February 2011 U.S. Economic Fundamentals

[Ally]

Foreclosures surge in California





January brought significant increases in foreclosure sales in California, including the Central Valley, according to figures from ForeclosureRadar Inc., a Discovery Bay-based company that says it tracks every foreclosure filing to its resolution.





The increases return volumes to pre robo-signing levels, the company says.





`While the increase is significant, we've seen larger surges after moratoriums or delays have played out in the past,` says Sean O`Toole, founder and president of ForeclosureRadar Inc.





`For example in California after the delays caused by Senate Bill 1137 we saw a surge in Notice of Default filings that far eclipsed any prior period. That is not the case here,` he says. `Despite months of slow sales, we've simply returned to prior levels, which to me indicates banks remain reluctant to aggressively foreclose despite the time it takes to foreclose being at or near record levels, and large inventories of properties still scheduled for foreclosure sale.`





Read the full article here.

 

[Ally]

Top 24 U.S. cities whose property is valued more than their mortgage




34% worth less than mortgages owed; homes near Canadian border avoid much of damage

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[Ally]

Why buying U.S. real estate is still a gamble




The resurgence of the loonie and continued degradation of U.S. home prices are spurring more Canadians to invest in property south of the border.




But while this might appear an opportune time to snatch up a retirement home or dream vacation property, experts warn that jumping into these major purchases without doing extensive research is a recipe for disaster.





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[Ally]

Here's another ugly JOLT to the U.S. labour market





The new JOLTS (Job Openings and Labor Turnover Survey) are out, and they don't look too pretty.




First of all, the number of job openings apparently fell in December.




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[Ally]

Rockefeller Foundation Survey: Americans rank transportation needs high but don't want to pay the costs




Upkeep of roads, bridges and transit systems is a high priority to an overwhelming margin of Americans, but by an even greater margin they don't want to pay more for it, according to a survey that will be released this week.





With the Obama administration's budget due Monday, House Republicans embarked on aneffort to reduce spending by$100 billion and a long-term transportation bill stalled in Congress, 78 percent of those surveyed say private investors should be tapped to rebuild the country's aging infrastructure.




The poll was commissioned by the Rockefeller Foundation, which has funded a $66 million transportation initiative, and was conducted this month by Hart Associates.




"Transportation infrastructure affects so many critical issues for the country - economy, social mobility and energy - and it drives our economic growth," said Nicholas Turner, a managing director of of the Rockefeller Foundation who runs the initiative. "Most people don't realize that transportation is the second-highest expense for most Americans and the highest for those with the lowest incomes. The promotion of accessible and equitable transportation policies is critical to providing affordable options to all Americans."





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[Ally]

Cities with lenient land use policies escaped housing bubble



Zoning policies aren`t typically controversial and generally just ensure that people living in close quarters can enjoy the full use of their land without having to worry about externalities from how others might want to use their land. All cities do this. Noise pollution or infrastructure needs are often factors that lead cities to want to group certain land uses together, for instance. A more controversial use of zoning policies is to artificially restrict the amount of developable land available.





Outside of a few select centres (e.g. New York), population centres in North America don`t tend to be physically constrained relative to their population. As populations increased, so to does the city limit. The term for it is urban sprawl and, over the past couple decades, it became viewed as very wasteful.





Energy and time need to be expended by individuals traveling from home to work and costs related to maintaining public services increase disproportionately when the population is more dispersed (think of public transport and sewers). Environmentalists are also quick to point out the costs aren`t only financial, but also environmental.





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[Ally]

All real estate is local? Think again




Many markets, such as Florida, California and New York, are seeing a surge of foreign buyers. One luxury condo complex in Miami Beach says a growing one-third of such buyers are snapping up homes at bargain prices. Last week, a story on cash buyers quoted a Realtor in Napa Valley noting particular interest from Chinese nationals.




`They are learning about the Western lifestyles,` said Henry Schlangen of real-estate firm Pacific Union International Inc. `These are trophy properties.`




And so real-estate (like everything else, these days) might actually be going more global. Realtor.com plans to add features, such as translation services, to its website to help foreign buyers find real estate. It`s also expanding its coverage to include non-U.S. listings, according to vice president Julie Reynolds.





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[Ally]

U.S. consumer confidence hits 3-year high in February





NEW YORK ` U.S. consumer confidence rose to a three-year high in February, but a drop in home prices for the sixth month in a row in December suggested the economy still faces significant hurdles.




The Conference Board, an industry group, said its index of consumer attitudes rose to 70.4 in February from a revised 64.8 in January as consumers felt more optimistic about the economy and their income prospects. It was the highest level since February 2008 and better than the reading of 65 that analysts had expected.




The expectations index rose to 95.1, its highest level since December 2006, from 87.3, while the present situation index advanced to 33.4 from 31.1. Consumers` assessment of the labor market improved modestly, but the overall view of employment conditions was mixed.




Read the full article here.

 

[Ally]

If you live in one of these 11 U.S. cities, your home just hit a new low





Technically a housing double dip won't happen until national home prices fall below the 2009 low, as David Blitzer explained on CNBC this morning.




But sure looks like a double dip.




In fact, 11 of the cities in Case-Shiller's 20-city index are at new lows for the cycle. These include Atlanta, Charlotte, Chicago, Detroit, Las Vegas, Miami, New York, Phoenix, Portland, Seattle and Tampa.




Read the full article here.

 

[Ally]

Home prices in 20 U.S. cities fall 2.4%



Residential real-estate prices dropped in the 12 months to December by the most in a year, a sign the U.S. housing market is struggling even as the rest of the economy recovers.





The S&P/Case-Shiller index of home values in 20 cities fell 2.4%, the biggest year-over-year decrease since December 2009, the group said today in New York. The median forecast of economists surveyed by Bloomberg News projected a 2.3% decrease.





A predicted increase in foreclosures this year as banks resume seizures may depress home values further, prompting would-be buyers to hold off on purchases. Unemployment at 9% and declines in housing are among reasons the Federal Reserve has signaled it will proceed with its unconventional monetary stimulus.





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[Ally]

Existing home sales overcounting "minor": NAR





Reuters - The National Association of Realtors said on Tuesday any overcounting of U.S. existing home sales in its data was "relatively minor", dismissing claims it could have overstated sales by as much as 20 percent.



The Realtors group said it was consulting with a range of experts to determine whether there was a drift in its monthly existing home sales data.





"At this point, we believe any drift in our data to be relatively minor," the NAR said.





The NAR issued the comment following a Wall Street Journal report that the NAR was examining the possibility that it overcounted home sales dating back as far as 2007.



Read the full article here.