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Anticipation high as California rolls out retail pot sales

Anticipation high as California rolls out retail pot
sales

Californians may awake on New Year’s Day to a
stronger-than-normal whiff of marijuana as America’s
cannabis king lights up to celebrate the state’s first
legal retail pot sales. The historic day comes more
than two decades after California paved the way for
legal weed by passing the nation’s first medical
marijuana law, though other states were quicker to
allow the drug’s recreational use. From the small town
of Shasta Lake just south of Oregon to San Diego on the
Mexican border, the first of about 90 shops licensed by
the state will open Monday to customers who previously
needed a medical reason or a dope dealer to score pot.
In November 2016, California voters legalized
recreational marijuana for adults 21 and older, making
it legal to grow six plants and possess an ounce of
pot. The state was given a year to set retail market
regulations that are still being formalized and will be
phased in over the next year. “We’re thrilled,” said
Khalil Moutawakkil, founder of KindPeoples, which
grows, manufactures and sells weed in Santa Cruz. “We
can talk about the good, the bad and the ugly of the
specific regulations, but at the end of the day it’s a
giant step forward, and we’ll have to work out the
kinks as we go.” The long, strange trip to get here has
been a frustrating one for advocates of a drug that in
the federal government’s eyes remains illegal and in a
class with heroin.

The state banned “loco-weed” in 1913, according to a
history by the National Organization for the Reform of
Marijuana Laws, the pot advocacy group known as NORML.
The first attempt to undo that by voter initiative in
1972 failed, but three years later felony possession of
less than an ounce was downgraded to a misdemeanor. In
1996, over objections of law enforcement, the drug czar
under President Bill Clinton and three former
presidents who warned it was an enormous threat to the
public health of “all Americans,” California voters
approved marijuana for medicinal purposes. While the
rollout of grassroots collectives of growers and
dispensaries where marijuana could be sold to patients
was at times messy, the law led to wider acceptance of
the drug as medicine. “The heavens didn’t fall,” said
Dale Gieringer, director of California NORML. “We
didn’t see increased youth drug abuse or increased
accidents or crazy things happening as our opponents
predicted.” Today, 28 other states have adopted similar
laws. In 2012, Colorado and Washington became the first
states to legalize recreational marijuana. California
is one of five states, plus Washington, D.C., that
followed suit. Retail sales are scheduled to begin in
Massachusetts in July.

Fannie and Freddie regain capital reserves; withhold
billions from Treasury

Fannie Mae and Freddie Mac have capital reserves again.
As expected, the government-sponsored enterprises on
Friday made their quarterly dividend payments to the
Department of the Treasury. But, thanks to the new
agreement between the Federal Housing Finance Agency
and the Treasury, each of the GSEs withheld billions
from the Treasury to ensure that each has enough
capital on hand to “cover other fluctuations in income
in the normal course of each Enterprise’s
business.”Under the previous version of the Preferred
Stock Purchase Agreements that went into effect when
the government took the GSEs into conservatorship,
Fannie and Freddie send dividends to the Treasury each
quarter that they are profitable. The PSPAs also
stipulated that the GSEs were prohibited from
rebuilding capital and each of the GSEs’ capital base
was required to be reduced, with their capital reserves
scheduled to be drawn down to $0 in 2018. But that all
changed earlier this month when the FHFA announced a
new agreement with the Treasury that allows the GSEs to
hold a $3 billion capital reserve. Collectively, the
GSEs made dividend payments this week to the Treasury
of $2.897 billion. Of that, $2.249 billion came from
Freddie Mac and $648 million came from Fannie Mae.

But those amounts are far less than the amount of
profit that each GSE made in the third quarter. Freddie
Mac’s profit was $4.7 billion, while Fannie Mae’s
checked in at $3 billion, but unlike previous quarters,
the GSEs did not send all of their profits to the
Treasury. Based on some rough calculations, Freddie
withheld $2.451 billion from the Treasury, while Fannie
withheld $2.352 billion. As the chart from the FHFA
states: “As set forth in the Letter Agreement dated
December 21, 2017, amending the Certificate of
Designation of Terms of Variable Liquidation Preference
Senior Preferred Stock, Series 2008-2, the dividend
amount is the Net Worth Amount for the dividend period
minus the Applicable Capital Reserve Amount. Beginning
in 2018, the Capital Reserve Amount is set at $3
billion under most circumstances.” With the $2.897
billion sent to the Treasury for the third quarter,
Fannie and Freddie have now paid approximately $278.783
billion to the Treasury in dividend payments since the
fourth quarter of 2008.

