· Larchmont Chronicle [Official Site, no direct link]
· Highland River of Green [Curbed LA]
Wednesday, November 10, 2010
Hancock Park Medians to Be Less Reprehensible
Tuesday, September 21, 2010
Chocolate co. marketer picks Greater Mid-Wilshire/Hancock Park
Rian K. Long and Marcie M. Zera bought a four-bedroom, three-bath home at 457 N. Mansfield Ave. in Greater Mid-Wilshire/Hancock Park from Richard W. Howell for $1,327,500 on Aug. 3.
The 2,932-square-foot house was built in 1926.
Long has been the direct marketing manager of See's Candies, a chocolate company in U.S. He previously served as senior product manager at Pictage, Inc. and senior planning & logistics analyst at Provide Commerce.
He also held various analyst positions at Provide Commerce such as senior marketing retention analyst, marketing retention analyst at and marketing acquisition analyst. In addition to that, she worked as sales coordinator at L-3 Communications and database management engineer (Intern) at Freightliner.
He attended Carnegie Mellon University-Pittsburgh.
According to BlockShopper.com, there have been 467 home sales in Greater Mid-Wilshire/Hancock Park during the past 12 months, with a median sales price of $600,000.
The 2,932-square-foot house was built in 1926.
Long has been the direct marketing manager of See's Candies, a chocolate company in U.S. He previously served as senior product manager at Pictage, Inc. and senior planning & logistics analyst at Provide Commerce.
He also held various analyst positions at Provide Commerce such as senior marketing retention analyst, marketing retention analyst at and marketing acquisition analyst. In addition to that, she worked as sales coordinator at L-3 Communications and database management engineer (Intern) at Freightliner.
He attended Carnegie Mellon University-Pittsburgh.
According to BlockShopper.com, there have been 467 home sales in Greater Mid-Wilshire/Hancock Park during the past 12 months, with a median sales price of $600,000.
Friday, September 17, 2010
Walt Disney SVP buys Greater Mid-Wilshire/Hancock Park 3BD
Phillip Todd Gertschen and Vincent Klaseus bought a three-bedroom, one-bath home at 564 Wilcox Ave. in Greater Mid-Wilshire/Hancock Park from Katherine Lee Buckland for $1.945 million on August 5.
The 2,676-square-foot house was built in 1925.
Klaseus is the senior vice president of Global Toys at Disney Consumer Products. He held different positions in the company such as senior vice president of Global Franchise Management and Synergy Marketing, and vice president and general manager of Film Franchise Marketing. He also worked for five years with Mattel Toys.
He holds a B.S. in marketing from the University of Minnesota and an M.B.A. from American Graduate School of International Management.
According to Blockshopper.com, there have been 467 home sales in Greater Mid-Wilshire/Hancock Park during the past 12 months, with a median sales price of $600,000.
The 2,676-square-foot house was built in 1925.
Klaseus is the senior vice president of Global Toys at Disney Consumer Products. He held different positions in the company such as senior vice president of Global Franchise Management and Synergy Marketing, and vice president and general manager of Film Franchise Marketing. He also worked for five years with Mattel Toys.
He holds a B.S. in marketing from the University of Minnesota and an M.B.A. from American Graduate School of International Management.
According to Blockshopper.com, there have been 467 home sales in Greater Mid-Wilshire/Hancock Park during the past 12 months, with a median sales price of $600,000.
Monday, September 13, 2010
Radio host, actress list Greater Mid-Wilshire/Hancock Park 7BD
Frank and Bobbie Bresee have listed for sale a seven-bedroom, 6.5-bath home at 501 S. Hudson Ave. in Greater Mid-Wilshire/Hancock Park for $4.3 million.
Shar Penfold of Coldwell Banker Residential Brokerage is the listing agent for the property. The 8,882-square-foot house was built in 1930.
Mr. Bresee an American radio actor and radio historian, is heard on the Yesterday USA Internet Radio Station. He hosted the radio program "Golden Days of Radio" on the Armed Forces Radio and Television Service for over 25 years. He played Little Beaver on the old time radio show "Red Ryder" and had appeared on many other old time radio shows.
Ms. Bresee is an actress who has appeared in horror films like Mausoleum, Surf Nazis Must Die, Ghoulies and Evil Spawn. She also appeared on TV shows, such as "Charlie's Angels," "B.J. and the Bear," "The Love Boat," "Simon & Simon" and "The Fall Guy." Prior to her acting career, she was a music teacher and one-time Playboy Bunny.
Mr. Bresee owns a three-bedroom, four-bath home at 8282 Hollywood Blvd. in Hollywood.
According to BlockShopper.com, there have been 418 home sales in Greater Mid-Wilshire/Hancock Park during the past 12 months, with a median sale price of $602,500.
Thursday, July 22, 2010
Fannie Mae gets tough on 'strategic' mortgage defaults
By Stephanie Armour, USA TODAY
Borrowers who walk away from mortgages they can afford to pay — making "strategic defaults" — are running increasing risks that they'll be penalized for doing so.
Starting in October, Fannie Mae says, strategic defaulters will be disqualified for new Fannie Mae-backed loans for seven years after their foreclosures. Fannie also says it will go to court where it can to recoup outstanding mortgage debt from borrowers who strategically default.
Under a bill that's passed the House and awaits Senate action, the Federal Housing Administration would be barred from insuring mortgages for those who previously ditched a mortgage they had the ability to pay.
ECONOMY: Comparisons to the Great Depression keep popping up
Get-tough policies are forming at the same time that about a quarter of mortgage borrowers owe more than their homes are worth.
Fannie Mae buys about 40% of all mortgages and packages them for resale to investors. The FHA insures about 30% of home mortgages.
Freddie Mac, which also buys mortgages, says it is examining Fannie Mae's policy.
To determine if a borrower is in default, Fannie examines whether the homeowner still has access to credit and is paying that debt and others.
Cracking down on strategic defaulters is controversial. Some lenders say it is necessary to stem the tide of homeowners shirking their obligations.
"We need to start treating bad behavior with serious and measureable consequences so that we can get this nation back on its feet," says Daniel Smith, vice president of mortgage banking at First Place Bank in Livonia, Mich. "Washington needs to come up with a uniform law on this issue."
Others say homeowners who may appear guilty of strategically defaulting really can't afford to make mortgage payments.
"It seems like an overreaction," says Howard Banker, a founder of Fair Mortgage Collaborative, a consumer education non-profit in New York. "If you do default, it goes into foreclosure, and that's already very damaging to your credit."
Other policies may be more effective than penalizing strategic defaulters, says Mark Zandi, chief economist of Moody's Analytics. Changing bankruptcy laws to allow bankruptcy judges to reduce debtors' mortgages is an example, he says.
"I'm not a big fan of using the stick to get people to stay in their homes. There are instances where it makes no financial sense for them to stay in their homes," Zandi says. "And how do you know, really, if someone is strategically defaulting?"
Two out of five homeowners say they would consider walking away from their mortgages if their homes were worth less than what they owed, according to a survey by Trulia and RealtyTrac.
source: http://www.usatoday.com
Wednesday, July 21, 2010
U.S. trying to recoup some Fannie, Freddie losses
By Alan Zibel, AP Real Estate Writer
WASHINGTON — A federal regulator is taking steps that could lead to the recovery of some losses sustained by mortgage giants Fannie Mae and Freddie Mac.
The Federal Housing Finance Agency said Monday it is looking to get back money that the two government-controlled companies have lost on mortgage securities packaged and sold by Wall Street firms.
During the housing market's boom years, the two government-sponsored companies snapped up those securities, which contained some of the riskier loans made during the housing boom years. But they declined dramatically in value after the market went bust.
The regulatory agency said it has issued 64 subpoenas seeking loan files and other documents to determine whether the sellers of those securities made any false statements or omissions. Fannie and Freddie had tried to do so themselves but have faced resistance in getting the loan documents, said the agency, which was given subpoena power two years ago.
The agency said in a statement that it is "prepared to take appropriate action to ensure compliance, if necessary." Any money recovered by the government would offset losses at Fannie and Freddie, which have cost taxpayers $145 billion so far.
Many analysts agree that Fannie and Freddie fed the boom in shady mortgage lending by snapping up billions in dubious mortgage investments and by lowering standards for the mortgages they guaranteed.
"It's a shame Fannie and Freddie didn't ask these questions themselves when they were buying these securities in the first place," said Howard Glaser, a Washington mortgage industry consultant who formerly had both companies as clients. "The truth is that they never really wanted to dig too deep into true nature of the loans they were buying."
But the government's ability to recover money will depend on whether the mortgage companies that made the loans are still operating, said Scott Buchta, chief mortgage strategist with Braver Stern Securities. Many of the lenders who made the worst-performing loans have gone out of business.
"It's going to be a long process," Buchta said.
Fannie and Freddie currently hold about $255 billion of these mortgage-backed investments, known as "private label" securities. They amount to less than 5% of the $5.5 trillion in mortgage securities the companies own or guarantee and are separate from those issued by Fannie Mae and Freddie Mac themselves.
Fannie and Freddie have also been trying to recover money on their own securities by forcing lenders to buy loans that have gone into default.
source:http://www.usatoday.com
Foreclosure could claim more than 1 million homes in 2010
By Alex Veiga, AP Real Estate Writer
LOS ANGELES — More than 1 million U.S. households could lose their homes to foreclosure this year, as lenders work their way through a huge backlog of borrowers who have fallen behind on their loans, according to RealtyTrac, a foreclosure tracking service.
Nearly 528,000 homes were taken over by lenders in the first six months of the year, a rate that is on track to eclipse the more than 900,000 homes repossessed in 2009, RealtyTrac says.
"That would be unprecedented," said Rick Sharga, a senior vice president at RealtyTrac.
Historically, lenders have taken over about 100,000 homes a year, Sharga said.
The surge in home repossessions reflects the dynamic of a foreclosure crisis that has shown signs of leveling off in recent months, but remains a crippling drag on the housing market.
The pace of new properties entering foreclosure slowed as banks let delinquent borrowers stay longer in their homes rather than adding to the glut of foreclosed properties on the market. But at the same time, lenders have stepped up repossessions to clear out the backlog of distressed inventory on their books.
The number of households facing foreclosure in the first half of the year climbed 8% vs. the period last year, but dropped 5% from the last six months of 2009, according to RealtyTrac, which tracks notices for defaults, scheduled home auctions and home repossessions.
In all, about 1.7 million homeowners received a foreclosure-related warning between January and June. That translates to one in 78 U.S. homes.
Foreclosure notices declined in April, May and June, but Sharga cautions not to read too much into that.
"The banks are really sort of controlling or managing the dial on how fast these things get processed so they can ultimately manage the inventory of distressed assets on the market," he said.
