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Rising Mortgage Rates Spook Housing

Wed, 19 Dec 2012 23:55:34 +0000

“Despite the Federal Reserve’s announcement last week that it would purchase an additional $45 billion in Treasury securities per month as part of its continuing quantitative easing effort, rates increased in the second half of the week,” said Mike Fratantoni, MBA’s Vice President of Research and Economics.

“As a result, refinance applications dropped sharply to the lowest level in over a month.”

Applications to buy a home also dropped 5 percent week-to-week, indicating a still weak and rate-sensitive purchase market. One third of buyers in today’s housing market use all-cash. Many in the housing industry complain that it is not the rates but the availability of potential borrowers to obtain financing that is holding the market back from a more robust recovery.

The chairman of the National Association of Home builders says that while his cohort is feeling more confident about their business, “overly stringent lending standards” are holding back a more robust recovery.

(Read More: Housing Starts Fall as Sandy Slows Northeast)

Mortgage rates have been below 4 percent since May of 2012 and refinance volume has surged accordingly. Those refinances, many of them under the government’s Home Affordable Refinance Program (HARP) for underwater borrowers, have helped to fuel consumer spending and have likely kept many borrowers from defaulting on their loans.

The big drop in refinances after such a small move up in rates indicates that the slightest move, up or down, can really change activity. The hope, of course, had been for rates to continue moving down.

“A lot of money has been spent between OT [Operation Twist] and QE3 for very little incremental reward,” notes Peter Boockvar of Miller Tabak. “The true cost, yet to be determined, will of course occur when the likely market forced exit begins.”

If mortgage rates rise markedly in 2013, the housing recovery will undoubtedly take a hit. The recovery in housing began with all-cash investors, but owner-occupants are quickly moving in.

“Fannie Mae, Freddie Mac and the FHA financed a record $31.2 billion in so-called conforming jumbo mortgages during the third quarter of 2012,” according to a new Inside Mortgage Finance ranking and analysis. “Business in conforming jumbo loans – defined as mortgages on one-unit properties that exceed $417,000 – rose 29.6 percent from the second quarter and represented the highest quarterly volume for the agencies since emergency loan limits went into effect back in 2008.”

Unfortunately many buyers are either too young or too forgetful to realize that mortgage rates are incredibly, historically low, despite slight moves up week-to-week. The good news is in the near term is that when some buyers see rates tick up, they jump into purchase more quickly, for fear the rates will keep going up.

Article source: http://www.cnbc.com/id/100327898

Affordable housing leader Carol Galante talks about the future of foreclosures

Mon, 22 Oct 2012 07:21:33 +0000

Carol Galante led affordable development firm Bridge Housing before President Barack Obama tapped her to serve in the U.S. Department of Housing and Urban Development.

Blanca Torres
Reporter- San Francisco Business Times

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Carol Galante, who made her mark on the Bay Area as a trailblazer for affordable housing, now applies her passion for housing policy on the federal level.

Galante served for years as executive director of Bridge Housing and had previously been executive director of Eden Housing before heading to Washington D.C. a few years ago.

President Barack Obama recruited Galante to serve in the U.S. Department of Housing and Urban Development, where she is assistant secretary, and also serves as acting Federal Housing Administration Commissioner.

The mortgage crises of 2008 and subsequent downturn shook the real estate industry giving public officials like Galante with plenty of issues to address.

She recently sat down with the San Francisco Business Times to talk about her role, the future of foreclosures, the role of FHA financing in the housing industry and what she misses most about the Bay Area.

San Francisco Business Times: You’re tracking housing all over the country, can you talk about how the Bay Area compares with the rest of the nation?

Carol Galante: It’s very, very micro market in terms of how different areas are doing. Even within California what we see are some incredible strengths and then neighborhoods that still have some significant challenges.

SFBT: Since you’ve taken on this role, what have been the greatest challenges you’ve had to deal with?

CG: The depth of the housing crisis. When I was thinking about leaving the Bay Area, at least temporarily, and going to Washington, we knew there were challenges, but they’ve been deeper, and more intractable than any of us would have expected. We saw the crisis kind of evolve over time.

Blanca Torres covers East Bay real estate for the San Francisco Business Times.