US steelmakers raise their bets

Steelmakers are betting on the US again, building mills
they hope will help them compete against cheap imports
as demand rises. Steel companies have complained for
years that steel from China, South Korea, Vietnam,
Turkey and elsewhere is being sold in the US for less
than the cost to make it. While imports are still
increasing, steel prices are also on the rise globally.
And demand for US steel is starting to rebound, thanks
to rising oil prices and a strengthening manufacturing
sector, steel executives say. Still, others see
expansion as a risky bet. Some steel companies say they
can capture more customers with new plants that can
make more steel at less cost than older plants, and can
deliver it faster to customers. They’re also counting
on additional US tariffs to drive out cheap,
foreign-made steel, creating more opportunities for
domestic producers. S tiff tariffs imposed over the past
18 months have significantly slowed steel imports from
China, according to Commerce Department reports. Nucor
Corp. is building a $250 million steel mill in Sedalia,
Mo. Startup Big River Steel LLC in Osceola, Ark.,
accelerated production early this year at one of the
largest new steel sheet mills built in the US in years.
And Tenaris SA started making pipe for oil and gas
wells at a new $1.8 billion mill near Houston this
month.

California’s record poverty and real-estate bubble are
creating a “wheel-estate” boom of people with good jobs
living in their cars

Extreme housing prices in California — driven by a
combination of speculation, favorable legal/tax
positions for landlords, foreclosures after the 2008
crisis, and an unwillingness to build public housing —
has created vast homeless encampments, but there’s a
less visible side to the crisis: working people in
“good jobs” who have to live in their cars. There’s a
whole subreddit devoted to these folks, a mix of maker
culture (modding cars to make them more comfortable as
homes), hobo chalk-marks (where can you park, and for
how long?), and generalized anxiety. It’s not just
single middle-class people, either — they’re roaming
America’s streets in company with a vast nomad army of
homeless seniors who drive from town to town looking
for seasonal work to repla ce their busted pensions.
What’s striking in California is that many communities
already accept people living in vehicles, despite there
often being rules or laws against it. This fall, the
city of San Diego expanded its Safe Parking Program,
which designates lots that can be used by those living
out of their cars, and many other cities have similar
programs. Under a law passed last year, Los Angeles
also allows overnight parking in some commercial
districts. In Mountain View, the mayor brags about the
services his city provides to those living in more than
330 cars, trucks and RVs. So long as vehicle dwellers
aren’t in residential areas, the NIMBY attitudes that
have helped spur California’s housing shortage seem to
be relatively in check. And given the many huge parking
lots that are empty overnight, capacity is not going to
be a problem if living in vehicles becomes a Califor nia
phenomenon — at least if owners of those lots have a
compassionate streak or can monetize this use of their
property. Given the centrality of Golden State’s car
culture to its image and history — reflected in movies
like “American Graffiti” and in the once-huge
popularity of drive-in restaurants and movie theaters —
a redefinition of the car in California as not being
about independence and adventurousness but about
shelter would be a twist that not many state residents
would have seen coming 25 years ago.

Foreclosure rate in Minnesota lowest in a decade

The foreclosure rate in Minnesota is now at the lowest
level in more than a decade, and far below the national
average.At the end of September, just 0.2% of all
Minnesota homeowners with a mortgage lost their homes
to foreclosure, according to CoreLogic, which tracks
mortgage delinquencies at several intervals. That rate
was down from 0.3% last year and was only about a third
of the national average. At the same time, far fewer
homeowners are having trouble staying current on their
mortgage payments. In Minnesota, 2.9% of all homeowners
were 30 or more days late on their payment compared
with 3.1% last year. “We’re encouraged to see another
year of flat or declining delinquency rates for
homeowners across Minnesota,” said Julie Gugin,
director of the Minnesota Homeownership Center. “It
shows people are in the right homes f or their families
and their wallets.” During the height of the
foreclosure crisis, the organization’s counselors were
overwhelmed by demand from homeowners who needed help
avoiding foreclosure, Gugin said. Today, the need has
shifted to providing unbiased information and hands-on
financial coaching for low-income families that want to
buy a home. “They want to make choices based on solid
and factual information,” Gugin said. “Rent prices are
on the rise and homeownership is a valuable
asset-building alternate for some families.”

Gugin said that while declining foreclosures are
clearly a positive sign, underlying problems linger.
Namely, the recession and subsequent economic recovery
only broadened the homeownership gap in Minnesota.
There are more low-income families than before that are
unable to own a home. “Our goal is to ensure that
homeownership’s benefits are fairly available and
sustainable to everyone, no matter their race or where
they live,” she said. “Next year — and even 10 years
from now — we want the delinquency rate to stay low,
and with a closed homeownership gap. Individuals and
families, communities and our state would be better off
as a result.” Foreclosure rates across the country are
also falling. Nationwide, the foreclosure rate fell
slightly from 0.8% to 0.6%, and the 30-day plus
delinquency rate fell from 5.2% last year to 5.0% in
September. There was a slight increase, however, in the
number of homeowners who were 30 to 59 days late on
their payments, mostly because of hurricane-related
troubles in Texas, Florida and Puerto Rico.

