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Market Data: Home builder ETF’s might be pointing housing market in right direction Economy: January’s US economic and market outlook Financing: Mortgage rates fall further to 3.88 percent Green Building: EPA guide helps locals find financing for green communities Legal Notes: Foreclosure deal with banks is very close
SoCal home sales rise 14 percent 
BloombergAccording to DataQuick, house and condominium sales in Southern California rose 14 percent in December from the previous month as investors and second-home buyers made a record share of purchases. Throughout Los Angeles, Riverside, Ventura, San Diego, Orange and San Bernardino counties, a total of 19,247 homes were sold last month. Investors and second-home buyers matched a February 2011 peak by accounting for 26.4 percent of transactions, up from 25.1 percent in November. The regional housing market in 2012 “might offer the ‘rock bottom’ for pricing that many buyers and sellers have been waiting for,” DataQuick President John Walsh said. Foreclosures and short sales accounted for more than half of Southern California sales.
NAHB Housing Market Index rises to highest level since June of 2007 Builder confidence in the market for newly built, single-family homes continued to climb for a fourth consecutive month in January, rising four points to 25 on the NAHB/Wells Fargo Housing Market Index (HMI), released today. This is the highest level the index has attained since June of 2007. Housing starts fall more than expected in December to cap worst year since records have been kept; building permits remain flat Privately-owned housing starts in December were at a seasonally adjusted annual rate of 657,000. This is 4.1 percent below the revised November estimate of 685,000, but is 24.9 percent above the December 2010 rate of 526,000.Privately-owned housing units authorized by building permits in December were at a seasonally adjusted annual rate of 679,000. This is 0.1 percent below the revised November rate of 680,000, but is 7.8 percent above the December 2010 estimate of 630,000. Philadelphia Federal Reserve survey shows continued moderate growth in January Results from the Business Outlook Survey suggest that regional manufacturing activity continued to expand at a moderate pace in January. All of the broad indicators remained positive this month, and firms continued to report increases in employment. Firms polled reported higher input prices this month, with a notable share of firms reporting price increases for their own manufactured goods. The survey's broad indicators of future activity improved again this month. Initial claims for unemployment drop by 50,000 from previous week In the week ending January 14, the advance figure for seasonally adjusted initial claims was 352,000, a decrease of 50,000 from the previous week's revised figure of 402,000. The 4-week moving average was 379,000, a decrease of 3,500 from the previous week's revised average of 382,500. Consumer Price Index unchanged in December but up by 3.0 percent for 2011 before seasonal adjustment The Consumer Price Index for All Urban Consumers (CPI-U) was unchanged in December on a seasonally adjusted basis, the U.S. Bureau of Labor Statistics reported today. Over the last 12 months, the all items index increased 3.0 percent before seasonal adjustment. Industrial production rose by 0.4 percent in December and by 3.1 percent in 4Q 2011 Industrial production increased 0.4 percent in December after having fallen 0.3 percent in November. For the fourth quarter as a whole, industrial production rose at an annual rate of 3.1 percent, its 10th consecutive quarterly gain. In the manufacturing sector, output advanced 0.9 percent in December with similarly sized gains for both durables and nondurables. The output of utilities fell 2.7 percent, as unseasonably warm weather reduced the demand for heating; the output of mines moved up 0.3 percent. At 95.3 percent of its 2007 average, total industrial production in December was 2.9 percent above its level of a year earlier. The capacity utilization rate for total industry rose to 78.1 percent, a rate 2.3 percentage points below its long-run (1972--2010)average. Wholesale prices fall unexpectedly in December but still up by 4.8 percent for all of 2011 The Producer Price Index for finished goods declined 0.1 percent in December, seasonally adjusted, the U.S. Bureau of Labor Statistics reported. Prices for finished goods moved up 0.3 percent in November and fell 0.3 percent in October. At the earlier stages of processing, the index for intermediate goods decreased 0.5 percent in December, and crude goods prices moved down 1.1 percent. On an unadjusted basis, the index for finished goods increased 4.8 percent in 2011 after rising 3.8 percent in 2010. Mortgage applications rise sharply in second week of new year Mortgage applications increased 23.1 percent from one week earlier (last week's results included an adjustment for New Years Day), according to data from the Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey for the week ending January 13, 2012. The Market Composite Index, a measure of mortgage loan application volume, increased 23.1 percent on a seasonally adjusted basis from one week earlier. The Refinance Index increased 26.4 percent from the previous week to its highest level since August 8, 2011. The seasonally adjusted Purchase Index increased 10.3 percent from one week earlier to its highest level since December 12, 2011. 
The MetroIntelligence Economic Update is provided to BuilderBytes by MetroIntelligence Real Estate & Economic Advisors.
Home builder ETF’s might be pointing housing market in right direction 
ETF TrendsThe home builder exchange traded funds assembled at more than 2 percent the National Association of Home Builders/Wells Fargo housing market index rose to its highest level in over four years. The index increased three points to 24 for the month of January, compared to 21 in December 2011. This level has not been reached since June 2007 – and was an unexpected, but was an outstanding surprise for not only those in the industry, but for everyone with signs of modest market improvement. “Builders are seeing greater interest among potential buyers as employment and consumer confidence slowly improve in a growing number of markets, and this has helped to move the confidence gauge up from near-historic lows in the first half of 2011,” said NAHB Chief Economist David Crowe. California land broker sees boost in 2011 sales Land Advisors Organization In 2011, the California Division of Land Advisors Organization closed more than 100 transactions totaling nearly $400,000,000 in total consideration. While the broader land market contracted more than 20% in 2011 over 2010, the California Division saw its business expand by more than 11% year-over-year. The closing of the final phase of Vista Del Verde in Yorba Linda helped push the Division through to a successful yearend. Read more at the firm’s blog… “Landed.”
