For Real Estate Professionals Seeking a Market Edge
Home Prices Continue to Rise
According to newly released figures, home prices rose for the third consecutive month in July, evidence that a fragile housing recovery is underway. Standard & Poors Case-Shiller Home Price Index, which measures 20 major cities, rose 1.2 percent from June to a reading of 143.05. Though home prices are still 13.3 percent below the same period one year ago, the gradual decline throughout 2009 has slowed in all 20 cities for the sixth straight month.
Home prices are now at levels not seen since the third quarter of 2003. Prices in Las Vegas, Detroit, and Seattle continue to fall on a seasonally adjusted basis. Prices in Las Vegas, one of the most speculative markets during the boom, are down almost 55 percent from their peak. According to the National Association of Realtors, almost 80 percent of home re-sales in Nevada during the month of August were the result of foreclosure or a sale below the value of the mortgage.
First-time homeowners can qualify for a tax credit worth 10 percent of the purchase price (up to $8,000) through a program available until the end of November. More than a dozen legislative bills to extend the credit have been introduced in Congress, but it is unclear if lawmakers want to continue subsidizing the real estate market. Real estate agents and homebuilders are lobbying hard for an extension, pointing to continued areas of weakness, including foreclosures. On Tuesday, Fannie Mae said that nearly 4.2 percent of its home loans were at least three months delinquent in July, up from 3.9 percent in June. Foreclosures now are being driven by job losses, also weighing on the minds of consumers. The Conference Board said Tuesday that its Consumer Confidence Index dipped unexpectedly this month to 53.1 after three months of gains; down from the revised 54.5 reading in August. There is a possibility that the Fed is requesting banks to hold onto their REO inventory until existing inventory is sold. Either way, the nation still faces a lengthy road ahead in recovery of the housing sector.
We will keep you posted…
Hot Money
Non Recourse Loans from $10,000,000 Nationwide
Penstar is currently working with a lender originating loans on apartment, office, industrial, mini-storage, and anchored retail properties nationwide. The lender is also interested in financing multi-property portfolio acquisitions/refinances. Loans terms range from 3 to 5 year, with up to a 30-year amortization and with competitive pricing. For more information, please contact Steven Hamermesh at (818) 883-9609 or Hamer@PenstarAdvisors.com..
Helpful Humor
The best antidote for those challenging transactions is to take a moment to have a hearty laugh. Helpful humor is our way of infusing laughter into your work-week
“What Kind of Salesman Are You?” “What kind of salesman are you?” the boss scolded, “Get out there and sell him a boat!” |
30
Day Libor |
10-Year
Treasury |
Prime |
0.32% |
3.74% |
3.25% |
Penstar Realty Advisors can be reached at (818) 883-8600.
Our offices located at:
21700 Oxnard Street, Suite 1870, Woodland Hills, CA 91367