On average, it takes about 15 months for a home loan to go from being 30 days late to the property being foreclosed and sold, according to Lender Processing Services, which tracks mortgages.
Assuming the U.S. economy doesn't worsen, aggravating the foreclosure crisis, Sharga projects it will take lenders through 2013 to resolve the backlog of distressed properties they have on their books now.
And a new wave of foreclosures could be coming in the second half of the year, especially if the unemployment rate remains high, mortgage-assistance programs fail, and the economy doesn't improve fast enough to lift home sales.
The prospect of lenders taking over more than a million homes this year is likely to push housing values down, experts say.
Foreclosed homes are typically sold at steep discounts, lowering the value of surrounding properties.
"The downward pressure from foreclosures will persist and prices will be very weak well into 2012," said Celia Chen, senior director of Moody's Economy.com.
She projects home prices will fall as much as 6% the next 12 months from where they were in the first quarter.
Economic woes, such as unemployment or reduced income, continue to be the main catalysts for foreclosures this year. Initially, lax lending standards were the culprit. Now, homeowners with good credit who took out conventional, fixed-rate loans are the fastest growing group of foreclosures.
There are more than 7.3 million home loans in some stage of delinquency, according to Lender Processing Services.
Lenders are offering to help some homeowners modify their loans. But many borrowers can't qualify or they are falling back into default. The Obama administration's $75 billion foreclosure prevention effort has made only a small dent in the problem.
More than a third of the 1.2 million borrowers who have enrolled in the government's mortgage modification program have dropped out. That compares with about 27% who have received permanent loan modifications and are making payments on time.
Among states, Nevada posted the highest foreclosure rate in the first half of the year. One in 17 households there received a foreclosure notice. However, foreclosures there are down 6% from a year earlier.
Arizona, Florida, California and Utah were next among states with the highest foreclosure rates. Rounding out the top 10 were Georgia, Michigan, Idaho, Illinois and Colorado.
Source: http://www.usatoday.com
Thursday, July 15, 2010
HISTORY OF ROSSMORE AVENUE
Ida Hancock Ross named Rossmore Avenue, the western border of the Hancock Park residential area, in honor of her second husband, Judge Erskine Mayo Ross. The couple was married in 1909, a merger of an oil multimillionairess and an esteemed California judge.
She was the widow of Major Henry Hancock who had purchased claim to the title of the Rancho La Brea property in 1863. He died in 1883, leaving Ida with two sons, Allan and Bertram. She lived in a small house adjacent to the tar pits, deriving a meager income from the asphalt.
When oil was discovered on the property, Ida and her son G. Allan Hancock granted a 20-year lease to the Salt Lake Oil Company for 1,000 acres of Rancho La Brea. Between 1901 and 1915, 350 wells had been drilled on the property.
With her newfound riches, Ida took trips to Europe where she purchased antiques to furnish the mansion she was building at Vermont Ave. and Wilshire Blvd. Modeled after the Villa Medici in Florence, the mansion’s music room was the scene of concerts and recitals.
Her husband, Judge Erskine M. Ross, had served as a Confederate officer in the Civil War. He came to Los Angeles in the mid-1800s, and joined the law office of his uncle, Cameron E. Thom, a former state senator who would later serve as mayor of Los Angeles.
In 1888, Ross was elected to the Supreme Court of California, and later was nominated to a newly created position on the United States District Court for the Southern District of California by President Grover Cleveland. One of Glendale’s earliest founding fathers, he developed a section of Glendale which he named Rossmoyne.
Ida Ross died in 1913, and her husband died in 1928.
Rossmore begins at Wilshire Blvd. and ends at Melrose Ave., where it is named Vine St.
Jackson Barnett, a wealthy eccentric oilman form Oklahoma, lived in a mansion at the northeast corner of Rossmore and Wilshire, in the 1930s. He lived to direct traffic on the busy boulevard, some say as a hobby.
MARLBOROUGH SCHOOL, equestrian club circa 1916.
The address of Marlborough School since 1916 when it moved from downtown Los Angeles to the northeast corner of Third St. and Rossmore, the street has been home to well known residents.
EL ROYALE has been home to numerous celebrities.
The El Royale apartments have been home to Huell Howser, Nicholas Cage, Cameron Diaz and, at the Ravenswood apartments, Mae West. An apartment at The Mauritania was home for a few weeks to President John F. Kennedy during the 1960 Democratic Convention in Los Angeles.
It was in 1920 that Wilshire Country Club opened on Rossmore Ave. and Beverly Blvd. on property leased from G. Allan Hancock.
The avenue also serves as the eastern boundary of Hancock Park.
Preferred parking in Hancock Park?:
Curbed L.A. and the Larchmont Chronicle report that Hancock Park residents are frustrated by too many people parking in their neighborhood when they pick up food orders from Mozza 2 Go. From Curbed:
The Hancock Park homeowners wants a preferred parking district for the homeowners, but the broke city has a hefty backlog of such requests and can't consider the application for a while.
Wednesday, July 14, 2010
Drainage Issues?
As many of you have no doubt heard me preach repeatedly, water is far and away the number one enemy of foundations in terms of the cumulative damage that it indiscriminately does to so many homes.
The photo above is a fine illustration of how much effect Mother Nature can create under a house. In this particular home, and this is all too common, the expansive quality of the soil has heaved up when wet and contracted when dry and in so doing, left a large enough gap for a hand to easily fit into. This is meant to be a load bearing structural support and yet it is simply hanging in the air. With the soil in the currently dry condition, this would be an appropriate time to adjust this support to fill the gap. However, one must also then take care of whatever drainage issues led to the expansion and contraction in the first place.
If the walls of your house are cracking, it’s not “because they’re old”, they’re cracking because there is some moisture related issue still creating effect in the foundation area. Our interest is in protecting your foundation well into the future and for that reason, this reminder comes to you to be sure that you follow through with any needed drainage corrections in order to accomplish that. We can recommend companies who perform such services or you can locate a competent one of your choosing, either way your house will thank you!
Feel free to forward this along to anyone who may find it of interest.
We’ve included a link to our web-site for added convenience!
www.thefoundationworks.com
323-663-4841
Flourish and prosper,
Tom Pelletier, Owner
The Foundation Works
Tuesday, July 13, 2010
Best Place to Live America's best small city
1. Eden Prairie, MN
Eden Prairie
WINNER
Top 100 rank: 1
Population: 64,000
Unemployment: 5.1%
Compare Eden Prairie to Top 10 Best Places
Why is Eden Prairie No. 1 this year? Not only is it family-friendly, it has a dynamite economy too.
At 5.1%, its unemployment rate is nearly one percentage point below the county rate and more than four points below the national average. It helps when you've got 50,000 jobs right in town.
Major employers include Fortune 500 trucking company C.H. Robinson, hearing-aid maker Starkey Labs, and the Minnesota Vikings, whose practice facility and front office are here. As for fiscal strength, Moody's gives the town a perfect AAA bond rating.
While it doesn't have much of a downtown, there's plenty of outer beauty: from gently rolling hills to 17 lakes that residents flock to year-round for swimming and ice skating. Town parks are laced with 125 miles of running, hiking, and biking trails.
No wonder residents rank among the healthiest people in the nation. Add in top-notch schools and safe streets and you've got a place that's tough to beat. --Ismat Mangla
Saturday, July 10, 2010
Ashley Dupre studying to become real estate broker
Ashley Dupre, the woman who was at the centre of the Eliot Spitzer prostitution scandal, has enrolled in a real estate course at NYU.
Dupre, 25, who is a sex columnist, took the course to apply for a New York broker's license.
"I recently moved back to New York from Los Angeles. Since being home, I took and passed the accelerated Real Estate Salesperson Course at NYU," the New York Post quoted her as saying.
"New York City real estate has always been an interest of mine. It's just something that I wanted to do. Where this goes is yet to be determined. I am so excited to be back - there's no place like New York.
"Music has always been my passion and will remain that always. Right now my focus is on my column, Ask Ashley, every Sunday in The Post," she added.
California Dreamin'
The California real estate market appears to be making a comeback, as home sales and pending sales rebound from staggering losses.
In fact, one real estate guru says luxury real estate in Beverly Hills and surrounding communities such as West Hollywood, Bel Air, Century City, Santa Monica and Malibu is hotter than ever.
Ikem Chukumerije is a top-producing celebrity real estate broker specializing in residential luxury sales, leasing, and financing in Beverly Hills.
His clientele includes corporate executives, professional athletes, entertainers and first time homebuyers in places like Beverly Hills, Hollywood Hills, Malibu, Bel Air and Santa Monica.
"The economy has definitely impacted my business, but in a great way," says Chukumerije. One of his past listings in Beverly Hills was available for $1,395,000 and sold within 27 days for 1,495,000 with multiple offers.
The average price per square foot for Santa Monica is currently $614, an increase of 1.2 per cent compared to the same period last year. In Malibu, the average is $815 per square foot, up 16.6 per cent from the same period last year, while the per-square-foot price average in Los Angeles is lower at $266, up 7.7 per cent - the same period last year.
© Copyright (c) The Calgary Herald
Read more: http://www.calgaryherald.com/business/California+Dreamin/3260733/story.html#ixzz0tJSiQVdc
Tuesday, July 6, 2010
Stephanopoulos Buys a $6.5 Million Manhattan Apartment
Political correspondent George Stephanopoulos seems to have rebounded just fine since getting shortchanged on his Georgetown mansion, which sold for $1 million less than its asking price a few weeks ago for $5.45 million. He's now landed a full-floor residence in New York City's well-to-do Upper East Side neighborhood for $6.5 million, reports The New York Observer.
Stephanopoulos, who is the relatively new face of ABC News' "Good Morning America, has relocated with his family, actress wife Alexandra Wentworth and the couple's two daughters, to New York City to take over the post formerly held by Diane Sawyer.
So, after spending about a million more for his move to the Big Apple, did the Stephanopoulos clan trade up in their move to Manhattan?
Back in their old hometown of Washington, D.C., Stephanopoulos and his family lived in a 5,652-square-foot Georgian-style brick mansion. The estate had an 11-foot ceiling and crown moldings on the inside and has been described as looking like a small liberal arts university from the exterior.
Well, in New York City, the Stephanopouloses certainly didn't trade up for more space.
Compared to their six-bedroom and 6.5-bathroom townhouse in Georgetown, the new co-op, situated at 30 East 72nd St., is a much smaller, prewar three-bedroom. (Another one-bedroom currently on the market in this high-rise is only 1,100-square-feet).
The 16-story doorman building has 27 units in total, and reports say the place comes with a private elevator vestibule, a wet bar, walk-in closets, a wood-burning fireplace, and a kitchen with double ovens and a six-burner stove.