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Article source: http://www.bizjournals.com/sanfrancisco/blog/real-estate/2012/10/carol-galante-talks-hud-fha.html

Is Housing Risen From Ashes? ‘Industry Has Come Back’

Tue, 25 Sep 2012 23:52:46 +0000

Economists are saying it, and now even some Americans are saying it.

After falling to depths not seen since the Great Depression, the U.S. housing market may finally be rising from the ashes.

It may not seem like a lot, but 27 percent of Americans believe the value of their homes will increase in the next year, according the CNBC All America Economic Survey.

That is the highest percentage since 2007 and the third straight quarter that such optimism has gained. (Read More: CNBC Poll: Economy’s Worse, but Obama Favored to Fix It.)

“Overall the housing industry has come back,” said Standard and Poors’ David Blitzer, commenting on Tuesday’s release of the latest SP/Case-Shiller home price indices. “We might finally get a little boost to the economy from the housing sector.”

Home prices in the nation’s top twenty markets rose 1.2 percent in July from a year ago, according to SP/Case-Shiller. (Read More: US Home Prices Rose for Sixth Month in a Row: Case-Shiller.)

All of those markets saw month-to-month price gains, while just four saw annual declines. Atlanta continues to see the largest drop, down just under 10 percent year-over-year, but even its declines are easing.

In Phoenix, where distressed properties have made up the bulk of home sales, prices are up 16.6 percent from a year ago, due to big supply shortages of low-end homes.

Home prices are still down 30 percent from their peak in 2006, but just the prospect of a real bottom has some buyers finally getting off the fence. In addition, rising prices helped 1.3 million home owners to rise out of a negative equity position on their mortgages in the first half of this year, according to CoreLogic.

Nearly 11 million, or 22 percent of all borrowers, are still stuck in place, owing more on their mortgages than their homes are worth, and an additional 2.3 million have less than 5 percent equity in their homes, making a move up unlikely. (Read More: More Homes Are Above Water, But Some Sellers Still Suffer.)

The latest numbers, from existing home sales to earnings from the big public home builders, are fueling much-needed confidence in housing, but it would be naïve to declare that this industry is completely out of the woods.

Positives, like record-low mortgage rates and much-improved affordability are offset by still high negative equity, tight credit conditions and continued uncertainty about the overall state of the economy.

Just 10 percent of those polled in the CNBC survey say the economy is good or excellent, with 91 percent saying it is only fair or poor. Fifty-three percent say it is poor, with 25 percent saying it will get worse. These sentiments are little changed from the survey results in June.

Housing still faces some huge unknowns, including tough regulation on mortgage lending, the looming “fiscal cliff,” and more than 5 million loans that are either delinquent or in the foreclosure process.

Supplies of distressed homes are low, but much of that is due to delays in the foreclosure process which are just now beginning to lift. New mortgage delinquencies are falling slightly, but they are still far higher than historical norms. (Read More: ‘Underwater Mortgage’ Refis Get Fresh Push in Congress.)

There is also a possible new headwind that few have mentioned. That is the potential loss of the Bush 2007 Mortgage Relief Act benefit.

This act negates any tax liabilities against borrowers who do so-called “short sales.” This is when the bank allows the home to be sold for less than the value of the mortgage. The debt that is forgiven (that is the amount of the mortgage not covered by the sale price) would usually be taxed, but this act put a temporary stop to that in order to give borrowers relief and stimulate the short sale market.

This act expires at the end of this year, and Congress has yet to extend it.

“Private investors, Realtors and banks have begun to drive short sales hard, as foreclosures take too long and are too politically sensitive,” said housing analyst Mark Hanson. “The loss of the Bush 2007 Mortgage Relief Act benefit, which has been driving incremental short sale volume all summer — and is responsible for a large part of the year-over-year increase in sales volume — will drive sales volume into a “triple dip” in the winter/spring…Prices will get hit as well.”

It is of course possible that Congress will extend the act at the last minute, but this is just one example of many “ifs” still present in the market.

Mortgage rates may be low now, but some say they could move up next year, influenced by factors outside the Federal Reserve’s recent attempt to lower them (QE3). (Read More: How Does the Fed Help My House My Mortgage?)

Home prices appear to be improving, but a new flow of distressed properties could lessen those gains this fall. And again, so much still depends on jobs. SP’s David Blitzer may believe housing is back, but his colleague Robert Shiller said last week that he wasn’t convinced. Suffice it to say, the housing market has come a long way, but it still has a long way to go.

