Welcome New Family Members

Holy cow!! What a great time to get into Real Estate! London Properties would like to introduce the following New Sale's Agents; Ruben Almaraz, Frankie Donobedian and Daniel Khin. These agents will be working out of our Fresno Office. We also want to welcome aboard Nathan Rose, Nathan will be working out of our Clovis Office. If you or anyone your know wants to get their real estate license please go to: www.tiore.com for more information. Welcome aboard guys and go get'em!!!

Jobless claims drop slightly for a third consecutive week

by KERRI PANCHUK The number of initial jobless claims filed by unemployed Americans fell to 388,000 in the week ending March 26, down from last week's upwardly revised figure of 394,000, the Labor Department said Thursday.

Jobless claims have declined for three consecutive weeks, and the Labor Department said the most-recent data reflects the annual revision to the weekly unemployment claims seasonal adjusted factors.

The four-week moving average rose to 394,250 from the previous week's average of 391,000. Analysts with Econoday projected claims of 380,000 for last week with a range of estimates between 370,000 and 385,000. "The data include benchmark revisions including a sizable 12,000 upward revision to the prior week to 394,000.

Following the revisions, the latest four-week average, at 394,250 for a 3,250 increase, doesn't show much change from the late February readings," Econoday said. "The unemployment rate for insured workers is unchanged at 3%," Econoday said, adding "demand for risk is fading slightly in early reaction to this report, which may scale back bullish expectations for robust strength in tomorrow's monthly employment report."

URL to original article: http://www.housingwire.com/2011/03/31/jobless-claims-drop-slightly-for-a-third-consecutive-week

For further information on Fresno Real Estate check: http://www.londonproperties.com

Job gains barely beat estimates on the long road back to pre-recession levels

by KERRI PANCHUK While the economy gained 201,000 private sector jobs last month, those additions are not enough to set the pace for a rapid economic or housing recovery, analysts say. ADP and Macroeconomic Advisors reported those job gains in ADP's latest National Employment Report Wednesday.

Analysts blame high unemployment for stifling the nation's housing recovery in the past. "Admittedly, that 201,000 increase was slightly lower than the 208,000 gain in February," said Paul Ashworth, chief economist for Capital Economics. "The more notable point, however, is that over the past four months the monthly gains have averaged more than 200,000, compared with less than 100,000 in the four months before that." He added, "Nevertheless, assuming the labor force starts to rebound again, employment gains of 200,000 a month will lower the unemployment rate only gradually.

Another way of looking at this is that at this pace of job creation it would take almost another four years before employment got back to its pre-recession level" Of the 201,000 jobs added by the private sector in March, ADP says the service sector gained the most positions: 164,000 to be exact. "Today’s ADP National Employment Report confirms that U.S. private-sector employment growth has averaged about 175,000 jobs over the last six months," said Gary Butler, CEO of ADP. "Based on real-time information across all markets and industries, the ADP Report continues to estimate solid job growth that is now being reflected in other indicators of employment."

TrimTabs Investment Research slightly contradicted the ADP report Wednesday, saying the economy actually created 293,000 new jobs in March, beating out early estimates. Madeline Schnapp, director of macroeconomic research for TrimTabs, said other employment forecasts are falling behind the actual numbers since they do not utilize real-time data.

URL to original article: http://www.housingwire.com/2011/03/30/job-gains-barely-beat-estimates-on-the-long-road-back-to-pre-recession-levels

For further information on Fresno Real Estate check: http://www.londonproperties.com

Not so quick with the talk of double-dip

Source: NAHB Eye on Housing

The National Association of Home Builders' "read" on S&P/Case-Shiller's latest indices surfaces: "With the very weak home sales (both new and existing) and housing starts in January and February 2011, further declines in house prices are likely in the near term. However, we do not agree with the gloomy picture painted by Standards & Poor’s in their press release, '…the feared double-dip recession may be materializing.'

In spite of the recent declines, the CS10 and CS20 are 2.8% and 1.1% above their respective April 2009 lows. Since reaching this trough, the overall trend in the composite indexes has been flat, despite the rise and fall associated with the various phases of the home buyer tax credit. While the volatility is likely to continue, we expect house prices to remain relatively flat through 2011, then to show modest growth in 2012." How many double-dips would we be up to if all the headlines, analysts, and economists were correct? The Standard & Poor’s Case-Shiller house price index (HPI) continued the steady decline observed in recent months, with the Composite 20 index (CS20) falling 1.0% (not seasonally adjusted) and the Composite 10 (CS10) index down 0.9% (NSA) in January. This is the sixth consecutive month of decline. Year-over-year, the CS10 is down 2.0% and the CS20 is down 3.1% relative to January 2010. Prices declined in 19 of the 20 cities covered by the index on a not seasonally adjusted basis (but were up in 7 cities on a seasonally adjusted basis).

On a not seasonally adjusted basis, the largest declines were observed in Minneapolis (-3.4%), Seattle (-2.4%), San Francisco (-1.9%), Portland OR (-1.8%), Chicago (-1.8%) and Detroit (-1.7%) and Phoenix (-1.5%). Washington DC (+0.1%) was the only city to experience an increase on a not-seasonally adjusted basis. The house price declines correspond with the trends in other key housing market indicators, with new home sales and housing starts trending down in recent months. Existing home sales have moved against this trend, experiencing relatively strong growth over the last six months. However, the rise has been fueled mainly by a steady increase in distressed sales and all cash sales, which have put downward pressure on house prices.

With the very weak home sales (both new and existing) and housing starts in January and February 2011, further declines in house prices are likely in the near term. However, we do not agree with the gloomy picture painted by Standards & Poor’s in their press release, “…the feared double-dip recession may be materializing.” In spite of the recent declines, the CS10 and CS20 are 2.8% and 1.1% above their respective April 2009 lows. Since reaching this trough, the overall trend in the composite indexes has been flat, despite the rise and fall associated with the various phases of the home buyer tax credit. While the volatility is likely to continue, we expect house prices to remain relatively flat through 2011, then to show modest growth in 2012.

URL to original article: http://www.builderonline.com/builder-pulse/not-so-quick-with-the-talk-of-double-dip.aspx?cid=NWBD110330002

For further information on Fresno Real Estate check: http://www.londonproperties.com/

As Obama and Congress fiddle, America liquidates housing sector

Source: Reuters Republicans in the House of Representatives are busily assembling several legislative proposals to reform the housing sector and reduce government support for the secondary market in home loans used by banks to manage their liquidity. According to Joe Engelhart at CapitalAlpha Partners: “House Republicans are considering an ambitious series of standalone legislative initiatives to reduce the role of Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac) over the next five years.”

Meanwhile, President Barack Obama has started another war in the Middle East with his political soul mates in the EU. The President has also embarked upon an ambitious schedule of foreign tourism and domestic campaign stops, but nothing of substance. Obama is compared by some to Louis XIV (and Mrs Obama to Marie-Antoinette) in terms of his detachment from the nation’s priorities, particularly the ongoing meltdown in the housing sector. “Pres. Barak Hussein Obama has given new meaning to that epithet “imperial presidency,” my friend Sol Sanders opines. “It was slung at Pres. Richard Nixon not only for his extravagant “palace guard” – some in kitschy uniforms – but his more serious unconstitutional overreach. But if imperial in his style, Mr. Obama reigns; he does not rule.”

In many ways, the current national policy mix of more regulation, decreased government subsidies and, to add further urgency, a shrinking banking system, is the perfect storm for the housing, which is now down six months in a row. Despite my long-held desire to see market-based reform in the US housing sector, I think all parties need to be aware of the precarious situation facing the American economy and banks as home prices collapse for lack of credit.

The slide in home prices and receding bank lending footprint is one of the reasons why at my firm we have begun to talk about putting aside structural reform of the housing sector this year and instead increasing the size of the loans guaranteed by the government, even while raising the cost of such “g fees” as they are called by housing market mavens. Without credit, the real estate sector is left with a cash market liquidation with grave implications for financial intermediaries and investors. We wrote this week in The Institutional Risk Analyst, “Wanted: Private Investors Seeking First Loss Exposure on RMBS, March 28, 2011,” about some of the details of the secondary mortgage market. In simple terms, there is about $11 trillion in financing behind the real estate sector: $4.4 trillion in the portfolios of banks, $5.5 trillion in agency securitizations guaranteed by Uncle Sam, and $2 trillion or so in private label securities.

In order to believe the claims of my conservative friends about “reform” of government agencies like Fannie Mae and Freddie Mac you must believe that some of the $5.5 trillion in no-risk agency securities is going to be willing to migrate into the bucket of private label securities, where investors take actual credit risk. It is unlikely that we are going to see any significant increase in the private market home loans unless interest rates rise significantly. The net, net here is that the available pool of credit available for the housing sector is shrinking and thus prices must also decline to adjust for that supply of credit. This fact of continued decline in home prices is going to have a chilling effect. As we wrote in The IRA this week: “It is no accident that states such as Illinois, Nevada, Missouri, and Maryland are all considering legislation to ban appraisers from using involuntary foreclosure sales in home valuations.

In a rational world where programs such as HAMP were really effective to restructure underwater loans and, of necessity, say 50% of all HELOCs were written down to zero, both the Too Big To Fail banks and the private mortgage insurers would be insolvent. ” This week regulators are starting to work on the risk-retention rules of the Dodd-Frank legislation, yet another point of friction that is making it more difficult for Americans to obtain housing credit. The political fight over what constitutes a “qualified residential mortgage,” which does not require banks to keep 5% of the risk, will only marginally effect the deflationary forces now working on the housing sector.