Stephanopoulos upgrades to a $6.5 million New York City home
And it's in a prestigious location -- between Madison and Park Avenues and about a block-and-a-half from Central Park -- in the 10021 zipcode, where the median sales price of a home is $1.5 million, according to the real estate search website, Trulia.com.
Over the past month, nearby homes have sold in the price range of $2.8 million to $3.8 million, the site also reveals.
Los Angeles Real Estate News: How the City Stacks Up
Los Angeles is one of America's largest cities and this week we got stats on how the L.A. area compares to others around the world in terms of retail rents, and how the federal home-buyer tax credit helped L.A. in comparison to other U.S. cities.
We also learned about some noteworthy L.A. citizens, from the richest to the "Best" (there was no overlap). And how you can get in on planning and building in Santa Monica.
Here's what happened in L.A. real estate news last week:
* U.S. home sales jump 7.6 percent in April over the prior month. Likely reason: the expiration of the home buyer tax credit. However, this didn't affect California's home sales, which dipped slightly from the prior month, according to the Los Angeles Times. It's expected that many who took advantage of the credit will be counted in May or June, so we'll see how those numbers pan out.
* Los Angeles was rated no. 12 in the most expensive retail rents in the world, according to CB Richard Ellis.
* We wrote last week about Los Feliz homes suffering with the rest of real estate, but the L.A. Times is doing its part to help "Loss Feliz," profiling a $2.45 million dollar 1929 house.
* If you want to get in on Santa Monica development for the next two decades, the Santa Monica Daily Press tells about the Planning Commission's next workshop. These are held before decisions are adopted to work on the final plan.
* Los Angeles Business Journal's annual list of the 50 "Wealthiest Angelenos" came out: A biotech engineer tops the list, with the rest of the top 10 including many Hollywood moguls and a supermarket magnate. With their net worth up to $93 billion this year, they can afford to buy some good real estate, non?
* Interior Designer and HGTV Design Star winner Antonio Ballatore is one of those profiled in LA Weekly's "Best of People" issue for 2010. No wonder he is the self-proclaimed "Lady Gaga of Interior Design" -- he used to be a set designer for Annie Leibovitz and David LaChappelle.
Monday, July 5, 2010
Josh Safran, Ted Alexandre buy Hancock Park house
The 1929 English country-style home has a formal dining room, den with fireplace, updated kitchen and four bedrooms.
"Gossip Girl" writer and executive producer Josh Safran and his husband, producer Ted Alexandre, have purchased a Hancock Park area property for $2.75 million.
The English country-style house, built in 1929, includes a formal dining room, a den with a fireplace, a breakfast room, an updated kitchen, four bedrooms and 3 1/2 bathrooms in about 4,200 square feet.
"Gossip Girl" writer and executive producer Josh Safran and his husband, producer Ted Alexandre, have purchased a Hancock Park area property for $2.75 million.
The English country-style house, built in 1929, includes a formal dining room, a den with a fireplace, a breakfast room, an updated kitchen, four bedrooms and 3 1/2 bathrooms in about 4,200 square feet.
SONGS ON A SUMMER BREEZE IN HANCOCK PARK
FELLOW ALTOS, Catherine Schuster and Nancy Reinisch are also on the board of the Metropolitan Master Chorale.
Enjoy an evening of songs by 12 members of the Metropolitan Master Chorale in a private Hancock Park garden on Sun., July 11 from 5 to 7 p.m. Songs on a Summer Breeze is a fundraiser for the one-year old chorale at the home of John and Nancy Reinisch. Nancy is coordinating the event with fellow singer Catherine Schuster.
Mezzo soprano Patricia Schuman, who hails from the Met, Teatro all Scall and Vienna State Opera, will also be featured at the event.
Selections include “Summertime” from “Porgy and Bess” as well as works from “Carmen” and “West Side Story” as well as other songs from the group’s six-century repertoire.
Nancy and Catherine are also on the board of the 50-member choir, who range in age from 21 to near 70. They are under the innovative tutelage of artistic director Glenn Carlos. Director of chorale activities at Los Angeles Valley College, he is also a consultant for the Grammys. “He is an amazing music teacher. He inspires me,” says Catherine. Nancy equally raved about her conductor.
The altos met about five years ago while members of the Hollywood Master Chorale. They have since fine-tuned their vocals, practicing weekly at Wilshire Presbyterian Church, and brushed up on music theory as well as learning to read all four voices: soprano, alto, tenor and bass. "That way you hear the chord you’re making when singing, "says Nancy.
A licensed clinical social worker in private practice, Nancy also works with children at Heart of Los Angeles (HOLA). It is among groups the Chorale involves in its community outreach.
She sang in high school and college, and then returned to voice about 11 years ago. “I decided I wanted to sing again,” she says.
Catherine played guitar and was inspired by Joan Baez before she too became a wife and mother. Board vice president and secretary, she uses her organizational skills as a consultant to fundraise, create data bases and is the group’s webmaster.
Proceeds raised at the event will help support the 2010-2011 season, which will feature three concerts beginning in December.
“Support your local group. We really are an excellent value,” says Catherine. “And, we’re really good,” adds Nancy.
For tickets and more information visit metrosings.org, or call 323-342-2263.
Source:Larchmont Chronicle
Friday, June 25, 2010
Disney wants to sell Florida luxury homes
(Reuters) - Walt Disney Co is banking on wealthy home buyers to plonk down some green on a luxury residential resort in Florida, defying the state's infamously high foreclosure rate.
U.S.
The company on Wednesday unveiled plans for its Golden Oak luxury homes at Walt Disney World Resort in Orlando, Florida.
Disney said it will offer fewer than 30 home sites for sale this year, at prices between $1.5 million and $8 million.
The gated community on a 980-acre development will eventually boast 450 homes and a Four Seasons hotel, where residents can enjoy a full-service spa and restaurants.
The Mouse House's blueprint calls for putting some of its wealthiest fans on the doorstep of its biggest theme park.
But it also comes as Florida muddles through a nationwide real estate crisis that, according to research firm RealtyTrac, has given the state a foreclosure rate that trails only Nevada and Arizona.
One in every 174 Florida properties received a foreclosure notice last month, RealtyTrac said.
Disney will allow home buyers at Golden Oak to hire their own architects, but they will be restricted to such styles as Venetian, Spanish Revival
U.S.
The company on Wednesday unveiled plans for its Golden Oak luxury homes at Walt Disney World Resort in Orlando, Florida.
Disney said it will offer fewer than 30 home sites for sale this year, at prices between $1.5 million and $8 million.
The gated community on a 980-acre development will eventually boast 450 homes and a Four Seasons hotel, where residents can enjoy a full-service spa and restaurants.
The Mouse House's blueprint calls for putting some of its wealthiest fans on the doorstep of its biggest theme park.
But it also comes as Florida muddles through a nationwide real estate crisis that, according to research firm RealtyTrac, has given the state a foreclosure rate that trails only Nevada and Arizona.
One in every 174 Florida properties received a foreclosure notice last month, RealtyTrac said.
Disney will allow home buyers at Golden Oak to hire their own architects, but they will be restricted to such styles as Venetian, Spanish Revival
California median home price rises in month
by Jacob Adelman, AP Real Estate Writer
Published Thursday, 24-Jun-2010 in issue 1174
LOS ANGELES (AP) - The median home price in California last month surged 20.9 percent from May 2009 to $278,000, as inventories of low cost foreclosures dwindled and transactions in midrange and high end neighborhoods claimed a greater share of sales, a tracking firm reported Thursday.
Last month’s median was up from $230,000 a year ago and up 9 percent from $255,000 in April, San Diego based MDA DataQuick said. The May median, which marked a seventh consecutive month of year over year increases, was at its highest level since October 2008.
DataQuick President John Walsh said some of the higher priced homes were reaching the market because of increasing economic troubles among middle and upper class families, who are compelled to sell.
But he said low mortgage rates and the now expiring federal tax credit for home buyers also had helped boost the proportion of more expensive homes within the sales mix.
“For now, at least, we’re seeing a more normal mix of sales across the region and across price categories,” Walsh said.
Sales of homes costing $500,000 or more made up 21.2 percent of all transactions in the state last month, up from 16.5 percent a year ago, DataQuick said.
Foreclosures, meanwhile, which typically account for the lowest priced homes, comprised 35.5 percent of resales last month, dropping from 50.2 percent a year ago to reach their lowest level since March 2008, the firm said.
John Husing, an economist with San Bernardino County based Economics & Politics Inc., said there have been far fewer foreclosures on the market, as banks become increasingly willing to reach alternative arrangements with delinquent borrowers.
“Banks haven’t followed through on the foreclosure process, which means the supply of foreclosures hasn’t been entering the market and that has been slowing down sales,” Husing said.
Walsh, however, cautioned that banks are still thought to be carrying large numbers of foreclosed properties on their books and that it was unknown when and how these homes would go on sale.
“Price stability would be threatened if lenders suddenly pushed much larger numbers of distressed properties onto the market,” he said.
DataQuick also said 40,965 homes were sold in the region in May, up 4.9 percent from 39,051 in May 2009. May’s sales were up 9.3 percent from 37,481 in April.
In a nine county region of Northern California, sales rose 11 percent to 8,264 in May from a year earlier. In the six county region of Southern California, sales increased 7.2 percent to 22,720 from May 2009.
The median home price in Northern California jumped 20.1 percent to $410,000 last month from $341,500 in April 2009. In Southern California, the median price surged 22.5 percent to $305,000, up from $249,000 in the year ago period.
Published Thursday, 24-Jun-2010 in issue 1174
LOS ANGELES (AP) - The median home price in California last month surged 20.9 percent from May 2009 to $278,000, as inventories of low cost foreclosures dwindled and transactions in midrange and high end neighborhoods claimed a greater share of sales, a tracking firm reported Thursday.
Last month’s median was up from $230,000 a year ago and up 9 percent from $255,000 in April, San Diego based MDA DataQuick said. The May median, which marked a seventh consecutive month of year over year increases, was at its highest level since October 2008.
DataQuick President John Walsh said some of the higher priced homes were reaching the market because of increasing economic troubles among middle and upper class families, who are compelled to sell.
But he said low mortgage rates and the now expiring federal tax credit for home buyers also had helped boost the proportion of more expensive homes within the sales mix.
“For now, at least, we’re seeing a more normal mix of sales across the region and across price categories,” Walsh said.
Sales of homes costing $500,000 or more made up 21.2 percent of all transactions in the state last month, up from 16.5 percent a year ago, DataQuick said.
Foreclosures, meanwhile, which typically account for the lowest priced homes, comprised 35.5 percent of resales last month, dropping from 50.2 percent a year ago to reach their lowest level since March 2008, the firm said.
John Husing, an economist with San Bernardino County based Economics & Politics Inc., said there have been far fewer foreclosures on the market, as banks become increasingly willing to reach alternative arrangements with delinquent borrowers.