Advocates urge focus on Utah’s affordable housing 
The Salt Lake TribuneUtah is in dire need for affordable housing, according to advocates who are urging lawmakers and local government counterparts to put that need "at the forefront of their decision making." The issue of housing has been something left off of the agendas in the state. To be able to live in a two-bedroom apartment that runs $769 a month; a household must earn $14.80 an hour, or $30,775 a year. According to the National Low Income Housing Coalition, the average renter earns $11.38 an hour, which is enough to afford monthly rent of just $592 a month. Many residents, however, are still struggling to find jobs. That is why there is a push for affordable housing rather than the increase in the use of homeless shelters.
January’s US economic and market outlook 
PRNewswireThe new U.S. Economic and Housing Market Outlook for the month of January has been released by Freddie Mac indicating that although the economy is in a better place than early 2011, a speedy recovery still seems unlikely to occur in 2012. However, what the U.S. can expect this year is economic growth that will most likely strengthen to about 2.1 percent in the first quarter. The unemployment rate is likely to increase after seasonal gains are reversed. Mortgage rates will remain very low in the beginning of the year, but home sales are expected to grow between 2 and 5 percent year-over-year. The housing-market recovery will continue its delay, however, as long as there remains a gap between buyer and seller sentiment.
Mortgage rates fall further to 3.88 percent 
BloombergAccording to Freddie Mac, the average rate for a 30-year fixed loan fell to 3.88 percent from 3.89 percent, hitting the lowest levels in records dating to 1971. Rates dropped as the number of homeowners looking to reduce their monthly payments increased. However, the average 15-year rate saw an increase to 3.17 percent from 3.16 percent. The U.S. housing market has begun to show signs of improvement. Refinancing applications experienced an increase of 26 percent in the period ended Jan. 13 to the highest level since August, according to a Mortgage Bankers Association index, and a number of purchase applications rose 10 percent.
EPA guide helps locals find financing for green communities 
American City & CountryThe U.S. Environmental Protection Agency (EPA) has been able to provide new tools to state and local governments that are looking to increase energy-efficiency and invest in renewable energy. The EPA has put together a Clean Energy Financing Decision Tool and Guide to help states and communities figure out how to pay for going green. Increasingly, governments have found that up-front costs prevent homeowners, building owners and businesses from making more efficient or renewable energy improvements. The EPA explained that its two new aids will show how different clean energy financing programs can make energy improvements more affordable. The Financing Program Decision Tool is geared for the early stages of choosing a financing plan for energy projects. A community crafted for conservation 
Builder & DeveloperIn its third generation with a family legacy of quality craftsmanship, De Young Properties prevails as a builder and developer in a challenging housing market. Located in a quaint community in Fresno, Calif., Chestnut Grove is comprised of 50 single-family detached homes and is a 2011 Gold Nugget Grand Award winner for “Zero Net Energy Home Design” and “GreenPoint Rated Community.” Starting from the $200,000s with 10 different floor plans ranging from 1,730 to 3,484 square feet with up to six bedrooms, four-and-a-half baths and up to four-car garages, these homes offer a traditional design on the outside with innovative interiors. http://www.bdmag.com/nov2011-40.php
Condo plan moves to next step 
The Orange County RegisterSeveral old car dealerships sites are being considered by the City Council for 151 condominiums. The proposed project is called the Towne Center Residential Project, and would be built by Brookfield Residential who is looking to build the attached homes on a 9-acre site that was once home to Buick, Pontiac and GMC, said Dave Bartlett, vice president of land entitlement for Brookfield. Each of the 11, two-story buildings would contain 12 to16 homes and according to developers, the project could house 436 residents and would require a zone change from commercial to residential.
Foreclosure deal with banks is very close 
MSNBCAccording to U.S. Housing and Urban Development Secretary Shaun Donovan, the U.S. government and banks are "very close" to reaching a legal settlement over alleged foreclosure abuses that could help about 1 million underwater borrowers get mortgage relief. "We're very close to a settlement that would both fix the servicing problems, but also help over a million families around the country stay in their homes and get help," Donovan said. The bank talks have dragged into their second year. Some states, including California and New York, have criticized negotiators as being too lenient on the banks and suggested the proposed settlement would not provide enough relief to the housing market. http://www.msnbc.msn.com/id/46042764/ns/business-real_estate/
New England’s not ideal for retirement 
Senior Housing NewsNew England all together may be a sore spot for development as five out of the six states composing the region made it to TopRetirements.com’s list of the 10 worst states for retirees in 2012. Connecticut ranked first as the absolute worst state to retire in, because it’s not considered to be affordable due to its property taxes, personal income taxes and cost of living, according to John Brady, president of TopRetirements.com. Fiscal health, property taxes, state income tax, cost of living and climate make Rhode Island, Massachusetts, Maine and Vermont a problem-area for senior housing development. Elder Services seeks to build housing in Tewksbury The Boston Globe A regional agency is seeking to build low-cost senior housing in Tewksbury with the help of a recent federal grant. With the support of local officials, Elder Services of the Merrimack Valley, Inc., proposed to develop 32 subsidized units of supportive, rental housing for seniors and one unit for a resident manager on a Livingston Street property owned by the town’s Housing Authority. The U.S. Department of Housing and Urban Development announced it was awarding $5.4 million to help fund the project. HUD also awarded $511,200 to cover rental subsidies for the first three years, after which it would consider extending the payments. Elder Services, a nonprofit agency that provides home care and other services in 23 area cities and towns, has previously developed two supportive senior housing projects.
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