physical labor to maintain the property, but you still have to be alert,” Hohman says. Read quarterly newsletters, attend meetings. “Stay involved in the property. You’re trading physical labor for more mental labor. You have to be aware of what’s going on, like any investment.”
Property at top presented by Baltic Sotheby’s International Realty, property ID #4000015926. Tel: +37129129810
Monday, December 13, 2010
Strong Rebound in Pending Home Sales
This just in from the National Association of Realtors:
Pending home sales jumped in October, showing a positive uptrend since bottoming in June, according to the National Association of REALTORS®.
The Pending Home Sales Index,* a forward-looking indicator, rose 10.4 percent to 89.3 based on contracts signed in October from 80.9 in September. The index remains 20.5 percent below a surge to a cyclical peak of 112.4 in October 2009, which was the highest level since May 2006 when it hit 112.6.
Last October, first-time buyers were motivated to make offers before the initial contract deadline for the tax credit last November. The data reflects contracts and not closings, which normally occur with a lag time of one or two months.
Lawrence Yun, NAR chief economist, said excellent housing affordability conditions are drawing home buyers. “It is welcoming to see a solid double-digit percentage gain, but activity needs to improve further to reach healthy, sustainable levels. The housing market clearly is in a recovery phase and will be uneven at times, but the improving job market and consequential boost to household formation will help the recovery process going into 2011,” he said.
“More importantly, a return to more normal loan underwriting standards and removal of unnecessary underwriting fees for very low risk borrowers is needed and could quickly help in the housing and economic recovery,” Yun said. Recent loan performance data from Fannie Mae and Freddie Mac clearly demonstrates very low default rates on recently originated mortgages, much lower that the vintages of 2002 and 2003 before the housing boom.
- Posted using BlogPress from my iPhone
Pending home sales jumped in October, showing a positive uptrend since bottoming in June, according to the National Association of REALTORS®.
The Pending Home Sales Index,* a forward-looking indicator, rose 10.4 percent to 89.3 based on contracts signed in October from 80.9 in September. The index remains 20.5 percent below a surge to a cyclical peak of 112.4 in October 2009, which was the highest level since May 2006 when it hit 112.6.
Last October, first-time buyers were motivated to make offers before the initial contract deadline for the tax credit last November. The data reflects contracts and not closings, which normally occur with a lag time of one or two months.
Lawrence Yun, NAR chief economist, said excellent housing affordability conditions are drawing home buyers. “It is welcoming to see a solid double-digit percentage gain, but activity needs to improve further to reach healthy, sustainable levels. The housing market clearly is in a recovery phase and will be uneven at times, but the improving job market and consequential boost to household formation will help the recovery process going into 2011,” he said.
“More importantly, a return to more normal loan underwriting standards and removal of unnecessary underwriting fees for very low risk borrowers is needed and could quickly help in the housing and economic recovery,” Yun said. Recent loan performance data from Fannie Mae and Freddie Mac clearly demonstrates very low default rates on recently originated mortgages, much lower that the vintages of 2002 and 2003 before the housing boom.
- Posted using BlogPress from my iPhone
Saturday, December 11, 2010
Private mortgage modifications reach 1.5 million to date, 125,000 in October
I like this story by Kerry Curry for 2 reasons:
1) People are getting help, and
2) the private sector is doing a much better job of it than the government!
Hope Now, a private sector mortgage alliance, said the mortgage industry has completed more than 1.54 million permanent loan modifications for homeowners from January through October, as foreclosure suspensions affected foreclosure sales and starts.
"There were anomalies in the October data that affected 60-day plus delinquency, as well as foreclosure, metrics which we believe may be largely attributed to widespread foreclosure delays across the country," said Faith Schwartz, executive director of Hope Now.
Several large mortgage servicers nationwide delayed foreclosures in light of the robo-signing controversy. Hope Now said foreclosure starts dropped 16% to 205,000 and sales were down more than 41% 69,000, respectively while the number of homeowners more than 60 days delinquent increased slightly to 3.4 million.
Here are the highlights:
- Proprietary loan modifications decreased by 117,000 in September compared to 101,000 in October.
- 60-plus days delinquencies increased to 3.4 million in October compared to 3.2 million in September.
- Foreclosure starts decreased from 245,000 in September to 205,000 in October.