—By CNBC’s Diana Olick

Click on ticker to follow real estate news:

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Questions? Comments? And follow me on Twitter @Diana_Olick

Article source: http://www.cnbc.com/id/49163485?__source=RSS*blog*&par=RSS

Foster City Exec to Chair Prestigious Real Estate Board

Sun, 29 Apr 2012 01:28:22 +0000

A Foster City real estate executive will head the arm of a powerful lobbying group that represents one of the nation’s most important industries.

The National Association of Home Builders announced on Wednesday that Foster City-based Legacy Partners President W. Dean Henry will chair its Multifamily Leadership Board.

The MLB represents the nation’s leading multifamily developers, owners and managers.

Henry, a player on the Bay Area real estate scene since the early 1970s, said in a prepared statement that he’s proud to lead the prestigious board.

“The multifamily industry is likely to face significant challenges in the next few years, and NAHB has been the leading voice before Congress and the administration on important issues like tax reform and the future of Fannie Mae and Freddie Mac,” Henry said.

Henry is a member of the Policy Advisory Board of the Center for Real Estate at the University of California at Berkeley. He is the former chairman of the board of the YMCA of San Francisco.

Henry has been president of Legacy Partners since its 1998. He’s been an active member of the Bay Area real estate business since becoming a member of Western Region of Lincoln Property Company in 1973.

“The apartment and condo sector is an important part of NAHB’s membership and plays a vital role to the housing industry,” NAHB chairman Barry Rutenberg said in a prepared statement.

“We look forward to working with Dean in his new role as chairman on a number of critical, common issues that are important to the Multifamily Leadership Board.”

Article source: http://fostercity.patch.com/articles/foster-city-exec-to-head-arm-of-powerful-lobbying-group

Paragon Real Estate Group of San Francisco Ranked as Top Real Estate Agency by …

Fri, 27 Apr 2012 13:23:39 +0000

Paragon Real Estate Group has been ranked as the Top Real Estate Agency by RealTrends

After less than eight years in business, Paragon is at the top of the national ranking and number one in the Bay Area (of the largest brokerages) in producing successful results for our clients.

San Francisco, CA (PRWEB) April 27, 2012

Paragon Real Estate Group of San Francisco is thrilled to have been named as one of the top real estate agencies in two categories by RealTrends. Considered to be the leading source of analysis and information on the residential brokerage and housing industry, RealTrends recently released its 500 ranking report for the 500 largest residential real estate brokerages in the U.S. Based on 2011 sales, RealTrends has ranked Paragon Real Estate Group of San Francisco as number three in sales volume per real estate agent and number four in average sales price.

“After less than eight years in business, Paragon is at the top of the national ranking and number one in the Bay Area (of the largest brokerages) in producing successful results for our clients,” Randy Zinn of Paragon Real Estate Group said. “In that same period, Paragon has established a strong presence in high-end luxury home sales in San Francisco.”

Paragon’s San Francisco real estate agents averaged more than $7 million in sales volume in 2011, with an average sales price of more than $1 million a year. Its success in business in such a short time attracts first-time homebuyers and those looking for real estate investments, both of whom trust Paragon to help them choose the perfect place.

Founded in 2004 by five of the most experienced and successful real estate managers in San Francisco, Paragon is already one of the top three residential brokerages in the city by sales volume. In addition to the recent recognitions by RealTrends, the SF Business Times once again named Paragon as number one in sales per agent of the top 10 brokerages in the Bay Area, and Broker Metrics has designated Paragon as having the largest number of agents in the top 10 percent of all San Francisco agents by dollar volume sales.

For more information about Paragon Real Estate Group, call 415-738-7070, view the real estate agents on the web at http://www.paragon-re.com or visit 1160 Battery St. in San Francisco.

About Paragon Real Estate Group

Paragon Real Estate Group is the only locally-owned and -managed brokerage in San Francisco that conducts business across the entire city in all market segments–first-time homebuyers, residential and luxury homes, real estate investment and commercial property, leasing and new home development. With about 125 agents and a management, marketing and support team of more than 20, Paragon brokered almost a billion dollars in real estate in 2011.