“Banks haven’t followed through on the foreclosure process, which means the supply of foreclosures hasn’t been entering the market and that has been slowing down sales,” Husing said.
Walsh, however, cautioned that banks are still thought to be carrying large numbers of foreclosed properties on their books and that it was unknown when and how these homes would go on sale.
“Price stability would be threatened if lenders suddenly pushed much larger numbers of distressed properties onto the market,” he said.
DataQuick also said 40,965 homes were sold in the region in May, up 4.9 percent from 39,051 in May 2009. May’s sales were up 9.3 percent from 37,481 in April.
In a nine county region of Northern California, sales rose 11 percent to 8,264 in May from a year earlier. In the six county region of Southern California, sales increased 7.2 percent to 22,720 from May 2009.
The median home price in Northern California jumped 20.1 percent to $410,000 last month from $341,500 in April 2009. In Southern California, the median price surged 22.5 percent to $305,000, up from $249,000 in the year ago period.
Wednesday, June 23, 2010
New home sales plummet to record low
NEW YORK (CNNMoney.com) -- New home sales plummeted to a record low in May, the first month following the expiration of the homebuyer tax credit. This snapped a two-month streak of gains.
New home sales declined 32.7% to a seasonally adjusted annual rate of 300,000 last month, down from an downwardly revised 446,000 in April, the Commerce Department reported Wednesday. Sales year-over-year fell 18.3%.
This is the slowest sales pace since the Commerce Department began tracking data in 1963. The prior record was set in September 1981, when new homes sold at an annual rate of 338,000.
"We expected a slowdown, but the extent of this decline was a surprise," said Anika Khan, an economist at Wells Fargo. The figure was even worse than her relatively pessimistic forecast of an annual rate of 380,000 in May.
A consensus of economists surveyed by Briefing.com had expected May sales to slide to an annual rate of 430,000.
"Clearly, the lack of a tax credit had a lot to do with it, and it's going to be a bit of a bumpy road ahead as we get a few more months of payback," Khan said.
Home sales had surged in March and April as homebuyers scrambled to sign contracts ahead of the April 30 deadline for the tax credit. First-time homebuyers qualified for a tax credit up to $8,000, while repeat buyers could get as much as a $6,500 break.
Homebuyers have until June 30 to close deals, but the Senate may vote to push that deadline back to Sept. 30.
Khan expects home sales to remain depressed through the third quarter as home construction continues to contract and lending standards remain tight. But, she said, sales should pick up slightly in the fourth quarter.
Although, she added, we are still years away from a normal level of new home sales -- an annual rate between 800,000 and 900,000.
"A full housing recovery is contingent on employment," Khan said. "When we see the unemployment rate abate, and some growth in salaries and incomes, we'll get some sustainable momentum in the housing market."
A real estate industry report released earlier this week showed that existing home sales, based closed sales rather than signed contracts, slipped slightly last month but remained elevated.
New home sales declined 32.7% to a seasonally adjusted annual rate of 300,000 last month, down from an downwardly revised 446,000 in April, the Commerce Department reported Wednesday. Sales year-over-year fell 18.3%.
This is the slowest sales pace since the Commerce Department began tracking data in 1963. The prior record was set in September 1981, when new homes sold at an annual rate of 338,000.
"We expected a slowdown, but the extent of this decline was a surprise," said Anika Khan, an economist at Wells Fargo. The figure was even worse than her relatively pessimistic forecast of an annual rate of 380,000 in May.
A consensus of economists surveyed by Briefing.com had expected May sales to slide to an annual rate of 430,000.
"Clearly, the lack of a tax credit had a lot to do with it, and it's going to be a bit of a bumpy road ahead as we get a few more months of payback," Khan said.
Home sales had surged in March and April as homebuyers scrambled to sign contracts ahead of the April 30 deadline for the tax credit. First-time homebuyers qualified for a tax credit up to $8,000, while repeat buyers could get as much as a $6,500 break.
Homebuyers have until June 30 to close deals, but the Senate may vote to push that deadline back to Sept. 30.
Khan expects home sales to remain depressed through the third quarter as home construction continues to contract and lending standards remain tight. But, she said, sales should pick up slightly in the fourth quarter.
Although, she added, we are still years away from a normal level of new home sales -- an annual rate between 800,000 and 900,000.
"A full housing recovery is contingent on employment," Khan said. "When we see the unemployment rate abate, and some growth in salaries and incomes, we'll get some sustainable momentum in the housing market."
A real estate industry report released earlier this week showed that existing home sales, based closed sales rather than signed contracts, slipped slightly last month but remained elevated.
Tuesday, June 22, 2010
Sidewalks, Tree Trimming and Keeping Hancock Park Green and Water Wise
Due to the City of LA’s severe budget problems many services such as tree trimming, stump removal, median/parkway maintenance and sidewalk repair services have been all but eliminated. The City now considers these types of repairs and services to be the responsibility of the homeowner. The responsibility for sidewalk repairs has not yet been settled and many LA citizens are challenging whether this change is legal. The Association is considering plans to help support efforts to trim trees and grass by putting together a fund (using annual dues).
Because of recent, severe droughts, and other state wide water requirements, the times of ample, cheap water for landscaping are over. The Water Efficiency Landscape Ordinance (WELO) and the Low Impact Design Ordinance (LID) were passed in February of this year to further enforce landscape water use reductions. Because of these increasing restrictions on water use for landscaping, the Association has been exploring options for drought tolerant landscaping. At the recent Block Captains’ meeting, landscaper Mayita Dinos gave a talk on water wise plantings for our climate. Los Angeles is considered a Mediterranean climate which means hot, dry summers with little rain, and cool, wet winters. As beautiful as the lawns that surround most Hancock Park homes are these lawns are problematic in our climate. They need a lot of water and their static use compacts the soil. The fertilizer and pesticides that are applied often run off into the storm drain system polluting the Santa Monica Bay. So, consider drought tolerant, waterwise landscaping when planting your garden. The Association is working on more formal recommendations for relandscaping in a waterwise fashion and the information will be posted on our website.
Thanks to the Block Captain Committee for holding a great Block Captains’ meeting in May which highlighted the changes in City Services, landscaping, security and many other important issues for Hancock Park. The Block Captain network is one of the most effective protections against crime. If you want to be a block captain or don’t know who your block captain is contact the Association via the website. And, don’t forget, if you haven’t already, mail in your dues! Your dues support efforts like the tree trimming and grass cutting projects and they let you vote in the election for Board of Directors.
Because of recent, severe droughts, and other state wide water requirements, the times of ample, cheap water for landscaping are over. The Water Efficiency Landscape Ordinance (WELO) and the Low Impact Design Ordinance (LID) were passed in February of this year to further enforce landscape water use reductions. Because of these increasing restrictions on water use for landscaping, the Association has been exploring options for drought tolerant landscaping. At the recent Block Captains’ meeting, landscaper Mayita Dinos gave a talk on water wise plantings for our climate. Los Angeles is considered a Mediterranean climate which means hot, dry summers with little rain, and cool, wet winters. As beautiful as the lawns that surround most Hancock Park homes are these lawns are problematic in our climate. They need a lot of water and their static use compacts the soil. The fertilizer and pesticides that are applied often run off into the storm drain system polluting the Santa Monica Bay. So, consider drought tolerant, waterwise landscaping when planting your garden. The Association is working on more formal recommendations for relandscaping in a waterwise fashion and the information will be posted on our website.
Thanks to the Block Captain Committee for holding a great Block Captains’ meeting in May which highlighted the changes in City Services, landscaping, security and many other important issues for Hancock Park. The Block Captain network is one of the most effective protections against crime. If you want to be a block captain or don’t know who your block captain is contact the Association via the website. And, don’t forget, if you haven’t already, mail in your dues! Your dues support efforts like the tree trimming and grass cutting projects and they let you vote in the election for Board of Directors.
May home sales dip as housing market struggles
WASHINGTON - The housing market may be on the verge of taking another plunge that could weaken the broader economic recovery.
Sales of previously occupied homes dipped in May, even though buyers could receive government tax credits. And nearly a third of sales in May were from foreclosures or other distressed properties. That means home prices could soon be heading down after stabilizing over the past year.
Last month's sales fell 2.2 percent from the previous month to a seasonally adjusted annual rate of 5.66 million, the National Association of Realtors said Tuesday. Analysts who had expected sales to rise expressed concern that the real estate market could tumble once the benefit of the federal tax incentives is gone entirely, starting next month.
The report is "a worrisome sign for what will occur in July and thereafter when the effect of the tax credit is behind us," said Joshua Shapiro, chief U.S. economist at MFR Inc., an economic consulting firm in New York.
Sales have climbed 25 percent from the 4.5 million annual rate they hit in January 2009 — the lowest level of the recession. But they're still down 22 percent from the peak rate of 7.25 million in September 2005.
The report counts home sales once a deal closes. So federal tax credits of up to $8,000 for first-time buyers and up to $6,500 for existing homeowners helped prop up sales in May. The deadline to get a signed sales contract and qualify was April 30. Buyers must close their purchases by June 30.
The tax credits were expected to lift sales in May and June. Lawrence Yun, the Realtors chief economist, said delays in the mortgage-lending process put about 180,000 potential buyers in limbo. They are unlikely to qualify by the June 30 deadline. The trade group is pushing Congress to extend the deadline for closing a sale until Sept. 30.
Real estate agents report a decline in foot traffic, meaning sales could worsen in the coming months.
"The urgency just isn't there," said Pat Lashinksky, CEO of ZipRealty Inc., which has agents in 22 states.
Floyd Scott, broker-owner of Century 21 Arizona-Foothills in Phoenix, said his office had about 25 percent fewer signed contracts to buy homes in May than it did a month earlier.
"The tax credit stopped and boy, I'll tell you, it was like, 'Wait a minute. Is the phone still working?'" Scott said.
Another troubling sign is the number of foreclosures and short sales. Short sales occur when lenders let borrowers sell a home for less than they owe on their mortgage. Together, foreclosures and short sales made up 31 percent of sales in May. And those numbers could rise because the government's efforts to help troubled homeowners keep their homes have had only modest success.
More than a third of the 1.2 million borrowers who have enrolled in the Obama administration's $75 billion mortgage modification program have dropped out. About 340,000 homeowners, or 27 percent of those who started the program, have received permanent loan modifications and are making payments on time.
The decline in May home sales reflected a plunge of more than 18 percent in the Northeast. Sales were unchanged in the Midwest but rose nearly 5 percent in the West and 0.5 percent in the South.
The inventory of unsold homes on the market dropped 3.4 percent to 3.9 million. That's an 8.3 month supply at the current sales pace, compared with a healthy level of about six months. The median sales price in May was $179,600, up 2.7 percent from a year earlier.