- Completed foreclosure sales decreased from 118,000 in September to 69,000 in October.
- Loan modifications outpaced foreclosure sales in October 125,000 to 69,000.
Write to Kerry Curry.
Monday, December 6, 2010
Is social media the new 'comfort call'?
This piece made me laugh. Reminded me of my cold calling days....
December 3, 2010
By Todd Carpenter, Social Media Manager, National Association of REALTORS®
When I first started originating mortgages in the early 1990s, the refinance market was booming. Because my sales manager wanted to assure my long-term career efforts, he used to make me perform a set number of sales calls to real estate agents before I could spend time on floor duty, working those refi leads.
Cold or warm, making sales calls is hard work. Especially in-person calls. I would get stood up, thrown out of offices, asked for a bribe, or blown off on a regular basis. Even the deals that lead to good business were often demanding and stressful. But every once in a while, some agents would welcome me into the office, offer me a cup of coffee, and talk to me like I was their best friend for as long as I wanted. These “Amiable Joes,” as I call them, were fun — a welcome respite from a typical day of sales calls.
But my sales manager called them comfort calls, and told me they’re a waste of time. He was right. Amiable Joes tend to have a lot of spare time on their hands to share with you because they are not very busy closing any business of their own. They had nothing to offer other than nice words and a cup of joe. Making comfort calls isn’t as ineffective as getting the car washed or picking up the dry cleaning, but if they are the highest level of business activity you do in a day, you really didn’t work.
Most of the activity I see from real estate pros on social networks can be classified as comfort calls. Liking your friend’s funny jokes, checking in at Starbucks on foursquare, commenting about last night’s episode of The Apprentice, or reminiscing about the conference you went to six months ago with a group of fellow practitioners may be critical to your value as a member of a larger community, but don’t call it work.
December 3, 2010
By Todd Carpenter, Social Media Manager, National Association of REALTORS®
When I first started originating mortgages in the early 1990s, the refinance market was booming. Because my sales manager wanted to assure my long-term career efforts, he used to make me perform a set number of sales calls to real estate agents before I could spend time on floor duty, working those refi leads.
Cold or warm, making sales calls is hard work. Especially in-person calls. I would get stood up, thrown out of offices, asked for a bribe, or blown off on a regular basis. Even the deals that lead to good business were often demanding and stressful. But every once in a while, some agents would welcome me into the office, offer me a cup of coffee, and talk to me like I was their best friend for as long as I wanted. These “Amiable Joes,” as I call them, were fun — a welcome respite from a typical day of sales calls.
But my sales manager called them comfort calls, and told me they’re a waste of time. He was right. Amiable Joes tend to have a lot of spare time on their hands to share with you because they are not very busy closing any business of their own. They had nothing to offer other than nice words and a cup of joe. Making comfort calls isn’t as ineffective as getting the car washed or picking up the dry cleaning, but if they are the highest level of business activity you do in a day, you really didn’t work.
Most of the activity I see from real estate pros on social networks can be classified as comfort calls. Liking your friend’s funny jokes, checking in at Starbucks on foursquare, commenting about last night’s episode of The Apprentice, or reminiscing about the conference you went to six months ago with a group of fellow practitioners may be critical to your value as a member of a larger community, but don’t call it work.
Sunday, December 5, 2010
December Nights
December Nights festival in Balboa Park kicks off
SAN DIEGO, Calif (CBS 8)—There is plenty of music, entertainment and holiday cheer in Balboa Park this weekend, as the 33rd annual December Nights festival kicks off.
- Posted using BlogPress from my iPhone
SAN DIEGO, Calif (CBS 8)—There is plenty of music, entertainment and holiday cheer in Balboa Park this weekend, as the 33rd annual December Nights festival kicks off.
- Posted using BlogPress from my iPhone
Open house sunday!
Visit out website to see what homes we're holding open today...Coronado, Point Loma, Ocean Beach, Mission Hills, La Mesa, and Alpine.
PacificSothebysRealty.com
- Posted using BlogPress from my iPhone
PacificSothebysRealty.com
- Posted using BlogPress from my iPhone
Housing rebound
Strong Rebound in Pending Home Sales
Washington, DC, December 02, 2010
Pending home sales jumped in October, showing a positive uptrend since bottoming in June, according to the National Association of REALTORS®.
