Generation Y

Gen Y to Lead 'Massive Increase in Housing Demand'

Daily Real Estate News | Wednesday, July 20, 2011

Watch out for Generation Y: This large, diverse, well-educated generation will drive the housing market recovery over the next 10 years, according to economists with the University of Southern California Lusk Center for Real Estate.
Gen Y (15-32 year olds) boasts about 77.4 million members, which is about equal in size to the baby boomers (46-64 years old). Yet, Gen Y is much more diverse and educated (60 percent of Gen Y goes to college), according to the center, which recently presented its findings at the USC Lusk Center Orange County Executive Briefing.
Stan Ross, Lusk Center Chairman of the Board, says that “baby boomers and Gen Y comprise 50 percent of the population and will soon be part of the largest U.S. wealth transfer ever.”
As more of this age group joins the work force, “they will produce a massive increase in housing demand,” forecasts the USC’s Lusk Center.
However, Ross points out “these kids are concerned. They have watched the stock market, financial markets, and economy wipe out their parents’ retirement plans. As a result, they will choose lower-risk investment strategies.”
Source: “USC Lusk Center Says More Educated, Diverse Generation to Drive Real Estate Recovery,” The Hoyt Organization (July 19, 2011) [No Link]

Real Estate Today...7-16-2011

LAW AGAINST SHORT SALE DEFICIENCIES EXPANDED
In a major victory for REALTORS®, Governor Brown signed into law today a C.A.R.-sponsored bill, Senate Bill 458, prohibiting a deficiency after a short sale for one-to-four residential units, regardless of whether the lender is a senior or junior lienholder.  Effective immediately for transactions closing escrow from this day forward, both senior and junior lienholders cannot require a borrower to owe or pay for a deficiency in a short sale.  This law also prohibits any deficiency judgment to be requested or rendered for senior or junior liens after a short sale of one-to-four residential units.  Any purported waiver of this rule shall be void and against public policy.
Although a lender cannot require a borrower to pay any additional compensation in exchange for a short sale approval, the new law does not prohibit a borrower from voluntarily offering a monetary contribution to a lender in hopes of obtaining a short sale.  A lender is also permitted under the new law to negotiate for a contribution from someone other than the borrower, such as other lenders, agents, relatives, and the like.
Exceptions to the new law include a lender seeking damages for a borrower’s fraud or waste; a borrower that is a corporation, LLC, limited partnership, or political subdivision of the state; a lien secured by a bond as specified; a public utility lien; and additional rules apply if a note is cross-collateralized by more than one property.

This law is fully set forth as Senate Bill 458 (Corbett) at www.leginfo.ca.gov.

Real Estate Today...7-15-2011

Los Angeles Times
Investors to the rescue of the housing market
Real estate investors will outnumber traditional borrowers 3 to 1 during the next two years, a new survey says, helping clear millions of repossessed properties from banks’ books and pave the way for a recovery.

Read the full story 
http://www.latimes.com/business/realestate/la-fi-lew-20110703,0,7661953.story

Daily Real Estate News...7-15-2011

Daily Real Estate News | July 15, 2011 | Share

30-Year Mortgage Rates Drop to 4.51%
Mortgage rates fell this week from last, amid a weakening job report and an increase in the unemployment rate, Freddie Mac stated in its weekly mortgage market survey.

Here’s a closer look at mortgage rates for the week:

30-year fixed-rate mortgage: averaged 4.51 percent, down from last week when it averaged 4.60 percent. Last year at this time, the 30-year rate averaged 4.57 percent.

15-year fixed-rate mortgage: averaged 3.65 percent, down from last week when it averaged 3.75 percent. A year ago at this time, the 15-year rate averaged 4.06 percent.

5-year adjustable-rate mortgage: averaged 3.29 percent this week, down from last week when it averaged 3.30 percent. A year ago, the 5-year ARM averaged 3.85 percent.

1-year ARM: averaged 2.95 percent this week, down from last week when it averaged 3.01 percent. At this time last year, the 1-year ARM averaged 3.74 percent.

Source: “Mortgage Rates Fall After Weak Job Report,” Freddie Mac (July 14, 2011)

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Daily Real Estate News | July 11, 2011 | Share

10 Best-Performing Major Housing Markets
Ten of the highest performing major market metros are expected to improve their performance over the first half of the year, with five of the top 10 even expected to see modest gains, reports Clear Capital in its latest monthly Home Data Index.

While housing prices in the first half of the year were mostly negative among the metro areas, Clear Capital says the market is showing signs of stabilizing.

Top Performers
The following are the highest performing major markets based on first half 2011 data (January through June) and second half forecast, according to Clear Capital.

1. Washington, D.C.-Arlington, Va.
2. New York-Long Island, N.Y.-No. New Jersey, N.J.
3. Orlando
4. Dallas-Fort Worth-Arlington, Texas
5. San Francisco-Oakland-Fremont, Calif.
6. Boston-Cambridge-Quincy, Mass.
7. Honolulu
8. San Diego-Carlsbad-San Marcos, Calif.
9. Rochester, N.Y.
10. Memphis, Tenn.

Yet, only five of these markets are expected to boast home price gains in the second half of 2011: Washington, D.C., New York, Orlando, Dallas, and San Francisco, according to Clear Capital.

Worst-Performing Markets
Meanwhile, the lowest performing markets were Virginia Beach-Norfolk-Newport News, Va.; Cleveland-Elyria-Mentor, Ohio; and Minneapolis-St. Paul-Bloomington, Minn., according to Clear Capital.

“While most individual markets are also projected to post losses for the year, it is clear prices have begun to level off and are not exhibiting as much volatility as we’ve seen since the downturn began,” says Alex Villacorta, director of research and analytics at Clear Capital.

Source: “Clear Capital Home Data Index Forecast Reveals Further Price Declines for Second Half of 2011,” Clear Capital (July 8, 2011)

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