The New York Times - "Fannie and Freddie Shares Slide, Dragging Down Markets" (7-11-08)

"Fannie Mae and Freddie Mac shares plummeted again on Friday — and the broader stock market followed suit — as concern mounted that the government will be forced to take over the beleaguered mortgage finance companies, which some investors fear are at risk of default. Even after a week of unprecedented losses, the companies’ declines on Friday were the sharpest yet: Freddie Mac shares were down 24 percent from Thursday’s closing price, to $6.08 a share, and Fannie Mae stock fell 28 percent to $9.51 a share, in midday trading after opening sharply lower."

The Herald - "Allstate must cut home rates" (7-11-08)

"Allstate Corp. has been ordered to cut its California homeowner insurance rate by more than 25 percent, a move that will save consumers an estimated $255 million a year, the state insurance commissioner announced Thursday. Commissioner Steve Poizner signed an order Tuesday rejecting Allstate's request for a 9.3 percent increase and instead mandated a 28.5-percent rollback in rates for about 850,000 customers."

NAHB - "Statement From Jerry Howard, Executive Vice President-CEO National Association Of Home Builders" (7-11-08)

"Now is the time we need to focus on passing meaningful housing legislation. Industry and government must work together to help get home buyers back into the marketplace, stabilize house prices, stem the rising tide of foreclosures and restore confidence in our housing finance system. Fannie Mae and Freddie Mac play a central role in our housing system and will continue to do so."

The San Diego Union Tribune - "Wachovia hits 17-year low on CEO's first day" (7-11-08)

"On his first day as the new CEO of Wachovia Corp., Robert Steel saw the stock tumble to a 17-year low and faced questions about his ability to rescue the nation's fourth-largest bank from its own missteps and the roiling credit market."

Bloomberg - "Lehman Takes `Pounding' as Speculation Hurts Shares" (7-11-08)

"Lehman Brothers Holdings Inc., the securities firm that lost almost 75 percent of its market value this year, sank to the lowest since 2000 in New York trading as customers' votes of confidence failed to halt speculation that the stock may drop further. Lehman, once the biggest U.S. underwriter of mortgage bonds, fell 40 cents, or 5.2 percent, to $16.40 before the official open on the New York Stock Exchange. Shares of the New York-based investment bank have lost 24 percent this week."

Yahoo - "Paulson: Prime focus to support GSEs in 'current form'" (7-11-08)

"Treasury Secretary Henry Paulson said on Friday that his chief aim at present is to back government-sponsored mortgage finance companies Fannie Mae and Freddie Mac in their 'current form,' giving no sign a government bailout of them was imminent."

Orange County Register - "Santa Ana ZIPs top late-June’s home-price declines" (7-11-08)

"Five of the 11 O.C. ZIP codes with biggest price losses in late June were Santa Ana, according to the latest DataQuick homebuying report. Prices in these communities are likely being dragged down by a surge in sales by distressed sellers, both bankers who’s repossessed homes and owners trying to avoid foreclosure.Collectively, 153 homes were sold in this ZIP in this period, down 6% from a year ago. Not bad considering countywide sales are off 16.5%. "

On August 23rd, The Norris Group will be hosting a special fundraising event at the Nixon Library. The event is titled, "I Survived Real Estate 2008" (http://www.ISurvived2008.com). The event will raise money for cancer research and proceeds will be donated to the Orange County Affiliate of the Susan G. Komen for the Cure. Tickets are now available.

Yahoo - "Paulson says US mortgage giants 'adequately capitalized'" (7-10-08)

"Treasury Secretary Henry Paulson said Thursday that US mortgage finance giants Fannie Mae and Freddie Mac are 'adequately capitalized' in the face of a 'challenging period.'"

Bloomberg - "Fannie, Freddie `Insolvent' After Losses, Poole Says" (7-10-08)

"Fannie Mae paid a record yield relative to Treasuries on the sale of $3 billion in two-year notes yesterday amid concern the biggest provider of financing for U.S. home loans won't have enough capital to weather the worst housing slump since the Great Depression. The company's credit-default swaps show traders are treating the AAA rated debt as if it were five steps lower. Fannie Mae shares tumbled 13 percent yesterday in New York to the lowest level in almost 14 years."

Yahoo - "US foreclosure filings surge 53 percent in June" (7-10-08)

"Nationwide, 252,363 homes received at least one foreclosure-related notice in June, up 53 percent from the same month last year, but down 3 percent from May, RealtyTrac Inc. said. One in every 501 U.S. households received a foreclosure filing last month."

Reuters - "US housing bill clears Senate procedural hurdle" (7-10-08)

"A bill to save hundreds of thousands of homeowners from foreclosure cleared a procedural hurdle in the U.S. Senate on Thursday and moved a step closer to being sent to the House of Representatives for needed agreement. On a vote of 84-12, more than the required 60, the Senate agreed to proceed with the legislation, and could send it later in the day to the House, where it faced a number of potential amendments."

Bloomberg - "KB Home Adds Robert Johnson, Founder of BET, to Board" (7-10-08)

"KB Home, the Los Angeles-based homebuilder that's lost half its stock-market value in the past year, said Robert L. Johnson, founder of Black Entertainment Television and chairman of RLJ Cos., has become a director. KB Home's board now has 11 directors, 10 of whom are independent, following Johnson's unanimous election, the homebuilder said today in a statement. Johnson previously served with KB Home Chairman Stephen Bollenbach on the board of Hilton Hotels Corp., which Blackstone Group LP purchased last year."

Bloomberg - "Credit Scores Cost Consumers $28 Billion, Survey Says" (7-10-08)

"U.S. consumers remain in the dark about how the credit-scoring system works in obtaining mortgages, insurance and credit cards, costing individuals as much as $28 billion each year, a survey concluded. Credit scores are a vital but often overlooked part of people's financial health. The number, also known as a FICO score, determines interest rates on credit cards, and is being used increasingly by insurance companies to set rates and prospective employers in hiring decisions."

Bloomberg - "MGIC Downgraded by Moody's After Mortgage Defaults" (7-10-08)

"MGIC Investment Corp., the largest U.S. mortgage insurer, had its credit rating cut by Moody's Investors Service on record mortgage defaults. Moody's lowered its assessment of the Milwaukee-based insurer's claims-paying ability to A1 from Aa2 at its primary U.S. unit and to A2 from Aa2 at its Australian insurer. The downgrades were the result of a review begun in January and future rating cuts are more likely than improvements, Moody's said in a statement today."

Realty Times - "Market Conditions: California" (7-10-08)

"Market expert, Joanne Brown, is reporting that California home sales decreased in percentage wise -- with a year over year decline. However, per the index, eight of 20 cities experienced month-over-month increases in prices. That shows cities "are beginning to sort themselves into a better market condition. This also shows that the whole market is not collapsing. California cities included in the index continued to experience price declines are Los Angeles, San Diego and San Francisco."

Realty Times - "Realty Viewpoint: Energy Bills Are Yet Another Dealkiller/maker" (7-10-08)

"Thank goodness oil prices pulled back this week, falling as much as $9 a barrel over two days. Consumers needed a break, but that doesn't mean concern about energy prices is going away. Prices are still double what they were last year, and that means homebuyers are not only looking at their commute times, they're also looking closely at energy efficiency in the homes they buy."