The Pending Home Sales Index, a forward-looking indicator, rose 10.4 percent to 89.3 based on contracts signed in October from 80.9 in September. The index remains 20.5 percent below a surge to a cyclical peak of 112.4 in October 2009, which was the highest level since May 2006 when it hit 112.6.
- Posted using BlogPress from my iPhone
Washington, DC, December 02, 2010
Pending home sales jumped in October, showing a positive uptrend since bottoming in June, according to the National Association of REALTORS®.
The Pending Home Sales Index, a forward-looking indicator, rose 10.4 percent to 89.3 based on contracts signed in October from 80.9 in September. The index remains 20.5 percent below a surge to a cyclical peak of 112.4 in October 2009, which was the highest level since May 2006 when it hit 112.6.
- Posted using BlogPress from my iPhone
Saturday, December 4, 2010
The recession is over
This Recession Is O-vah!: ‘Zombie Bears’ Edition
November 24, 2010 by Brian Summerfield · 5 Comments
Filed under: Economics
By Brian Summerfield, Online Editor, REALTOR® Magazine
The latest in a crowd of pronouncements that the recession is officially behind us comes from economic analyst Barry Ritholtz, whose book I reviewed a while ago. Ritholtz, one of the most bearish commentators during the downturn, believes that the economy has finally turned a corner (hooray!), but adds that “zombie bears” who have staked their reputations on the idea that we’re stuck in the doldrums won’t acknowledge it.
Now, calling the end of the recession isn’t exactly a new trend. (In fact, I wrote about it more than a year ago.) But Ritholtz may well be right. I, for one, hope he is. And the chorus he’s joining seems to have gotten much louder in the past few months. (If they’re correct, though, why the need for QE2?)
Here’s the thing, however: Even if they are right, Ritholtz and other economists are speaking about the recession in a very narrow, literal sense. When they say it’s over, what they referring to is a return to a sustained period of growth at the macroeconomic level. They aren’t arguing that economic normalcy for consumers is just a few weeks or months ahead, or that we’ll return to full employment soon, or that housing values will shortly ratchet back up to 2005 levels. Most importantly, it doesn’t mean that continued recovery is a sure thing.
What it could mean, though, is that financial institutions, feeling more secure, will start to lend again. Businesses of all sizes could slowly but surely begin hiring again. And consumers who rightfully put the brakes on spending and began saving at a rate not seen in more than a decade may begin to put some of their accumulated capital toward a home purchase.
In short, it might signify that after searching for a floor during these past couple of years, the economy is finally starting to move in the right direction. That’s something we could all be thankful for.
Editor’s Note: Because of the holiday, there will be no Daily News on Thursday or Friday. Happy Thanksgiving from REALTOR® Magazine!
- Posted using BlogPress from my iPhone
November 24, 2010 by Brian Summerfield · 5 Comments
Filed under: Economics
By Brian Summerfield, Online Editor, REALTOR® Magazine
The latest in a crowd of pronouncements that the recession is officially behind us comes from economic analyst Barry Ritholtz, whose book I reviewed a while ago. Ritholtz, one of the most bearish commentators during the downturn, believes that the economy has finally turned a corner (hooray!), but adds that “zombie bears” who have staked their reputations on the idea that we’re stuck in the doldrums won’t acknowledge it.
Now, calling the end of the recession isn’t exactly a new trend. (In fact, I wrote about it more than a year ago.) But Ritholtz may well be right. I, for one, hope he is. And the chorus he’s joining seems to have gotten much louder in the past few months. (If they’re correct, though, why the need for QE2?)
Here’s the thing, however: Even if they are right, Ritholtz and other economists are speaking about the recession in a very narrow, literal sense. When they say it’s over, what they referring to is a return to a sustained period of growth at the macroeconomic level. They aren’t arguing that economic normalcy for consumers is just a few weeks or months ahead, or that we’ll return to full employment soon, or that housing values will shortly ratchet back up to 2005 levels. Most importantly, it doesn’t mean that continued recovery is a sure thing.
What it could mean, though, is that financial institutions, feeling more secure, will start to lend again. Businesses of all sizes could slowly but surely begin hiring again. And consumers who rightfully put the brakes on spending and began saving at a rate not seen in more than a decade may begin to put some of their accumulated capital toward a home purchase.