Categories
Real Estate News

NAR – home prices jump 6.2% in second quarter; eclipse 2016 high

NAR – home prices jump 6.2% in second quarter; eclipse
2016 high

The headstrong supply and demand imbalances in much of
the country slightly tempered the pace of sales and
caused home prices to maintain their robust growth in
the second quarter, according to the latest quarterly
report by the National Association of Realtors (NAR).
The national median existing single-family home price
in the second quarter was $255,600, which is up 6.2%
from the second quarter of 2016 ($240,700) and
surpasses the third quarter of last year ($241,300) as
the new peak quarterly median sales price. The median
price during the first quarter increased 6.9% from the
first quarter of 2016. Single-family home prices last
quarter increased in 87% of measured markets, with 154
out of 178 metropolitan statistical areas (MSAs)
showing sales price gains in the second quarter
compared with the second quarter of 2016. Twenty-three
areas (13%) recorded lower median prices from a year
earlier. Twenty-three metro areas in the second quarter
(13%) experienced double-digit increases, down from 30
areas in the first quarter (17%). Overall, there were
slightly more rising markets in the second quarter
compared to the first quarter, when price gains were
recorded in 85% of metro areas. Total existing-home
sales, including single family and condos, slipped 0.9%
to a seasonally adjusted annual rate of 5.57 million in
the second quarter from 5.62 million in the first
quarter, but are still 1.6% higher than the 5.48
million pace during the second quarter of 2016. At the
end of the second quarter, there were 1.96 million
existing homes available for sale4, which was 7.1%
below the 2.11 million homes for sale at the end of the
second quarter in 2016. The average supply during the
second quarter was 4.2 months — do wn from 4.6 months in
the second quarter of last year.

Last quarter, a rise in the national family median
income ($71,529)5 was not enough to offset weaker
affordability from the combination of higher mortgage
rates compared to a year ago and rising home prices. To
purchase a single-family home at the national median
price, a buyer making a 5% down payment would need an
income of $56,169, a 10% down payment would require an
income of $53,213, and $47,300 would be needed for a
20% down payment. The five most expensive housing
markets in the second quarter were the San Jose,
California, metro area, where the median existing
single-family price was $1,183,400; San Francisco,
$950,000; Anaheim-Santa Ana, California, $788,000;
urban Honolulu, $760,600; and San Diego, $605,000. The
five lowest-cost metro areas in the second quarter were
Youngstown-Warren-Boardman, Ohio, $87,000; Cumberland,
Maryland, $98,200; Decatur, Illinois, $107,400;
Binghamton, New York, $109,000; and Elmira, New York,
$111,600. Metro area condominium and cooperative prices
— covering changes in 61 metro areas — showed the
national median existing-condo price was $239,500 in
the second quarter, up 5.4% from the second quarter of
2016 ($227,200). Eighty-seven% of metro areas showed
gains in their median condo price from a year ago.

Total existing-home sales in the Northeast rose 1.3% in
the second quarter and are 0.4% above the second
quarter of 2016. The median existing single-family home
price in the Northeast was $282,300 in the second
quarter, up 3.2% from a year ago. In the Midwest,
existing-home sales increased 4.2% in the second
quarter but are 0.5% below a year ago. The median
existing single-family home price in the Midwest
increased 6.6% to $204,000 in the second quarter from
the same quarter a year ago.Existing-home sales in the
South dipped 3.0% in the second quarter but are 2.5%
higher than the second quarter of 2016. The median
existing single-family home price in the South was
$229,400 in the second quarter, 6.7% above a year
earlier. In the West, existing-home sales decreased
3.7% in the second quarter but are 3.1% above a year
ago. The median existing single-family home price in
the West increased 7. 5% to $372,400 in the second
quarter from the second quarter of 2016.

Chinese takeovers of US companies plummet this year
amid tough Trump talk
– As of early August, Chinese dealmaking in the US has
dropped by 65% this year, according to Dealogic.
– The sharp decline comes amid greater uncertainty
around whether the Trump administration will allow the
deal to be completed.
– The Dealogic report estimated a further drop in
Chinese deals in the US, putting $75 million in advisor
fees at risk.
As the Trump administration looks to take a tougher
stance against Beijing, Chinese investments into the US
have more than halved this year, according to Dealogic.
“Amid growing regulatory scrutiny of China outbound M&A
targeting the US, volume has seen a 65% year-on-year
decline in 2017 year-to-date,” Nicholas Farfan and Karl
But of Dealogic Research said in an Aug. 8 note. “In
comparison, such deals peaked at $65.2 billion last
year, with high-profile deals inc luding HNA’s
acquisition of 25% of Hilton Worldwide.” “With
tightening restrictions, Chinese buyers may look to
stop pursuing or shelve potential acquisitions in the
US,” the note said. The pressure and uncertainty is
coming from both countries. On Beijing’s side,
authorities are reportedly targeting some of the
largest Chinese dealmakers to try to keep capital from
fleeing the country and contributing to yuan weakness.
On the American side, reports indicate the Committee on
Foreign Investment in the United States is looking to
use national security concerns to prevent more Chinese
purchases of US firms, especially in technology.
Anecdotally, Gregory Husisian, chair, export controls
and national security group at law firm Foley &
Lardner, noted that an increasing number of clients are
concerned about working with Chinese buyers due to the
potential for regulatory intervention. The dealma king
industry could also suffer some significant business
setbacks. The Dealogic analysts estimate about $9.7
billion in pending Chinese deals to buy US firms could
fall under regulatory scrutiny, potentially putting $75
million in advisor fees at risk.