Mortgage Bankers Association - "Mortgage Applications Increase In Latest MBA Weekly Survey" (7-9-08)

"The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending July 4, 2008. The Market Composite Index, a measure of mortgage loan application volume, was 513.4, an increase of 7.5 percent on a seasonally adjusted basis from 477.7 one week earlier. This week’s results include an adjustment to account for the Independence Day holiday. On an unadjusted basis, the Index decreased 14.1 percent compared with the previous week and was down 18.1 percent compared with the same week one year earlier."

Bloomberg - "MGIC Claims, Expenses to Top Premiums by Two-to-One, S&P Says" (7-9-08)

"MGIC Investment Corp., the largest U.S. mortgage insurer, will pay out more than $2 dollars in claims and expenses for every premium dollar earned this year and may lose money through 2009, Standard & Poor's said. "

Mercury News - "Contractors at the ready for remodeling work amid slowdown" (7-9-08)

"Americans spent $178 billion on home improvement projects in 2006, but that fell to $166 billion in 2008, according to Harvard University's Joint Center for Housing Studies."

Orange County Register - "LA/OC home prices off 23%, by the square foot" (7-9-08)

"RadarLogic, a home-price tracker that concentrates on per-square-foot valuations, says LA/OC home values (for all types of residences sold — homes, condos and newly built) ran at $303 per square foot in April, down 23.4% in the year, according to their most recent pricing report. To some observors, the per-square-foot measure can be more accurate because it’s not as easily swayed by a changing mix of homes sold in a period."

Realty Times - "Market Conditions" (7-9-08)

"The Fed announced yesterday morning that it would tighten rules on lending to subprime and exotic loan borrowers. What does this mean for the real estate market?"

Realty Times - "Can You Rely On Your Home Equity Line of Credit?" (7-9-08)

"If you have a home equity line of credit -- what the industry calls a "HELOC" -- you probably think of it as a financial safety net, quick cash you can access in times of emergency or when you face a big expense that can't otherwise be paid all at once. Unfortunately, HELOCs have been drying up across the country as lenders have put the brakes on withdrawals and reduced credit limits."

Realty Times - "Realty Viewpoint: Location Has Never Been More Important" (7-9-08)

"The The National Association of Realtors expects job losses to be temporary, as companies clean house. The unemployment rate should average 5.4 percent this year and rise to 5.8 percent in 2009, but that's still well under the seven percent unemployment we had as recently as 2003."

NAR - "Home Sales to Vary in Narrow Range, Then Rise in Second Half" (7-8-08)

"Modest near-term movement is expected in existing-home sales, with a recovery in sales seen during the second half of the year, according to the latest forecast by the National Association of Realtors®. The Pending Home Sales Index,* a forward-looking indicator based on contracts signed in May, fell 4.7 percent to 84.7 from an upwardly revised reading of 88.9 in April, and remains 14.0 percent below May 2007 when it stood at 98.5."

Yahoo - "Fed plans new rules to protect future homebuyers" (7-8-08)

"The Federal Reserve will issue new rules next week aimed at protecting future homebuyers from dubious lending practices, its most sweeping response to a housing crisis that has propelled foreclosures to record highs."

Los Angeles Times - "IndyMac to exit most home lending, slash 3,800 jobs" (7-8-08)

"IndyMac Bancorp, once a leader in the nontraditional home loans that helped drive the housing boom, all but quit the mortgage business Monday and said it would lay off 3,800 people, more than half its staff, in the wake of growing defaults by borrowers."

The San Diego Union Tribune - "BofA chief stresses discipline in lending" (7-8-08)

"Now it's time for the lending industry to 'return to a more disciplined view of risk standards that will protect everyone from a repetition of what we are going through today,' Lewis said. Getting the nation through the housing downturn will require federal help, he said. Congress is considering a mortgage rescue measure that would give lenders incentive to modify distressed mortgages."

The San Diego Union Tribune - "Wall Street clobbers giant mortgage firms" (7-8-08)

"One of the strongest warning signs came yesterday, when shares of the nation's most important mortgage companies, Fannie Mae and Freddie Mac, plummeted. After falling almost continuously for a month, in just one day Freddie Mac tumbled 18 percent and Fannie Mae lost 16 percent amid concerns that the companies would need to raise billions in fresh capital."

The San Diego Union Tribune - "Foreclosures bringing cases of fraud to light" (7-8-08)

"Law enforcement officials say a host of real estate shenanigans sprouted during the housing boom. The most prevalent – and least likely to be prosecuted – involved fudging income on loan applications. Other buyers fibbed about whether they would occupy the home or rent it. Some schemes were more complicated and nefarious. They often involved inflated appraisals, zero-down financing and grossly false information on loan documents. In these scams, the idea was not to own the property long-term but instead to siphon off as much money as possible from commissions, rental income or undisclosed cash kickbacks before letting the home fall into foreclosure."

Bloomberg - "Bernanke Says Fed May Continue Lending Into Next Year" (7-8-08)

"The Fed chairman's comments come a day after Fannie Mae and Freddie Mac fell to their lowest level since 1992 and the Standard & Poor's 500 Banks Index dropped to a 12-year low. It's the first time Bernanke has indicated how long he'll extend the lending programs that were introduced in March in a provision of Fed credit to nonbanks unprecedented since the Great Depression."

MSN - "34 cities where it's still better to rent" (7-8-08)

"Using a rule of thumb that truly affordable homes cost no more than 15 times their annual market rent, the study found that prices in 34 of the largest 100 metro areas still have a lot of room to fall and would leave their owners with negative equity were they to sell in four years. Hit worst would be home buyers in San Jose, Calif., the nation's priciest market. By the study's calculations, anyone who bought a low-priced home there with a 6% loan could be $355,000 in the hole in 2012. (A low-priced home was defined as 75% of the area's current median price.)"

Bloomberg - "LandAmerica Chief Cut Jobs, Plans Office Closures" (7-8-08)

"LandAmerica cut 4,000 jobs, or nearly 30 percent of its workforce, in the 16 months through April amid the biggest housing slump since the Great Depression. The top three title insurers reported a 15 percent slide in first-quarter orders. According to No. 1 First American Corp.'s monthly data, that deficit didn't improve in April and May."

Bloomberg - "Bondholders See Blackstone Winning Tousa Assets From Citigroup" (7-8-08)

"Blackstone Group LP and Carlyle Group are fighting lenders led by Citigroup Inc. over more than $500 million in assets the banks received as collateral from Tousa Inc., the biggest U.S. homebuilder in bankruptcy."

New York Times - "Fannie and Freddie Shares Plunge" (7-7-08)

"Freddie Mac stock tumbled more than 18 percent in early afternoon trading, to $11.83, while Fannie Mae shares also dropped more than 18 percent, to $15.30."

CNBC - "Retail Property Has Worst Second Quarter in 30 Years" (7-7-08)

"U.S. store closings and cutbacks turned the second quarter into the worst for strip mall owners in 30 years, as budget-conscious consumers flocked to low-cost warehouse-style grocery centers, according to a report by real estate research firm Reis. Strip malls, which are usually anchored by grocery or drug stores, saw average vacancies spike 0.5 percentage points to 8.2 percent, a level unseen since 1995, according to the report released on Monday."

Yahoo - "Countrywide workers worried about severance" (7-7-08)

"Workers at Countrywide Financial Corp are worried that new owners Bank of America Corp will force them into a position that will cause them to lose their severance benefits, the New York Post reported."

