The Residential Sector Spotlight Session at this year’s NAREIT convention subtitle could have been “busting assumptions and myths.” During the hour-long session on Nov. 16, heads of multifamily REITs provided an entertaining and sometimes humorous discussion about trends, predictions and why the multifamily sector was doing so well despite lousy job growth.
Two economists and a journalist talk about the economy in front of 250 eco-devo and chamber of commerce types.
The economists get up and give extremely sobering assessments for the national and local economies next year. They risk of recession next year, one says, is still “unacceptably high.” Then there’s danger from European debt contagion, shaky consumer spending, housing prices still headed south and a range of government spending cutbacks from the federal, state and local governments looming that is sure to blunt what little recovery we’ve had this year.
Mortgage delinquencies dropped to the lowest level since 2008 in the third quarter while the amount of loans entering foreclosure increased, according to the Mortgage Bankers Association.
The seasonally adjusted delinquency rate fell to 7.99% in the third quarter from 8.45% in the previous period. Last year, the rate was at 9.43%.
Initial jobless claims fell again last week, to the lowest level in seven months.
The Labor Department said the seasonally adjusted figure of actual initial claims for the week ended Nov. 12 decreased by 5,000 to 388,000 from 393,000 the previous week, which was revised upward 3,000.
Most economists believe weekly jobless claims lower than 400,000 indicate the economy is expanding and jobs growth is strengthening. Initial claims have now been lower than this threshold for a month.
Combined, Fannie Mae and Freddie Mac still hold more than 180,000 homes repossessed through foreclosure, known as REO, despite reductions in the third quarter.
Fannie Mae sold more than 58,000 REO in the third quarter, roughly 13,000 more properties than it acquired, according to its financial filing released Tuesday. It’s the lowest total of sales so far this year, 18% below the previous period’s total.
Fannie disclosed that it sold the REO at an average price roughly 56% of the unpaid principal balance of the once underlying mortgage.
Businesses in America’s 100 biggest markets have reduced their workforces by 4.5 million employees since the onset of the recession in 2007 according to an On Numbers analysis of data from the U.S. Bureau of Labor Statistics.
The Los Angeles area suffered the biggest decline, with 447,800 private-sector jobs vanishing during the four-year period. That works out to a loss of 306 jobs per day.
Vancouver, BC – November 8, 2011. The British Columbia Real Estate Association (BCREA) released its 2011 Fourth Quarter Housing Forecast today. BC Multiple Listing Service (MLSR) residential sales are forecast to rise 3.2 per cent from 74,640 units in 2010 to 77,000 units this year, increasing a further 3.9 per cent to 80,000 units in 2012.
“Low mortgage interest rates are expected to persist through 2012 keeping affordability on an even keel,” said Cameron Muir, BCREA Chief Economist. “However, headwinds on the economic front will constrain consumer demand over the next year to below the ten-year average of 87,600 units.” A record 106,300 MLSR residential sales were recorded in 2005.
“Moderate consumer demand combined with larger inventories of homes for sale means BC housing markets will experience little upward pressure on home prices through 2012,” added Muir. The average MLSR residential price in the province is estimated to rise 11.8 per cent to $564,600 this year, and is forecast to decline 2.5 per cent to $550,500 in 2012.