First-time buyers made up 46 percent of sales.
The report "suggests that even government stimulus in the form of a tax credit isn't enough," to support the U.S. housing market, wrote Guy LeBas, an analyst with Janney Montgomery Scott.
___
AP Real Estate Writer Alex Veiga in Los Angeles contributed to this report.
Source: www.cnbc.com
Sales of previously occupied homes dipped in May, even though buyers could receive government tax credits. And nearly a third of sales in May were from foreclosures or other distressed properties. That means home prices could soon be heading down after stabilizing over the past year.
Last month's sales fell 2.2 percent from the previous month to a seasonally adjusted annual rate of 5.66 million, the National Association of Realtors said Tuesday. Analysts who had expected sales to rise expressed concern that the real estate market could tumble once the benefit of the federal tax incentives is gone entirely, starting next month.
The report is "a worrisome sign for what will occur in July and thereafter when the effect of the tax credit is behind us," said Joshua Shapiro, chief U.S. economist at MFR Inc., an economic consulting firm in New York.
Sales have climbed 25 percent from the 4.5 million annual rate they hit in January 2009 — the lowest level of the recession. But they're still down 22 percent from the peak rate of 7.25 million in September 2005.
The report counts home sales once a deal closes. So federal tax credits of up to $8,000 for first-time buyers and up to $6,500 for existing homeowners helped prop up sales in May. The deadline to get a signed sales contract and qualify was April 30. Buyers must close their purchases by June 30.
The tax credits were expected to lift sales in May and June. Lawrence Yun, the Realtors chief economist, said delays in the mortgage-lending process put about 180,000 potential buyers in limbo. They are unlikely to qualify by the June 30 deadline. The trade group is pushing Congress to extend the deadline for closing a sale until Sept. 30.
Real estate agents report a decline in foot traffic, meaning sales could worsen in the coming months.
"The urgency just isn't there," said Pat Lashinksky, CEO of ZipRealty Inc., which has agents in 22 states.
Floyd Scott, broker-owner of Century 21 Arizona-Foothills in Phoenix, said his office had about 25 percent fewer signed contracts to buy homes in May than it did a month earlier.
"The tax credit stopped and boy, I'll tell you, it was like, 'Wait a minute. Is the phone still working?'" Scott said.
Another troubling sign is the number of foreclosures and short sales. Short sales occur when lenders let borrowers sell a home for less than they owe on their mortgage. Together, foreclosures and short sales made up 31 percent of sales in May. And those numbers could rise because the government's efforts to help troubled homeowners keep their homes have had only modest success.
More than a third of the 1.2 million borrowers who have enrolled in the Obama administration's $75 billion mortgage modification program have dropped out. About 340,000 homeowners, or 27 percent of those who started the program, have received permanent loan modifications and are making payments on time.
The decline in May home sales reflected a plunge of more than 18 percent in the Northeast. Sales were unchanged in the Midwest but rose nearly 5 percent in the West and 0.5 percent in the South.
The inventory of unsold homes on the market dropped 3.4 percent to 3.9 million. That's an 8.3 month supply at the current sales pace, compared with a healthy level of about six months. The median sales price in May was $179,600, up 2.7 percent from a year earlier.
First-time buyers made up 46 percent of sales.
The report "suggests that even government stimulus in the form of a tax credit isn't enough," to support the U.S. housing market, wrote Guy LeBas, an analyst with Janney Montgomery Scott.
___
AP Real Estate Writer Alex Veiga in Los Angeles contributed to this report.
Source: www.cnbc.com
Monday, June 21, 2010
California Foreclosure Activity Declines Again
La Jolla, CA.--Lending institutions started formal foreclosure proceedings on fewer California homes last quarter. It is unclear how much of the drop can be attributed to shifts in market conditions, and how much is because of changing policies, a real estate information service reported.
A total of 81,054 Notices of Default ("NODs") were recorded at county recorder offices during the January-to-March period. That was down 4.2 percent from 84,568 for the prior quarter, and down 40.2 percent from 135,431 in first-quarter 2009, according to San Diego-based MDA DataQuick.
The year-ago number is the highest in DataQuick's statistics, which go back to 1992 for NODs. The quarterly average is 44,041, while the low of recent years was 12,417 in third-quarter 2004, when housing market annual appreciation rates were around 20 percent.
"Several factors are at play here and it's hard to know how they play into each other right now. A year-and-a-half ago the subprime loan mess was the black hole. Now, playing catch-up, is the financial distress households are experiencing because of the recession. Add to the mix shifting policy decisions, both by lending institutions and in public policy," said John Walsh, DataQuick president.
"We are seeing signs that the worst may be over in the hard-hit entry-level markets, while problems are slowly spreading to more expensive neighborhoods. We're also seeing some lenders become more accommodating to work-outs or short sales, while others appear to be getting stricter about delinquencies. It's very noisy out there," Walsh said.
The state's most affordable sub-markets, which represent 25 percent of the state's housing stock, accounted for 47.5 percent of all default activity a year ago. In first-quarter 2010 that fell to 40.9 percent.
California's mid- to high-end housing markets were more likely to have seen a rise in mortgage defaults last quarter, though the concentration of default activity - measured by defaults per 1,000 homes - remained relatively low in those areas.
For example, zip codes statewide with median home sale prices of $500,000-plus saw mortgage defaults buck the overall trend and rise 1.5 percent last quarter compared with the prior quarter, while year-over-year the decline was 19 percent (versus a 40.2 percent marketwide annual decrease). Collectively, these zips saw 4.5 default notices filed for every 1,000 homes in the community, compared with the overall market's rate of 9.3 NODs for every 1,000 homes statewide.
In zip codes with medians below $500,000, mortgage default filings fell 5.8 percent from the prior quarter and declined nearly 43 percent from a year earlier. However, collectively these zips saw 10.5 NODs filed for every 1,000 homes - more than double the default rate for the zips with $500,000-plus medians.
On primary mortgages, California homeowners were a median five months behind on their payments when the lender filed the NOD. The borrowers owed a median $14,066 in back payments on a median $330,147 mortgage.
On home equity loans and lines of credit in default, borrowers owed a median $3,897 on a median $64,422 credit line. However the amount of the credit line that was actually in use cannot be determined from public records.
While many of the loans that went into default during first-quarter 2010 were originated in early 2007, the median origination month for last quarter's defaulted loans was July 2006, the same month as during the prior four quarters.
San Diego-based MDA DataQuick is a division of MDA Lending Solutions, a subsidiary of Vancouver-based MacDonald Dettwiler and Associates. MDA DataQuick monitors real estate activity nationwide and provides information to consumers, educational institutions, public agencies, lending institutions, title companies and industry analysts. Notices of Default are recorded at county recorders offices and mark the first step of the formal foreclosure process.
Although 81,054 default notices were filed last quarter, they involved 79,457 homes because some borrowers were in default on multiple loans (e.g. a primary mortgage and a line of credit). Multiple default recordings on the same home are trending down, DataQuick reported.
Following a historical pattern, mortgages were least likely to go into default in Marin, San Francisco and San Mateo counties. The probability was highest in Merced, Stanislaus and San Joaquin counties.
The number of Trustees Deeds (TDs) recorded, which reflect the number of houses or condo units lost to the foreclosure process, totaled 42,857 during the first quarter. That was down 16.1 percent from 51,060 for the prior quarter, and down 1.7 percent from 43,620 for first-quarter 2009. The all-time peak was 79,511 in third-quarter 2008.
In the last real estate cycle, Trustees Deeds peaked at 15,418 in third-quarter 1996. The state's all-time low was 637 in the second quarter of 2005, MDA DataQuick reported.
There are 8.5 million houses and condos in California.
On average, homes foreclosed on last quarter spent 7.5 months winding their way through the formal foreclosure process, beginning with an NOD. A year ago it was 6.8 months. The increase could reflect, among other things, lender backlogs and extra time needed to pursue possible loan modifications and short sales.
Foreclosure resales accounted for 42.6 percent of all California resale activity last quarter. It was up from a revised 40.6 percent the prior quarter, and down from 57.8 percent a year ago, the peak. Foreclosure resales varied significantly by county last quarter, from 13.8 percent in San Francisco to 67.7 percent in Merced.
At formal foreclosure auctions last quarter, an estimated 24.6 percent of foreclosed properties went to investors and others who do not appear to be lender or government entities. That's up from an estimated 17.6 percent a year ago.
The lenders that originated the most loans that went into default last quarter were Countrywide (7,282), World Savings (6,459), Washington Mutual (6,371), Wells Fargo (5,204) and Bank of America (3,851). These were also the most active lenders in the second half of 2006, and their default rates were well below 10 percent.
Smaller subprime lenders had far higher default rates for that period: ResMAE Mortgage, Ownit Mortgage, Master Financial, First NLC Financial Services and Fieldstone Mortgage all had default rates of more than 65 percent of the loans they originated in the second half of 2006. These and most other subprime lenders are long gone.
Most of the loans made in 2006 are owned or serviced by institutions other than those that made the loans. The servicers pursuing the highest number of defaults last quarter were ReconTrust Co., Cal-Western Reconveyance and NDEx West, MDA DataQuick reported.
Source: DataQuick Information Systems
Media calls: Andrew LePage (916) 456-7157 or John Karevoll (909) 867-9534
Copyright 2010 DataQuick Information Systems. All rights reserved.
A total of 81,054 Notices of Default ("NODs") were recorded at county recorder offices during the January-to-March period. That was down 4.2 percent from 84,568 for the prior quarter, and down 40.2 percent from 135,431 in first-quarter 2009, according to San Diego-based MDA DataQuick.
The year-ago number is the highest in DataQuick's statistics, which go back to 1992 for NODs. The quarterly average is 44,041, while the low of recent years was 12,417 in third-quarter 2004, when housing market annual appreciation rates were around 20 percent.
"Several factors are at play here and it's hard to know how they play into each other right now. A year-and-a-half ago the subprime loan mess was the black hole. Now, playing catch-up, is the financial distress households are experiencing because of the recession. Add to the mix shifting policy decisions, both by lending institutions and in public policy," said John Walsh, DataQuick president.
"We are seeing signs that the worst may be over in the hard-hit entry-level markets, while problems are slowly spreading to more expensive neighborhoods. We're also seeing some lenders become more accommodating to work-outs or short sales, while others appear to be getting stricter about delinquencies. It's very noisy out there," Walsh said.
The state's most affordable sub-markets, which represent 25 percent of the state's housing stock, accounted for 47.5 percent of all default activity a year ago. In first-quarter 2010 that fell to 40.9 percent.
California's mid- to high-end housing markets were more likely to have seen a rise in mortgage defaults last quarter, though the concentration of default activity - measured by defaults per 1,000 homes - remained relatively low in those areas.
