“One cautionary note is that the 90 day delinquency rate increased by 8 basis points, reversing a fairly steady pattern of decline and the largest increase in this rate in three years,” notes the MBA’s chief economist Jay Brinkmann.

(Read More: Why Sequestration Will Hit Housing on Several Fronts)

These so-called “seriously delinquent” loans are being processed more quickly now that new foreclosure rules are in place and will therefore be sold back to banks or investors in the next few months. Those sales would therefore be shown as loans coming out from underwater because they would cease to exist.

Another important factor in looking at negative equity, as with everything else in real estate, is location:

“Among the nation’s 30 largest metro areas, those with the highest number of homeowners freed from negative equity last year were Phoenix (135,099 homeowners freed in 2012); Los Angeles (72,936 homeowners freed in 2012); Miami-Fort Lauderdale (70,484 homeowners freed in 2012); Dallas-Fort Worth (59,461 homeowners freed in 2012); and Riverside, Calif. (58,417 homeowners freed in 2012),” notes the Zillow report.

(Read More: Taking The Real Estate Recovery Local)

The highest volume of underwater borrowers were in the most distressed states, where the foreclosure rates are high and where investors are pursuing short sales fervently. It is therefore incorrect to make the assumption that all of the “newly freed” borrowers are either still in their homes with newfound equity or sold at any kind of profit. Of course this also means that negative equity may cure faster than anticipated, since it is so highly concentrated in certain hot investor markets.

The return of home equity is good news for the greater economy, as it makes borrowers feel better about their own personal wealth and therefore more apt to spend. It could also prompt more borrowers to sell their homes. Unfortunately that will not do much to ease the severe inventory shortage of homes for sale, as most sellers will be buyers as well. There are currently just 1.74 million homes for sale, the lowest since December of 1999.

(Read More: Fewer Borrowers Are Behind on Mortgages, but for How Long?)

Article source: http://www.cnbc.com/id/100480500

SAN FRANCISCO, Aug 08, 2011 (BUSINESS WIRE) –
Terreno Realty Corporation


/quotes/zigman/580648/quotes/nls/trno TRNO
+0.06%



announced today that
during the quarter ended June 30, 2011 it acquired five industrial
properties consisting of five buildings containing approximately 400,000
square feet for an aggregate consideration of approximately $55.9
million, including the assumption of one mortgage loan of approximately
$14.8 million with a fixed annual interest rate of 5.5%. The following
table summarizes the acquisitions for the quarter:

                                       Number of               Purchase Price
         Property Name    Location     Buildings  Square Feet  (in thousands)
        -------------  -------------  ---------  -----------  ----------------
        Belleville     Kearny, NJ          1         211,418        $  32,600
        Glasgow        Inglewood, CA       1          27,505            4,100
        Bollman        Savage, MD          1          98,745            7,500
        Dell           Carlstadt, NJ       1          27,410            7,725
        70th Avenue    Miami, FL           1          35,000            4,000
                                      ---------  -----------          -------
           Total                           5         400,078        $  55,925
                                      =========  ===========  ======= =======

As of June 30, 2011 Terreno Realty Corporation owned a total of 39
buildings aggregating approximately 2.9 million square feet, which were
approximately 71.6% leased.

Further, on July 20, 2011, Terreno Realty Corporation acquired one
industrial property in Torrance, California containing approximately
73,000 square feet for a purchase price of approximately $12.4 million,
including the assumption of one mortgage loan of approximately $6.8
million with a fixed annual interest rate of 5.5%. In addition, the
following table summarizes properties that Terreno Realty Corporation
has under contract as of August 8, 2011. There can be no assurance that
the Company will purchase such properties which are subject to customary
closing conditions:

                                       Number of               Purchase Price
                   Market              Buildings  Square Feet  (in thousands)
        ----------------------------  ---------  -----------  ----------------
        Miami                                 1       40,000        $   4,400
        Northern New Jersey/New York          1      150,500           10,350
                                      ---------  -----------          -------
           Total                              2      190,500        $  14,750
                                      =========  ===========  ======= =======

Additional information, including the Company’s quarterly report on Form
10-Q for the period ended June 30, 2011, is available on the company’s
website at
www.terreno.com .

Terreno Realty Corporation is an acquirer, owner and operator of
industrial real estate located in six major coastal U.S. markets: Los
Angeles; Northern New Jersey/New York City; San Francisco Bay Area;
Seattle; Miami; and Washington, D.C./Baltimore.

Forward-Looking Statements

This press release contains forward-looking statements within the
meaning of the federal securities laws. We caution investors that
forward-looking statements are based on management’s beliefs and on
assumptions made by, and information currently available to, management.
When used, the words “anticipate”, “believe”, “estimate”, “expect”,
“intend”, “may”, “might”, “plan”, “project”, “result”, “should”, “will”,
and similar expressions which do not relate solely to historical matters
are intended to identify forward-looking statements. These statements
are subject to risks, uncertainties, and assumptions and are not
guarantees of future performance, which may be affected by known and
unknown risks, trends, uncertainties, and factors that are beyond our
control, including risks related to our ability to meet our estimated
forecasts related to stabilized cap rates and those risk factors
contained in our Annual Report on Form 10-K for the year ended December
31, 2010 and our other public filings. Should one or more of these risks
or uncertainties materialize, or should underlying assumptions prove
incorrect, actual results may vary materially from those anticipated,
estimated, or projected. We expressly disclaim any responsibility to
update our forward-looking statements, whether as a result of new
information, future events, or otherwise.

SOURCE: Terreno Realty Corporation

        Terreno Realty Corporation
        W. Blake Baird, 415-655-4580
        Michael A. Coke, 415-655-4580

Copyright Business Wire 2011

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Article source: http://www.marketwatch.com/story/terreno-realty-corporation-announces-quarterly-investment-activity-2011-08-08?reflink=MW_news_stmp