While the media will be fascinated by all of this insider play over the “QRM”, the real story is out in the housing market, where more than half of all home sales this year will be involuntary foreclosure liquidations. The slow erosion of home prices is likewise eating away at the willingness of lenders to take risk in real estate, thus the 4% decline in loan balances YOY according to the FDIC. I estimate that Fannie and Freddie alone are hiding $200 billion worth of bad loans on their books simply because there is no market for these foreclosed homes.

Ditto for the largest servicer banks such as Wells Fargo, Bank of America, JPMorgan Chase and Citigroup. To clean up this mess with finality is going to cost $1 trillion or so in round numbers. But nobody in Washington wants to go there. The Obama Administration and the Congress need to put aside their respective fantasy world views and focus on the horrible economic reality ongoing in the housing and banking sectors. It may be that the degree of self-delusion in Washington has reached the point that only another financial catastrophe can wake us from out collective distraction. But if President Obama really believes he can win reelection with housing prices falling from now till November 2012, then perhaps those who liken him to Louis XIV are right.

URL to original article: http://www.housingwire.com/2011/03/29/as-obama-and-congress-fiddle-america-liquidates-housing-sector

For further information on Fresno Real Estate check: http://www.londonproperties.com

Foreclosure inventory volume outpacing actual foreclosure sales: LPS

by KERRI PANCHUK
Delinquencies on home loans declined in February as foreclosure inventory levels shot up, suggesting it will take more time to move distressed properties off the market, Lender Processing Services Inc. said in its February Mortgage Monitor.

The nation's foreclosure inventory levels are now about 30 times greater than the monthly foreclosure sales volume, LPS concluded. "Ultimately, these foreclosures will most likely reenter the market as REO properties, putting even more downward pressure on U.S. home sales," LPS said. The report on falling delinquencies confirms LPS reports from earlier this month.

Another significant shift occurred in February with data showing a 23% hike in Option ARM foreclosures in the past six months. Option ARM foreclosures now make up 18.8% of the foreclosure inventory, outpacing subprime foreclosures.

LPS added that deterioration continues in the non-agency prime segment, jumbo and non-agency prime loans. On a positive note, LPS said modification efforts by banks are starting to pay off. Twenty-two percent of loans classified as being delinquent for 90 days or more are now listed as current.

Overall, the total U.S. loan delinquency rate stands at 8.8%, while the foreclosure inventory rate sits at 4.15%. States with the most delinquent loans include Florida, Nevada, Mississippi, New Jersey and Georgia. States with the most non-current loans are Montana, Wyoming, Alaska, South Dakota and North Dakota.

URL to original article: http://www.housingwire.com/2011/03/29/foreclosure-inventory-volume-outpacing-actual-foreclosure-sales-lps

For further information on Fresno Real Estate check: http://www.londonproperties.com

Mortgage interest rates rise slightly as investors eye inflationary concerns

by KERRI PANCHUK
Mortgage rates rose this week on inflationary and geopolitical concerns, Freddie Mac said in its latest Primary Mortgage Market Survey. The 30-year, fixed-rate mortgage increased to 4.81% for the week ending March 24 from 4.76% last week. That's still lower than the 4.99% recorded a year ago.

Meanwhile, the 15-year, fixed-rate mortgage hit 4.04%, compared to 3.97% a week earlier and 4.34% a year ago. Freddie said the five-year, Treasury-indexed hybrid mortgage rate averaged 3.62%, up from 3.57% seven days prior and down from 4.14% last year. In addition, the one-year ARM climbed to 3.21% in the most recent survey, up from 3.17% last week.

Frank Nothaft, Freddie Mac vice president and chief economist, outlined some of the inflationary pressures that buoyed mortgage rates. "The 12-month growth rate in the consumer price index rose 2.1% in February, compared to 1.6% in January; however, most of the increase was due to food and energy prices, which tend to be volatile. The core index rose 1.1%, slightly up from 1% in January," he said. Bankrate also released mortgage rate data Thursday, showing the 30-year FRM now sits at 4.96%, up from 4.91% a week earlier.

The 15-year FRM inched up to 4.16% from 4.12%, and the 5/1 ARM rate hit 3.78%, up from 3.74%. "Mortgage rates increased, but only slightly, as investors digest world events and assess the potential impact on global economic recovery," Bankrate said. "The outlook for economic growth, inflation, and a desire to avoid market volatility are the key drivers of bond yields and mortgage rates on a day-to-day basis. Mortgage rates are closely related to yields on long-term government bonds."

URL to original article: http://www.housingwire.com/2011/03/24/mortgage-interest-rates-rise-slightly-as-investors-eye-inflationary-concerns

For further information on Fresno Real Estate, check: http://www.londonproperties.com/

How Great London Properties On-Line Classes Are...

For more information on our on-line classes or getting your real estate license go to www.tiore.com

Principal forgiveness may not be the silver bullet for housing:

by JON PRIOR

The attorneys general settlement proposal to major servicers includes a push for more principal forgiveness on delinquent mortgages. But it may be one of the initiatives cut when banks decide to push back.

Following an investigation into foreclosure practices, the 50 state AGs submitted their "opening bid" in settlement discussions, which includes a slew of new requirements. Dual-track loss mitigation — pursuing a foreclosure case at the same time as a loan modification — would end, and modification attempts would be mandatory, among other new rules.

Analysts at Standard & Poor's sounded off on the proposal in a report released Friday. While many of the proposals would obviously benefit delinquent homeowners, investors and servicers in the short-term at least would see losses mount as the foreclosure process extends even further.

"Servicing costs and workloads may significantly increase at a time when servicers are inundated and operating under cost constraints," S&P said. "Many servicers/originators may attempt to pass an increase in costs to borrowers through higher mortgage rates."

Analysts said principal forgiveness could reduce those losses for investors if the borrower remains current afterward. And home prices, too, could begin to rebound if there are fewer foreclosures entering the shadow inventory supply. However, the obstacles to such an initiative may prove too daunting.

But not everyone agrees. Laurie Goodman, senior managing director at Amherst Securities, has long said principal forgiveness would be more effective for underwhelming modification initiatives such as the Home Affordable Modification Program.

In October, Goodman said a principal reduction effort could "re-equify" roughly 11 million borrowers in imminent default. She said as long as servicers make clear the consequences of strategic default, this "moral hazard" could be thwarted.

"The moral hazard (strategic default issue) must be addressed by first recognizing it as an economic issue, not a moral one," S&P analysts wrote in a research note issued Friday. "The costs of default must be made explicit."

However, Standard & Poor's said too many homeowners may be too far underwater. In order to bring more borrowers in negative equity – meaning they owe more on the mortgage than the home is worth – back to the surface could require a reduction between 25% and 30%. In some markets where home prices have been cut in half, like Las Vegas, reductions may need to be in the 50% to 70% range.

"The amount of principal forgiveness needed to re-equitize borrowers and/or lower their monthly payments to an affordable level may be beyond the currently contemplated principal forgiveness amounts," S&P said.

Such an offer could induce more borrowers to strategically default, and there is also the challenge of reducing a first-lien balance while a second-lien remains with another lender. S&P added that if a borrower redefaults after the principal forgiveness, the losses to the investor would be even harsher than if the servicer had foreclosed in the first place.

Four of the state AGs don't agree on these points. In a letter written to the lead investigator, Iowa AG Tom Miller, they point out the proposal may overstep the boundaries of the investigation. Republicans in Congress, too, have complained the proposal goes too far.

Other lawmakers, including Rep. Maxine Waters (D-Calif.) said it doesn’t go far enough, and the $20 billion penalty floated by some would be too little.

"Market participants have debated the value of principal forgiveness. Some cite concerns such as moral hazard, while others believe it's a necessary step toward overcoming the housing crisis," S&P said. "However, we also believe there may be a number of obstacles that may prevent principal forgiveness modifications from having a significant positive impact on the housing market and for RMBS investors."

URL to original article: http://www.housingwire.com/2011/03/25/principal-forgiveness-may-not-be-the-silver-bullet-for-housing-sp

For further information on Fresno Real Estate, check: http://www.londonproperties.com/

January home prices drop to a four-year low

by KERRI PANCHUK

Twenty-five metro areas saw home prices plummet to the lowest levels since the 2007 housing crash, RadarLogic said in its latest RPX Composite Index.

RadarLogic said an oversupply of homes, high rates of mortgage defaults, tighter lending standards and a housing market riddled with foreclosures weighed down January prices. The index, which tracks home prices across 25 major markets, declined 3.8% between December and January and 3.4% year-over-year.

"The month-over-month change in the RPX Composite price through January 2011 suggests that housing markets have yet to turn the corner from crisis to recovery," RadarLogic said.

The drop in January home price is the third largest decline in 10 years, according to RadarLogic.

Some of the largest year-over-year January price declines occurred in Atlanta, Jacksonville and Milwaukee, where home prices fell 15.6%, 13.9%, and 12.9%, respectively. Boston, Washington, and Chicago suffered the largest month-over-month declines, with each experiencing a price drop in the 8% to 10% range.

Home prices in New York outperformed other areas, with the New York price index rising 1% from January 2010 levels.

The largest year-over-year gains occurred in Miami, Jacksonville and Philadelphia — all of which rose at least 15%. Miami experienced RXP price gains of 27.7%

The largest year-over-year price decline occurred in Boston where the index fell 53.3%. Atlanta and Washington D.C. followed closely behind with drops of 38.3% and 21.9%, respectively, RadarLogic said.