Bloomberg - "Maguire Properties Gets $939.7 Million Takeover Offer" (7-7-08)

"The offer is worth $939.7 million and is 67 percent more than the July 3 closing price for Maguire. Loeb's Third Point LLC hedge fund, Maguire's fourth-biggest investor, made the disclosure in a regulatory filing and didn't name the bidder. Another fund, JMB Capital Partners LP, will say today in a filing it bought a 9.8 percent stake in Maguire and will seek control of the board, managing partner Jon Brooks said in an interview. "

Bloomberg - "Home Prices Fall in 23 of 25 U.S. Metropolitan Areas" (7-7-08)

"The Sacramento, California, region saw the biggest drop, with prices falling 31.7 percent from April 2007. Sacramento was followed by the Las Vegas area (29.9 percent), San Diego (28.1 percent), Phoenix (25.5 percent) and Los Angeles (23.4 percent), Radar Logic said. "

Bloomberg - "Profits in U.S. Probably Fell Again, Led by Citigroup" (7-7-08)

"Profits at U.S. companies probably shrank for the fourth consecutive quarter, the longest losing streak since 2002, as Citigroup Inc. and Merrill Lynch & Co. suffered more losses from the collapse of the mortgage market."

Orange County Register - "Fed official sees home-price dips ‘well into 2009′" (7-7-08)

"Changes in housing prices are inextricably linked to household wealth, which in turn affects consumer spending, as well as prospects for housing construction. Unfortunately, it appears to me that there are at least three reasons for thinking that housing prices have further to fall. First, the ratio of house prices to rents—a kind of price-dividend ratio for housing—still remains quite high by historical standards, despite having fallen from its historical peak reached in early 2006."

Realty Times - "Market Conditions: Yolo County, California" (7-7-08)

"Ken and Linda Pillard, market experts in Yolo County, California, say default notices have jumped from 197 to 488 since 2007. But despite those figures, they say this market is showing promising signs for buyers, who are in the perfect position to take advantage of low interest rates and extraordinary inventory."

Los Angeles Times - "Bitter lessons learned from refinancing" (7-5-08)

"Discussion of the problem often focuses on first-time home buyers who stretched to buy homes they couldn't afford. But experts who've crunched the numbers say 90% of people who took out sub-prime loans from 1998 to 2006 were already homeowners.Many, like Miller, had conventional, prime loans that were well within their means. What often got them into trouble was that they refinanced their mortgages without really understanding the terms and without realizing that the sales pitches and loan documents were sometimes deliberately opaque to snare the unwary."

Orange County Register - "Banks narrow home equity withdrawals" (7-5-08)

"Several lenders have reduced HELOCs en masse in areas of declining home prices, including Orange County, experts say. Lenders are trying to reduce their exposure to potential loan losses. The percentage of HELOCs more than 30 days past due rose to 1.10 percent during the first quarter, the highest since 1997, reports the American Bankers Association."

The San Diego Union Tribune - "Legislation could help gasping market" (7-6-08)

"Congress left town for the July 4 recess with a half-baked cake in its legislative oven – one that has huge potential significance for the housing and mortgage markets. The unfinished work is a major relief bill designed to rescue hundreds of thousands of homeowners heading for foreclosure, pull new buyers back into the real estate arena, and permanently raise conventional and FHA loan limits in high-cost markets."

The San Diego Union Tribune - "Homeowners suffer while mortgage bill sits in Senate" (7-6-08)

"Since the Senate's nine-day holiday began, an estimated 17,000 American homeowners defaulted on their mortgages, mostly because they were unable to keep up with rising payments on adjustable-rate loans. That translates into nearly 1,890 defaults per day, or nearly 80 per hour, based on data from RealtyTrac. In San Diego County alone, homeowners are defaulting at a rate of more than 30 per day, according to DataQuick Information Services."

The San Diego Union Tribune - "U.S.-style financing is spreading to other countries" (7-6-08)

"No one knows exactly who is buying what or how much. But nearly one in three American realty agents report working with customers from other countries, and almost half of those worked with three or more international clients – some with more than 10, according to the National Association of Realtors (NAR)."

Merced Sun-Star - "Upside to the housing slump: Lower taxes" (7-1-08)

"As property values continue to plunge, Merced County homeowners can take comfort in the housing slump's silver lining: lower tax bills. Countywide, 21,282 property owners will see their property taxes shrink this year -- the largest number of tax reductions the county has ever seen, said Merced County Assessor Kent Christensen."

Mortgage Bankers Association - "Mortgage Applications Increase In Latest MBA Weekly Survey" (7-1-08)

"The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending June 27, 2008. The Market Composite Index, a measure of mortgage loan application volume, was 477.7, an increase of 3.6 percent on a seasonally adjusted basis from 461.3 one week earlier. On an unadjusted basis, the Index increased 3.2 percent compared with the previous week and was down 22.8 percent compared with the same week one year earlier."

Bloomberg - "Overdue Home-Equity Credit Lines Rise Most Since 1987" (7-1-08)

"Home-equity lines of credit at least 30 days past due rose 14 basis points to 1.1 percent of accounts in the quarter, the Washington-based group said today in a statement. Delinquent credit-card accounts increased 13 basis points to 4.51 percent, the highest since 2006. Late rates worsened in five of eight categories of non-revolving loans tracked by the group."

Bloomberg - "Shorenstein, Farallon May Build S.F. Office, Cruise Projects" (7-1-08)

"Shorenstein Properties LLC and Farallon Capital Management LLC may invest $700 million to build a cruise ship terminal and office space for themselves in San Francisco as development grows along the city's once-derelict waterfront."

Bloomberg - "CDO Creators Seek Redemption, and Profits, From Mortgage Market" (7-1-08)

"Money managers including TCW Group Inc. and Harding Advisory LLC that topped the list of firms behind the most toxic mortgage securities have raised more than $4.3 billion to invest in home-loan debt."

Realty Times - "Market Conditions" (7-1-08)

"Although conditions remain mixed around the country, unpublished snapshot data shows a number of areas are experiencing much higher sales activity than May 2007, including Sacramento, the San Fernando Valley and Monterey County in California; Sarasota, FL; and Battle Creek, MI."

Realty Times - "Why Shun Investors?" (7-1-08)

"We drive away investors by having one set of local property taxes for investors -- and a lower set of property taxes for owner occupants. We have rules for investment properties that simply do not apply to owner-occupant homes -- just think of lead paint regulations. The idea is not to promote get-rich-quick and no-money-down schemes, but to encourage those with capital to help with one of the largest financial problems of our time, the gross abundance of real estate inventory that's driving down home prices nationwide."

Realty Times - "Condo Trends: Conversion Bailouts Latest Loan Fraud Scheme" (7-1-08)

"Freddie Mac, one of the country's largest providers of mortgage money to banks and lenders, says the way these schemes work is that a promoter of these deals will typically target investors with excellent credit who are seeking out a 'no risk' investment opportunity, with no or little money down. As a condition of the sale, the buyer agrees to a contract that provides a mortgage more than the property is worth. The excess money is then credited back at settlement to the buyer who uses it for whatever he wants, even to make monthly payments."

Orange County Register - "Home equity delinquencies highest since 1997" (7-1-08)

"The American Bankers Association said Wednesday the percentage of home equity lines of credit (HELOCs) that were more than 30 days past due rose to 1.10 percent during the first quarter, the highest since 1997"

Yahoo - "S&P cuts outlook on some banks, other financials" (7-1-08)

"Standard & Poor's on Tuesday lowered its outlook on diversified banks and other diversified financial services companies to 'Negative' from 'Neutral,' warning that some may need to cut dividends and raise additional capital to cover mounting loan losses."