For example, zip codes statewide with median home sale prices of $500,000-plus saw mortgage defaults buck the overall trend and rise 1.5 percent last quarter compared with the prior quarter, while year-over-year the decline was 19 percent (versus a 40.2 percent marketwide annual decrease). Collectively, these zips saw 4.5 default notices filed for every 1,000 homes in the community, compared with the overall market's rate of 9.3 NODs for every 1,000 homes statewide.
In zip codes with medians below $500,000, mortgage default filings fell 5.8 percent from the prior quarter and declined nearly 43 percent from a year earlier. However, collectively these zips saw 10.5 NODs filed for every 1,000 homes - more than double the default rate for the zips with $500,000-plus medians.
On primary mortgages, California homeowners were a median five months behind on their payments when the lender filed the NOD. The borrowers owed a median $14,066 in back payments on a median $330,147 mortgage.
On home equity loans and lines of credit in default, borrowers owed a median $3,897 on a median $64,422 credit line. However the amount of the credit line that was actually in use cannot be determined from public records.
While many of the loans that went into default during first-quarter 2010 were originated in early 2007, the median origination month for last quarter's defaulted loans was July 2006, the same month as during the prior four quarters.
San Diego-based MDA DataQuick is a division of MDA Lending Solutions, a subsidiary of Vancouver-based MacDonald Dettwiler and Associates. MDA DataQuick monitors real estate activity nationwide and provides information to consumers, educational institutions, public agencies, lending institutions, title companies and industry analysts. Notices of Default are recorded at county recorders offices and mark the first step of the formal foreclosure process.
Although 81,054 default notices were filed last quarter, they involved 79,457 homes because some borrowers were in default on multiple loans (e.g. a primary mortgage and a line of credit). Multiple default recordings on the same home are trending down, DataQuick reported.
Following a historical pattern, mortgages were least likely to go into default in Marin, San Francisco and San Mateo counties. The probability was highest in Merced, Stanislaus and San Joaquin counties.
The number of Trustees Deeds (TDs) recorded, which reflect the number of houses or condo units lost to the foreclosure process, totaled 42,857 during the first quarter. That was down 16.1 percent from 51,060 for the prior quarter, and down 1.7 percent from 43,620 for first-quarter 2009. The all-time peak was 79,511 in third-quarter 2008.
In the last real estate cycle, Trustees Deeds peaked at 15,418 in third-quarter 1996. The state's all-time low was 637 in the second quarter of 2005, MDA DataQuick reported.
There are 8.5 million houses and condos in California.
On average, homes foreclosed on last quarter spent 7.5 months winding their way through the formal foreclosure process, beginning with an NOD. A year ago it was 6.8 months. The increase could reflect, among other things, lender backlogs and extra time needed to pursue possible loan modifications and short sales.
Foreclosure resales accounted for 42.6 percent of all California resale activity last quarter. It was up from a revised 40.6 percent the prior quarter, and down from 57.8 percent a year ago, the peak. Foreclosure resales varied significantly by county last quarter, from 13.8 percent in San Francisco to 67.7 percent in Merced.
At formal foreclosure auctions last quarter, an estimated 24.6 percent of foreclosed properties went to investors and others who do not appear to be lender or government entities. That's up from an estimated 17.6 percent a year ago.
The lenders that originated the most loans that went into default last quarter were Countrywide (7,282), World Savings (6,459), Washington Mutual (6,371), Wells Fargo (5,204) and Bank of America (3,851). These were also the most active lenders in the second half of 2006, and their default rates were well below 10 percent.
Smaller subprime lenders had far higher default rates for that period: ResMAE Mortgage, Ownit Mortgage, Master Financial, First NLC Financial Services and Fieldstone Mortgage all had default rates of more than 65 percent of the loans they originated in the second half of 2006. These and most other subprime lenders are long gone.
Most of the loans made in 2006 are owned or serviced by institutions other than those that made the loans. The servicers pursuing the highest number of defaults last quarter were ReconTrust Co., Cal-Western Reconveyance and NDEx West, MDA DataQuick reported.
Source: DataQuick Information Systems
Media calls: Andrew LePage (916) 456-7157 or John Karevoll (909) 867-9534
Copyright 2010 DataQuick Information Systems. All rights reserved.
California May Home Sales
An estimated 40,965 new and resale houses and condos were sold statewide last month. That was up 9.3 percent from 37,481 in April, and up 4.9 percent from 39,051 for May 2009. California sales for the month of May have varied from a low of 32,223 in 1995 to a peak of 67,958 in 2004, while the average is 47,024. MDA DataQuick's statistics go back to 1988.
The median price paid for a home last month was $278,000, up 9 percent from $255,000 in April and up 20.9 percent from $230,000 a year ago. The year-over-year increase was the seventh in a row, following 27 months of year-over-year declines. The median peaked at $484,000 in early 2007.
Of the existing homes sold last month, 35.5 percent were properties that had been foreclosed on during the past year. That was down from 38.1 percent in April and down from 50.2 percent a year ago. The last time foreclosure resales were as low as last month was in March 2008, when they also represented 35.5 percent of the resale market. The all-time high was in February 2009 at 58.8 percent.
The typical mortgage payment that home buyers committed themselves to paying last month was $1,179. That was up from $1,108 in April, and up from $972 a year ago. Adjusted for inflation, last month's mortgage payment was 45.4 percent below the spring 1989 peak of the prior real estate cycle. It was 54.5 percent below the current cycle's peak in June 2006.
MDA DataQuick is a division of MDA Lending Solutions, a subsidiary of Vancouver-based MacDonald Dettwiler and Associates. MDA DataQuick monitors real estate activity nationwide and provides information to consumers, educational institutions, public agencies, lending institutions, title companies and industry analysts.
Indicators of market distress continue to move in different directions. Foreclosure activity is off its peaks reached in the past couple of years but remains high in a historical context. Financing with multiple mortgages is low, down payment sizes are stable, cash and non-owner-occupied buying eased last month but remain above average, MDA DataQuick reported.
Media calls: Andrew LePage (916)456-7157 or alepage@dqnews.com
Copyright MDA DataQuick Information Systems. All rights reserved.
The median price paid for a home last month was $278,000, up 9 percent from $255,000 in April and up 20.9 percent from $230,000 a year ago. The year-over-year increase was the seventh in a row, following 27 months of year-over-year declines. The median peaked at $484,000 in early 2007.
Of the existing homes sold last month, 35.5 percent were properties that had been foreclosed on during the past year. That was down from 38.1 percent in April and down from 50.2 percent a year ago. The last time foreclosure resales were as low as last month was in March 2008, when they also represented 35.5 percent of the resale market. The all-time high was in February 2009 at 58.8 percent.
The typical mortgage payment that home buyers committed themselves to paying last month was $1,179. That was up from $1,108 in April, and up from $972 a year ago. Adjusted for inflation, last month's mortgage payment was 45.4 percent below the spring 1989 peak of the prior real estate cycle. It was 54.5 percent below the current cycle's peak in June 2006.
MDA DataQuick is a division of MDA Lending Solutions, a subsidiary of Vancouver-based MacDonald Dettwiler and Associates. MDA DataQuick monitors real estate activity nationwide and provides information to consumers, educational institutions, public agencies, lending institutions, title companies and industry analysts.
Indicators of market distress continue to move in different directions. Foreclosure activity is off its peaks reached in the past couple of years but remains high in a historical context. Financing with multiple mortgages is low, down payment sizes are stable, cash and non-owner-occupied buying eased last month but remain above average, MDA DataQuick reported.
Media calls: Andrew LePage (916)456-7157 or alepage@dqnews.com
Copyright MDA DataQuick Information Systems. All rights reserved.
Saturday, June 19, 2010
Minorities hit harder by foreclosure crisis
Minorities hit harder by foreclosure crisis
By Renae Merle
Washington Post Staff Writer
Saturday, June 19, 2010
Minority homeowners have been disproportionately affected by the foreclosure crisis and stand to lose homes at a faster pace than white borrowers in the future, according to a report released Friday by a nonprofit research group.
The study by the Center for Responsible Lending found that whites made up the majority of the 2.5 million foreclosures completed between 2007 and 2009 -- about 56 percent -- but that minority communities had significantly higher foreclosure rates.
While about 4.5 percent of white borrowers lost their homes to foreclosure during that period, black and Latino borrowers had 7.9 and 7.7 percent foreclosure rates, respectively. That means that blacks and Latinos were more than 70 percent more likely to lose their homes to foreclosure during that period, the study found.
Overall, blacks lost about 240,020 homes to foreclosure, while Latinos lost about 335,950, according to the study, which analyzed government and industry data on millions of loans issued between 2005 and 2008 -- the height of the housing boom.
The "analysis suggests dramatic differences in how the foreclosure crisis has affected racial and ethnic groups," the report said. "African American and Latino borrowers have borne and will continue to disproportionately bear the burden of foreclosures."
The study is the latest to examine the housing crisis and its disparate impact on minority communities. A study by the National Community Reinvestment Coalition released in April found that black and Latino homeowners in the Washington region were almost 20 percent and 90 percent more likely, respectively, to face foreclosure or lose their homes than similarly situated whites.
Housing experts have pointed to a variety of factors to explain the disparity, including higher unemployment rates in minority communities and traditionally fewer financial resources for black and Latino borrowers to fall back on.
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But the Center for Responsible Lending's study found that the disparate foreclosure rates also apply to well-to-do homeowners. High-income black borrowers, for example, were 80 percent more likely to lose their homes to foreclosure than their white counterparts, while Latino borrowers were 90 percent more likely.
Research has shown that minority borrowers were more likely to receive subprime loans during the housing boom even if they had credit scores, incomes and loan sizes similar to those of whites. Some housing experts say that minority borrowers received higher rates on subprime loans compared with similarly situated white borrowers, resulting in higher monthly payments and quicker defaults.
"I think it reflects that minority borrowers were targeted by the sellers of these [risky] mortgages," said Barry Zigas, director of housing and credit policy at the Consumer Federation of America.
The Treasury Department has said it will collect data on the racial makeup of homeowners helped under its Making Home Affordable foreclosure-prevention program. That program's standards and processes should minimize disparities between how homeowners are treated, lending industry officials have said.
"It is incumbent upon us to make sure that we look at all of the options" under the federal program to help all homeowners, said Faith Schwartz, senior adviser and consultant to Hope Now, an industry group. "We can always step back and say, 'Is there anything more that can be done to neutralize any negative impact on minorities or borrowers' " with particularly risky types of loans.
In addition to the millions of borrowers who have already lost their homes, about 5.7 million are at risk of foreclosure, the report said. About 494,930 blacks and 731,660 Latinos are at imminent risk of foreclosure, the report said.
