News from CAR
C.A.R. REPORTS SALES DECREASE 36.2 PERCENT, MEDIAN HOME PRICE FALLS 11.9 PERCENT
Home sales decreased 36.2 percent in November in California compared with the same period a year ago, while the median price of an existing home fell 11.9 percent, C.A.R. reported Dec. 21.
“While it is normal for sales to decline at this time of year, regional sales fell more steeply than usual because of the ongoing liquidity crunch and tighter underwriting standards,” said C.A.R. President William E. Brown.
Closed escrow sales of existing, single-family detached homes in California totaled 287,600 in November at a seasonally adjusted annualized rate. Statewide home resale activity decreased 36.2 percent from the 450,930 sales pace recorded in November 2006.
The median price of an existing, single-family detached home in California during November 2007 was $488,640, an 11.9 percent decrease from the revised $554,500 median for November 2006, C.A.R. reported. The November 2007 median price fell 1.7 percent compared with October’s $497,110 median price.
BUSH SIGNS BILL TO OFFER TAX BREAK FOR MORTGAGE FORGIVENESS
President Bush signed a measure in to law Dec. 20 offering homeowners tax breaks on forgiven debt on mortgage refinances or foreclosure work-out programs dispersed from Jan. 2007 through Dec. 31. With the passage of the Mortgage Forgiveness Debt Relief Act of 2007, eligible taxpayers do not have to pay federal income tax on debt forgiven for loans secured by a qualified principal residence.
FREDDIE MAC LAUNCHES ANTI-FRAUD VIDEO ON YOUTUBETM
Freddie Mac has launched an anti-fraud video on YouTubeTM in an effort to warn troubled borrowers about the dangers of falling victim to con artists promising to help them avoid foreclosure through various fraudulent workout options.
“With fraud reports on the rise, we are using every communication channel out there to warn borrowers about these fraudsters, and urge borrowers to call their lenders when they fall behind on their mortgage,” said a Freddie Mac spokesperson. Freddie Mac’s anti-fraud video can be found at http://www.youtube.com/AvoidFraud.
CALIFORNIA HOUSING STARTS DOWN 45 PERCENT
The number of permits issued for new homes in California in November was 5,498, a 45-percent decline from November 2006, according to new data from the California Building Industry Association. Year-over year production of single-family homes declined by roughly 50 percent in November, and construction of multifamily units slid 36 percent.
INFO FOR HOMEOWNERS WITH CLOSED, BANKRUPT LENDERS AVAILABLE
The Federal Trade Commission, which oversees consumer affairs, has produced a new Facts for Consumers publication created to assist homeowners whose mortgage lenders may have closed or gone bankrupt in the wake of the mortgage lending crisis. “How to Manage Your Mortgage if Your Lender Closes or Goes Bankrupt,” provides answers to important questions pertaining to loan servicing transfers; changes to escrow accounts; payment disputes, and more. To download a copy of the pamphlet, go directly to http://www.ftc.gov/opa/2007/12/bankrupt.shtm. To order a hard copy, write to the FTC’s Consumer Response Center, Room 130, 600 Pennsylvania Ave., N.W., Washington, DC, 20580.
U.S. LEADING INDEX DECLINES 0.4 PERCENT
The U.S. leading index, which gauges future economic activity, declined 0.4 percent in November to 136.3, according to the latest data from the U.S. Conference Board. The index score of 136.3 in November was the lowest since mid-2005, and represents the fourth decline in the past six months.
WINFORMS® DESK CALENDAR NOW AVAILABLE
C.A.R. is offering a new WINForms® desk calendar for 2008 that features useful how-to tips for using WINForms® Desktop and WINForms Online® software.
Each month in the 2008 WINForms® calendar features an at-a-glance, step-by-step guide for completing various tasks, including creating templates, updating your software; changing contact information; e-mailing from WINForms Online®, and more. The stand-alone design makes for a must-have educational tool and is intended to serve as a convenient desk reference for new and experienced agents, and is available for $4.95. To order please go directly to http://www.store.car.org/mkg/wf2008calendar, or call (213) 739-8227.