Yahoo - "Construction spending drops 0.4 percent in May" (7-1-08)

"Construction spending fell in May for the 11th time in the past year as a continuing slump in housing offset strength in nonresidential building. The Commerce Department reported Tuesday that construction spending dropped 0.4 percent in May, slightly less than had been expected. There was strength in spending on hotels and office buildings but continued declines in housing, which has been in a slump for two years."

Bloomberg - "Bank of America to Acquire Countrywide for 37% Less" (7-1-08)

"Bank of America Corp. will buy Countrywide Financial Corp., the home lender battered by the collapse of the subprime mortgage market, for about $2.5 billion, 37 percent less than originally planned."

Bloomberg - "Broad Says Economy in Worst Slump Since World War II" (7-1-08)

"Billionaire investor Eli Broad said the U.S. economy is in the worst recession since World War II and a recovery in the housing market is 'several years' away. 'This is worse than any recession we've had since World War II,' Broad, 75, said in an interview yesterday. Broad, the founder of homebuilder KB Home, said the U.S. should avoid a depression on the scale of the 1930s because the country now has sufficient 'safety nets.'"

Bloomberg - "Old Republic to Deliver Recovery Plan to Freddie Mac" (7-1-08)

"Old Republic International Corp.'s mortgage insurance unit will submit a plan to Freddie Mac showing actions to improve its financial strength after a downgrade by Moody's Investors Service. Old Republic, based in Chicago, has 60 days to give the second-biggest buyer of home mortgages details on restoring an Aa3 rating, Freddie Mac said today in a statement. The insurer was cut one level from A1 on a drop in capital and questions about profitability, Moody's said in a separate statement."

Bloomberg - "San Francisco Downtown Office Vacancy Rises Most in Five Years" (7-1-08)

"The vacancy rate for San Francisco's best office space rose the most in five years in the second quarter as tenants signed fewer leases amid a slowing U.S. economy, according to Cushman & Wakefield Inc. The office vacancy rate for Class A space, the highest quality in the most sought-after locations, increased 1 percentage point from the first quarter to 9.1 percent, the biggest jump since 2003 when San Francisco was reeling from the collapse of the technology bubble, said Cushman, the largest closely held commercial brokerage. Average Class A rents rose 4 percent to $48.77 a square foot."

Realty Times - "Real Estate Marketing Strategies: The Biggest Mistake Real Estate Agents Make And How You Can Avoid It" (7-1-08)

"How often have you heard someone say that when business is down and the economy is questionable? It seems logical, doesn't it, to tighten your purse strings? Even though it seems logical to tighten up and constrict spending, it is actually based on a 'scarcity' mindset. In a scarcity mindset you focus on lack in your business, and on lack in outer conditions and the market."

Realty Times - "Gas Prices Fuel Urban Desire" (7-1-08)

"A recent Coldwell Banker Associates Report, "Interest in Urban Homeownership Fueled by Higher Gas Prices", found that the vast majority of sales associates' clients -- 78 percent -- said the rising cost of gas has increased their desire to live in the city instead of the suburbs."

Orange County Register - "O.C. ranked nation’s 7th riskiest home market" (7-1-08)

"And that’s good news. Mortgage insurer PMI’s quarterly rankings of the shakiness of the 50 big U.S. housing markets says there’s a 85.8% chance that O.C. home prices will be lower two years from now. "

Orange County Register - "Distressed homes now 40% of O.C. supply" (7-1-08)

"Home market watcher Steve Thomas at Re/Max Real Estate Services in Aliso Viejo reports that the number of O.C. distressed properties (homes listed by agents as foreclosures or short sales) was 5,946 last week, up 48 vs. two weeks earlier or a 0.8% gain. Two weeks ago, distressed homes for sale fell by 7, the first drop of 2008."

Charles Hugh Smith - "Let the Banks Go Under, Sell 10 Million Houses for $1 Each" (6-30-08)

"Today's target: the notion that the collapse of the insolvent U.S. banking system would be so terrible. Really? Terrible for who? Certainly not the nation at large. In fact the dissolution of the insolvent parts of the U.S. banking sector--yes, the investment banks, the money-center banks, the regional banks, and the savings and loans--would actually be an enormously positive development for the nation and indeed the world."

Yahoo - "The Next Victim of the Real Estate Crisis" (6-30-08)

"States are facing flat or even declining revenues even as costs for salaries, fuel, and construction increase. And revenues will only plunge further as the housing slump and credit crunch begin to reflect more in lower property assessments and sales and income taxes. With fewer homes being sold, homeowners are spending less on new furniture, carpets, bathroom and kitchen fixtures, and other household costs. Americans struggling just to make mortgage payments and fill fuel tanks have less to spend on discretionary purchases. Income tax is down as a result of job losses and shrinking profits for corporations, including those in the construction business."

Bloomberg - "Homeowners Fall Further Behind on Mortgage Payments" (6-30-08)

"In the worst housing slump since the Great Depression, 67,967 homeowners with mortgage insurance fell at least 60 days behind on their loans, compared with 40,687 who got back on track, the Mortgage Insurance Companies of America reported today. Borrowers who take on debt of more than 80 percent of a home's value are often required to buy coverage that pays lenders if they default."

Bloomberg - "Treasury Bear Market to Worsen Under Bernanke's Fed" (6-30-08)

"The biggest bear market in Treasuries since 2004 may get worse. Unlike four years ago, when Federal Reserve Chairman Alan Greenspan embarked on 17 consecutive interest-rate increases to contain the threat of rising consumer prices, his successor Ben S. Bernanke is giving investors few assurances that the scourge of inflation will abate anytime soon."

Bloomberg - "California Under Schwarzenegger Underperforms Davis" (6-30-08)

"As the most populous U.S. state, with a gross domestic product that's No. 8 in the world, California is so strapped for cash that it must consider a short-term, $10 billion loan to cover its bills. The widening deficit means the financing may be about 0.85 percentage point more expensive than five years ago, when Davis lost his job over a budget gap twice as large as the $17 billion deficit the state now faces. That's an added $8.5 million on every $1 billion borrowed."

Orange County Register - "Demand for O.C. homes takes first ‘08 dip" (6-30-08)

"Market watcher Steve Thomas at Re/Max Real Estate Services‘ latest report raises a question about the durability of the spring’s buying spurt. Thomas says that shoppers’ demand for O.C. housing, measured by the MLS tally of homes placed in pending escrows in the prior month, fell last week for the first time in 2008."

Orange County Register - "Distressed homes now 40% of O.C. supply" (6-30-08)

"Home market watcher Steve Thomas at Re/Max Real Estate Services in Aliso Viejo reports that the number of O.C. distressed properties (homes listed by agents as foreclosures or short sales) was 5,946 last week, up 48 vs. two weeks earlier or a 0.8% gain. Two weeks ago, distressed homes for sale fell by 7, the first drop of 2008."

Orange County Register - "Commercial construction down 34% in 2008" (6-30-08)

"The Construction Industry Research Board reports that plans for new office, industrial and retail space are down by two-thirds or more so far this year, accounting for the bulk of the declines in non-residential building permit values this year so far. verall, non-residential construction is off 34% in the first five months of the year vs. the same January-May period in 2007, the research board reported."

Bloomberg - "KB Home's Broad Says Investors `Better Off in Cash'" (6-30-08)

"Eli Broad, the philanthropist and founder of KB Home, said the growing number of vacant U.S. homes, mortgage-related losses at banks and declining consumer confidence have convinced him investors are 'letter off in cash' right now."

