Monday, February 4, 2013

Tuesday February 5 Housing and Economic stories


TOP STORIES:

Sappy letters to sellers return in tight supply market - (www.ochousingnews.com) One of the most ridiculous features of the housing bubble rally was when buyers would write emotional letters to sellers to try to make their offers stand out in the crowd. In 2004 in particular as the Option ARM permitted buyers to raise their bids to ridiculous levels, competing bids well over asking price prompted sappy letters to appeal to a seller’s emotions to get the deal. Now, with the federal reserve lowering interest rates below 3.5%, we face a similar infusion of affordability allowing buyers to raise their bids. The tight supply engineered by the banking cartel is causing the buyers to bid over ask again as they compete for the few properties available. The return of the ass-kissing letter is another sign of the success the cartel is having in reflating the housing bubble.

Spanish banks' bad loans hit new high in November - (www.reuters.com) Spanish banks' bad loans reached a new high in November, data from the Bank of Spain released on Friday showed, with loans that have fallen into arrears rising by 2 billion euros to 191 billion euros, or 11.4 percent of the outstanding portfolio. This compared with an 11.2 percent bad loan rate in October. Non-performing loans on the books of the country's ailing banks have risen steadily since a decade-long property boom ended four years ago, with the country in its second recession since 2009 and one in four Spaniards out of work. Analysts expect bad loans to keep rising in the coming months and concerns remain about the health of the banking sector, despite an injection of emergency cash from the European Union of more than 40 billion euros ($53 billion).

Algerian hostage crisis prompts international oil companies to evacuate workers - (www.washingtonpost.com) Norway’s Statoil, London-based oil giant BP and Spain’s Cepsa started evacuating workers and their families from Algeria on Thursday in the wake of an attack by Algerian troops on hostage-takers at an isolated natural gas facility in what might turn out to be one of the most lethal incidents in the history of the industry. Statoil said it could confirm the safety of only eight of its 17 employees who had been working at the In Amenas gas facility. Five of those employees escaped Wednesday, and three Algerian employees were found safe Thursday. The company said the Norwegian government was flying in medical personnel. Statoil and BP decided to evacuate nonessential personnel from two other gas processing plants in Algeria — In Salah and Hassi Mouina. At least three planes were expected to leave Thursday night bound for London, Statoil said, adding that about 40 of its employees would be on board.

Marble Fortress Cracked: Falling DC Rents - (www.thedailybeast.com) When I moved to the District in 2007, it was pretty easy to find a one bedroom apartment close to downtown for $1500.  It might not be the most attractive apartment you ever saw, but it would have an actual separate bedroom and a full kitchen. Five years later, the $1500 one bedrooms are thin on the ground, especially if you want to be walking distance from work.  That's one of the reasons that I've been reluctant to label our soaring home prices an actual bubble; while home prices have certainly leapt upwards, they're roughly tracking the rising rents.  The comments sections of local real estate blogs are filled with outraged residents who simply refuse to accept that anyone could possibly charge that for a rental. But now rents in DC have started softening. While demand has certainly risen--DC has been gaining population for the first time in decades--in normal times, it might easily have been absorbed.  Though DC's restrictive housing regulations do restrict supply, there are still plenty of sites within the district borders that could be built on.  And houses are being subdivided into apartments at a pretty brisk clip.  

Own a house in a flood zone? National flood insurance rates set to skyrocket. - (www.patch.com) There was no mincing of words: recovering from Sandy will be difficult, and a decision on federal flood insurance made months before the storm struck will make things even harder. Brick residents got the low-down on the difficult decisions that loom in the future for many families following Sandy - brought on mainly by the impending flood insurance hurdle that could cripple already-strained finances for many - at a series of Sandy Information Fairs held at Brick Township High School Saturday morning. Brick is the first town in New Jersey to offer such information sessions, said Mayor Stephen C. Acropolis.





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