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Today’s Real Estate News 10.23.2013

Summary:
CNN Money reports that the tax year may be delayed thanks to the government shutdown and shares why young adults aren’t quick to find jobs. According to the LA Times, Pending home sales in California fell in September while inventory rose. Reuters says that U.S. regulators don’t expect lenders to “run afoul of fair-lending laws if they opt to issue only the most basic mortgages after tough new rules take effect in 2014”  and that American Realty has reached a deal to acquire Cole Real Estate Investments for $7Billion. Market Watch shares that JPMorgan may face an additional $5.75Billion in payouts to investors. Housing Wire reports that that the timelines for distressed properties is mixing up home prices, Mortgage delinquencies are up in September and foreclosure starts in California dropped.  Forbes explains how the bad news on the economy helped the stocks.  

IRS: Tax season delayed due to shutdown
“You’ll have to wait to file your taxes to Uncle Sam this year, thanks to the government shutdown.”

Why young people are saying ‘no’ to the workforce
“A job used to be the next step after a diploma. But now, young people aren’t in any rush to start working.”

California pending home sales fell in September while inventory rose
“Buyers signed fewer contracts for California homes last month as the housing market entered a typically slower period and declining affordability sapped demand.”

U.S. regulators say no fair-lending problem with new mortgage rules
“(Reuters) – U.S. regulators on Tuesday said they do not expect lenders to run afoul of fair-lending laws if they opt to issue only the most basic mortgages after tough new rules take effect in 2014.”

American Realty clinches Cole Real Estate deal for $7 billion
“(Reuters) – American Realty Capital Properties Inc (ARCP.O) has reached a deal to buy Cole Real Estate Investments Inc (COLE.N) for about $7.2 billion in cash and stock to create the largest U.S. net-leased real estate investment trust (REIT), the companies said on Wednesday.”

J.P. Morgan faces $5.75 bln in additional payouts
“Investors are seeking at least $5.75 billion from J.P. Morgan Chase & Co. in a bid to recover losses from mortgage-backed securities sold to them before the financial crisis, said people familiar with the talks.”

Prolonged liquidation timelines shake up home prices
“Timelines on distressed inventory continue to drag on, while elevated mortgage loss severities continue to offset positive gains on home prices.”

LPS: Mortgage delinquencies edge up in September
“The performance of home loans monitored by Lender Processing Services backslid a bit in September, as the U.S. loan delinquency rate grew 4.23% from August to September, reaching a rate of 6.46%, LPS concluded.”

DataQuick: California foreclosure starts continue to drop
“The number of homeowners entering the foreclosure process in California last quarter fell to the second-lowest level in seven and a half years, a new report from analytics firm DataQuick claims.”

Why Bad News On Economy Was Good For Stocks
“Tuesday was one of those days when a perfectly intelligent member of the public would have been forgiven for scratching her head and wondering why bad economic news helped send the Standard & Poor’s 500 stock index towards an all-time high.”

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Today’s Real Estate News 10.14.2013

Week 3: Small businesses reel from shutdown
“As the government shutdown moves into its third week, small businesses across the country are trying to figure out how — or if — they’ll be able make up the lost business.”

For sale by owner: Homeowners ditching brokers
“Bolstered by the housing recovery, a growing number of homeowners are going it alone when selling their homes hoping to save thousands of dollars in commissions.”

Homebuyers: To get the house, get there first
“Housing inventory is stiflingly tight in many locations, making it a challenge to find, much less land, your dream home.”

Shiller, two others win economics Nobel for ‘bubble’ warnings
“Robert Shiller, who became famous for calling the housing and Internet stock bubbles, was one of three Americans to win the Nobel in economics Monday.”

Saying goodbye to the California middle class. California least affordable state in the entire country as renting class expands.
“California for a generation has been a high cost of living state.  This is no surprising revelation.  Yet the tech boom in the 1990s set the state into a unique stratosphere of real estate.  Hundreds of thousands of jobs now depend on big tech companies including Facebook, Google, Apple, and other common names.  Changes like this have added to drive up in real estate values.  New data highlights that California’s metro areas are the least affordable for those looking to buy based on the families living in those areas.  Of course, investors are bringing outside money so that is one way to move around this new reality.  Unlike an Ohio or Nebraska, California real estate is global in nature.  The only problem today is the massive gap is pushing many middle class families out of reach from buying a piece of real estate.  It is becoming more challenging for families to purchase real estate in California and the data backs this up.”

14 American Housing Markets Drowning In Foreclosures
“One in every 998 U.S. homes received a foreclosure filing in the third quarter, according to the latest foreclosure data from RealtyTrac.”

US Default Seen Pushing Housing to the Brink
“Housing largely dodged a bullet on the government shut down that went into effect October 1, the pending default, however, is an entirely different matter. As the October 17 default deadline nears, knuckle in the housing industry are turning white.”

The 2 Families of Mortgage REITs
“Mortgage REITs are a very interesting sector, and although they only represent a small percentage of REITs, they’ve developed a very loyal following. Their increased use of leverage leads to very high yields that appeal to income seekers with a sizable appetite for risk. However, before jumping in to the sector, investors should realize that not all mortgage REITs are created equal. There are a wide variety of mortgage REITs, and the two major categories are separated by the types of mortgages the REITs invest in.”

J.P. Morgan Hiring for Compliance “SWAT Team”
“Facing a slew of costly regulatory issues, J.P. Morgan Chase & Co. is bringing in a SWAT team.”

Mortgage applications gain; buyers look past US shutdown
“Applications for U.S. home loans rose in the latest week as demand for refinancing outpaced purchases, data from an industry group showed on Wednesday.”