NAHB – single-family starts hold steady in July after
upward June revision

Nationwide housing starts fell 4.8% in July to a
seasonally adjusted annual rate of 1.16 million units,
according to newly released data from the US Department
of Housing and Urban Development and the Commerce
Department. Single-family production slipped 0.5% in
July to a seasonally adjusted annual rate of 856,000
after a strong, upwardly revised June reading.
Year-to-date, single-family starts are 8.6% above their
level over the same period last year. Multifamily
starts dropped 15.3% to 299,000 units. “The overall
strengthening of the single-family sector is consistent
with solid builder confidence in the market,” said
Granger MacDonald, chairman of the National Association
of Home Builders (NAHB) and a home builder and
developer from Kerrville, Texas. “The sector should
continue to firm as the jo b market and economy grow and
more consumers enter the housing market.” “New-home
production numbers this month are in line with our
forecast for a slow and steady recovery of the housing
market,” said NAHB Chief Economist Robert Dietz. “We
saw multifamily production peak in 2015, and this
sector should continue to level off as demand remains
solid.” Regionally in July, combined single- and
multifamily housing production rose 0.6% in the South,
and fell 1.6% in the West, 15.2% in the Midwest and
15.7% in the Northeast. Overall permit issuance in July
was down 4.1% to a seasonally adjusted annual rate of
1.22 million units. Single-family permits held steady
at 811,000 units while multifamily permits fell 11.2%
to 412,000. Regionally, overall permits rose 19.2% in
the Northeast. Permits fell 1.4% in the South, 7.9% in
the West, and 17.4% in the Midwest.

Fiat Chrysler joins BMW, Intel in developing
self-driving cars

Fiat Chrysler (FCAU) said Tuesday it will partner with
BMW and Intel (INTC) to develop a platform for
self-driving cars. The Italian-American automaker will
contribute engineering and other technical resources to
the existing BMW-Intel alliance, which launched in July
2016 to create an automated driving system for global
manufacturers. Fiat Chrysler also said its involvement
in the group will accelerate product development.
Earlier this year, the alliance announced its plan to
test 40 autonomous cars on public roads by the end of
2017. The companies, including Intel-owned Mobileye,
expect to offer solutions for fully automated driving
by 2021. The alliance’s goal is to create the “most
relevant” self-driving platform that automakers can
adopt while maintaining their brand identities. “In
order to advance autonomous driving technology, it is
vital to form partnerships among automakers, technology
providers and suppliers,” said FCA CEO Sergio
Marchionne. “Joining this cooperation will enable FCA
to directly benefit from the synergies and economies of
scale that are possible when companies come together
with a common vision and objective.” In a joint
announcement, the companies said they invite other
automakers and technology firms to adopt their
platform. Financial terms of the Fiat Chrysler deal
weren’t disclosed.

CoreLogic – US single-family rents up 2.8% year over
year in June

– National rent growth decelerated in June 2017
compared with June 2016
– Low-end rent growth more than doubled high-end rent
growth
– Orlando had the highest year-over-year rent growth
in Q2
Single-family rents, as measured by the CoreLogic
Single-Family Rental Index (SFRI), climbed steadily
between 2010 and 2016. However, the index shows
year-over-year rent growth has decelerated slowly since
February 2016, when it peaked at a 4.4%. As of June
2017, single-family rents increased 2.8% year over
year, a 1.6 percentagepoint decline since the February
2016 peak. The index measures rent changes among
single-family rental homes, including condominiums,
using a repeat-rent analysis to measure the same rental
properties over time. Using the index to analyze
specific price tiers reveals important differences. The
ind ex’s overall growth was pulled down by the high-end
rental market, defined as properties with rents 125% or
more of a region’s median rent. Rents on higher-priced
rental homes increased 1.9% year over year in June
2017, down from a gain of 3% in June 2016. Growth in
the low-end market, defined as properties with rents
less than 75% of the regional median rent, increased
4.4% in June 2017, down from a gain of 5.5% in June
2016.

Rent growth varies significantly across metro areas.
Rental vacancy rates are available quarterly from the
US Census Bureau Housing Vacancy Survey. Figure 3 shows
the relationship between the rent growth and rental
vacancy rates for 37 metro areas that are available for
both CoreLogic’s rental index and the Census’s vacancy
survey in Q2 2017. Cities with limited new construction
and strong local economies that attract new employees
tend to have low rental vacancy rates and stronger rent
growth. Orlando experienced 4.5% year-over-year rent
growth in Q2 2017, driven by employment growth of more
than 3% year over year and a rental vacancy rate of
7.1%, slightly lower than the 7.3% national
single-family rental home vacancy rate in Q2 2017. In
contrast, Oklahoma City, which has been hit with
energy-related job losses since early 2015 and a rental
vacancy rate of 11.5% in Q2 2017, experi enced a 3%
year-over-year decrease in rents, according to
CoreLogic data.