Bloomberg - "Genworth Mortgage Unit's Rating Reduced by Moody's" (6-30-08)

"Genworth Financial Inc., the insurer spun off by General Electric Co., had the financial strength rating of its mortgage insurance unit cut by Moody's Investors Service. 'The downgrade reflects historically high mortgage defaults and uncertainty about ultimate losses,' Moody's said today in a statement about the Richmond, Virginia-based insurer. The subsidiary was cut to Aa3 from Aa2, the rating company said"

Bloomberg - "Insurers' Catastrophe Claims Rise at Fastest Pace Since 1994" (6-30-08)

"U.S. property and casualty insurers have been hit with $8.9 billion in catastrophe claims so far this year for the highest first-half total since 1994, amid a surge in tornado-related damage, Insurance Services Office Inc. said."

Telegraph.Co.Uk - "Barclays warns of a financial storm as Federal Reserve's credibility crumbles" (6-28-08)

"Barclays Capital has advised clients to batten down the hatches for a worldwide financial storm, warning that the US Federal Reserve has allowed the inflation genie out of the bottle and let its credibility fall 'below zero'."

The Market Oracle - "US House Prices Forecast 2008-2010" (6-29-08)

"US House prices continued to plunge for April 08 data, reaching an extreme low reading of down 16.3% on a year earlier as measured by the S&P/ Case-Shiller Composite-10 and down more than 19% from the mid 2006 peak. The rate of decline is the worst since the Great Depression and signals further distress in the real estate linked credit markets and therefore a continuing drag on the US economy in the face of the continuing deleveraging of the mortgage backed derivatives markets. "

The New York Times - "As Housing Bill Evolves, Crisis Grows Deeper" (6-29-08)

"More than three million borrowers are in distress, and analysts are forecasting a couple of million more will fall behind on their payments in the coming year as home prices fall further and the economy weakens."

Orange County Register - "Gov. Arnold says Calif. will ‘grow out’ of housing ills by ‘09" (6-29-08)

"GOV. SCHWARZENEGGER: Well, no, I think that, you know, there were big mistakes made by borrowers and there were big mistakes made by lenders. And I think that everyone was on such a roll and the real estate market always, every year, went up and up and up, and so people started speculating. And, of course, what happened was the housing market was like the dot-com bubble, it was a housing bubble, and it finally — the whole thing collapsed. And now we have to just wait until we grow our way out of this situation. And I think that by next year we will grow out of it."

Yahoo - "BofA to cut 7,500 jobs after Countrywide deal" (6-27-08)

"Bank of America said Thursday it will cut about 7,500 jobs after it closes its acquisition of mortgage lender Countrywide Financial Corp. The job cuts amount to about 12.5 percent of the combined companies' mortgage, home equity and insurance businesses, after the purchase is completed next week."

Bloomberg - "KB Home Reports Loss as Slump Hurts U.S. House Sales" (6-27-08)

"KB Home, the Los Angeles-based homebuilder founded by Eli Broad, reported its fifth straight quarterly loss as rising mortgage rates and falling prices reduced demand for homes. The fiscal second-quarter net loss was $255.9 million, or $3.30 a share, more than three times the average estimate of $1 per share in a Bloomberg survey. KB Home's shares dropped as much as 7.5 percent in New York. Revenue dropped 55 percent to $639.1 million, the company said today in a statement."

Bloomberg - "Homes Less Affordable as Prices Fall, Rates Rise, Zillow Says" (6-27-08)

"Rising mortgage rates are driving up the cost of buying a house even as prices fall, making property more expensive across the U.S., according to a new study by Zillow.com, an online provider of home valuations. Monthly payments on 30-year fixed mortgages are 6 percent to 10 percent higher in 41 of the top U.S. housing markets than they were two months ago. First-quarter prices have declined from a year earlier in 88 percent of those areas, Zillow said."

Bloomberg - "Values of Higher-Priced Homes May Drop Faster, JPMorgan Says" (6-27-08)

"The U.S. home-price declines most associated with lower-priced properties may accelerate among more expensive houses, according to analysts at JPMorgan Chase & Co. The increasing odds that the U.S. will enter a recession and a wave of payment spikes on option adjustable-rate mortgages make the larger percentage drops more likely, New York-based mortgage- bond analysts at JPMorgan wrote in a report today."

Bloomberg - "Fed Reviews Bank Investment Rules to Channel Capital to Lenders" (6-27-08)

"Federal Reserve officials are reviewing regulations that limit investment firms' stakes in banks, aiming to channel more capital into the U.S. banking system. Fed Chairman Ben S. Bernanke and Treasury Secretary Henry Paulson have urged lenders to raise capital to compensate for almost $400 billion in writedowns and credit losses from the collapse of the subprime-mortgage market. Concern about rising loan losses has sent the Standard & Poor's 500 Banks Index into a 21 percent dive this month, putting it on course for its worst monthly return in almost a decade."

Bloomberg - "AIG to Absorb $5 Billion Loss on Securities Lending" (6-27-08)

"American International Group Inc. plans to absorb losses for a dozen insurance units after their securities-lending accounts suffered $13 billion of writedowns tied to the subprime-mortgage collapse during the past year. Moody's Investors Service and A.M. Best Co. both cited the writedowns in May when they downgraded New York-based AIG's credit ratings. State regulators in Texas said they didn't know AIG was investing cash collateral from the securities-lending business in subprime-linked assets and were concerned the insurance units hadn't put aside enough capital to cover potential losses."

Realty Times - "Investor Report: Anti-Flipping Rules" (6-27-08)

"Here's some really good news for anyone involved in acquiring, rehabilitating and reselling foreclosed houses: The Federal Housing Administration is temporarily waiving its 'anti-flipping' rules and will now insure mortgages on properties that have been owned by the current seller for less than 90 days."

Realty Times - "Realty Viewpoint: New Home Sales Will Reverse Without Stimulus" (6-27-08)

"New home sales fell another 2.5 percent in May to a seasonally adjusted rate of 512,000 units. At this rate, about one million new homes will be sold by the end of the year. That's about half what both the National Association of Home Builders and the Joint Center for Housing Studies at Harvard says sustainable new home sales should be."

Loan Safe Solutions - "New York Tackles Reckless Subprime Lending…Will California Be Next?" (6-26-08)

"New York is the latest to pass a tough law with stronger protections to put an end to many of the abuses that led to today’s foreclosure crisis. This action came on the heels of new laws in Connecticut and Maryland, and Michigan is actively considering a robust bill, too. Approximately a dozen states, including Ohio, Minnesota, and North Carolina last year, have taken the lead in passing common-sense protections consumers should have had all along."

NAR - "May Existing-Home Sales Show Modest Gain" (6-26-08)

"Existing-home sales – including single-family, townhomes, condominiums and co-ops – increased 2.0 percent to a seasonally adjusted annual rate 1 of 4.99 million units in May from a level of 4.89 million in April, but are 15.9 percent below the 5.93 million-unit pace in May 2007."

Bloomberg - "Lennar Reports Loss, Says Home Market Not at Bottom" (6-26-08)

"Lennar Corp., the second-largest U.S. homebuilder, reported its fifth straight quarterly loss and said the housing market has yet to see the worst of the slump. The shares fell 8.4 percent after Miami-based Lennar reported a fiscal second-quarter net loss of $121 million, or 76 cents a share. Analysts projected a loss of 68 cents. Revenue fell 61 percent to $1.1 billion."

