Everyone seems to agree that housing prices are still in decline. CNN quotes the National Association of Realtors as saying median prices dropped over 12% nationally in the fourth quarter of 2008 from the fourth quarter of 2007. More details here. Standard and Poors released data as of November 2008, and their Case-Schiller index showed an annual decline of over 18% for 20 metropolitan areas; the decline was significantly worse in Los Angeles, San Diego and San Francisco, the three California metropolitan areas included. More details here.
RealtyTrac was widely quoted as showing a decline in the number of new foreclosures in January 2009 from December 2008; less widely quoted as saying the rate was up from January 2008. The decline was partially attributed to moratoriums imposed by Fannie Mae and Freddie Mac. In California, statewide moratoriums have also delayed foreclosures. More details here. Not everyone was pleased:
“We haven’t seen any of the moratoriums work on a state level,” said Rick Sharga, spokesman for RealtyTrac. “What we see is a huge fall off in foreclosure activity for the length of the moratorium followed by a huge spike. Unless there’s a really effective program put in place that will actually cure foreclosures, all moratoriums do is delay them. And that can prolong the housing crisis.”
Two large banks are either eliminating or drastically reducing their use of independent mortgage brokers. JP Morgan Chase has said that loans originated by brokers defaulted at higher rates than did bank-originated loans. More details here.
Proposed extension of federal tax loss carry backs may make things worse for some:
… some small builders say the measure would encourage big builders to continue to dump land and houses for artificially low prices to generate a loss for tax purposes.
A deal that Pulte Homes Inc. made late last year is the type that riles some small builders. Pulte, based in Bloomfield Hills, Mich., sold about 470 house lots in Southern California for $2 million in December 2008, according to the buyer, Shopoff Properties Trust, a real-estate investment trust that focuses on buying distressed land. That is likely to generate a sizable tax refund because Pulte originally paid $28 million for the property, according to Shopoff. As part of the deal, Shopoff says that Pulte has the right to buy the land should Shopoff choose to sell.
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