URL to original article: http://www.housingwire.com/2011/03/24/january-home-prices-drop-to-a-four-year-low

For further information on Fresno Real Estate, check: http://www.londonpropeties.com

New Home Price Premium

by Lawrence Yun, Chief Economist & Senior Vice President, Research

Newly constructed homes command higher prices than existing homes. Newer appliances, newer building materials and such, plus the new homes being generally larger-sized, account for most of the difference. Historically the premium of new home price above existing home price has been about 15 percent. However, recent price data say that the premium has risen to 45 percent. That is, the median price of new homes in January was $230,600 versus the median price of existing homes of $157,900. The much lower existing home price is partly due to distressed home properties on the market that are selling for much less than the replacement cost. Still, the exceptionally large price differential between new and existing homes may imply that either new home prices have to fall or that there is good growth potential for existing home prices.

URL to original article: http://economistsoutlook.blogs.realtor.org/2011/03/21/new-home-price-premium/

For further information on Fresno Real Estate, check: http://www.londonproperties.com

Jobless claims fall for second week in a row

by KERRI PANCHUK

The number of initial jobless claims filed by unemployed Americans fell 1.3% last week to 382,000 claims submitted on a seasonally adjusted basis, the Labor Department said Thursday morning.

That compares to the revised figure of 387,000 filings for a week earlier.

Overall, the number of initial jobless claims fell by 5,000 for the week ended March 19, making it the second consecutive decline in the past two weeks.

The four-week moving average hit 385,250, down 1,500 from the previous weeks average of 386,750.

"Fewer and fewer Americans are claiming unemployment benefits in a developing trend that will boost expectations for accelerating payroll growth," analysts with Econoday said Thursday. "These are the best readings of the recovery." Analysts surveyed by Econoday were expecting jobless claims of 385,000 last week with a ranges of estimates between 378,000 and 390,000.

URL to original article: http://www.housingwire.com/2011/03/24/jobless-claims-fall-for-second-week-in-a-row

For further information on Fresno Real Estate check: http://www.londonproperties.com

New homes sales crater 17% in February to lowest level yet

by JASON PHILYAW

New sales of single-family homes fell nearly 17% in February from a month earlier, coming in well below analysts' estimates and at the lowest level recorded.

The Commerce Department said the seasonally adjusted rate of 250,000 units last month was considerably lower than 301,000 for January, which was revised upward by 15,000 units. February sales are down 28% from a year earlier.

The seasonally adjusted estimate of new homes for sale was 186,000 in February, representing an 8.9 month supply. A healthy market usually holds a six month supply.

Analysts surveyed by Econoday expected February home sales to climb to 290,000 with estimates ranging between 240,000 and 305,000. A Briefing.com survey projected home sales of 275,000 for the month. Analysts polled by Dow Jones Newswires expected February sales to rise 2.1% to 290,000.

In the Northeast in February, new homes sales cratered, falling 57% from January, according to the joint release from the Census Bureau and the Department of Housing and Urban Development.

The median sales price of new homes sold last month was $202,100, down nearly 14% from January, representing the largest monthly decline yet.

The Mortgage Bankers Association said earlier Wednesday mortgage applications rose 2.7% for the week ended March 18.

URL to original article: http://www.housingwire.com/2011/03/23/new-homes-sales-crater-17-in-february-to-lowest-level-yet

For further information on Fresno Real Estate check: http://www.londonproperties.com

Mortgage applications remain in flux, rise 2.7%

by KERRI PANCHUK

Mortgage applications rose 2.7% this past week after inching down a week earlier and experiencing a sharp 15% drop in early March, the Mortgage Bankers Association said Wednesday.

The market composite index — a measure of loan volume — increased 2.7% on a seasonally adjusted basis for the week ending March 18. On an unadjusted basis, the index increased 2.8% when compared to the previous week.

The four-week moving average for the seasonally adjusted market index is up 2.5%, while the four-week moving averages for the purchase index and refinance index are up 1% and 3.3%, respectively.

The unadjusted purchase index jumped 3% over last week and is down 15.3% when compared to the same week a year earlier.

Refinancing activity during the period held flat at 66.4% of total applications.

Meanwhile, the average interest rate for a 30-year, fixed mortgage increased to 4.8% from 4.79% a week earlier. In addition, the average rate for a 15-year, fixed-rate mortgage declined slightly to 4.02% from 4.03%.

URL to original article: http://www.housingwire.com/2011/03/23/mortgage-application-filings-remain-in-flux-rise-2-7

For further infomation on Fresno Real Estate, check: http://www.londonproperties.com

FHFA: Home prices dip 0.3% in January

by JON PRIOR

Home prices dipped 0.3% in January from the month before, according to the Federal Housing Finance Agency.

In December, home prices dropped a revised 0.3% as well. The FHFA calculates the monthly index using purchase prices on homes backed by mortgages sold or guaranteed by Fannie Mae or Freddie Mac.

Home prices also fell 3.9% from one year before and remain 16.5% below its peak in April 2007.

Home prices are declining through a stagnant selling season over the past six months, according to another index put out by CoreLogic (CLGX: 17.86 +0.56%). Even as the spring could bring more selling activity, as it traditionally does, a number of barriers still face the housing market including elevated foreclosures, negative equity and weak demand.

For the nine Census Divisions in the FHFA home price index, the biggest drop, 1.3%, came in the Mountain and South Atlantic Divisions. Prices in the West and South Central divisions actually increased 1.6% from the previous month.

URL to original article: http://www.housingwire.com/2011/03/22/fhfa-home-prices-dip-0-3-in-january

For further information on Fresno Real Estate, check: http://www.londonproperties.com

Welcome New Family Members

Just wanted to welcome to the London Family the following agents;

Nathan Rose, Veronica Musgrove, Ali Hamad, Cameron Cairns and Jesse Vaca. All five are residential Sales agents working out of our Fresno office location. Congrats to them, they have passed their state exam and received their real estate license and now have joined the Board of Realtors ...Way to go guys!!! Good luck!

I also want to Welcome aboard Diane Mingo, previously with Keller Williams in Tulare. Diane is a Broker Associate and she will be working out of our Hanford office.

If you or anyone you know, is interested in getting their real estate license, or coming to work here at London Properties...please go to www.tiore.com to get more information.

Welcome to the family!!!

Home, condo sales on the rise in Florida

by KERRY CURRY

Florida’s existing home sales rose 13% in February with existing condo sales soaring 29% compared to year earlier, according to housing data released by Florida Realtors.

More than 13,700 homes sold across the state in February, up from 12,164 sold in February 2010, according to the real estate association. For condos, 6,984 units sold in Florida last month compared to 5,424 units a year earlier.

Seventeen of Florida’s metropolitan statistical areas reported a rise in existing home sales in February; 18 had higher condo sales. It’s the third month in a row of higher year-over-year existing home and existing condo sales statewide, the real estate group said.

“Current market conditions and very low mortgage rates continue to offer great opportunities to anyone looking to buy a home in Florida,” said 2011 Florida Realtors President Patricia Fitzgerald, manager/broker-associate with Illustrated Properties in Hobe Sound and Mariner Sands Country Club in the Sunshine State.

Florida's median sales price for existing homes last month was $121,900; down 2% from $124,500 a year ago. The National Association of Realtors said sales of foreclosures and other distressed properties continue to distort the median price because they generally sell at a discount relative to traditional homes.

Nationwide, existing homes sales fell 9.6% in February hurt by an increasing number of contract cancellations, as all-cash sales hit a record high and distressed sales continued to climb.

Florida's existing condo median sales price last month was $77,300, down 14% from $90,400 a year ago.

The Realtors' sales figures reflect closings, which typically occur 30 to 90 days after sales contracts are written.

URL to original article: http://www.housingwire.com/2011/03/21/home-condo-sales-on-the-rise-in-florida

For further information on Fresno Real Estate, check: http://www.londonproperties.com

California pending home sales spike in February

by CHRISTINE RICCIARDI

Pending home sales in California spiked during February, a possible indication for a positive spring selling season.

The California Association of Realtors' Pending Home Sales Index rose 20.6% in February to 112.1 from 93 in January. The index uses 2008 housing market activity as a baseline because it represents a more normal level of purchases and sales. An index reading of 100 corresponds with activity in 2008.

The index is down 1.6% from February 2010, when the federal tax credit played a strong role in market demand, CAR said.

"The increase in pending sales is typical for this time of year, as we usually see a seasonal improvement in the spring," said Beth Peerce, president of CAR.

Distressed property sales also increased last month, up to 56% of total home sales. Of those distressed property sales, 33% were attributable to real estate-owned sales and 23% were from short sales. One year prior, the percentages were 36% and 19%, respectively.

Solano County reported the highest number of distressed properties sales as a percentage of total sales during February at 77%. That was followed by San Bernardino at 76%, Sacramento at 71% and Riverside at 71%, according to CAR.

The median price for a short sale was $275,000 in February, while the median price for an REO was $199,900. The median sale price for a nondistressed property was $370,000, CAR said.

DataQuick reported the California median home sales price down for the fifth straight month after 11 months of increases. DataQuick said the median price across all property types sat at $244,000 in February.