By Renae Merle
Washington Post Staff Writer
Saturday, June 19, 2010
Minority homeowners have been disproportionately affected by the foreclosure crisis and stand to lose homes at a faster pace than white borrowers in the future, according to a report released Friday by a nonprofit research group.
The study by the Center for Responsible Lending found that whites made up the majority of the 2.5 million foreclosures completed between 2007 and 2009 -- about 56 percent -- but that minority communities had significantly higher foreclosure rates.
While about 4.5 percent of white borrowers lost their homes to foreclosure during that period, black and Latino borrowers had 7.9 and 7.7 percent foreclosure rates, respectively. That means that blacks and Latinos were more than 70 percent more likely to lose their homes to foreclosure during that period, the study found.
Overall, blacks lost about 240,020 homes to foreclosure, while Latinos lost about 335,950, according to the study, which analyzed government and industry data on millions of loans issued between 2005 and 2008 -- the height of the housing boom.
The "analysis suggests dramatic differences in how the foreclosure crisis has affected racial and ethnic groups," the report said. "African American and Latino borrowers have borne and will continue to disproportionately bear the burden of foreclosures."
The study is the latest to examine the housing crisis and its disparate impact on minority communities. A study by the National Community Reinvestment Coalition released in April found that black and Latino homeowners in the Washington region were almost 20 percent and 90 percent more likely, respectively, to face foreclosure or lose their homes than similarly situated whites.
Housing experts have pointed to a variety of factors to explain the disparity, including higher unemployment rates in minority communities and traditionally fewer financial resources for black and Latino borrowers to fall back on.
ad_icon
But the Center for Responsible Lending's study found that the disparate foreclosure rates also apply to well-to-do homeowners. High-income black borrowers, for example, were 80 percent more likely to lose their homes to foreclosure than their white counterparts, while Latino borrowers were 90 percent more likely.
Research has shown that minority borrowers were more likely to receive subprime loans during the housing boom even if they had credit scores, incomes and loan sizes similar to those of whites. Some housing experts say that minority borrowers received higher rates on subprime loans compared with similarly situated white borrowers, resulting in higher monthly payments and quicker defaults.
"I think it reflects that minority borrowers were targeted by the sellers of these [risky] mortgages," said Barry Zigas, director of housing and credit policy at the Consumer Federation of America.
The Treasury Department has said it will collect data on the racial makeup of homeowners helped under its Making Home Affordable foreclosure-prevention program. That program's standards and processes should minimize disparities between how homeowners are treated, lending industry officials have said.
"It is incumbent upon us to make sure that we look at all of the options" under the federal program to help all homeowners, said Faith Schwartz, senior adviser and consultant to Hope Now, an industry group. "We can always step back and say, 'Is there anything more that can be done to neutralize any negative impact on minorities or borrowers' " with particularly risky types of loans.
In addition to the millions of borrowers who have already lost their homes, about 5.7 million are at risk of foreclosure, the report said. About 494,930 blacks and 731,660 Latinos are at imminent risk of foreclosure, the report said.
Thursday, June 17, 2010
Mortgage rates up from yearly low
Rates on 30-year fixed mortgages backed off from yearly lows this week, but still remain historically cheap.
Mortgage finance company Freddie Mac says the average rate rose to 4.75 percent, up from 4.72 percent last week. The rate hit 4.71 percent in December, the lowest since Freddie Mac began keeping records in 1971.
The average rate on a 15-year fixed-rate mortgage edged up to 4.2 percent, up from its all-time low of 4.17 percent set last week.
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A Federal Reserve program to reduce borrowing costs for consumers pushed rates down to extraordinarily low levels last year. Rates were expected to rise after the campaign ended this spring, but have declined instead over the past two months as investors shifted money into the safety of U.S. Treasury bonds.
Concerns over the European debt crisis and the volatile stock market have made U.S. Treasury debt more attractive. And mortgage rates tend to follow the yield on U.S. Treasury debt.
Low mortgage rates could help buoy housing demand after the expiration of federal tax credits. First-time buyers could get a credit of up to $8,000, while current owners who bought and moved into another home could qualify for a credit of up to $6,500. Buyers had until April 30 to get a signed sales contract and until June 30 to complete the sale.
Home sales started to lag after the credits' deadline. But a recent report offered a sign that buyers are finally taking advantage of low rates. The number of customers applying for refinance and purchase mortgages climbed 18 percent last week after falling sharply the month before, the Mortgage Bankers Association said Wednesday.
Freddie Mac collects mortgage rates on Monday through Wednesday of each week from lenders around the country. Rates often fluctuate significantly, even within a given day.
Rates on five-year, adjustable-rate mortgages averaged 3.89 percent, down from 3.92 percent a week earlier. Rates on one-year, adjustable-rate mortgages fell to 3.82 percent from 3.91 percent. That was the lowest average since May 2004.
The rates do not include add-on fees known as points. One point is equal to 1 percent of the total loan amount.
The nationwide fee for loans in Freddie Mac's survey averaged 0.7 a point for 30-year, 15-year and 5-year loans. The average fee for 1-year loans was 0.6 of a point.
Mortgage finance company Freddie Mac says the average rate rose to 4.75 percent, up from 4.72 percent last week. The rate hit 4.71 percent in December, the lowest since Freddie Mac began keeping records in 1971.
The average rate on a 15-year fixed-rate mortgage edged up to 4.2 percent, up from its all-time low of 4.17 percent set last week.
Story continues below ↓advertisement | your ad here
A Federal Reserve program to reduce borrowing costs for consumers pushed rates down to extraordinarily low levels last year. Rates were expected to rise after the campaign ended this spring, but have declined instead over the past two months as investors shifted money into the safety of U.S. Treasury bonds.
Concerns over the European debt crisis and the volatile stock market have made U.S. Treasury debt more attractive. And mortgage rates tend to follow the yield on U.S. Treasury debt.
Low mortgage rates could help buoy housing demand after the expiration of federal tax credits. First-time buyers could get a credit of up to $8,000, while current owners who bought and moved into another home could qualify for a credit of up to $6,500. Buyers had until April 30 to get a signed sales contract and until June 30 to complete the sale.
Home sales started to lag after the credits' deadline. But a recent report offered a sign that buyers are finally taking advantage of low rates. The number of customers applying for refinance and purchase mortgages climbed 18 percent last week after falling sharply the month before, the Mortgage Bankers Association said Wednesday.
Freddie Mac collects mortgage rates on Monday through Wednesday of each week from lenders around the country. Rates often fluctuate significantly, even within a given day.
Rates on five-year, adjustable-rate mortgages averaged 3.89 percent, down from 3.92 percent a week earlier. Rates on one-year, adjustable-rate mortgages fell to 3.82 percent from 3.91 percent. That was the lowest average since May 2004.
The rates do not include add-on fees known as points. One point is equal to 1 percent of the total loan amount.
The nationwide fee for loans in Freddie Mac's survey averaged 0.7 a point for 30-year, 15-year and 5-year loans. The average fee for 1-year loans was 0.6 of a point.
Wednesday, June 16, 2010
Food Trucks Not Welcome in Larchmont Village
During lunch time, at an event, or after a night out on the town, queuing up at one or more parked food trucks can give you a great sense of community. People come together to eat, to be out in the city, and to give a little bit of money to some entrepreneurs. But the food trucks aren't always welcomed by the communities in which they park (see: Wilshire Blvd. businesses) and now one community has gone as far as to tell their residents to shun the food trucks.
The Larchmont Chronicle's June 2010 issue includes an item in the "Community Platform" section by Jane Gilman requesting readers give food trucks that come into the 'hood no love: "We ask that you do NOT patronize food trucks on Larchmont," Gilman writes. "You are taking away funds from eateries who pay rent and staff employees. The trucks also take up valuable parking places."
Those who side with Gilman believe that the businesses along Larchmont need all the help that they can get; never mind that for years Larchmont blocked the addition of chain restaurants to try to protect the mom-and-pops and now they are protecting a great many chains and turning away mom-and-pops in the form of trucks. Paying rent and for staff, along with other costs, are also things food trucks contend with, as well as competition among their own kind and with brick-and-mortars. And if someone travels to Larchmont to buy an item from a food truck, aren't they as likely to need and pay for a parking space as someone who goes there to eat at the Village Pizzeria?
The Larchmont Chronicle's June 2010 issue includes an item in the "Community Platform" section by Jane Gilman requesting readers give food trucks that come into the 'hood no love: "We ask that you do NOT patronize food trucks on Larchmont," Gilman writes. "You are taking away funds from eateries who pay rent and staff employees. The trucks also take up valuable parking places."
Those who side with Gilman believe that the businesses along Larchmont need all the help that they can get; never mind that for years Larchmont blocked the addition of chain restaurants to try to protect the mom-and-pops and now they are protecting a great many chains and turning away mom-and-pops in the form of trucks. Paying rent and for staff, along with other costs, are also things food trucks contend with, as well as competition among their own kind and with brick-and-mortars. And if someone travels to Larchmont to buy an item from a food truck, aren't they as likely to need and pay for a parking space as someone who goes there to eat at the Village Pizzeria?
Tuesday, June 15, 2010
Builders less confident in housing market
By Alan Zibel
updated 11:31 a.m. ET June 15, 2010
WASHINGTON - Homebuilders are losing confidence in the housing market now that government incentives that spurred home sales have ended.
The National Association of Home Builders said Tuesday its housing market index fell to 17 in June, sinking five points after two straight months of increases. It was the lowest level since March.
Builders had been more optimistic earlier in the year when buyers could take advantage of tax credits of up to $8,000. Those incentives expired on April 30, although buyers with signed contracts have until June 30 to complete their purchases.
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Experts anticipate home sales will slow in the second half of this year. In addition, high unemployment and tight mortgage lending continue to keep many buyers on the sidelines.
The drop in activity is "a wake-up call to the fact that the market will struggle to stand on its own two feet without the tax credit," wrote Paul Dales, an economist with Capital Economics. "The double-dip in both activity and prices that we have been expecting for some time appears to have begun."
Another problem for the building industry is that lenders are reluctant to make construction loans to developers. The builders group is pressing for legislation that would require the Treasury Department to guarantee loans made to developers.
"We're encouraging banks to make prudent loans to projects that pencil out and are in markets that are ripe for recovery," Jerry Howard, the trade group's president, said in an interview.
Thanks to the tax credits, sales of new homes rose nearly 15 percent in April. That followed a nearly 30 percent surge in March, the biggest monthly increase in 47 years.
But now that they are gone, "the reduction in consumer activity may have been more dramatic than some builders had anticipated," said Bob Jones, a builder from Bloomfield Hills, Mich., and the Washington-based trade group's chairman.