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Article source: http://www.prweb.com/releases/real-estate-agent/san-francisco/prweb9439827.htm

VLP Expands Real Estate Practice with Addition of San Francisco Partners

Sat, 03 Mar 2012 14:55:57 +0000

PALO ALTO, Calif., March 1, 2012 (SEND2PRESS NEWSWIRE) — VLP Law Group LLP is very pleased to announce that Stephen Wright and Patrick Valentino have joined its Real Estate practice as partners based in San Francisco. Mr. Wright joins VLP from Pillsbury Winthrop Shaw Pittman LLP based in San Francisco. Mr. Valentino was previously a partner of the San Francisco office of Corporate Counsel Group LLP. The partners bring considerable real estate and project finance transactional experience to VLP.

“I am excited to have Stephen and Patrick join VLP’s Real Estate group. Stephen is well known in the San Francisco real estate industry having completed numerous acquisitions of Class A office buildings and complex capital markets transactions for some of the country’s largest real estate investors. Stephen also has robust experience in the affordable housing industry that will expand that specialty practice group. Patrick brings to VLP comprehensive real estate experience including deep expertise representing clients on distressed debt acquisitions and complicated financing workouts. His background in investment banking gives him a better understanding of capital markets, something important to our clients. The addition of Stephen and Patrick makes VLP formidable in the Bay Area real estate market ensuring that we provide our clients with representation that is second to none,” said Byron Rodriguez, chair of VLP’s Real Estate practice group.

Mr. Wright’s practice includes all aspects of real estate transactional law, including development, acquisition, joint ventures, commercial financing, leasing, dispositions, entity structuring, partnership and limited liability company agreements and construction involving office, industrial, retail, multi-family residential, high-end residential and mixed use properties. His clients include prominent real estate investment firms, public agencies and financial institutions. In addition, Mr. Wright has extensive experience representing affordable housing developers in all aspects of affordable housing transactions. Mr. Wright was recognized by the 2010 US edition of Legal 500 for his real estate practice. He received his law degree from Harvard Law School and graduated Phi Beta Kappa from Lewis Clark College.

“With its impressive tax and real estate practices, VLP provides an excellent platform to represent our clients in all aspects of their business transactions. I am looking forward to working with the VLP team as we expand our real estate practice,” stated Mr. Wright.

Mr. Valentino has almost 20 years of comprehensive commercial real estate advisory experience, including extensive experience in debt acquisitions, commercial real estate workouts, real estate secured lending, leasing and joint venture partnerships. Mr. Valentino’s prior experience includes Procopio, Cory, Hargreaves Savitch, a leading San Diego real estate law firm, and he served as general counsel of a California based real estate investment firm active in the acquisition of distressed assets. He also previously served as a senior professional with several investment banks focusing on public finance, mergers and acquisitions and venture financings, and began his career in New York with Merrill Lynch Capital Market’s Public Finance Investment Banking Group. Mr. Valentino received his law degree from Northwestern University School of Law and graduated magna cum laude from the State University of New York, at Albany.

“For complex real estate transactions my clients need a top tier legal team to help them execute their business strategy. My new partners at VLP bring that expertise to the table without the big firm billing structure,” stated Mr. Valentino.

About VLP’s Real Estate Practice:
VLP’s Real Estate practice group represents real estate owners, developers and investors in a broad array of transactions, including acquisitions and dispositions of assets, commercial and tax credit financings, distressed assets, joint ventures, loan workouts and recovery, leasing, tax, development and construction. We offer our clients depth of experience with a variety of property types including office, affordable and community housing, hotel, multi-family, retail, industrial and condominiums.

Our real estate expertise provides clients with unrivaled client service and lower rates. With extensive experience in all aspects of real estate, we are able to help clients develop strategies that suit their business objectives and risk tolerance.

More information: http://www.vlplawgroup.com/PracticeDetail.aspx?pg_code=BPREAL .

About VLP:
Founded in 2008, VLP is a business and transactional law firm that delivers top quality, efficient and cost-effective legal services. Our practice reaches across many industry sectors, including high tech, life sciences, angel and venture capital financings, clean tech, retail, consumer product, commercial lending and real estate. VLP has continued its strong growth, and in recent months has added noted attorneys from firms on the West and East coasts who believe VLP’s unique, client-oriented and cost-effective model is the best platform for their practice. Our partners are regularly recognized by their peers as outstanding attorneys, and the firm has been recognized as a top company for its promotion of quality of life in the workplace.