URL to original article: http://www.housingwire.com/2011/03/21/california-pending-home-sales-spike-in-february

For further information on Fresno Real Estate, check: http://www.londonproperties.com

A rebound formula: Gen X + Y = V($)

Source: NAHB

Exactly when is still in question, but few doubt about whether recovery is on its way. What's more, logic says it centers on the younger adult cohorts, Generations X and Y who'll drive the market into its next rebound cycle. Why? Because they're on the move in life and careers, which makes them a natural force to shape a new market. "At 32 percent of the population of home-buying age – generally defined as those who are at least 30 years old, the Gen X population cohort isn't the largest, but it's the most mobile, said Mollie Carmichael, principal of John Burns Real Estate Consulting in Irvine, Calif. 'They are in full force with their careers and they need to accommodate growing families,' she said." Carmichael presented as part of a market intelligence and design experts panel for the National Association of Home Builders and Builder, in the latest of a four part series entitled New Horizons: Setting a Course for Success in the New Market. The series was sponsored by Simonton Windows and ThermaTru.

Generation X –young families and adults ages 31 to 45 – are likely to lead the home buying recovery as it gets underway, according to real estate experts who spoke at an educational webinar produced by the National Association of Home Builders (NAHB) in partnership with Builder magazine

These potential home buyers are most likely to think it's a good time to get off the fence – and have strong opinions about the design features their new homes will include.

At 32 percent of the population of home-buying age – generally defined as those who are at least 30 years old, the Gen X population cohort isn't the largest, but it's the most mobile, said presenter Mollie Carmichael, principal of John Burns Real Estate Consulting in Irvine, Calif. "They are in full force with their careers and they need to accommodate growing families," she said.

In sharp contrast, even though they constitute 41 percent of prospective home buyers, Baby Boomers continue to wait for the market to improve, and their decisions to delay retirement also delay their decisions to downsize into a smaller home, Carmichael said.

Most of the 10,000 buyers and potential buyers in 27 metro areas that the consulting company surveyed were optimistic about a new home purchase, with between 85 percent and 89 percent saying that it was a good time to buy a home. Only 13 percent said they thought home prices would continue to fall, further evidence that it's "not all about price," she said. "They want something compelling, from a design or personalization standpoint," said Carmichael.

In addition, though the average home size is shrinking, a majority of prospective buyers said they would like a bigger home than the one they have. "These are first-time buyers or younger families looking for more room to grow," she said.

Seventy percent said that they were willing to pay $5,000 more for a green home, but those responding to the survey said that they expected new homes to already have many green technology features. They also said they would pay a premium for dark wood cabinets, a separate tub and shower and a fireplace in the living room, and more preferred a great room over formal spaces.

And while community amenities are important to Gen X buyers, 46 percent said they prefer a home in a large-lot, suburban development, versus the 21 percent looking for a traditional or "walkable" neighborhood.

Webinar panelist Heather McCune, director of marketing at Bassenian/Lagoni Architects in Newport Beach, Calif., also emphasized that design will be important in generating sales in the emerging marketplace. "The notion of 'build it and they will come' no longer works. Design matters," she said.

McCune said buyers are looking for homes with a connection between indoor and outdoor spaces, even in colder climates, to create the perception of greater home size, even if the space is only usable for part of the year. They also want more storage, an open floor plan and flexibility in the garage.

"While Gen X numbers are smaller than the birth cohorts before and after them, their numbers have been enlarged by steady immigration," said NAHB Chief Economist David Crowe. "Gen X may wait longer than their predecessors to establish their own household or buy a home because of the recent recession impacts, but the trends are still likely to occur as they have for past generations."

This webinar was one in a four part series entitled New Horizons: Setting a Course for Success in the New Market. The series was sponsored by Simonton Windows and ThermaTru.

URL to original article: http://www.builderonline.com/builder-pulse/a-rebound-formula--gen-x---y---v---.aspx?cid=NWBD110321002

For further information on Fresno Real Estate, check: http://www.londonproperties.com

Manual mortgage underwriting leads to less fraud: QMS

by CHRISTINE RICCIARDI

Mortgages that are manually underwritten by originators have less fraud than mortgages underwritten by a software program, according to data released by Quality Mortgage Services.

The Franklin, Tenn.-based firm audited 20,000 loans from 2009 and 2010 post-closing for quality control issues.

QMS found no fraudulent errors in loans that were manually underwritten, while loans underwritten by an automated underwriting system had a fraud rate of 2.09%. As the mortgage industry moves more predominantly into technology, QMS advises pushing for more loans to be subject to manual underwriting.

"Historically, the data produced for the audits performed in Quality Mortgage Services Mortgage Analyst Review Software shows that manually underwritten loans are the best deterrent against fraud for housing," the firm said.

Comparing digital underwriting methods, QMS found fraud in 3.76% of loans done by the Federal Housing Administration Total Scorecard, 1.12% done by Fannie Mae's Desktop Underwriter, 1.22% done by Freddie Mac's Loan Prospector and 2.15% done by the U.S. Department of Agriculture's Guaranteed Underwriting System. QMS argued the rates might be higher, but refinances in the sampling pool drove fraud numbers down.

Results from the QMS audit found a 2.04% fraud rate in 2010 across the pool of loans sampled, up 33.5% from 2009. Almost 2% of conventional loan purchases contained fraud; however, no fraud was found in any conventional refinances.

Out of loans backed by the FHA, 3.51% contained fraudulent elements in 2010, up from 2.56% in 2009. Of that, 3.76% is attributable to purchases and 1.53% is attributable to refinances.

For loans where fraud was detected, the average credit score was 711, up from 658 the previous year, QMS said.

Even though mortgage fraud was more prevalent in 2010 than previous years, the number of incidents of fraud decreased per loan. Incidents involving income, assets or sources of funds, the two most common types of fraud, decreased in 2010. QMS reported instances of income fraud down to 30.77% from almost 33% in 2009. Assets or source of funds incidents dropped to 19.66% from 27.6%, QMS reported.

Appraisal fraud increased, along with loan analysis fraud, credit and liabilities fraud and application fraud.

Both banks and nonbanks witnessed decreases in income documentation fraud, according to QMS. For banks, fraud in this area dropped to 30.77% in 2010 from 34.38% in 2009. Nonbank fraud in this area dropped to 21.69%.

QMS is a mortgage quality control services firm based in Franklin, Tenn. In the fall, the firm produced data that found credit unions originate the highest quality loans.

URL to original article: http://www.housingwire.com/2011/03/18/manual-mortgage-underwriting-leads-to-less-fraud-qms

For further information on Fresno Real Estate, check: http://www.londonproperties.com

Fed Sees Signs of Economic Recovery but Weakness in Housing

By: Carrie Bay

The nation’s economic recovery is on “firmer footing” with conditions in the labor market “improving gradually,” the Federal Reserve said in a statement issued Tuesday following its regular monetary policy meeting.

The Fed’s view of the economy was noticeably more upbeat compared to its assessment in previous months that the recovery was simply “continuing,” but that optimism stopped short when the discussion turned to housing.

With property values still sliding, a ballooning foreclosure pipeline, and a shadow inventory of distressed REOs that experts say could take more than three years to clear, housing remains the biggest drag on the economy’s healing process. The Fed said bluntly in its statement Tuesday, “the housing sector continues to be depressed.”
While progress in the residential real estate market is lagging, improving economic indicators at the macro level led the U.S. central bank to stick to its guns on policy direction.

The Fed board voted to proceed ahead as planned with regard to its decision last November to expand its securities holdings.

The central bank is maintaining its existing policy of reinvesting principal payments from mortgage-backed securities previously purchased from Fannie Mae, Freddie Mac, and Ginnie Mae. Officials also reiterated their goal of buying another $600 billion of longer-term Treasury securities by the end of the second quarter of 2011.

The Federal Reserve board once again voted to keep the target range for the central bank’s benchmark federal funds rate – the rate at which banks lend to one another – at 0 to 0.25 percent.

The central bank has maintained that level for over two years now, and it once more indicated that economic conditions are likely to dictate an “exceptionally low” rate target for an “extended period.”

The Fed noted, “The committee will continue to monitor the economic outlook and financial developments and will employ its policy tools as necessary to support the economic recovery and to help ensure that inflation, over time, is at levels consistent with its mandate.”

URL to original article: http://www.dsnews.com/articles/fed-sees-signs-of-economic-recovery-but-weakness-in-housing-2011-03-15

For further information on Fresno Real Estate check: http://www.londonproperties.com

California home prices down for fifth straight month: DataQuick

by JON PRIOR

The median price paid for a home in California was $244,000 in February, down 2% from one year ago, according to DataQuick.

It's the fifth straight month of yearly declines after 11 months of increases. While the median price in California remains above the $221,000 low in April 2009, it has been cut nearly in half from the $484,000 peak in early 2007.

The steep decline has pushed more Californians underwater than in almost any other state. There, 32% of homeowners owe more on their mortgage than the home is worth, trailing only Nevada, Arizona, Florida and Michigan, according to recent data from CoreLogic (CLGX: 17.40 +0.35%). That percentage is more than three times the amount in Texas.

Prices will continue to drop as long as foreclosed properties take up such a large percentage of home sales. There were 27,320 sales in February, down 2.8% from one year ago. Of those, 40.1% of the properties had been foreclosed on in the previous year.

However, that percentage is on the decline, down from 40.4% in January, 44.3% one year ago and 58.5% at its peak in February 2009.

Short sales, though, are on the way up. These transactions made up 18.9% of the market in February, up from 17.6% one year ago and 11.2% two years ago.

