Star News

Sales of existing homes in the United States plunged more than anticipated in December, an obvious sign that the housing sales market was dependent upon a government tax credit set to expire on November 30th; thereby causing a drop of 17% in December sales figures. The decline was the largest since the recording of such data began back in 1968.

First-time buyers rushed to take advantage of the incentive, finalizing their respective home purchases before the $8,000 government credit was due to end, pushing sales up 28% in the three months ending on November 30th. The subsequent extension and expansion of the credit to include closings through June 2010 signals that demand will strengthen in the first half of this year, while also raising concern that the market will slow again should jobs remain scarce.

Economists had forecast that existing home sales would fall to a rate of 5.9 million in December, from 6.54 million the prior month; according to the median of projections in 61 major US Metropolitan Markets. In 2009 existing home sales rose 4.9 percent to 5.16 million, the first gain in four years; from 4.91 million in 2008. The $173,500 median price of a home was down 12 percent from 2008, the biggest annual drop on record and likely the largest overall decrease since the Great Depression. We will keep you posted…

Hot Money
Lender Seeking Nationwide Loans

Penstar recently identified a capital provider actively closing permanent refinance and acquisition loans on stabilized office, industrial, and mini-storage properties throughout the United States. Loan amounts range from $1,000,000 to $3,000,000. Transactions are priced at 7.0% for a term of 5 years; 7.125% for a 7-year term; and 7.25% for 10 years. All loans carry a 25-year amortization. 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

“Mother In Law”

Standing at the edge of a lake, a man saw a woman flailing about in deep water. Unable to swim, the man screamed for help. A nearby fisherman approached the man, who was screaming, “My wife is drowning and I cannot swim!” “Please save her; I will give you a hundred dollars!”

At once, the fisherman dove into the water. In ten powerful strokes, he reached the woman, put his arm around her, and the two swam safely back to shore. Placing her at the feet of the man, the fisherman said, “I'm glad I was able to help. You did promise me one hundred dollars.”

The husband replied, “Look, when I saw her going down for the third time, I thought it was my wife, but I was mistaken. This woman is my mother-in-law.”

The fisherman reached into his pocket and said, “Just my luck. How much do I owe you?”