Tuesday, December 18, 2007

NAHB - "Housing Starts Decline 3.7 Percent In November" (12-18-07)

"Nationwide housing starts declined 3.7 percent to a seasonally adjusted annual rate of 1.19 million units in November as home builders wisely continued to put the brakes on new-home production, according to newly released data from the U.S. Commerce Department."

DQNews - "Southland prices fall again; sales perk up" (12-18-07)

"Southern California home sales bucked the seasonal norm in November and rose slightly over October, thanks to bargain shopping and an uptick in new-home sales. But it remained a chilly market by historical standards: Sales were the slowest for a November in at least 20 years and the median sale price posted a record 10.3 percent year-over-year decline, a real estate information service reported."

Yahoo - "Fed Endorses New Home Mortgage Plan" (12-18-07)

"The Federal Reserve endorsed new rules Tuesday that would give people taking out home mortgages new protections against shady lending practices. The proposed rules, approved in a 5-0 vote by the board, are geared to providing safeguards to the riskiest 'subprime' borrowers, already painfully stung by the housing and credit debacles. The proposal is expected to apply to new loans made by all types of lenders, including banks and brokers. The plan could be finalized next year."

The San Diego Union Tribune - "Warnings of subprime market bust were ignored" (12-18-07)

"Until the boom in subprime mortgages turned into a national nightmare this summer, the few people who tried to warn federal banking officials might as well have been talking to themselves. Edward Gramlich, a Federal Reserve governor who died in September, warned nearly seven years ago that a fast-growing new breed of lenders was luring many people into risky mortgages they could not afford."

The Washington Post - "FBI Probes Virginia Mortgage Scam" (12-18-07)

"The sidewalks are still scrubbed and most lawns are neatly trimmed, but now the subdivision of townhouses off Route 1 in Woodbridge is pocked with empty windows and foreclosures. Federal investigators are poking around. Sources with knowledge of the probe at the Villages at Rippon Landing said investigators are examining why a number of townhouses in a five-block area were bought and resold quickly, for a large profit, even as the real estate market was cooling and unsold homes dotted the neighborhood. The new buyers sometimes failed to pay the mortgages, sending homes into foreclosure and hurting lenders. Renters found themselves unexpectedly forced to move."

Yahoo - "Housing Construction Hits 16-Year Low" (12-18-07)

"Housing construction fell in November with single-family activity dropping to the lowest level in more than 16 years. Analysts said the recession in housing showed no signs of a turnaround. The Commerce Department reported Tuesday that construction of new homes and apartments dropped by 3.7 percent last month to a seasonally adjusted annual rate of 1.187 million units."

Bloomberg - "Fed Plans to Tighten U.S. Mortgage Rules After Crisis" (12-18-07)

"The Federal Reserve proposed new rules for subprime mortgages, including a ban on low- documentation loans and limits on penalties for borrowers who prepay their debts. The plans, the Fed's biggest regulatory initiative since Chairman Ben S. Bernanke took office in February 2006, are aimed at curbing lending practices that contributed to record foreclosures. Board members unanimously voted in a hearing today to make lenders responsible for determining whether borrowers can afford their mortgages even after low starter rates expire."

Orange County Register - "Orange County home prices and sales" (12-18-07)

"For the month of November 2007, sales for all types of Orange County home sales decreased 45.3 percent. The median sales price decreased 6.5 percent. The median is where half the homes sold for more and half for less. Types of homes selling, as well as home value changes, cause the median to change."

Los Angeles Times - "On a Palmdale street, foreclosure is in the air" (12-18-07)

"Rocked by the sub-prime loan crisis, Palmdale is one of the places that should benefit most from the Bush plan. With less than 3% of Los Angeles County's population, it and neighboring Lancaster account for nearly 20% of the county's foreclosures."

Real Estate Journal - "Beware of Home Sellers Offering Incentives" (12-18-07)

"A home-buyer's market is a beautiful thing when you are eyeing the house of your dreams, your appetite whetted by this year's nationwide drop in home prices. Add to this a free incentive by the seller, such as a finished basement or a flat-screen TV, and you may be tempted to close the deal sooner than you should."

Real Estate Journal - "Investors Considering Retirement Opt for Property Investments" (12-18-07)

"commercial real estate delivers regular income -- whether from rent checks or dividends from a real-estate investment trust, or REIT. And the sector has traditionally kept pace with inflation and provided 'sufficient risk-adjusted returns,' says Grant Conness, a financial adviser at 1031 Alternatives Group, a division of Costa Financial Securities Inc. in Hollywood, Fla."

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