Bloomberg - "SEC Inquiries Stemming From Subprime Crisis Surge" (6-26-08)

"The U.S. Securities and Exchange Commission's docket of probes stemming from the subprime- mortgage crisis has grown at least 40 percent since January amid mounting investor losses and the collapse of Bear Stearns Cos., a person familiar with the agency's caseload said."

Bloomberg - "Commercial-Mortgage Bond Sales May Reach 12-Year Low" (6-26-08)

"Commercial-mortgage backed securities offerings dropped to $12.2 billion in the first half of the year, from about $137 billion in the same period of 2007, according to JPMorgan Chase & Co. Analysts at the firm, Moody's Investors Service and Royal Bank of Scotland Group Plc cut their forecasts. JPMorgan predicts sales will fall to $20 billion this year from the record $237 billion in 2007 and the lowest since 1996."

Bloomberg - "Subprime-Mortgage Defaults Rise Less Than Some Forecasts in May" (6-26-08)

"Subprime-mortgage defaults last month rose less than some forecasts as some categories of delinquency rates improved, according to data on the debt underlying the benchmark Markit ABX derivatives indexes."

Bloomberg - "Genworth Financial Is `Comfortable' With 2008 Earnings Forecast" (6-26-08)

"The Richmond-Virginia-based company, whose shares have fallen 46 percent in the past year, forecasts a 2008 operating profit range of $2.25 to $2.65 a share. Fraizer last week reorganized management so that its U.S. mortgage-insurance unit reports to him directly, and announced the chief investment officer was leaving the company. The three insurers in the Standard & Poor's 500 Index that declined more than Genworth in the past year all replaced their CEOs."

Realty Times - "Assessing Your Readiness to Invest in Foreclosures" (6-26-08)

"Not everyone is cut out to invest in foreclosures. Some people would rather watch TV, invest in stocks and bonds, spend time with family members, or hang out with their friends. Others have a low risk tolerance and can't convince themselves to borrow money."

Orange County Register - "REITs? Forget it." (6-26-08)

"Who came up with the bright idea of creating a company that buys a bunch of home loans and then pays out nearly all the income it gets to shareholders? What if the loans go bad? What if interest rates rise? Paying at least 90 percent of earnings as dividends, a requirement of any real estate investment trust, means there’s little money left over for a rainy day."

Orange County Register - "Aliso Viejo is top city for property tax cuts" (6-26-08)

"Orange County Tax Assessor’s Office says Aliso Viejo leads Orange County cities in the percentage of its homes that had their property tax assessments reduced for the coming fiscal year"

NAHB - "New-Home Sales Decline In May" (6-25-08)

"In the latest evidence of severe and ongoing weakness in the nation’s housing market, the Commerce Department reported today that sales of newly built, single-family homes fell 2.5 percent in May to a seasonally adjusted annual rate of 512,000 units, largely offsetting a gain they recorded in the previous month."

NAR - "NAR Grants Help Increase Local Housing Opportunities" (6-25-08)

"The National Association of Realtors® has awarded $39,500 to 13 local and state Realtor® associations through the Housing Opportunity Fund grants program. The grants help support the housing opportunity efforts of local and state Realtor® associations. 'Realtors® build communities and care about the lack of housing opportunities available to low- and moderate-income families,' said NAR President Dick Gaylord, a broker with RE/MAX Real Estate Specialists in Long Beach, Calif. 'These grants help support NAR’s mission of advocating solutions to today’s critical housing needs and help position Realtors® as leaders in their communities by increasing access to affordable housing and homeownership.'"

Wall Street Journal - "Consumer Confidence Plummets" (6-25-08)

"American consumers, battered by falling home prices and soaring gasoline prices, are at their gloomiest in decades, raising fears they might cut back on spending later this year and tip the economy into a recession. Consumer confidence plunged in June to its lowest level since 1992, and home-price declines accelerated in April, according to data released Tuesday. The renewed signs of economic weakness underscored why Federal Reserve policy makers, who wrap up a two-day meeting Wednesday, are likely to hold the target for their benchmark interest rate steady at 2%."

Mortgage Bankers Association - "Mortgage Applications Decreased In Latest MBA Weekly Survey" (6-25-08)

"The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending June 20, 2008. The Market Composite Index, a measure of mortgage loan application volume, was 461.3, a decrease of 9.3 percent on a seasonally adjusted basis from 508.4 one week earlier. On an unadjusted basis, the Index decreased 9.3 percent compared with the previous week and was down 25.3 percent compared with the same week one year earlier."

CBIA - "CBIA Sharply Reduces 2008 Housing Forecast" (6-25-08)

"California homebuilders are expected to begin construction on just 72,000 homes, condominiums and apartments this year, significantly lower than earlier forecasts. If that level is correct it will be the lowest production in the Golden State since at least the early 1950s, according to the annual midyear housing forecast released today by the California Building Industry Association."

Market Watch - "Four years of gains in home prices wiped out" (6-25-08)

"Home prices across 20 major U.S. cities have dropped a record 15.3% in the past year and are now back to where they were in the summer of 2004, according to the Case-Shiller home price index released Tuesday by Standard & Poor's."

Yahoo - "Fed leaves rates unchanged, ending 9-months of rate cuts" (6-25-08)

"The Federal Reserve left its key short-term interest rate unchanged Wednesday at 2%, marking the first time in the nine months that it did not cut rates. The central bank also raised alarms about inflation. But experts said it is still unclear what the Fed will do with interest rates at its next meeting Aug. 5 and for the remainder of the year."

Bloomberg - "Analysts Backtrack on Banking Stocks After Saying Worst Is Over" (6-25-08)

"The mortgage-market rout that began last year and led to almost $400 billion in bank writedowns and credit losses has lasted longer and cut deeper than bearish analysts predicted. Citigroup Inc., the biggest U.S. bank by assets, and UBS AG, Switzerland's largest lender, have lost $43 billion and $38 billion, respectively."

Market Watch - "Housing crash hits baby boomers" (6-25-08)

"The collapse of the housing bubble will likely have drastic implications on the wealth and retirement of certain baby boomers, according to a report Tuesday by the Center for Economic and Policy Research."

CNN - "On the path to a housing rebound" (6-25-08)

"The news that housing starts have fallen to their lowest level in 17 years sounds like one more reason to be depressed about the shrinking value of your home. In fact, it's an almost certain sign that the path to a housing recovery is finally in sight. If prices are going to stabilize, let alone rebound, the United States needs to produce far more first-time home buyers than new houses. That's the only way to tame the glut of 'For Sale' signs dotting front yards from the Inland Empire of California to the Gold Coast of Florida."

Bloomberg - "Countrywide Sued by California, Illinois, Over Mortgage Loans" (6-25-08)

"Countrywide Financial Corp., the mortgage lender that lost $2.5 billion amid rising defaults and foreclosures, was sued by California and Illinois for allegedly luring borrowers into risky loans they couldn't afford. Countrywide and Chief Executive Officer Angelo Mozilo were named in the suits, filed today, claiming the lender's tactics led thousands of borrowers to lose their homes when they couldn't make their payments. Countrywide used deceptive practices, including low 'teaser' rates, to entice borrowers into adjustable-rate loans without adequately informing them that the payments would balloon in later months, according to the suits."

CAR - "C.A.R. reports sales increased 18.1 percent; median home price fell 35.3 percent in May" (6-25-08)

"The median price of an existing, single-family detached home in California during May 2008 was $384,840, a 35.3 percent decrease from the revised $594,530 median for May 2007, C.A.R. reported. The May 2008 median price fell 4.7 percent compared with April’s $403,870 median price."