URL to original article: http://www.housingwire.com/2011/03/18/california-home-prices-down-for-fifth-straight-month-dataquick

For further information on Fresno Real Estate, check: http://www.londonproperties.com

Widespread among American households: financial fragility

Source: Brookings Institution

Nearly one in four households making between $100,000 and $150,000 claim not to be able to raise $2,000 within 30 days to absorb a financial shock. In a paper published by the Brookings Institution, authors Annamaria Lusardi of George Washington University, Daniel Schneider of Princeton University, and Peter Tufano of Harvard University offer insights on research that reveals that "half of Americans report that they would probably or certainly be unable to cope with such an emergency. More specifically, 24.9% of respondents reported being certainly able to cope, 25.1% probably able to cope, 22.2% probably unable to cope, and 27.9% certainly unable to cope." Didn't someone smart say, roughly, "state is the family writ large?"

URL to original article: http://www.builderonline.com/builder-pulse/widespread-among-american-households--financial-fragility.aspx?cid=NWBD110318002

For further information on Fresno Real Estate, check: http://www.londonproperties.com

California home prices' biggest fall in 14 months

By JON LANSNER

California home prices fell in January on a year-over-year basis for the fourth consecutive month, according to real estate tracker CoreLogic's math.
CoreLogic's latest reports shows ..

•Statewide values were down 4.25 percent for the year ended January vs. a 2.6 percent year-to-year drop in the previous month.
•The last time California prices were falling at a faster rate was 14 months earlier — November 2009, when year-to-year depreciation ran 4.78 percent.
•Statewide prices had rsien by the math from January through September 2010.
•States with the highest appreciation? West Virginia (+5.5 percent), North Dakota (+3.3 percent), New York (+1.9 percent), Hawaii (+0.7 percent) and Wyoming (+0.2 percent).
•Worst? Idaho (-15.7 percent), Alabama (-12.1 percent), Arizona (-11 percent), Oregon (-9.9 percent) and Utah (-9.8 percent).
•National index declined on year-to-year basis for the sixth month in a row: off 5.7 percent vs. January 2010. Declined 4.7 percent in year ended in December.
•Orange County? Prices off 3.25 percent in year ended January 2011 vs. dip of 4.29 percent in previous month.

Mark Fleming, chief economist with CoreLogic, said, "A number of factors continue to dampen any recovery in the housing market. Negative equity, which limits the mobility of homeowners, weak demand and the overhang of shadow inventory all continue to exert downward pressure on housing prices. We are looking out for renewed demand in the coming months as the spring buying season gets underway to hopefully reduce the downward pressure."

URL to original article: http://www.ocregister.com/articles/home-292085-corelogic-prices.html

For further information on Fresno Real Estate, check: http://www.londonproperties.com

San Francisco Bay area home prices drop for fifth consecutive month

by KERRI PANCHUK

Home prices in the San Francisco Bay area declined for the fifth consecutive month in February as economic uncertainty steered buyers clear of the market, DataQuick said Thursday.

The area's recent five-month price decline followed 12 months of annual gains, the La Jolla, Calif.-based research firm said.

The median price on all San Francisco-area home sales hit $337,250 in February, down 0.2% from January and down 4.7% from a year ago, according to DataQuick. At the peak of the market four years ago, the median sales price in the Bay Area hovered at $665,000. That median price fell drastically, hitting $290,000 in 2009, before rebounding to its current level.

This dramatic peak-to-trough decline is related to a sharp loss in home values, driven primarily by a housing oversupply and bargain prices created by foreclosures.

A total of 4,991 new and resale homes were sold in the nine-county San Francisco Bay area last month, a slight 0.5% uptick from January, but still lower than the 5,035 sales recorded a year ago.

New home sales fared worse, with only 243 San Francisco homes selling last month, the lowest level recorded in DataQuick's research history.

"One of the main problems builders face is that they can't compete with prices on resale homes, especially distressed properties," DataQuick said Thursday.

So what's holding homebuyers back?

DataQuick blames an oversupply of distressed properties, with the market now catering more to investors and cash-only buyers.

Distressed sales — which are made up of foreclosures and short-sales — accounted for more than half of the Bay area's resale market in February.

Foreclosures alone represented 32.6% of the Bay Area's resale market last month, down 35% from January and 36.3% from a year earlier.

Short sales — where the sale price is far below the actual mortgage — represented 20.3% of the area's February sales. Buyers who paid cash in February accounted for about 30.9% of all sales.

URL to original article: http://www.housingwire.com/2011/03/17/san-francisco-bay-area-home-prices-drop-for-fifth-consecutive-month

For further information on Fresno Real Estate, check: http://www.londonproperties.com

Banking execs optimistic on recovery, plan to boost staff over next few months

by CHRISTINE RICCIARDI

Banking, brokerage and securities executives are feeling slightly more optimistic than other business leaders about the state of the economy over the next six months, causing an increase in the number of executives that plan to hire more staff.

Nearly three-quarters of banking executives believe the U.S. economy will improve, according to a quarterly survey by Grant Thornton. Comparatively, 64% of executives across all other areas of business believe the economy will improve in the next six months.

Banking leaders are feeling confident about their business, with 85% reporting a "very or somewhat optimistic" view. According to survey results, 45% of banking executives plan to increase staff, while 49% of other business leaders plan to increase staff. The last time the survey was conducted, only 23% reported an intention to increase staff. Only 11% on the most recent survey plan to decrease staff in the coming months, down from 17% in the last quarterly survey.

But Nichole Jordan, national banking and securities industry practice leader at Grant Thornton, said banks are still proceeding cautiously.

"In the aftermath of the downturn, bankers are proceeding with caution, focusing on building up capital and preparing for the costs of compliance with financial reform regulations," Jordan said.

In a more macroeconomic view, banking executives were asked how the federal government should reduce budget deficits. About 78% said spending should be cut, while 22% agreed taxes should be raised.

The Grant Thornton survey was conducted from Feb. 8 to Feb. 23, with 65 senior executives from U.S. banking, investment bank, brokerage, and securities companies.

URL to original article: http://www.housingwire.com/2011/03/16/banking-execs-optimistic-on-recovery-plan-to-boost-staff-over-next-few-months

For further information on Fresno Real Estate, check: http://www.londonproperties.com

Best retirement advice many can get: "don't even think about it"

Source: Employment Benefit Research Institute

Retirement confidence is low, and sinking. Still, New Strategist Publications editor Cheryl Russell takes it as a positive surprise that a "73% majority of workers have at least a little confidence in being able to afford retirement. This may be why: 74% expect to work for pay in 'retirement.'" Here's a link to the EBRI research, with its plethora of charts and graphs dating back to ancient history--1994. A noteworthy nugget: In 2001, only one in four workers over age 55 expected to retire by age 66 or older. Ten years after--that would be now--one out of two workers expects to do so.

Executive Summary

RECORD-LOW CONFIDENCE: The 21st wave of the Retirement Confidence Survey (RCS) finds that Americans’ confidence in their ability to afford a comfortable retirement has plunged to a new low at the same time that the recent declines in other retirement confidence indicators appear to be stabilizing. Instead of making fundamental adjustments to their spending and saving patterns in response to the decline in confidence, workers continue to change their expectations about how they will transition from work to retirement in what has been called an age of “the new normal.”

WORKERS NOT CONFIDENT: The percentage of workers not at all confident about having enough money for a comfortable retirement grew from 22 percent in 2010 to 27 percent, the highest level measured in the 21 years of the RCS. At the same time, the percentage very confident shrank to the low of 13 percent that was first measured in 2009.

INCOME BREAKS: The increase in the percentage of workers not at all confident about having enough money for a comfortable retirement appears to be largely due to a loss of confidence among those who have less than $100,000 in savings. This percentage increased sharply among those with savings less than $25,000 (up from 19 percent in 2007 to 43 percent in 2011) and between $25,000–$99,999 (up from 7 percent in 2007 to 22 percent in 2011).

RETIREES: Retiree confidence in having a financially secure retirement is stable, with 17 percent saying they are not at all confident and 24 percent very confident (statistically equivalent to 2010 levels).

SAVED FOR RETIREMENT? Sixty-eight percent of workers report they and/or their spouse have saved for retirement (down from 75 percent in 2009, but statistically equivalent to the 2010 level). Fifty-nine percent say they and/or their spouse are currently saving (down from 65 percent in 2009, but statistically equivalent to earlier years).

LITTLE OR NO SAVINGS: A sizable percentage of workers report they have virtually no savings or investments. Among RCS workers providing this type of information, 29 percent say they have less than $1,000. In total, more than half of workers (56 percent) report that the total value of their household’s savings and investments, excluding the value of their primary home and any defined benefit plans, is less than $25,000.

NO RETIREMENT SAVINGS GOAL: Many workers continue to be unaware of how much they need to save for retirement. Only 42 percent report they and/or their spouse have tried to calculate how much money they will need to have saved by the time they retire so that they can live comfortably in retirement.

EXPECTED RETIREMENT AGE RISING: The age at which workers expect to retire continues its slow, upward trend. In particular, the percentage of workers who expect to retire after age 65 has increased over time, from 11 percent in 1991 and 1996 to 20 percent in 2001, 25 percent in 2006, and 36 percent in 2011.

MORE EXPECTING TO WORK IN RETIREMENT: More workers now expect to work for pay in retirement. Seventy-four percent report they plan to work in retirement (up from 70 percent in 2010), three times the percentage of retirees who say they actually worked for pay in retirement (23 percent).

