Friday, November 07, 2008

NAR - "Diverse Neighborhoods and Schools Strengthen Communities, Say Realtors" (11-7-08)

"It’s no surprise that good schools are often at the top of buyers’ lists during the home search process. The 2007 National Association of Realtors® Profile of Home Buyers and Sellers found that the quality of the school district was a deciding factor for 28 percent of home buyers. While real estate professionals are always careful to avoid steering − defined as the illegal practice of directing home seekers to particular areas and limiting where they can live − providing an opinion on whether a school is good or bad could be construed as steering."

Bloomberg - "Pending Sales of Existing Homes in U.S. Fell 4.6%" (11-7-08)

"Fewer Americans signed contracts to buy previously owned homes in September, indicating the credit crisis will inflict more damage on the housing market. The index of signed purchase agreements, or pending home resales, fell 4.6 percent, more than forecast, to 89.2, the National Association of Realtors said today in Washington."

CNN - "Mounting job losses fueling foreclosures" (11-7-08)

"For years, bad loans and their aftershocks have been sending homeowners into foreclosure. Now it's lost jobs that are putting troubled borrowers over the edge. As the economy tanks, unemployment is the major factor driving a much larger proportion of foreclosures now than in the earlier stages of the mortgage meltdown. In June, 45.5% of all delinquencies reported by Freddie Mac were due to unemployment or the loss of income, according to the company. That's an increase from 36.3% in 2006."

Yahoo - "AIG repays more of $85 billion Fed loan" (11-7-08)

"American International Group Inc. reduced the amount it owes the U.S. government by another $2.3 billion as the insurer continues to use the Federal Reserve's new commercial-paper-funding program."

Bloomberg - "GMAC Leaves Individuals Holding Car Lender's Junk" (11-7-08)

"GMAC LLC may leave thousands of individuals on the hook for about $15 billion of junk-rated debt unless the auto and home lender finds a way to pay its bills. GMAC, the largest lender to car dealers of General Motors Corp., issued more than $25 billion of debt called SmartNotes over the past decade to retail investors. While GMAC has paid off the debts as they matured, five straight unprofitable quarters raised doubt about GMAC's survival, and SmartNotes due in July 2020 have lost about three-quarters of their value."

Bloomberg - "CB Richard Ellis Jumps After Earnings Beat Estimates" (11-7-08)

"CB Richard Ellis Group Inc., the world's largest commercial real estate broker, rose in New York trading after third-quarter earnings exceeded analysts' estimates and the company said it's considering raising capital. The shares jumped 25 percent after the company reported profit excluding items of 27 cents a share. The average estimate of analysts in a Bloomberg survey was 23 cents."

Bloomberg - "Commercial-Mortgage Lending Comes to `Abrupt Halt,' RBS Says" (11-7-08)

"Commercial real estate borrowers are running out of options as asset-backed markets dry up and alternative financing comes to an 'abrupt halt,' RBS Greenwich Capital Markets Inc. analysts said. Regional banks and insurance companies, which had become the primary source of financing since credit markets seized up, have stopped lending, the RBS analysts wrote in a report. Sales of bonds backed by commercial mortgages slumped to $12.2 billion in 2008, compared with a record $237 billion last year, according to JPMorgan Chase & Co."

Orange County Register - "1-in-3 O.C. ZIPs see homebuying doubling or better" (11-7-08)

"29 of 83 O.C. ZIP codes — roughly 1-in-3 — saw sales volume double or more in this period vs. a year ago. Best? Santa Ana’s 92703, up 575%! Oh, by the way it took pricing 53.3% below a year ago to get that sales pop. O.C. median selling price of $417,500. That is down 26.6% vs. a year ago and 35% below June 2007’s peak of $645,000. Ouch, a loss of $227,500!"

Orange County Register - "O.C.’s conforming loan limit drops 14%" (11-7-08)

"A government regulator said today the maximum size of a loan that mortgage giants Fannie Mae or Freddie Mac can purchase will drop 14 percent to $625,500 on Jan. 1, 2009 in Orange County and other high-cost areas. Interest rates are lowest on loans that can be sold to Fannie and Freddie, known as conforming loans."

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