In a typical economic recovery, the construction sector provides much of the fuel. But developers are trying to sell a tremendous glut of homes built during the boom years and they are competing against foreclosed homes selling at deep discounts.
While home sales are not likely to return to the depressed levels of the housing bust, they are unlikely to return soon to those levels aided by the tax credit program, wrote Joshua Shapiro, chief U.S. economist at MFR Inc., an economic consulting firm in New York.
The builders' trade group's index is made up of three components. The reading for current sales conditions fell one point to 16, while the index measuring expectations for the next six months fell two points to 26. The index measuring foot traffic from prospective buyers held steady at 13.
The report reflects a survey of 344 residential builders nationwide.
updated 11:31 a.m. ET June 15, 2010
WASHINGTON - Homebuilders are losing confidence in the housing market now that government incentives that spurred home sales have ended.
The National Association of Home Builders said Tuesday its housing market index fell to 17 in June, sinking five points after two straight months of increases. It was the lowest level since March.
Builders had been more optimistic earlier in the year when buyers could take advantage of tax credits of up to $8,000. Those incentives expired on April 30, although buyers with signed contracts have until June 30 to complete their purchases.
Story continues below ↓advertisement | your ad here
Experts anticipate home sales will slow in the second half of this year. In addition, high unemployment and tight mortgage lending continue to keep many buyers on the sidelines.
The drop in activity is "a wake-up call to the fact that the market will struggle to stand on its own two feet without the tax credit," wrote Paul Dales, an economist with Capital Economics. "The double-dip in both activity and prices that we have been expecting for some time appears to have begun."
Another problem for the building industry is that lenders are reluctant to make construction loans to developers. The builders group is pressing for legislation that would require the Treasury Department to guarantee loans made to developers.
"We're encouraging banks to make prudent loans to projects that pencil out and are in markets that are ripe for recovery," Jerry Howard, the trade group's president, said in an interview.
Thanks to the tax credits, sales of new homes rose nearly 15 percent in April. That followed a nearly 30 percent surge in March, the biggest monthly increase in 47 years.
But now that they are gone, "the reduction in consumer activity may have been more dramatic than some builders had anticipated," said Bob Jones, a builder from Bloomfield Hills, Mich., and the Washington-based trade group's chairman.
In a typical economic recovery, the construction sector provides much of the fuel. But developers are trying to sell a tremendous glut of homes built during the boom years and they are competing against foreclosed homes selling at deep discounts.
While home sales are not likely to return to the depressed levels of the housing bust, they are unlikely to return soon to those levels aided by the tax credit program, wrote Joshua Shapiro, chief U.S. economist at MFR Inc., an economic consulting firm in New York.
The builders' trade group's index is made up of three components. The reading for current sales conditions fell one point to 16, while the index measuring expectations for the next six months fell two points to 26. The index measuring foot traffic from prospective buyers held steady at 13.
The report reflects a survey of 344 residential builders nationwide.
Monday, June 14, 2010
Million-dollar homes are falling prey to foreclosure
By Joseph Pisani, Special from CNBC.com
Heated pools, ocean views and media rooms are not what most people would expect to find in a foreclosed property, but more high-end homes — priced at more than a million dollars — have been falling into the hands of banks this year.
Foreclosures of homes worth more than $1 million began increasing at the end of 2009, according to data provided to CNBC.com by foreclosure tracking website RealtyTrac.
Foreclosures reached a high in February 2010, the last month data were available, when 4,169 high-end homes were somewhere in the foreclosure process; having received a foreclosure notice, had an auction scheduled or had ownership taken over by the lender. That's a 121% increase from a year ago.
The deterioration comes just as housing experts say that foreclosures in the low and middle ends of the housing market are showing signs of stabilization.
SLIDE SHOW: Million dollar foreclosures
SLIDE SHOW: America's double-dip real estate markets
SLIDE SHOW: The world's best places to live
Owners of expensive homes "were able to stave off foreclosure longer," says independent real estate analyst Jack McCabe, CEO of McCabe Research and Consulting in South Florida. "Lower-end homeowners were the first ones to see the escalating foreclosures, because they generally do not have the cash reserves or credit available that the luxury homeowners do. They had the ability to take their credit cards and pull out thousands of dollars, while the lower-end buyers were already tapped out."
McCabe expects foreclosures in the high-end market will increase into 2011.
DELINQUENCIES DROP: First time since 2006
Though the RealtyTrac data on high-end homes are not available on a regional or metropolitan basis, anecdotal evidence indicates the problem is cropping up across the country. High-end and luxury categories vary widely from market to market. In some suburban areas, in the Northeast and California, for instance, million-dollar homes are fairly common, but nationwide, they represent 1.1% of overall housing stock.
"We have seen an increase, in the million-plus range, of the number of foreclosures and short sales in the greater Chicago area," says Jim Kinney, vice president of luxury home sales at Baird & Warner.
He says that of the 295 million-dollar, single-family properties sold in the first quarter this year, 37 were either a foreclosure or short sale, when a bank and homeowner agree to sell the home for less than the loan is worth. During the same period a year ago, 10 of 231 fell into those categories.
In the Fort Myers, Fla., area, Mike McMurray of McMurray and Nette and the VIP Realty Group says he has seen a few foreclosed high-end homes on the market compared with none last year. He's currently showing a 4,800-square-foot, $3.65 million home on Captiva Island, where foreclosures are usually rare. The bank-owned home has five bedrooms and access to 150 feet of Gulf Coast beachfront.
"There are more we see coming down the pipeline," McMurray says.
Data show that may be the case around the country. The 90-day delinquency rate on home loans worth more than a million dollars hit a high in February at 13.3%, above the overall rate of 8.6%, according to real estate data firm First American CoreLogic. Foreclosure proceedings generally start after a homeowner has been at least 90 days late on a mortgage payment, experts say.
One difference in the high-end market is that lenders are willing to do more to head off foreclosure by renegotiating the loan or accepting a short-sale transaction, which is essentially a last-ditch effort.
"Lenders are far more likely to go the short-sale route," says Andrew LePage, an analyst at real estate research firm DataQuick. "There's a lot more money at stake, and maintenance can be high if a foreclosure just sits there."
A $1.15 million condominium in Chicago in the landmark Palmolive Building was initially offered as a short sale, but after a buyer did not materialize, it's now owned by the bank, says Janice Corley, founder of Sudler Sotheby's International Realty, which is currently listing it. The condo has lake views and a long list of luxury-building amenities, including a steam room, doorman and gym.
The rise in luxury foreclosures has one Las Vegas real estate agent flying prospective buyers into the city via private jet. Luxury Homes of Las Vegas and JetSuite Air teamed to offer the complimentary trip for buyers flying from Los Angeles to view three foreclosed homes priced between $4.9 million and $6.1 million.
Agent Ken Lowman says he gave three tours over a one-week period and hopes to expand the offer to buyers from other West Coast cities.
There's just too much competition, Lowman says. "It takes an innovative approach like this to get results."
Heated pools, ocean views and media rooms are not what most people would expect to find in a foreclosed property, but more high-end homes — priced at more than a million dollars — have been falling into the hands of banks this year.
Foreclosures of homes worth more than $1 million began increasing at the end of 2009, according to data provided to CNBC.com by foreclosure tracking website RealtyTrac.
Foreclosures reached a high in February 2010, the last month data were available, when 4,169 high-end homes were somewhere in the foreclosure process; having received a foreclosure notice, had an auction scheduled or had ownership taken over by the lender. That's a 121% increase from a year ago.
The deterioration comes just as housing experts say that foreclosures in the low and middle ends of the housing market are showing signs of stabilization.
SLIDE SHOW: Million dollar foreclosures
SLIDE SHOW: America's double-dip real estate markets
SLIDE SHOW: The world's best places to live
Owners of expensive homes "were able to stave off foreclosure longer," says independent real estate analyst Jack McCabe, CEO of McCabe Research and Consulting in South Florida. "Lower-end homeowners were the first ones to see the escalating foreclosures, because they generally do not have the cash reserves or credit available that the luxury homeowners do. They had the ability to take their credit cards and pull out thousands of dollars, while the lower-end buyers were already tapped out."
McCabe expects foreclosures in the high-end market will increase into 2011.
DELINQUENCIES DROP: First time since 2006
Though the RealtyTrac data on high-end homes are not available on a regional or metropolitan basis, anecdotal evidence indicates the problem is cropping up across the country. High-end and luxury categories vary widely from market to market. In some suburban areas, in the Northeast and California, for instance, million-dollar homes are fairly common, but nationwide, they represent 1.1% of overall housing stock.
"We have seen an increase, in the million-plus range, of the number of foreclosures and short sales in the greater Chicago area," says Jim Kinney, vice president of luxury home sales at Baird & Warner.
He says that of the 295 million-dollar, single-family properties sold in the first quarter this year, 37 were either a foreclosure or short sale, when a bank and homeowner agree to sell the home for less than the loan is worth. During the same period a year ago, 10 of 231 fell into those categories.
In the Fort Myers, Fla., area, Mike McMurray of McMurray and Nette and the VIP Realty Group says he has seen a few foreclosed high-end homes on the market compared with none last year. He's currently showing a 4,800-square-foot, $3.65 million home on Captiva Island, where foreclosures are usually rare. The bank-owned home has five bedrooms and access to 150 feet of Gulf Coast beachfront.
"There are more we see coming down the pipeline," McMurray says.
Data show that may be the case around the country. The 90-day delinquency rate on home loans worth more than a million dollars hit a high in February at 13.3%, above the overall rate of 8.6%, according to real estate data firm First American CoreLogic. Foreclosure proceedings generally start after a homeowner has been at least 90 days late on a mortgage payment, experts say.
One difference in the high-end market is that lenders are willing to do more to head off foreclosure by renegotiating the loan or accepting a short-sale transaction, which is essentially a last-ditch effort.
"Lenders are far more likely to go the short-sale route," says Andrew LePage, an analyst at real estate research firm DataQuick. "There's a lot more money at stake, and maintenance can be high if a foreclosure just sits there."
A $1.15 million condominium in Chicago in the landmark Palmolive Building was initially offered as a short sale, but after a buyer did not materialize, it's now owned by the bank, says Janice Corley, founder of Sudler Sotheby's International Realty, which is currently listing it. The condo has lake views and a long list of luxury-building amenities, including a steam room, doorman and gym.
The rise in luxury foreclosures has one Las Vegas real estate agent flying prospective buyers into the city via private jet. Luxury Homes of Las Vegas and JetSuite Air teamed to offer the complimentary trip for buyers flying from Los Angeles to view three foreclosed homes priced between $4.9 million and $6.1 million.
Agent Ken Lowman says he gave three tours over a one-week period and hopes to expand the offer to buyers from other West Coast cities.
There's just too much competition, Lowman says. "It takes an innovative approach like this to get results."
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