URL to original article: http://www.builderonline.com/builder-pulse/best-retirement-advice-many-can-get---don-t-even-think-about-it-.aspx?cid=NWBD110316004

For further information on Fresno Real Estate, check: http://www.londonproperties.com

Mortgage applications drop after dramatic 15% rise

by KERRI PANCHUK

Mortgage applications fell slightly this past week after experiencing a dramatic 15% rise just seven days earlier, the Mortgage Bankers Association said Wednesday.

The market composite index — a measure of loan volume — decreased 0.7% on a seasonally adjusted basis for the week ending March 11. On an unadjusted basis, the index fell 0.5% when compared to the previous week.

The four-week moving average for the seasonally adjusted market index is up 4.9%, while the four-week moving averages for the purchase index and refinance index are up 1.6% and 6.6%, respectively.

Refinancing activity during the period increased to 66.4% of total applications, compared to 65.5% a week earlier.

Meanwhile, the average interest rate for a 30-year, fixed mortgage dropped to 4.79% from 4.93% a week earlier. In addition, the average rate for a 15-year, fixed-rate mortgage declined to 4.03% from 4.17%.

URL to original article: http://www.housingwire.com/2011/03/16/mortgage-applications-drop-after-dramatic-15-rise

For further information on Fresno Real Estate, check: http://www.londonproperties.com

Foreclosures plunge 27% - biggest drop on record

By Les Christie, staff writer

NEW YORK (CNNMoney) -- Is our long national foreclosure nightmare ending?

The number of foreclosure notices filed in February dropped 14% compared with a month earlier and 27% compared with a year earlier, according to RealtyTrac.

That was the biggest year-over-year decline the company has ever recorded. But the improvement may be exaggerated, according to RealtyTrac CEO James Saccacio, who traced some of the decline to the fallout over robo-signing issues.

"Allegations of improper foreclosure processing continued to dog the mortgage servicing industry and disrupt court dockets," he said. "The industry is in the midst of a major overhaul that has severely restricted its capacity to process foreclosures."

Another contributing factor was the harsh winter weather that covered much of the country during the month. That delayed some of the paperwork processing and the serving of notices of default, notices of auction sales and other filings.

There were still more than 225,000 filings during the month, or one for every 577 homes. The banks repossessed 64,643 homes from delinquent borrowers, down significantly from the peak of about 102,000 last September.

The foreclosure fall flew in the face of other housing market reports that made it clear that housing is far from being out of the woods. S&P/Case-Shiller reported that prices are going down, and Zillow, the real estate website, said nearly 30% of borrowers with mortgages owe more than their homes are worth.

Looking to the future, the 50 state attorney generals seem to be making progress in their pursuit of a financial settlement with the banks over the robo-signing mess.

"We believe some of the servicers have slowed foreclosures as they wait to see how the settlement talks play out," said RealtyTrac spokesman Rick Sharga, who expects a huge spike in filings over the next few months.

One segment of the industry that could benefit from the foreclosure drop, -- no matter how artificial -- is new home builders. "It's definitely good for them," said Pat Newport, a housing market analyst with IHS Global Insight. "It makes it easier for them to compete in the market."

The builders have run up against bargain-basement pricing as the banks sell off their steady flood of repossessed homes. If that flood ebbs, it should firm up pricing and make it easier for developers to sell their new homes and make a profit.

Home building contributes much to the overall economy. A pick-up from the current low rate of sales, which is down about 75% from the peak, would result in many new jobs.

"Existing home sales produce some economic activity but it pales in comparison with new home sales," said David Crowe, the chief economist for the national Association of Home Builders. "We calculate that for every 100,000 homes built, it creates 150,000 construction jobs but another 150,000 manufacturing jobs building refrigerators, furniture and other products."

Worst-hit states
Three of the four "Sand States," Nevada (one filing for every 119 housing units), Arizona (one in 222) and California (one in 239) held their places at the top of the list of hardest hit states. Utah is the new number four, followed by Idaho, Georgia and Michigan.

Florida (one in 472), however, has slipped down the list to number eight. Filings dropped more than 65% year-over-year.

Part of the reason for Florida's improvement may have been the fall-out from the robo-signing issue. Foreclosures involve court hearings in the Sunshine State and many cases have been delayed by judges.

"Judicial foreclosure states recorded the most severe drops in foreclosures," said Sharga.

URL to original article: http://money.cnn.com/2011/03/10/real_estate/february_foreclosure_realtytrac/index.htm

For further information on Fresno Real Estate, check: http://www.londonproperties.com

Foreclosure activity slows in February: ForeclosureRadar

by KERRI PANCHUK

Foreclosure activity slowed across the United States in February as lenders continued to grapple with how to handle foreclosure documents and processing changes, foreclosure data firm ForeclosureRadar said Tuesday.

The California-based firm also attributed the slowdown to February having fewer foreclosure filing and trustee sale days.

"Foreclosure filings dropped to low levels not seen in quite awhile," said Sean O'Toole, CEO and founder of ForeclosureRadar.com. "We will likely see more sluggish foreclosure activity in the months ahead while lenders continue to work through lingering concerns over foreclosure documentation and deal with process changes."

Filings dropped significantly in areas hindered by the recession, with notice of trustee sale filings dropping 27.9% year-over-year in Arizona and 17% in California. Meanwhile, Arizona experienced a 38.9% drop in sales back to the bank and a 14.5% drop in sales to third parties when comparing February data to January.

Notice of default filings in California fell 29.6% on a year-over-year basis. The Golden State also experienced a 24.5% drop in sales back to the bank and a 20.3% decline in properties purchased by third parties.

Notice of default filings in Nevada declined 25.2% in February from a month earlier, reaching their lowest levels in two years.

"After two months of increased activity on the courthouse steps, foreclosure sales dropped significantly with foreclosure sales back-to-the-bank dropping 48.4% and sales to third parties down 35.3% in February 2011 as compared to the prior month," ForeclosureRadar said.

URL to original article: http://www.housingwire.com/2011/03/15/foreclosure-activity-slows-in-february-foreclosureradar

For further information on Fresno Real Estate, check: http://www.londonproperties.com

Home price dip leads JPMorgan to downgrade market

by JACOB GAFFNEY

Investment bank JPMorgan Chase (JPM: 45.30 -0.96%) Friday downgraded its expectations that housing prices will improve.

The researchers now say their base home price forecast now shows at peak-to-trough a 34% decline for the Standard & Poor's/Case-Shiller national index. That marks an additional 3% to 4% drop from fourth quarter to a bottom by the first half of 2011.

"This is the first downgrade to our forecasts in the past 10 months, driven by bigger-than-expected price declines in recent months and increasing uncertainty around the supply-demand imbalance," said analysts from the JPMorgan U.S. Fixed Income Strategy division.

The revision indicates that after some gains in housing, the market may double dip (click chart below).

The researchers add that home prices are expected to continue a downward trend in the spring, but they do expect to see moderate improvements in the summer, leaving overall home prices down 2% to 3% in 2011.

The researchers say recent changes to the National Association of Realtors' home sales data may overstate actual home sales. NAR is expected to revise its figures, and JPMorgan analysts will adjust their forecasts accordingly.

The glut of housing supply, mixed with tighter lending criteria mean that home prices will likely not begin to improve until more jobs are created, the research indicates.

URL to original article: http://www.housingwire.com/2011/03/11/home-price-dip-leads-jpmorgan-to-downgrade-market

For further information on Fresno Real Estate, check: http://www.londonproperties.com

Welcome New Family Members

Just want to welcome to the family a few new sales associates;

London Properties is pleased to announce the arrival of Isabel Alvarado, formerly with Coldwell Banker. Isabel is a residential salesperson and will be working out of our Clovis office.

London Properties is pleased to announce the arrival of Jennifer Hormann, also formerly with Coldwell Banker. Jennifer is a residential salesperson and will also be working out of our Clovis office.

Donna Wyatt, formerly of Coldwell Banker is also a residential salesperson and Donna will be working out of our Fresno office.

London Properties is pleased to announce the arrival of Bindya Nagrani, formerly with Realty World. She is a residential salesperson and will be working out of our Fresno office.

London Properties is pleased to announce the arrival of Shail Lopez, she too is also from Realty World and will be working out of our Fresno office.

Welcome to our team and the family, we are so proud to have you here.

If you or anyone your know wishes to join London Properties or is looking to get their real estate license simply go to www.tiore.com to get more information.

Foreclosure filings hit 3 year low in February: RealtyTrac

by JON PRIOR

Lenders filed foreclosures or repossessed 225,101 properties in February, a 27% drop from one year before and the lowest total in three years, according to RealtyTrac.

It is also the largest yearly decrease since 2005. But RealtyTrac CEO James Saccacio said the lull during the storm is not due to improving conditions in the housing market. Instead, the slowdown came from mortgage servicers disrupted by problems in the foreclosure process, an issue that dragged down filings in January as well.

"Foreclosure activity dropped to a 36-month low in February as allegations of improper foreclosure processing continued to dog the mortgage servicing industry and disrupt court dockets,” Saccacio said.

RealtyTrac expects the numbers to increase over the next several months but may never return to the peak seen in March 2010 when more than 367,000 properties received a foreclosure filing.

"While a small part of February’s decrease can be attributed to it being a short month and bad weather, the bottom line is that the industry is in the midst of a major overhaul that has severely restricted its capacity to process foreclosures," Saccacio said.