DSNews – further simplifying foreclosures

Foreclosures can be a messy process for all
involved—from the homeowner that loses their home, to
the servicers that eventually take care of the
property—it is anything but a pleasant experience. In
addition, the entire process can be complicated by a
slew of paperwork, payments, and transfers with many
moving parts that are easy to miss. But, according to
The Journal Times, one county in Wisconsin is making a
small change to its foreclosure procedure that could go
a long way in ensuring smooth transitions of title, one
that the rest of the country could possibly benefit
from if it goes as planned. The proposed change is as
simple as removing a middle-man, the article notes. In
Racine County, as of now, when a foreclosure is sold
through the sheriff’s office the buyer receives a copy
of the deed and is required to take that deed down t o
the Register of the Deed’s office to get it filed.
However, this little step is often overlooked,
according to the Racine County Register of Deeds, which
can cause big problems for borrowers and the state,
since the tax bill will continue to be sent to the old
owner to never be paid. This can lead to further
complications, like tax interception. The proposed
bill, Senate Bill 175, would allow the Clerk of Courts
Office to simply take the deed directly to the Register
of Deeds Office, and eliminate the middle man, who has
little incentive to make sure the task gets
accomplished.

Currently, this practice has been implemented in
Milwaukee County, but if passed would become state-wide
practice. Critical and constant examination of
foreclosure requirements and best practices are vital
to streamlining and simplifying the industry, and
taking a look at what certain states and municipalities
are doing is just one of the many ways for the industry
to stay ahead of the curve.

(edit)

Categories
Real Estate News

RealtyTrac – US foreclosure activity down 4% in February to lowest level since July 2006 despite 9% rise in REOs

Published on: Mar 20, 2015 @ 10:00 am

RealtyTrac released its US Foreclosure Market Report
for February 2015, which shows foreclosure filings —
default notices, scheduled auctions and bank
repossessions —

were reported on 101,938 US properties
in February, a decrease of 4% from revised January
numbers and down 9% from a year ago to the lowest level
since July 2006. The report also shows a US foreclosure
rate of one in every 1,295 housing units with a
foreclosure filing in February.  “Given that August
2006 was the peak of the housing bubble, this
eight-and-a-half year low in foreclosure activity is a
significant milestone and a sign that nationwide
foreclosure activity is on track to return to historic
norms this year — and is possibly even headed below
historic norms given the skinny-jeans-tight lending
standards over the past five years,” said Daren
Blomquist, vice president at RealtyTrac. “In markets
where foreclosures were processed more efficiently we
are seeing foreclosure numbers now below pre-crisis
levels in some cases. Conversely, the cleanup of
deferred distress is continuing in markets where a
logjam of in-limbo foreclosures is still lingering from
the housing crisis — as evidenced by rebounding
foreclosure activity in those markets.”  Despite the
national decrease from a year ago, 24 states posted a
year-over-year increase in overall foreclosure
activity, including Massachusetts (up 53%; fifth
consecutive month with an increase) and New York (up
19%; sixth consecutive month with an increase).

Nationwide, 48,079 properties started the foreclosure
process for the first time in February, down 5% from
revised January numbers and down 7% from a year ago.
Despite the national decrease in foreclosure starts, 22
states posted year-over-year increases in foreclosure
starts, including Nevada (up 153%; fourth consecutive
month with an increase), Massachusetts (up 116%; 11th
consecutive month with an increase), and Texas (up 5%;
five out of last six months with increase).
Nationwide, 45,880 properties were scheduled for a
future foreclosure auction in February, down 13% from
revised January numbers and down 4% from a year ago to
the lowest level since July 2006.  Despite the national
decrease in scheduled foreclosure auctions — which can
act as the foreclosure start in some states — 25 states
posted a year-over-year increase in scheduled
foreclosure auctions, including New York (up 146%;
ninth consecutive month with an increase),
Massachusetts (up 88%; third consecutive month with an
increase), New Jersey (up 38%; 15th consecutive month
with an increase), and Washington (up 17%; five out of
last seven months with an increase).  Nationwide,
24,305 properties were repossessed by lenders via
foreclosure (REO) in February, up 9% from revised
January numbers but down 20% from a year ago. February
was the 27th consecutive month where REOs nationwide
decreased on an annual basis.  Despite the national
decrease in REOs compared to a year ago, 15 states
posted year-over-year increases in REOs, including
Maryland (up 70%; fifth consecutive month with an
increase), New York (up 24%; four out of last five
months with an increase), Ohio (up 23%; third
consecutive month with an increase), and North Carolina
(up 18%; three out of last four months with an
increase).