Bloomberg - "S&P/Case-Shiller Home Prices Fell 15.3% in April" (6-24-08)

"Home prices in 20 U.S. metropolitan areas fell in April by the most on record, signaling the housing recession is far from over, a private survey showed today. The S&P/Case-Shiller home-price index dropped 15.3 percent from a year earlier, less than forecast, after a 14.3 percent decline in March. The group began keeping year-over-year records in 2001. A separate report showed consumer confidence slumped this month to the lowest level in 16 years."

Bloomberg - "U.S. Homebuilders Rise on Positive Analyst Rating" (6-24-08)

"Centex Corp. and KB Home led an index of U.S. homebuilders to its biggest gain in three weeks after a Credit Suisse analyst started coverage of the builders with an ``overweight'' rating on the industry. A Standard & Poor's measure of home construction companies gained 3.7 percent, the most since June 3, after the positive recommendation in a report dated yesterday by Daniel Oppenheim of Credit Suisse."

Bloomberg - "U.S. Attorney Charges Follieri, Sued by Burkle, With Wire Fraud" (6-24-08)

"Follieri's company, Follieri Group LLC, was sued in April by Ron Burkle's Los Angeles-based Yucaipa Cos., which claimed he used part of a $55.6 million investment in a joint venture with the Yucaipa Corporate Initiatives Fund I to finance a lifestyle that included private jets, a penthouse and trips to Europe with actress Anne Hathaway, his girlfriend at the time."

Bloomberg - "U.S. Housing May Reach `Inflection' in 2009, Credit Suisse Says" (6-24-08)

"The U.S. housing market may reach an 'inflection point' next year as the number of existing homes for sale peaks and new-home construction stalls."

Bloomberg - "Fannie, Freddie Fail to Relieve Jumbo Loan Pressure" (6-24-08)

"Three months after Fannie Mae and Freddie Mac won the freedom to step up home-loan purchases, the government-chartered mortgage-finance companies are doing what critics in the Federal Reserve and Congress had predicted. Instead of using powers granted by Congress to buy jumbo loans for the first time, Freddie Mac and Fannie Mae are purchasing their own mortgage-backed securities, helping reduce losses, company filings show. The large loans, above $417,000, made up almost a third of the U.S. market last year, according to the Mortgage Bankers Association."

Bloomberg - "Bernanke Plays `Dangerous Game' Weighing Talk, Action" (6-24-08)

"Federal Reserve Chairman Ben S. Bernanke, by voicing concern about inflation and the slumping dollar, has fanned investor expectations for an interest-rate increase as soon as August. He may regret it. Raising rates may exacerbate the economic slowdown and roil banks whose losses sent their stocks down the most in a decade this month. Forgoing a rate boost next quarter risks damaging the Fed's credibility and deepening its divisions. Already this year, three officials have dissented on rate decisions."

Reuters - "WaMu may face $30 bln credit losses through 2011: Lehman" (6-24-08)

"Washington Mutual Inc may set aside as much as $30 billion for credit losses through 2011, according to Lehman Brothers Inc analyst Bruce Harting, who increased his forecast for losses this year at the largest U.S. savings and loan. Harting also wrote that the Seattle-based thrift may need to widen its loss forecast of $12 billion to $19 billion tied to single-family residential home loans for the next three to four years."

Wall Street Journal - "U.S.-Backed Mortgage Program Fuels Risks" (6-24-08)

"Mortgages that allow consumers to put little if any money down when buying a home have largely disappeared as a financing option available from private lenders. But they are still available -- and growing more popular -- through a government-backed program. That's raising concerns among critics who blame no-money-down mortgages for many of today's housing market woes. And while federal housing officials are moving to end the practice, for now home builders are promoting the programs to move unsold inventory."

Realty Times - "Market Conditions" (6-24-08)

"The Joint Center for Housing Studies has reported that America's rental market may see some significant changes as the mortgage crisis continues. Foreclosure rates have jumped from less than 200,000 a decade ago -- to a rate in the millions. While slower economic conditions are creating financial hard times for many individuals, much of the blame points to subprime loans, which skewed the line of affordability and reason for buyers in the past few years."

Realty Times - "Climate Change, Home Location Intertwined" (6-24-08)

"When it comes to where you choose to live, be very careful what you wish for. That river-side bargain, bay view dream home or desert adobe could, along with you, become a victim of climate change."

Daily News - "State's real estate bust is still playing out" (6-24-08)

"California's real estate market is a three-act play. Sort of a greed tragedy full of surprises. That's how the UCLA Anderson Forecast sees things. Part of its second-quarter assessment included a section titled 'The Three Phases of the California Real Estate Bust.' Of course, hindsight is a pretty good rear-view mirror. Act 1 was great, for the most part. Act 2 was horrible and Act 3 is still playing itself out."

NAHB - "Builders Call On Congress To Pass Housing Stimulus Bill" (6-23-08)

"The National Association of Home Builders (NAHB) has initiated an all-out effort to get Congress to pass badly needed stimulus legislation that will help stabilize the economy and housing market and assist millions of current and potential home owners. A central component of this legislation is a temporary home buyer tax credit to stimulate home purchases by qualified first-time buyers."

CNN - "Over the horizon, a housing recovery" (6-23-08)

"A new study from the Joint Center for Housing Studies of Harvard University, 'The State of the Nation's Housing 2008,' finds the country poised to see an increase in housing demand over the next decade."

CBIA - "New Residential Construction Still Slow in May, CBIA Announces" (6-23-08)

"According to housing permit data supplied by the Construction Industry Research Board, total housing starts in California, as measured by building permits issued, fell 37 percent in May when compared to the same month a year ago to 7,035 units, the highest monthly total of the year thus far. Single-family home production dropped 52 percent while construction of multifamily units dipped 5 percent when compared to May of 2007."

Realty Times - "Market Conditions" (6-23-08)

"The U.S. Commerce Department reported last week that new home starts were down 3.3 percent in May -- the lowest in 17 years."

Realty Times - "Wild, Wild West: California 'Bringing Bargain-Hunting Buyers Back'" (6-23-08)

"slow sales and rising inventories made home prices more affordable. More bargain-hunters have been attracted to the market, according to Ryan Ratcliff, an Anderson Forecast economist. In April, the median price for single-family homes crashed 32 percent year-over-year, pushing the median price down $200,000, according to California Association of Realtors."

Inman News - "Real estate coach breaks into card games" (6-23-08)

"The market hit its peak in 2005. Historically, real estate cycles tend to be approximately 10 years. If this market follows the patterns from the past, we should see a flattening over the next 12 to 24 months and then a return to price appreciation. The huge number of Gen Ys and foreign investors will drive the next major wave of home purchases."

Inman News - "Market scarred by inflation, capital exhaustion" (6-23-08)

"Mortgage rates have improved, down to 6.5 percent, as credit-market psychology has entered a substantial reversal. In the mass psychosis of late May, the financial markets suddenly decided that the economy had passed bottom; the banking system was recovering; inflation had become the dominant risk; the Fed would therefore begin an extended rate-raising campaign; and it was a good idea to dump every IOU within reach. That hallucination is now responding to medication."

Orange County Register - "O.C. real estate job slump hits 18 months" (6-23-08)

"Employment Development Dept. stats, analyzed by your blogger, show that Orange County real estate and finance jobs in May were 17,800 (-7%) below a year ago, the 18th consecutive month of year-over-year job losses in these property-related niches. All told, jobs in these industries are down 10.5% from the September ‘06 peak."