In short, it might signify that after searching for a floor during these past couple of years, the economy is finally starting to move in the right direction. That’s something we could all be thankful for.
Editor’s Note: Because of the holiday, there will be no Daily News on Thursday or Friday. Happy Thanksgiving from REALTOR® Magazine!
- Posted using BlogPress from my iPhone
Location:Nichols St,San Diego,United States
News From the Updesk...: Jane Loveday -- San Diego Real Estate Blog
News From the Updesk...: Jane Loveday -- San Diego Real Estate Blog: "A Crazy Day in the Life of this Realtor!One house I visited recently had nothing, no cabinets, no bathtubs, no toilets, nothing! But some da..."
Open House This Weekend!
| San Diego, CA | |||||||
| 3BR/2BA Single Family | |||||||
| $749,000 | |||||||
| |||||||
| |||||||
Open House This Weekend
| Open House Saturday and Sunday 1-4PM San Diego, CA | |||||||
| 4BR/2BA Single Family | |||||||
| $659,000 | |||||||
| |||||||
| |||||||
FIRST TIME OPEN!
| Open House Saturday, 1-4PM and Sunday, 12-4PM San Diego, CA | |||||||
| 4BR/3BA Single Family | |||||||
| $875,000 | |||||||
| |||||||
| |||||||
Open House Today 2-4PM
| La Jolla, CA | |||||||
| 3BR/3BA Condo | |||||||
| $647,000 | |||||||
| |||||||
| |||||||
Wednesday, December 1, 2010
Jane Loveday -- San Diego Real Estate Blog
A Crazy Day in the Life of this Realtor!
One house I visited recently had nothing, no cabinets, no bathtubs, no toilets, nothing! But some days are just golden, take my latest clients, we went out looking on their first day, they found a cute little house, backing up onto a park, in what seemed a quiet residential neighborhood. We submitted an offer which was accepted 3 days later and we then went and had our property inspection done. All seemed very good and right in the world. Until…
Right after the property inspection we were taking some measurements when we were visited by three very large members of the local Police Gang Control Unit, asking if they could enter the property to search for a weapon that had been used in a drive-by homicide the night before. It was a first for me, and definitely a first for my first-time homebuyers who were devastated to hear this news. The crime had taken place in the park behind and although no evidence of any weapon showed up, my buyers knew immediately they did not want to proceed with their purchase.
We are still looking, all is good now, but you just never know, we really do earn our money out there in this crazy world, our days are never, ever the same, we learn to expect the unexpected, to go with the flow, and to keep our thoughts and chins up.
Crazy is usual sometimes, as is frustrating, exciting, amazing, satisfying and much more! Our days are always an adventure, we have properties to preview, sellers to contact, buyers to organize, ads to place, appointments with sellers to make, schedules to arrange, and always, properties to navigate.
You can always keep up with me at http://www.facebook.com/realestatesandiego andhttp://www.twitter/com/sdrealestate
Right after the property inspection we were taking some measurements when we were visited by three very large members of the local Police Gang Control Unit, asking if they could enter the property to search for a weapon that had been used in a drive-by homicide the night before. It was a first for me, and definitely a first for my first-time homebuyers who were devastated to hear this news. The crime had taken place in the park behind and although no evidence of any weapon showed up, my buyers knew immediately they did not want to proceed with their purchase.
We are still looking, all is good now, but you just never know, we really do earn our money out there in this crazy world, our days are never, ever the same, we learn to expect the unexpected, to go with the flow, and to keep our thoughts and chins up.
Crazy is usual sometimes, as is frustrating, exciting, amazing, satisfying and much more! Our days are always an adventure, we have properties to preview, sellers to contact, buyers to organize, ads to place, appointments with sellers to make, schedules to arrange, and always, properties to navigate.
You can always keep up with me at http://www.facebook.com/realestatesandiego andhttp://www.twitter/com/sdrealestate
Fannie, Freddie Spar With Regulators on Foreclosures
Fannie, Freddie Spar With Regulators on Foreclosures
By - Dec 1, 2010 7:59 AM PT
Acting Comptroller of the Currency John Walsh said that his agency is directing national bank servicers to suspend foreclosures for borrowers actively seeking to qualify for loan modifications. Photographer: Joshua Roberts/Bloomberg
Federal banking regulators said they are pushing lenders to suspend foreclosure proceedings while distressed borrowers seek new mortgages.