Maryland foreclosure activity decreased 1% compared to
a year ago in February, but the state still posted the
nation’s highest foreclosure rate: one in every 564
housing units with a foreclosure filing.  Nevada
foreclosure activity in February increased 12% from a
year ago driven primarily by a spike in foreclosure
starts, and the state’s foreclosure rate was second
highest in the nation for the second month in a row.
One in every 569 Nevada housing units had a foreclosure
filing during the month.  Florida posted the nation’s
third highest state foreclosure rate — one in every 570
housing units with a foreclosure filing — despite a 35%
decrease in foreclosure activity from a year ago.
Other states with foreclosure rates among the top 10
highest nationwide in February were Indiana (one in
every 871 housing units with a foreclosure filing),
Idaho (one in every 877 housing units), New Jersey (one
in every 895 housing units), Illinois (one in every 906
housing units), Delaware (one in every 957 housing
units), Ohio (one in every 1,000 housing units), and
North Carolina (one in every 1,088 housing units).

Oil prices fall amid record inventories

Oil prices fell Thursday on expectations that
record-high crude inventories would continue to grow.
Light, sweet crude for April delivery settled down 70
cents, or 1.6%, to $43.96 a barrel on the New York
Mercantile Exchange.  Brent, the global benchmark, fell
$1.48, or 2.6%, to $54.43 a barrel on ICE Futures
Europe.  A global glut of crude sent prices plummeting
in the second half of 2014, and analysts estimate the
market is currently oversupplied by between one million
and 1.5 million barrels a day.  The oversupply has been
especially concentrated in recent months in the US,
where stored supplies of crude have climbed for 10
straight weeks and currently sit at their highest level
in about 80 years, according to the Energy Information
Administration.  Traders have grown concerned that
inventories could reach maximum capacity in some
regions, a situation that could cause further price
drops if some buyers stop purchasing crude because they
have nowhere to store it.  Genscape Inc., a data
provider, told its subscribers Thursday that Cushing
supplies rose by 2.2 million barrels in the week ended
Tuesday, according to a person familiar with the
report.  Oil prices had gained on Wednesday, breaking
a six-session losing streak, on the back of a sharp
decline in the dollar after the Federal Reserve
indicated it was in no hurry to raise interest rates.
But the dollar was on the rise again on Thursday. Oil
is priced in dollars and becomes less attractive for
holders of foreign currencies as the dollar
appreciates.  Gasoline futures fell 2.48 cents, or
1.4%, to $1.7743 a gallon, while diesel futures slipped
5.02 cents, or 2.8%, to $1.7223 a gallon.

DataQuick – California February home sales

An estimated 25,585 new and existing houses and condos
sold in California in February 2015. That was up 1.0%
month over month from 25,325 sales in January 2015 and
down 0.4% year over year from 25,680 sales in February
2014.  February home sales have varied from a low of
20,513 sales in 2008 to a high of 48,409 sales in 2004.
The February 2015 sales were the lowest for that month
since 2008, and they were 18.7% lower than the February
average of 31,454 sales since 1988, when CoreLogic
DataQuick data began.  The median price paid for a home
in California in February 2015 was $378,000, up 0.5%
month over month from $376,000 in January 2015 and up
6.5% year over year from $355,000 in February 2014.
February 2015 marked the 36th consecutive month in
which the state’s median sale price increased on a
year-over-year basis. The peak year-over-year price
gain during that period was 29.2% in July 2013. Since
then price gains have trended lower and since July 2014
the year-over-year increases have been single-digit –
between about 6% and 7% from October 2014 through
February 2015.  The February 2015 median sale price
was 21.9% lower than California’s peak median price of
$484,000, reached in March/April/May 2007.

Of the existing homes sold statewide in February 2015,
6.8% were properties that had been foreclosed on during
the previous 12 months. That was up from a revised 6.7%
in January 2015 and down from 8.0% in February 2014.
Statewide foreclosure resales peaked at 58.8% in
February 2009.  Short sales made up an estimated 6.2%
of homes that resold in February 2015, down slightly
month over month from 6.7% in January 2015 and down
year over year from 9.0% in February 2014. Short sales
are transactions in which the sale price fell short of
what was owed on the property.  The typical monthly
mortgage payment for California homebuyers in February
2015 was $1,394, up from $1,379 in January 2015 and
down from $1,405 in February 2014. Adjusted for
inflation, the February 2015 typical payment was 39.7%
below the typical payment in the spring of 1989, which
was the peak of the prior real estate cycle. It was
51.1% below the current cycle’s peak in June 2006 and
51.2% above the January 2012 trough of the current
cycle.

Mid-Atlantic manufacturing activity unexpectedly falls
Growth in factory activity in the US mid-Atlantic
region fell for a fourth straight month in March to its
lowest level in more than a year, a regional Federal
Reserve survey showed on Thursday.  The Philadelphia
Federal Reserve Bank said its business activity index
slipped to 5.0 this month, the lowest since February
2014, from February’s 5.2. Economists polled by Reuters
had forecast an increase to 7.1.  Any reading above
zero indicates expansion in the region’s manufacturing.
The survey covers factories in eastern Pennsylvania,
southern New Jersey and Delaware.  It is seen as one of
the first monthly indicators of the health of US
manufacturing leading up to the national report by the
Institute for Supply Management.  Just four months ago,
in November, the Philadelphia Fed gauge had notched its
highest reading since December 1993, but has fallen
each month since then.

