Recent Articles
Sep 12, 2009 | No Comments | Sean Mills
by CalculatedRisk on 9/12/2009 08:38:00 AM
Just using Sacramento as an example …
Click on graph for larger image in new window.
The Sacramento Association of REALTORS® is now breaking out monthly resales by equity sales (normal resales), and distressed sales (Short sales and REO sales). Here is the August data.
They started breaking out REO sales [...]
by CalculatedRisk on 9/12/2009 08:38:00 AM
Just using Sacramento as an example …
Click on graph for larger image in new window.
The Sacramento Association of REALTORS® is now breaking out monthly resales by equity sales (normal resales), and distressed sales (Short sales and REO sales). Here is the August data.
They started breaking out REO sales last year, but this is only the third monthly report with short sales. Almost two thirds of all resales (single family homes and condos) were distressed sales in August.
Total sales in August were off 10% compared to August 2008; the third month in a row with declining YoY sales.
On financing, over half the sales were either all cash (24.7%) or FHA loans (26.9%), suggesting most of the activity in distressed buying prescription drugs online bubble areas like Sacramento is first-time home buyers using government-insured FHA loans (and taking advantage of the tax credits), and investors paying cash.
Sep 9, 2009 | No Comments | Sean Mills
New York Times article highlights the pain which is still on the horizon for real estate and the economy. Worth the time just to skim this.-Sean
Edward and Maria Moller are worried about losing their house — not now, but in 2013.
The New York Times
Edward and Maria Moller and their son, Isaac, at their [...]
New York Times article highlights the pain which is still on the horizon for real estate and the economy. Worth the time just to skim this.-Sean
Edward and Maria Moller are worried about losing their house — not now, but in 2013.
Edward and Maria Moller and their son, Isaac, at their La Mesa, Calif., home, which was financed with an interest-only loan.
That is when the suburban San Diego schoolteachers will see their mortgage payments jump, most likely beyond their ability to pay.
Like millions of buyers during the boom, the Mollers leveraged their way into a house they could not otherwise afford by taking out a loan that required them to make only interest payments at first, putting off payments on the principal for several years.
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Sep 8, 2009 | No Comments | Sean Mills
Globe Street Article.
PHOENIX-Not too long ago, the typical real estate investor was highly speculative, buying a portfolio, holding onto it for a short time until the asset doubled or tripled in value, then selling it. However, experts tell GlobeSt.com that, in the wake of the 2008 economic crisis, the real estate owner of the future [...]
Globe Street Article.
PHOENIX-Not too long ago, the typical real estate investor was highly speculative, buying a portfolio, holding onto it for a short time until the asset doubled or tripled in value, then selling it. However, experts tell GlobeSt.com that, in the wake of the 2008 economic crisis, the real estate owner of the future will undergo a seismic shift from the buy-and-flip investor one that is knowledgeable about real estate and will stay with an asset for the long haul.
But between the past and future is the present. And in the present and near-term future, between the next 12 to 18 months, the buy drugs online landlords will be banks and special servicers. “In the interim, we’ll see the banking community or servicing community getting hold of a lot of these assets because of foreclosures,” explains Chris Toci with Cushman & Wakefield of Arizona Inc. Those interim owners, he goes on to say, will struggle in their unwilling roles as landlords, until they get an idea of what the asset might be worth.
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Sep 8, 2009 | No Comments | Sean Mills
Compliments of The Economist.com
Most new borrowing during America’s housing boom was for spending
HOW big an influence on spending is housing wealth? Hopes for a consumer revival in countries where house prices have slumped rest, in part, on the answer. A purist view is that the value of homes has no “wealth effect” on consumption. An [...]
Compliments of The Economist.com
HOW big an influence on spending is housing wealth? Hopes for a consumer revival in countries where house prices have slumped rest, in part, on the answer. A purist view is that the value of homes has no “wealth effect” on consumption. An increase in house prices only raises the future cost of shelter. Those about to trade down or sell out receive a windfall, but first-time buyers and those hoping to buy a bigger home are worse off. The overall effect on wealth is a wash. But even if that is correct, house-price increases may still have an impact as they create housing collateral for consumers who could not otherwise borrow. A study* by Atif Mian and Amir Sufi of the University of Chicago’s Booth School of Business pins down the size of this effect, using the credit records of almost 70,000 American borrowers.