At the end of 2010, mortgage servicers were found to be signing documents by the thousands without reviewing the documentation. The result has been an investigation from the 50 state attorneys general and several federal regulators. A settlement has been proposed but remains in the negotiation stage.

Foreclosure filings were down in every category in February.

Notices of default fell 48% judicial states from the year before and 41% in nonjudicial states. Scheduled foreclosure auctions dropped 21% from the year before in nonjudicial states and 49% in judicial states. Bank repossessions fell 18% from one year ago in nonjudicial states and 35% in judicial states.

Nevada posted the nation's highest foreclosure rate for the 50-straight months, more than four years. There, one in every 119 homes received a foreclosure in February. Arizona was second with one in 178 homes receiving a foreclosure, and California was third with one in 239 receiving a filing.

On the city level, Las Vegas held the top foreclosure rate in February. There, one in every 106 homes received a filing. Cities in Nevada, California and Arizona accounted all of the top 10 cities and 15 of the top 20.

URL to original article: http://www.housingwire.com/2011/03/09/foreclosure-filings-hit-3-year-low-in-february-realtytrac

For further information on Fresno Real Estate, check: http://www.londonproperties.com

Slow short sales firmly part of California real estate landscape

by JACOB GAFFNEY

The California Association of Realtors is reporting that 94% of its members participated in a short sale in 2010, despite the mortgage product being tough to close.

Fewer than three of five short sales close in California, according to a Short Sale Lender Satisfaction Survey conducted by the trade association and released Tuesday.

Realtors report that short sales are plagued with mortgage lender and servicer unresponsiveness and "onerous" procedures leading to long processing delays.

Efforts by larger lenders to streamline the short sale process appear to be slow in coming, the Realtors report, adding its due to no fault of their own. Last April, Wells Fargo (WFC: 31.82 -1.73%) said it was looking at ways to reduce short sales bid-to-close windows to about 30 days.

"It’s disappointing that less than three in five short sales close, despite every effort by the Realtor, home seller and potential home buyer," CAR President Beth Peerce said.

"Many underwater homeowners who have been hit by the recent economic crisis can no longer afford to stay in their home and just need to sell their home as expeditiously as possible are unable to largely because of the complex and cumbersome short sale process," she said.

Some 63% of Realtors said lenders took more than 60 days to return a written response of the approval or disapproval of the short sale agreement submitted. Only 4% said they received a written response in less than two weeks.

"The survey results show that the short sale system is clearly flawed and must be standardized and streamlined to reduce the inventory of foreclosures," Peerce said. "Increasing the number of successful short sale transactions is one important way we can help California families avoid foreclosure and move our economy closer to recovery."

URL to original article: http://www.housingwire.com/2011/03/08/slow-shortsales-firmly-part-of-california-real-estate-landscape

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Nameless, formless crisis enveloping nation's home price indices

by JACOB GAFFNEY

Fears of a double dip in housing are giving away to a realization that the nation's mortgage markets are facing a much colder reality — something that will not so easily be named, but is nonetheless hanging around for a very long time.

Both Standard & Poor's and Radar Logic Research released updates Monday on the prices sellers are asking for residential properties. Neither is positive.

"No matter what you call it, a 'double dip' or the continuation of a long process of deterioration, the current trend in home prices is evidence that housing markets are continuing to languish," said Quinn Eddins, director of research at Radar Logic.

"We expect the negative trend to continue under a severe supply overhang that includes a large and growing 'shadow inventory' of homes in default or foreclosure," Eddins said.

In the past, such market behavior would be called a "w-shaped" recovery. But the National Bureau of Economic Research called an end to the recession in June 2009, and nearly two years later, there is not enough improvement to resemble a recovery in the housing market.

The RPX composite index, which tracks 25 metro areas, reached its lowest level since peaking in 2007.

At $183.18 a square foot, today's RPX Composite price is 34% lower than its peak value of $278.32 a square foot, which reflects closings during the period ending June 8, 2007.

The RPX Composite price is lower than the price for any other date since May 14, 2003.

An increase of cash buyers and some sales volume on steeply discounted jumbo properties notwithstanding, the nation's home prices are following the supply-side much more so than the demand side.

U.S. home prices declined for five straight months leading up to 2011, according to a recent report published by Standard & Poor's. The 20-city S&P/Case-Shiller home price index has dropped 4.3% since July. And when Case-Shiller comes out again, S&P expects more drops.

"Existing U.S. home sales rose and new home sales declined in January, while the official housing inventory level dropped for existing homes and declined at a slower pace for new ones," said S&P structured finance research analyst Erkan Erturk.

"We attribute the increase in existing sales in January to buyers locking in lower rates as mortgage rates started to rise," he added. "Nevertheless, mortgage rates are still low by historical standards."

URL to original article: http://www.housingwire.com/2011/03/07/nameless-formless-crisis-enveloping-nations-home-price-indices

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How easy it is to get your real estate license

Welcome Aboard New Agents

Just wanted to Welcome aboard to our new sale's agents....Jason Dunbar is a residential sales agent working out of our Clovis office.

Dale Winn and Josh Mendrin will be working out of our Fresno office; Dale is a residential sales agent and Josh will be joining his father Al Mendrin in Ag sales.

Brenda Valdez is a residential sales agent working out of our Kingsburg office.

David Knoy will be working as a residential sales agent out of our Sanger office. And Mark Waymire will be also working as a residential sales agent out of our Hanford office.

Welcome aboard to all of you!!! If you or anyone you know is looking to get their Real Estate License, please go to : www.tiore.com and check out how easy it is to start a new fresh career that will bring you job security, freedom from the desk and a great stream of income.

Home sales set to drop 2.3 percent this year: Reuters Poll

By Al Yoon

(Reuters) - A pick-up in home sales in the past six months will soon hit a wall as foreclosures are dragged out, creating a supply overhang that will push prices down 2.3 percent this year, a Reuters poll predicts.

Rising sales have offered hope for the housing market, which remains in a four-year slump despite multi-billion dollar federal programs and record low interest rates.

But economists now expect home prices will fall 2.3 percent in 2011, and then begin a slight recovery in 2012, according to the median forecast of the 26 economists who gave a price outlook in the Reuters poll.

A rise in "distressed" home sales at depressed prices has helped clear the path for a recovery. But economists doubt the bounce will last as the pace of foreclosures drags out.

"One of the big question marks that people are not paying enough attention to is not just the number of foreclosures, but the speed of foreclosures," said David Wyss, chief economist at Standard & Poor's in New York.

"The time it takes to do a foreclosure has doubled, and that means you are dribbling out these foreclosures over a much longer period of time," he added. "You have to clear that overhang of homes."

By the fourth quarter of 2011, the pace of existing home sales will only edge up to a 5.48 million annualized rate from the 5.36 million pace in January, according to the median forecast of 21 economists who gave an outlook for sales in the Reuters poll.

The rate has recovered from 3.86 million units in July last year, following a slump that was caused by the expiry in April of federal home buyer tax credit incentives.

DISTRESSED SALES RISE

Most economists expect home prices to fall further in 2011, unsettling potential buyers and prompting lenders to demand more equity for their loans.

The total price drop from the peak of the housing market in 2006 will be 35 percent, they said.

Purchases of distressed homes from troubled borrowers, or those in or near foreclosure, are seen as an important way to absorb the almost four years' worth of inventory that may hit the market, economists said.

Distressed sales hit a one-year high of 37 percent of all existing-home sales in January.

Banks have slowed the foreclosure process as they try to implement the federal government's mortgage modification programs. More recently, failures in banks' mortgage servicing and foreclosure processes have created new snags in the system.

Foreclosures will at least begin to subside in 2011, according to 18 who gave an outlook in the Reuters poll.

"Price expectations are probably more important than foreclosures at this time," said Donald Ratajczak, Morgan Keegan's Atlanta-based consulting economist.

He noted that prices are rising in San Diego, where foreclosures make up a big portion of sales, and falling in Atlanta, where foreclosures are below average. The difference, he said, is that San Diego buyers see foreclosures as an opportunity, and Atlanta buyers see them as a problem.

Interest rates are not likely to harm housing in 2011, as many economists have feared, the Reuters poll showed.

The average 30-year fixed U.S. mortgage rate will probably settle at 5.1 percent this year, the median poll forecast showed, up marginally from a rate of 4.84 percent in the latest week. That is up from 4.19 percent in mid-October, the lowest since 1951, according to Freddie Mac.

(Polling by Bangalore Polling Unit, editing by Leslie Adler and Susan Fenton)

URL to original article: http://www.reuters.com/article/2011/03/02/us-poll-us-home-sales-idUSTRE7214XS20110302?pageNumber=1

For further information on Fresno Real Estate, check: http://www.londonproperties.com

San Jose average prices slide downward in 2011, climb from previous year

by SHAINA ZUCKER

Although average home prices slightly dipped in Santa Clara County at the beginning of this year, January 2011 still shows the average price has gone up from the same month in 2010 — increasing 0.46%.

During January of this year, average home price in San Jose was at $521,408 — a 2.97% decrease from December 2010, according to the National Association of Realtors. However, in January 2010, prices averaged at about $518,990.

"Home prices in our region have gone up since the low of early 2009, but they are still affordable compared with historical data," said Mike Sibilia, president of the Santa Clara County Association of Realtors in a press release. "With the low interest rates, it's a good opportunity to buy, because a 1% drop in interest rates is equal to a 10% home price reduction for the buyer's monthly mortgage payment."