CoreLogic – dollar volume of negative equity increased
$7 billion from Q3 to Q4 2014

According to the latest CoreLogic Equity Report,
released today, the nationwide negative equity share
increased from 10.4% in Q3 2014 to 10.8% in Q4 2014,
and the number of underwater borrowers (or those in
negative equity) increased from 5.2 million to 5.4
million. The total dollar amount of negative equity was
up $7 billion from Q3 2014, totaling $348.8 billion in
Q4 2014.  Quarter over quarter, 29 states exhibited
increases in the negative equity share through Q4 2014.
Figure 1 illustrates the 25 states with the largest
percentage-point change in the negative equity share
from the previous quarter. Illinois experienced the
largest increase, up by 1.8 percentage points from Q3
2014 to Q4 2014, followed by Connecticut (+1.4%), New
Jersey (+1.4%) and Ohio (+1.3%). Nevada had the largest
decrease (-1.3%) from the previous quarter.  At the
metro level, Chicago had the highest total of
underwater dollars as of Q4 2014 at $17 billion,
followed by New York at $16 billion and Los Angeles at
$10 billion. Of the 10 CBSAs shown in Figure 2, seven
have negative equity shares above the national share of
10.8%.  Also according to the latest CoreLogic
analysis, mortgage default rates fell slightly in Q4
2014. Nationally, homes with positive equity had a
default rate of 0.5% and homes with negative equity had
a default rate of 3.1%.

Negative equity shares show stark differences when
broken out by price tiers. Trends suggests that there
is a high concentration of negative equity mortgages in
the low end of the housing market. Homes valued at less
than $100,000, for example, had a negative equity share
of 22% in Q4 2014, which is more than twice the
national share of 10.8%. Homes valued between $100,000
and $200,000 had the second highest negative equity
share of 13.6%. On the other end of the scale, homes
valued at more than $200,000 had only a 6.4% negative
equity share, but made up 56% of the negative equity
dollars nationwide.  Quarter over quarter, the number
of properties that were owner-occupied and had less
than 20-percent equity, thus considered under-equitied,
increased by 4.1%, or 345,239 homes, to the current
level of 8.7 million properties in Q4 2014.
Under-equitied non owner-occupied properties,
similarly, increased by 3.6%, or 45,501 homes, quarter
over quarter to the Q4 2014 level of 1.3 million homes.

MBA – 2014 rankings of commercial/multifamily mortgage
firms’ origination volumes

The Mortgage Bankers Association (MBA) today released
its annual ranking of commercial/multifamily mortgage
firms by origination volume. The MBA study is the only
one of its kind to present a comprehensive set of
listings of 127 different commercial/multifamily
mortgage originators, their 2014 volumes and the
different roles they play.  The report, Commercial Real
Estate/Multifamily Finance Firms – Annual Origination
Volumes, presents origination volumes in more than 140
categories, including by role, by investor group, by
property type, by financing structure type, and by the
location of the originating office.  The top ten
commercial/multifamily mortgage originators in 2014
were: Wells Fargo; J.P. Morgan Chase & Company; Eastdil
Secured; HFF, L.P.; Meridian Capital Group, LLC;
KeyBank; CBRE Capital Markets, Inc.; Deutsche Bank
Securities Inc.; PNC Real Estate; and Bank of America
Merrill Lynch.  The report lists total originations
across eleven different investor groups. Ten different
companies were the top originator for at least one of
the different groups. The top three originators overall
and by each investor group are listed below:

Total Origination Volumes- Wells Fargo, J.P. Morgan
Chase & Company and Eastdil Secured;

–  Commercial Mortgage-backed Securities (CMBS)-
Deutsche Bank Securities Inc., Eastdil Secured and J.P.
Morgan Chase & Company;

–  Commercial Bank Portfolios- J.P. Morgan Chase &
Company, PNC Real Estate, and Meridian Capital Group,
LLC;

–  Life Insurance Company Portfolios- MetLife Real
Estate Investors, HFF, L.P., and Prudential Mortgage
Capital Company;

–  Fannie Mae- Walker & Dunlop, Wells Fargo, and
Berkadia;

–  Freddie Mac- CBRE Capital Markets, Inc., Berkadia,
and Walker & Dunlop;

–  FHA/Ginnie Mae: Red Mortgage Capital, LLC,
Greystone, and Berkadia;

–  Pension Funds- TIAA-CREF, Cornerstone Real Estate
Advisers, and CBRE Capital Markets, Inc.;

–  Credit Companies- CBRE Capital Markets, HFF, L.P.,
and Marcus & Millichap Capital Corporation;

–  REITS, Mortgage REITS, and Investment Funds-
KeyBank, Eastdil Secured, and NorthStar Realty Finance;

–  Specialty Finance Firms- JLL, Mesa West Capital,
LLC, and Meridian Capital

–  “Other Investors”- Wells Fargo, HFF, L.P., and
Morgan Stanley.