Ventura Couny Star - "Foreclosures considered for shelters" (6-21-08)

"Nearly 40 financial, government, nonprofit and religious officials met earlier this week in Ventura to explore the idea of developing housing such as emergency shelters, transitional programs and long-term leases for families. Officials said such a program could not only get the homeless off the streets, but also stabilize real estate prices by lowering the number of unsold houses."

CNN - "States take a whack at foreclosures" (6-21-08)

"While Congress has talked for a year about a federal response to the foreclosure crisis, attorneys general have been busy helping troubled homeowners at the state level. AGs are filing lawsuits, lobbying legislatures for tougher mortgage lender laws, and partnering with mortgage servicers and community development groups to help rescue homeowners from foreclosures. Their efforts have paid off. While the Mortgage Bankers Association says a million homes were in foreclosure in the first three months of 2008, one community advocate says that number would have been larger if the AGs weren't involved."

North County Times - "HOUSING: High-end neighborhoods also suffering" (6-21-08)

"From the start of a housing recession that has sent average real estate prices in North County plummeting, some housing analysts said expensive neighborhoods would persevere, dodging steep declines. That's no longer true. Several homes in one of North County's ritzier regions, the San Diego neighborhoods of Rancho Penasquitos and Rancho Bernardo, have tumbled 30 percent in value."

CNN - "Why Bush, Congress may make housing deal" (6-21-08)

"Bush has threatened a veto. But lawmakers in both parties say the housing legislation is a political imperative, and negotiators see the makings of a summertime bargain. For one, the measure contains elements that Bush long has demanded. They include modernizing the Depression-era Federal Housing Administration and creating a new regulator for the government-sponsored mortgage companies Fannie Mae and Freddie Mac."

The San Diego Union Tribune - "Mortgage rates on rise, as are fears for housing" (6-22-08)

"As if the local housing market weren't bad enough, there's another storm cloud on the horizon: rising mortgage rates. The interest rates for 30-year, fixed-rate mortgages averaged more than 6.4 percent last week, rising from 6.3 percent the previous week and an average of 5.8 percent during the first quarter."

Orange County Register - "O.C. builders drop house prices, raise condos" (6-22-08)

"Costa Mesa-based Hanley Wood Market Intelligence reports that the median contract price O.C. builders got for a newly built house fell 8.5% in April to $988,500, vs. $1.08 million in April 2007. The number of contracts also tumbled, declining 35.5% from April 2007 to 89. But builders’ condo prices were up vs. April of last year, rising 3.2% to $453,000, Hanley Wood reported in a recent release from the California Building Industry Association."

Orange County Register - "Subprime and punishment" (6-22-08)

"On Thursday, former Bear Stearns hedge fund managers Ralph Cioffi and Matthew Tannin were indicted for securities fraud and conspiracy — and Cioffi for insider trading too. Their indictment is the first subprime-related charge by federal investigators since the mortgage meltdown began more than a year ago."

Fresno Bee - "Mortgage crisis: Other shoe is poised to drop" (6-22-08)

"An adjustable-rate mortgage bubble is coming to the central San Joaquin Valley's housing market, and the tens of thousands of homeowners who hold those mortgages should prepare for the rate increases to come. That's the word from mortgage counselors worried that the easy lending practices of the housing boom years are about to lead to a lot of pain for borrowers."

Mercury News - "Mortgage rates hit nine-month high" (6-20-08)

"Interest rates for 30-year, fixed-rate mortgages are expected to reach a nine-month high of 6.42 percent today, according to mortgage financing company Freddie Mac."

Bloomberg - "Freddie, Fannie to Post More Losses, Lehman Says" (6-20-08)

"Fannie Mae and Freddie Mac, the largest U.S. mortgage-finance companies, may post further losses in the second quarter as the housing market deteriorates, Lehman Brothers Holdings Inc. said. Lehman changed its forecasts for operating losses for Fannie Mae to $1.20 a share from 68 cents, and lowered its projected loss for Freddie Mac to 55 cents a share from 40 cents, according to report today."

Bloomberg - "Bear Stearns Fund Prosecutors Reveal `Lot of Evidence' of Fraud" (6-20-08)

"Ralph Cioffi, 52, and Matthew Tannin, 46, were charged yesterday with falsely saying the funds were thriving while knowing investments in subprime mortgages could cause their collapse. U.S. prosecutors claimed the men lied about liquidity, redemption requests, and their own investments before the funds shut down last June, costing investors $1 billion."

Inman News - "Tap into Gen X, Gen Y goldmine" (6-20-08)

"If you're not marketing your listings using video, you're missing a huge opportunity to differentiate yourself from the competition, provide a higher level of service to your clients, and reach the hot new Gen X and Gen Y markets. Perhaps the most challenging question is where to begin and how much to spend. Not only are some of the names confusing, so is selecting the one that will work best with your business. The price points range from very little to very expensive, depending upon the level of quality you want."

Realty Times - "Market Conditions" (6-20-08)

"Following a marked drop in oil prices yesterday (it dropped $5 a barrel), stocks surged. In currency trading, the dollar rose versus the euro and the yen. Gas prices dropped on a national average as well. No one wants to jump the gun on spreading the good news, but could this healthy market day be a sign of happier market times to come?"

Realty Times - "Active Vs. Passive Marketing: Changing Real Estate Markets. Strategies to Succeed" (6-20-08)

"Discounts, rebates, do-it-yourself realty companies catering to For Sale By Owners / FSBOS ... are the buzz word! Since real estate right now is having a moment of reckoning in many markets, perspective is needed to take it all in so we can develope survival strategies. Some agents that believe menu pricing and low fees will make them survivors. It doesn't. The markets have changed. Agents that believe otherwise still believe they are in a market that existed a few years ago, and are about to meet the same fate as the dinosaurs! They've failed to learn the most important thing about real estate. Discounting will not pay the bills!"

Realty Times - "Investor Report: Multiple-use 'Flex' Space Properties" (6-20-08)

"Some of the most attractive real estate returns in the coming decade, according to Cannon, will go to investors -- individuals, partnerships, joint venture groups -- who can identify and acquire urban-core land or buildings that are currently underperforming, but that have multiple, adaptive-use potentials going forward."

Orange County Register - "FBI says SoCal has most mortgage fraud reports" (6-20-08)

"We’re looking at all types of fraud: Corporate, criminal enterprises, individuals. The essence of the crime is people aren’t stating the correct facts — to those buying homes, providing mortgages or investing. Fraud runs the gamut from the largest to the smallest. We believe 80 percent of fraud is for profit. And about 20 percent of the fraud is for housing — solely by the borrower using fraudulent documents. The for-profit fraud could be industry insiders who skim equity, inflate the value of property or make fraudulent loans."

Orange County Register - "Foreclosure auction firms accused of 'bait and switch'" (6-20-08)

"At an auction in Pomona in March, Juan and Laura Torres made the highest bid — $146,000 — for a Corona property, according to the suit. Ms. Torres believed she had opened escrow on the property after signing paperwork at the auction and agreed to pay a 5 percent 'buyers premium,' bringing the total price to $153,300. However, 30 days later, she was told that 'she would not be able to purchase the property unless she came up with $50,000 more money,' the suit says."

Orange County Register - "SoCal home woes could mean 50% price drop" (6-20-08)

"Economist Chris Thornberg said Southern California home prices likely will continue falling until mid-to-late 2009. When the dust settles, he added, homes here could end up being worth half as much as they were at the peak of the housing boom."