Today’s News Synopsis:
The Sacramento Bee reports that the New Home-Buyer Tax Credit extension failed to pass. According to John Burns analysis, investors represent approximately 26 percent of all the sales occurring within the 53 markets that he observes. JPMorgan Chase & Co. chief economist Bruce Kasman believes that the economy will grow by 3.5 percent per quarter during the next year, but wont be enough to bring the GDP back to its $13.42 trillion pre- crisis peak. Realtors will be excited to hear that Docusign just got an iPhone app.
Courant – “Recession may forge a housing shift in California” (9-13-09) “The Federal Reserve reported last week that the amount Americans owe on credit cards, auto loans and other forms of consumer loans dropped for a sixth straight month in July, the longest decline since 1991. It’s the same story with home equity lines of credit, which financed a significant degree of consumer spending during the boom. The amount of money owed on these loans is down 3% from a peak of $1.13 trillion in mid-2007, according to the latest Fed figures.”
Mish’s Global Economic Trend Analysis – “Decade of No Income Gains” (9-12-09)
“The typical American household made less money last year than the typical household made a full decade ago. To me, thats the big news from the Census Bureaus annual report on income, poverty and health insurance, which was released this morning. Median household fell to $50,303 last year, from $52,163 in 2007. In 1998, median income was $51,295. All these numbers are adjusted for inflation.”
Sacramento Bee – “Extension of new-home buyer tax credit fails to pass” (9-14-09)
“Legislation aiming to extend California’s maximum $10,000 new home buyer tax credit to several thousand more buyers has stalled, failing to pass during a frantic weekend rush to adjournment by the state Legislature. The bill, AB 765, was among those pushed aside by bigger final-hour statewide issues, backers said Monday.”
Wall Street Journal – “Your House: Just a Home” (9-14-09)
“Foreclosures and short sales, where homes are sold for less than the debt outstanding on them, comprised 31% of total sales in July, according to the National Association of Realtors, helping depress prices for all. Buyers and sellers are at loggerheads in many markets, as home sellers refuse to accept the reality of lower prices. Depressed values and tighter credit in turn have reduced everyone’s ability to borrow against their houses for remodeling, refurbishing, college tuition or other purposes. The lockup has caused people to feel poorer, even if they’re employed and don’t need to move. This feeling has, in a reversal of the boom’s wealth effect, curbed consumer spending.”
Inman – “Real estate’s September report card” (9-14-09)
“Investor buyers are back and help explain some of the resurgence in sales we have seen in many markets. Investor sales now constitute nearly 26 percent of total sales in the 53 markets where we track this statistic, which is higher than the peak of 24 percent in 2005-2006 and a considerable rise from just 21 percent in Q3 2008. Our data source misses a certain category of investor activity, so the actual percentage is higher than shown throughout the entire period, but we believe the recent trends are valid.”
Bloomberg – “U.S. Economy May See Its Slowest Recovery Since 1945″ (9-14-09)
“The slump this time was so deep, said JPMorgan Chase & Co. chief economist Bruce Kasman, that the 3.5 percent average quarterly growth rate he sees in the next year wont be enough to bring gross domestic product back to its $13.42 trillion pre- crisis peak. Thats in contrast with the last 10 recoveries, when GDP returned to its previous levels within 12 months.”
Orange County Register – “Lehman legacy: Fallout batters O.C. housing” (9-14-09) “Homebuilding continued to slide, despite a few months in which sales rebounded in response to state tax breaks. Just 1,352 residential building permits were issued as of July 31, making 2009 so far the slowest year for housing starts since the end of World War II.”
Orange County Register – “Which Surf City ZIP has the most price cuts?” (9-14-09)
“Here are the latest home price cut rates from Trulia.com. As you can see, ZIP code 92649 has the greatest percentage of discounts in Huntington Beach and 92647 has the fewest in the city right now.”
Reuters – “California debt sale aided by 2 strong ratings” (9-14-09)
“California’s return to the municipal debt market after its budget crisis received strong endorsements from credit ratings agencies on Monday despite fears a new state budget shortfall will return. Moody’s Investors Service assigned California’s upcoming multibillion-dollar revenue anticipation note sale its top MIG 1 rating, clearing the way for money market funds to buy the short-term debt.”
Inman – “DocuSign gets iPhone app” (9-14-09) “A new iPhone application from Smart Mobile Solutions allows real estate professionals who use DocuSign to track, view, revise and electronically sign documents on the go.”