The highest affordability index for Santa Clara County occurred in the first quarter of 2009, at 62%. The second quarter of 2010 is the ninth consecutive quarter with the index above 50% since the fourth quarter of 2008.

Of the 44 quarters since 2000, the index was higher than 50% for 17 quarters.

The percentage of households that could afford to buy an entry-level home in Santa Clara County stood at 57% in the fourth quarter of 2010, according to the California Association of Realtors. It is higher than the 52% for the same period of 2009, and more than double the 25% for the second and third quarters of 2007, the lowest since 2000.

The minimum household income needed to purchase an entry-level home at $502,350 in Santa Clara County in the fourth quarter of 2010 was $77,400, based on an interest rate of 3.39% and assuming a 10% down payment. The monthly payment including taxes and insurance was $2,580. First-time buyers typically purchase a home equal to 85% of the prevailing median price.

URL to original article: http://www.housingwire.com/2011/03/04/san-jose-average-prices-slide-downward-in-2011-climb-from-previous-year

For further information on Fresno Real Estate, check: http://www.londonproperties.com

Altos Research shows February home prices down 2%

by JASON PHILYAW

Home prices fell another 2% in February with declines in all 27 markets tracked by Altos Research.

The company said prices are slowly improving and housing inventory is up 3.75% nationwide as the market moves into a much-anticipated spring selling season. The inventory of homes for sale declined sharply over through the holiday season, Altos said.

Prices were down significantly in San Francisco and Washington in February while the listing inventory in the two cities increased, likely indicating sellers are bringing properties to market ahead of an expected uptick in buyer activity, according to Altos.

"While the headline pricing metric 90-day rolling average still shows monthly declines, week-over-week data are beginning to show signs of improvement, indicating a good start to what is, typically, the strongest sales period of the calendar year" the analytics firm said.

Altos said its 10-city composite index decreased just more than 2% last month to nearly $433,600 and is now down 3.4% over the past three months. There are considerable home price declines in some markets since November, but "the short-term information likely paints a more accurate picture of conditions moving into spring."

On Monday, Freddie Mac said fourth-quarter home prices fell 4.3% from a year earlier as foreclosures and slowing sales buoyed inventory levels.

In early January, Clear Capital said home prices ended a turbulent 2010 down 4.1% from the year before. The analytics firm expects another decline of 3.6% in 2011.

URL to original article: http://www.housingwire.com/2011/03/04/altos-research-shows-february-home-prices-down-2

For further information on Fresno Real Estate, check: http://www.londonproperties.com

Sales of new homes fall a shocking 11.2%

By Les Christie, staff writer

NEW YORK (CNNMoney) -- The new year has brought little cheer to new-home builders: Their sales fell a shocking 11.2% between December and January and 18.6% from 12 months earlier.

The total number of new homes sold in January was a seasonally adjusted 284,000, down from 325,000 in December, the government said Thursday.

In total, the market is down 80% from its peak, which was set in July 2005, when the annualized rate of sales hit nearly 1.4 million.

The big problem facing developers is that they face significant competition from foreclosed homes, which sell at bargain-basement prices. In fact, 26% of all homes sold last year were foreclosures.

"Housing is a price-driven market," said real estate analyst Michael Larson of Weiss Research Investors. "Ordinary home buyers can and will buy houses, but only if the price is right. That makes life tough for new home builders, who have to compete with distressed properties and 'nearly new' foreclosures."

The release followed Wednesday's more positive industry report showing that sales of previously owned homes had inched up slightly during January. A bulk of those sales came from bank repossessions and other distressed properties.

But there is always a market a for new homes because many people prefer a a house that nobody else has used, according to Jeff Mezger, CEO of KB Homes. Plus, foreclosures are often sold "as is" and are in poor condition.

America's ugliest homes
"One of our biggest market segments is single moms, who don't want to have to fix up things," he said. "They look at used homes first. "They look at foreclosures and don't like what they see."

Some progress has been made by home builders in reducing their inventories of unsold homes, according to Brad Hunter, chief economist with Metrostudy, a real estate information provider.

In Atlanta, builders reduced the glut by 35% during 2010. In Tampa, inventory fell more than 17%; in Phoenix, it's down more than 10%.

That absorption may be slow by historical standards, but it does indicate a trending in the right direction.

By the end of January, there were an estimated 188,000 new homes still on the market, the lowest inventory level since December 1967. It's a 7.9 month supply at the current rate of sales, down 1.2 months since last January.

The median price of home sold during the month was $230,600, a 13.3% increase compared to a year earlier.

"If you're looking for signs of a robust recovery in housing," said Larson, "you're just not going to find it anytime soon. Instead, sales, pricing, and construction activity are likely to bounce along the bottom for several quarters."

URL to original article: http://money.cnn.com/2011/02/24/real_estate/january_new_home_sales/index.htm

For further information on Fresno Real Estate check: http://www.londonproperties.com

Capital One slows foreclosures to a trickle in California

by JACOB GAFFNEY

Capital One Home Loans is determined to not foreclose on any of the mortgages it services in California, according to sources inside the company.

Agents of real estate-owned properties in the state first noticed the change in January.

"Normally, Capital One puts 20 or so homes into the market a month," said one broker in California. "That shrank to one in January and zero on February."

The broker heard it was due to a foreclosure moratorium by Capital One in order to review the documentation. However, a HousingWire source at Capital One said the firm is focusing on foreclosure alternatives. The favored options, he said, are short sales and modifications.

"Customer service is the corporate mantra of Capital One, and this strategy is just a part of that," he said.

The press office of Capital One confirmed that foreclosures in California are an option of last resort. They could not immediately confirm the above numbers or comment if the pilot program may be extended to other states.

Last year, Capital One originated $1.75 billion in mortgages in 2009, down from nearly $2 billion in 2008.

URL to original article: http://www.housingwire.com/2011/03/03/capital-one-slows-foreclosures-to-a-trickle-in-california

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20% down payment gets its day in courts as regulators push to lessen risk

Source: Wall Street Journal

Banking regulators are pushing for mortgage-lending rules that require homeowners to make minimum 20% down payments on loans classified as lower-risk, according to people familiar with the matter.

The proposal is being floated as a way to rewrite the rules for mortgage lending to prevent a rerun of the housing bubble and financial crisis that resulted from years of easy credit. The Dodd-Frank financial overhaul law enacted last year enabled regulators to define a so-called gold-standard residential mortgage that would be exempt from costly new rules.

At least three agencies—the Federal Reserve, the Federal Deposit Insurance Corp. and the Office of the Comptroller of the Currency—back a proposal to require home buyers to put down at least 20% of the sales price in order to obtain one of these "qualified residential mortgages." One proposal would also require borrowers to maintain a 75% loan-to-value ratio for refinances, and a 70% loan-to-value for cash-out refinances in which the borrower refinances into a larger loan, according to people familiar with the matter.

Mortgage-finance giants Fannie Mae and Freddie Mac would also be exempt from the rules while they remain in conservatorship, according to these people. The U.S. took over the firms in 2008, and the Obama administration has proposed eventually winding them down.

The behind-the-scenes debate over the proposal could have far-reaching implications for how Americans finance loans, because it addresses how much equity new borrowers should have in their homes.

It is unclear whether the proposal will garner support among other regulators and be acceptable to the White House and Congress. Altogether, six federal agencies—the three supporting the proposal plus the Department of Housing and Urban Development, the Federal Housing Finance Agency and the Securities and Exchange Commission—must sign off on the proposal before it is released for public comment. It could not be determined Tuesday whether all the agencies would support the 20% down-payment standard.

At a congressional hearing Tuesday, HUD Secretary Shaun Donovan said no deal has been reached yet, and that any plan could instead spell out options.

At a separate hearing Tuesday, Treasury Secretary Timothy Geithner said, "We've got to be careful that we get it right." He added, "I'm not sure how much longer it's going to take, but it's going to take a bit longer than we initially expected."

Meanwhile, some lawmakers expressed concerns that the new rules might make it too hard for homeowners to qualify for less risky, and less costly, loans.

Sen. Kay Hagan (D., N.C.) told Federal Reserve Chairman Ben Bernanke that several lawmakers "are really concerned about not making it so restrictive that we can't have as many well-qualified loans as possible."

The proposal was crafted in response to a provision in Dodd-Frank that aimed to improve mortgage-lending standards. Loans that don't meet the standards for "qualified residential mortgages" and are sold to investors as securities will be subject to a "risk retention" rule, which could raise borrowing costs for homeowners.

The risk-retention rule requires banks to keep 5% of the value of all mortgages they securitize on their books. During the housing boom, many lenders passed on all of their mortgages, and all of the risk, to investors. It was designed to force lenders to have "skin in the game" when selling groups ofmortgages packaged as securities.

Critics of the risk-retention rule said it could raise costs for traditionally safer lending products such as long-term, fixed-rate loans with full income documentation. A coalition of consumer advocacy groups and the real-estate industry have warned that defining the rule too narrowly could raise borrowing costs for millions of creditworthy borrowers.

Regulators must issue a rule defining "qualified residential mortgages" by April, and had initially planned to publish a draft proposal late last year. But the process has been delayed by a disagreement about whether to include in the rule national standards for loan servicers, such as how to modify loans for troubled borrowers. The new proposal reflects a compromise among the regulators to include some standards for how and when banks modify loans.

URL to original article: http://www.builderonline.com/builder-pulse/20--down-payment-gets-its-day-in-courts-as-regulators-push-to-lessen-risk.aspx?cid=NWBD110303002

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