May 2008
The Archives
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05.27.08Case-Shiller: Home prices continue declineFrom the Wall Street Journal: In the first quarter, the Case-Shiller indexes showed home prices across the country fell 14% from a year earlier, representing the largest drop in the 20-year history of the indexes. From the fourth quarter, prices fell 6.7%. "The steep downturn in residential real estate continues," David M. Blitzer, chairman of S&P's index committee, said. He added, "There are very few silver linings that one can see in the data. Most of the nation appears to remain on a downward path." According to the indexes, released by ratings firm Standard & Poor's, home prices in 10 major metropolitan areas ...
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05.14.08No respite, yet: US foreclosures rise 65 percent in AprilFrom Housing Wire: Foreclosure filings — default notices, auction sale notices and bank repossessions — were reported on 243,353 properties in April, a 4 percent increase from March’s total and a nearly 65 percent increase from one year earlier. The data, reported Wednesday by foreclosure marketplace and data firm RealtyTrac, shows that the housing market has yet to cycle through a preponderance of bad mortgages. “The total number of U.S. properties with foreclosure activity in April was the highest monthly total we’ve seen since we began issuing the report in January 2005,” said James J. Saccacio, chief executive officer of RealtyTrac. “Although only ...
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05.13.08Beazer reveals big losses, more firingsFrom the Charlotte Observer: Beazer Homes USA, formerly a major Charlotte-area builder, on Monday revealed more problems in its recently closed mortgage unit and said it suffered heavy losses last year as the housing market faltered. Since last year, the Atlanta homebuilder has been the subject of federal investigations triggered by Observer reports that the company arranged loans some buyers couldn't afford and violated federal lending rules. In February, Beazer closed its national mortgage unit -- a business in which it said employees violated federal housing regulations. Beazer has said lending misconduct was related to down payment assistance. Monday, Beazer said other "areas of ...
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05.13.08Home prices continue sharp descentFrom CNN: Single-family home prices dropped 7.7% in the first quarter in the largest year-over-year decline since the National Association of Realtors began reporting prices in 1982. The median sales price fell to $196,300, down 4.8% compared with the last three months of 2007. Lawrence Yun, the chief economist of NAR, attributed much of the record decline to liquidity problems dragging down high-priced markets. and: Hurting home prices were big rises in foreclosure rates over the past 12 months, which threaten to get even worse. Delinquencies more than doubled over that time and more than 155,000 lost their homes in bank repossessions during the first ...
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05.12.08Tax assessors boggled by housing dipFrom the AJC: For less than the price of a decent used car, you can buy a home in Atlanta today. Actually, real estate agents list a dozen choices for $10,000 or less. Step up in price to $20,000 and your choices expand 10 fold. The prices seem absurd but they are part of a real estate market suffering with rampant foreclosures, mortgage fraud, abandoned investor properties, a collapsing mortgage industry and other ills. The market is unlike anything seen in metro Atlanta in years and it has local tax assessors and appraisers as confused as anyone. What is the value of a lot if ...
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05.12.08Signs of the Times: Condo DiscountsCondo developer roundup from this weekend’s AJC Homefinder: Tribute Lofts: Up to $22,222 in incentives; Central City Condos: “Foreclosed Yesterday. For You Today.” Discounts of $77,100 on two-bedroom units; Atlantic Station: Up to $50,000 off; Viewpoint: Up to $75,000 off on selected homes; Twelve Centennial Park: up to $75,000 off select “move-in-ready” residences; Aqua: Get a BMW Mini Cooper convertible; and The Reynolds: New pricing and incentives. With recent mortgage insurance program changes making it more difficult to obtain financing, and an increasing inventory of homes as more condo projects are finished, condo developers are fighting hard to lure potential purchasers in the door. In one word, they’re ...
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05.07.08Republic Bank forecloses on part of Woodstock Downtown mixed-use projectFrom the Atlanta Business Chronicle: Republic Bank has foreclosed on a portion of the retail development of Hedgewood Commercial Properties' Woodstock Downtown project. The foreclosure on Building B of the project happened May 6. Hedgewood said the bank asked the existing development, leasing and management team to stay aboard to keep the mixed-use project moving forward. More signs of trouble the metro-Atlanta real estate market.
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05.05.08Top condo projects feel weight of housing crunchFrom the Atlanta Business Chronicle: Atlanta’s biggest condo projects aren’t immune to the rash of foreclosures that has swept through the city’s residential real estate market. Several prominent condo towers from downtown to Buckhead have been affected, including Novare Group Inc.’s TWELVE Atlantic Station, Julian LeCraw and Co. Inc.’s The Paramount at Buckhead and Condominium Ventures of America Inc.’s 1280 West. and: At Atlanta’s 15 largest condo projects, the rate of foreclosure ranges from 1 percent to 5 percent. “I don’t want to be an alarmist, but the numbers we’re seeing right now are serious, especially given that oversupply on the market has been a ...
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05.03.08Beazer suit dismissal to be appealedFrom The Charlotte Observer: Lawyers will appeal the dismissal of a Concord couple's lawsuit against Beazer Homes USA that alleges the homebuilder's lending practices led to foreclosures, which hurt property values. A federal judge dismissed the case last week, saying it didn't directly connect Beazer's actions with property value losses for Lea and Mark Tingley. Foreclosures in their Southern Chase neighborhood could have resulted from factors such as job losses and a weaker economy, the judge wrote. That this suit was dismissed in the first place was good news for the Atlanta-based homebuilder which is the subject to a number of other lawsuits ...