Acting Comptroller of the Currency John Walsh said in testimony prepared for a congressional hearing today that his agency is directing national bank servicers to suspend foreclosures for borrowers actively seeking to qualify for loan modifications.
Dual-track processing, where lenders pursue foreclosures at the same time as borrowers seek new loans, is “unnecessarily confusing for distressed homeowners,” Walsh said.
The Senate Banking Committee is holding its second hearing on foreclosures as lawmakers question bank regulators about what actions they have taken to ensure that home seizures are fair and legal.
Executives from government-owned mortgage companies Fannie Mae and Freddie Mac insisted that it was better for both borrowers and lenders if foreclosure proceedings are not suspended.Freddie Mac Executive Vice President Donald Bisenius said that the dual-track process minimizes losses, protects communities from blight and ultimately helps borrowers.
Process Shouldn’t ‘Drag On’
“It is not in the borrower’s interest for the process to drag on indefinitely,” Bisenius said in his prepared testimony. “The longer the borrower’s delinquency goes uncured, the farther behind he or she gets and the harder it becomes to bring the loan current.”
Federal Deposit Insurance Corp. chairman Sheila Bair took the opposite position, saying that the dual-track process could increase unnecessary foreclosures.
“It is vitally important that the modification process be brought to conclusion before a foreclosure sale is scheduled,” Bair said in prepared testimony. “Failure to coordinate the foreclosure process with the modification process risks confusing and frustrating homeowners and could result in unnecessary foreclosures.”
Ally Financial Inc.’s GMAC Mortgage unit, JPMorgan Chase & Co. and Bank of America Corp. temporarily halted foreclosures in September after claims that legal documents were mishandled.
State attorneys general and federal regulators are investigating mortgage companies after revelations that some relied on so-called “robo-signers,” or people who sign affidavits without actually reviewing the facts underlying foreclosures.
Weaknesses in Servicing
The Federal Reserve’s preliminary review suggests “significant weaknesses” in loan servicing and foreclosures, Fed Governor Daniel K. Tarullo said in prepared testimony.
“The problems are sufficiently widespread that they suggest structural problems in the mortgage servicing industry,” Tarullo said. “It has now become evident that significant parts of the servicing industry also failed to handle foreclosures properly.”
Attorneys general, consumer advocates and congressional lawmakers have said that delinquent homeowners seeking to renegotiate their mortgages through government- or bank- sponsored programs such as the Home Affordable Modification Program are often surprised and confused to discover that their foreclosures haven’t been suspended.
Freddie Mac, Fannie Mae and other purchasers of home loans, including the Association of Mortgage Investors, said the dual- track system balances the interests of everyone involved.
Delay is ‘Counterproductive’
“While we believe that borrowers who already are under significant stress arising from their financial situations should not be subjected to needless confusion, we also believe that unnecessary delays in an already lengthy foreclosure process would be counterproductive,” Bisenius said.
His comments were echoed by Terry Edwards, executive vice president at Fannie Mae. The two mortgage companies are controlled by the U.S. government and have been surviving on taxpayer aid since 2008.
“The longer the process takes, and the further in arrears the borrower becomes, the less likely it is that the borrower will succeed with a modification and the greater potential there is for loss to Fannie Mae and the U.S. taxpayer,” Edwards said in prepared testimony.
The average foreclosure takes 449 days, Bisenius said, providing sufficient time to explore alternatives. The company and its servicers suspend foreclosures when a loan workout, short sale or other option becomes viable, he said.
Freddie Mac of McLean, Virginia, and its Washington-based rival Fannie Mae purchased or guaranteed 70 percent of new mortgages in the third quarter.
The U.S. Treasury Department took control of the two companies in 2008 after losses on subprime loans pushed them to the brink of collapse. Since then they have drawn more than $150 billion in aid to remain solvent.
To contact the reporter on this story: Lorraine Woellert in Washington atlwoellert@bloomberg.net.
To contact the editor responsible for this story: Lawrence Roberts at lroberts13@bloomberg.net.
Subscribe to:
Posts (Atom)