VLP partners represent clients that vary in size from individual executives and early-stage startups to Fortune 500 companies. Our client base includes public and private corporations, venture capital investors, private equity funds, educational institutions, nonprofits and individuals. We provide general corporate, licensing, contract, intellectual property protection and counseling, securities regulation, financing, employment, merger and acquisition, real estate, tax and other legal services.

VLP is a geographically distributed firm of highly qualified attorneys with outstanding credentials and an average of over 10 years of experience. We have no central office, and our technology platform allows us to collaborate easily and to operate with a small, highly specialized staff. Our lean model means that we can provide sophisticated, focused services to our clients, and we can do it at competitive rates.

For more information about VLP, visit http://www.vlplawgroup.com .

News Source: VLP Law Group LLP :: This press release was issued on behalf of the news source by Send2Press® Newswire, a service of Neotrope®. View all current news at: http://Send2PressNewswire.com .

Article source: http://massachusettsnewswire.com/2012/03/01/MNW4963_165903.php

James Wavro Wins 2010 San Francisco Apartment Association’s Top Trophy Award

Sat, 07 May 2011 14:41:06 +0000

Mill Valley, CA (Vocus/PRWEB) May 06, 2011

James Wavro, of J.Wavro Associates, was recently awarded the prestigious President’s Award for 2010 by the San Francisco Apartment Association (SFAA) at their Trophy Award Ceremony. Established in 1917, the SFAA is a non-profit organization that represents rental property owners, and provides services like political representation, an online magazine, educational resources, and news. The Trophy Awards honor firms and employees that are leaders within the rental housing industry. The President’s Award is reserved for an individual whose contributions to the rental property industry are truly above and beyond expectations.

“James Wavro is probably the hardest working, diligent, and conscientious professional I have ever had the pleasure to work with in the housing industry,” said Dave Wasserman, Ex Officio President of the SFAA. “As such, my decision to bestow the SFAA President’s Award onto him was made with utmost ease.”

The 4th Annual Trophy Awards Ceremony was held at the stately Palace Hotel in San Francisco. Over 300 rental property industry professionals donned their finest formal attire and gathered together for the cocktail hour, sit-down dinner and awards presentation ceremony.

The Trophy Awards honor the leading firms, employees and properties in the rental housing industry. For most awards, prospective honorees are nominated by colleagues or SFAA members, and sent a questionnaire packet. Their full and honest answers, and accompanying documents, are reviewed by a panel of judges who then choose the nominees and winners.

The recipient of the President’s Award, however, has no nomination process or panel of judges; this special award is decided only by the president of the SFAA and is given to select individuals for lifetime achievement of excellence in the field.

In addition to the President’s Award, San Francisco property management and leasing firm J.Wavro Associates was honored when Joanne Fazzino of J.Wavro Associates won Leasing Agent of the Year 2010.

J.Wavro Associates employs more than 20 licensed real estate professionals who specialize in rental property leasing and executive relocation service in the San Francisco Bay Area. Their leasing services help property owners enjoy the profit from their rental investments without any of the hassle. Their relocation specialists save renters time and money by quickly finding the right apartment to fit their needs.

For more information about J.Wavro Associates, call them at (415) 675-8804 or visit them on the web at www.jwavro-sf.com.

About J.Wavro Associates

J.Wavro Associates is a group of licensed real estate professionals specializing in rental property leasing and executive relocation in the San Francisco Bay Area. They specialize in helping to lease rental properties, and have an extensive corporate and private network that allows them to consistently attract suitable tenants. Their Bay Area executive relocation specialists offer rental assistance to people looking to move to the Bay Area or locals looking for a new home. The real estate professionals of J.Wavro Associates can provide a wealth of knowledge on a particular neighborhood or neighborhoods of interest to clients. They will also identify specific properties that fit the client’s exact needs and budget. As part of their executive relocation service, J.Wavro Associates will arrange appointments, provide property tours and assist in lease negotiations.

J.Wavro Associates serves the City of San Francisco and other Bay Area locations including the South Bay and Marin.

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For the original version on PRWeb visit: www.prweb.com/releases/prwebrental-properties/san-francisco/prweb8390075.htm

Article source: http://www.sfgate.com/cgi-bin/article.cgi?f=/g/a/2011/05/06/prweb8390075.DTL