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Sep 8, 2009 | Comments Off | Sean Mills
Funny timing for the statistics to be released just in time for labor day and the long weekend. I was doing the unmentionable this last weekend and stopped by a local fast food restaurant to address the immediate needs of my 4 an 7 year old, please don’t tell their mom…I noted to myself that [...]
Funny timing for the statistics to be released just in time for labor day and the long weekend. I was doing the unmentionable this last weekend and stopped by a local fast food restaurant to address the immediate needs of my 4 an 7 year old, please don’t tell their mom…I noted to myself that the attendant at the drive up was not very good, she had to stop me repeattedly as I was going too fast and needless to say I repeated my order a good half dozen times before we were done at the speaker. As I drove up to the window I noticed the attendant was a caucassian women in her fortiesand running around like a chicken with her head cut off. Not to say I go to Der Weinershnitzel often but I do go enough to know she was out of her element and not the norm in the fast food industry. My experience in the last 6 months is this is more and more normal. People who would not have taken a job at this level are now shucking and jiving to make ends meet. The guy now flipping the sign advertising “Hawaiin Pork lunch specials” is probably your realtor, mortgage broker or support staff for one of the major players in this last economic meltdown. Enough of my crazed rantings on the economy in whole Mish scores another one with this insightful report on the current employment numbers. It is also nice to see the reference to the ture umeployment numbers, U6, in this article -Sean
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Sep 1, 2009 | No Comments | Sean Mills
Mish’s source article.
CNBC: What Banks are doing with Foreclosures
by CalculatedRisk on 8/31/2009 05:01:00 PM
Diana Olick at CNBC has some BofA info: What Banks Are Really Doing With Foreclosures
Bank of America:
Foreclosure sales have been abnormally low since we learned of the pending implementation of the administration’s Making Home Affordable program. From that point, we delayed the [...]
Mish’s source article.
by CalculatedRisk on 8/31/2009 05:01:00 PM
Diana Olick at CNBC has some BofA info: What Banks Are Really Doing With Foreclosures
Bank of America:
Foreclosure sales have been abnormally low since we learned of the pending implementation of the administration’s Making Home Affordable program. From that point, we delayed the initiation of foreclosure proceedings and sales for customers that may eligible for a loan modification under MHA. As a result of this policy, our foreclosure sales in recent months have been as little as half the normal pace we experienced before.
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Aug 20, 2009 | No Comments | Sean Mills
Good news for apartment owners and investors willing to pick up the mess from the housing meltdown. The new world order is of Americans not as homeowners but as renter. -Sean
The New American Dream: Renting
It’s time to accept that home ownership is not a realistic goal for many people and to curtail the enormous government [...]
Good news for apartment owners and investors willing to pick up the mess from the housing meltdown. The new world order is of Americans not as homeowners but as renter. -Sean
The New American Dream: Renting
It’s time to accept that home ownership is not a realistic goal for many people and to curtail the enormous government programs fueling this ambition. By Thomas J. Sugrue
‘A man is not a whole and complete man,” wrote Walt Whitman, “unless he owns a house and the ground it stands on.” America’s lesser bards sang of “my old Kentucky Home” and “Home Sweet Home,” leading no less than that great critic Herbert Hoover to declaim that their ballads “were not written about tenements or apartments…they never sing about a pile of rent receipts.” To own a home is to be American. To rent is to be something less.
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Aug 20, 2009 | No Comments | Sean Mills
This is the latest press release from the MBA on the nationwide epidemic of foreclosures it doesn’t feel like we are going to have any green sprouts for some time to come. -Sean
WASHINGTON, D.C. (August 20, 2009) — The delinquency rate for mortgage loans on one-to-four-unit residential properties rose to a seasonally adjusted rate of [...]
This is the latest press release from the MBA on the nationwide epidemic of foreclosures it doesn’t feel like we are going to have any green sprouts for some time to come. -Sean
WASHINGTON, D.C. (August 20, 2009) — The delinquency rate for mortgage loans on one-to-four-unit residential properties rose to a seasonally adjusted rate of 9.24 percent of all loans outstanding as of the end of the second quarter of 2009, up 12 basis points from the first quarter of 2009, and up 283 basis points from one year ago, according to the Mortgage Bankers Association’s (MBA) National Delinquency Survey. The non-seasonally adjusted delinquency rate increased 64 basis points from 8.22 percent in the first quarter of 2009 to 8.86 percent this quarter.
Top Line Results
The delinquency rate breaks the record set last quarter. The records are based on MBA data dating back to 1972.
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