By dollar volume, the top five originators for third
parties in 2014 were Eastdil Secured; HFF, L.P.;
Meridian Capital Group, LLC; CBRE Capital Markets; and
Deutsche Bank Securities Inc.

–  The top five lenders in 2014 were Wells Fargo, J.P.
Morgan Chase & Company, KeyBank, Deutsche Bank
Securities Inc., and Bank of America Merrill Lynch.

DataQuick – Bay Area February home sales decline;
smaller gain for median sale price

CoreLogic released its February 2015 San Francisco Bay
Area housing market report. The number of homes sold
was slightly lower than in January and was the lowest
for the month of February in seven years. The median
price paid for a home also fell slightly from January
and the gain from a year earlier was the smallest since
the median sale price began rising on a year-over-year
basis nearly three years ago.  A total of 4,376 new and
existing houses and condos sold in the nine-county Bay
Area in February 2015. That was down 1.1% month over
month from 4,423 sales in January 2015 and down 10.9%
year over year from 4,911 sales in February 2014,
according to CoreLogic DataQuick data.  February 2015
sales were the lowest for that month since February
2008, when 3,989 homes sold. The peak for February home
sales was in 2002, when 8,901 homes sold. The February
2015 sales tally was 28.6% below the historical
February average of 6,129 sales.  The median price paid
for a home in the Bay Area was $565,000 in February
2015. That was down 1.2% month over month from $572,000
in January 2014 and up 4.6% year over year from
$540,000 in February 2014.

The region’s median sale price has risen year over year
for 35 straight months, beginning in April 2012. During
the 25 months between June 2012 and June 2014, those
gains were double-digit, reaching as high as 33.5%. The
annual gains were either single-digit or low
double-digit between July 2014 and October 2014, and
since November 2014 the year-over-year increases in the
median sale price have been single-digit. The February
2015 median sale price’s 4.6% year-over-year gain
compared with February 2014 marked the smallest annual
increase for any month since the median price began
rising year over year in April 2012. In comparison, the
February 2014 median sale price rose 33.3% from
February 2013.  The Bay Area median sale price peaked
at $665,000 in June and July 2007 and dropped to a
post-boom low of $290,000 in March 2009.  “February is
always a bit odd from a numbers standpoint. March
should provide a better view of emerging trends this
year,” said Andrew LePage, CoreLogic DataQuick data
analyst. “That said, it is easy to see that supply is
still constrained. It’s also clear the mortgage market
remains off-kilter. Home loans are readily available
for those who have good credit, a W-2 income and who
are applying for a government-backed mortgage. But it
can still be challenging for others, such as the
self-employed and retired, even for those with a high
income or significant assets, or both.”

Other February 2015 Bay Area housing market highlights
include the following:

–  Adjustable-rate mortgages (ARMs), an indicator of
mortgage availability, accounted for 20.5% of the Bay
Area’s home purchase loans in January, down from a
revised 22.0% in December 2014, and down from 25.1% in
January 2014. ARMs hit a low of 3.0% of purchase loans
in January 2009 and reached a post-housing-bust peak of
27.8% in April 2014. Since 2000, ARMs have accounted
for about 46% of all Bay Area purchase loans.

–  Foreclosure resales accounted for 4.5% of all
resales in February, up from a revised 4.4% in January
2015 and down from 5.0% in February 2014. Foreclosure
resales in the Bay Area peaked at 52.0% in February
2009, while the monthly average over the past 17 years
is about 10%. Foreclosure resales are purchased homes
that have been previously foreclosed upon in the prior
12 months.

–  Short sales accounted for an estimated 4.8% of Bay
Area resales in February, down from a revised 5.2% in
January 2015 and down from 6.3% in February 2014. Short
sales are transactions in which the sale price fell
short of what was owed on the property.

–  Absentee buyers – mostly investors – purchased 24.8%
of all Bay Area homes sold in February, up from a
revised 23.8% in January 2015 and up from 23.8% in
February 2014. The peak absentee share was 28.7% in
February 2013, and the monthly average since 2000, when
CoreLogic DataQuick absentee data began, is about 17%.

–  Cash buyers accounted for 26.7% of home sales in
February, up from a revised 23.6% in January 2015 and
down from 28.4% in February 2014. The peak was 32.3% in
February 2013, and the monthly average since 1988 is
about 14%.

–  The typical monthly mortgage payment for Bay Area
home buyers in February 2015 was $2,083. Adjusted for
inflation, that payment was 26.9% below the typical
payment in spring 1989, the peak of the prior real
estate cycle. It was 46.0% below the current cycle’s
peak in July 2007 and 65.5% above the February 2012
bottom of the current cycle.