The Federal government is considering a pilot program to sell foreclosed properties held by Fannie Mae and Freddie Mac to convert to rentals. What are the basic issues that the program will address, and how will the proposed program work? Find out by reading the article online at The Wall Street Journal.
Federal Pilot Program to Convert Foreclosed Homes Into Rentals
Federal Reserve Chairman Ben Bernanke recently cited a pilot Federal program as a way to address the current housing crisis. The program would sell foreclosed homes owned by Fannie Mae and Freddie Mac to investors in bulk transactions. The intention is that these properties would be converted into rentals by the private sector. Read more online at CNN Money.
Increase in California Foreclosure Sales Bucks Trend
National foreclosure sales were mixed, with most states showing decreases, with the notable exceptions of California and Washington states Foreclosure starts were universally down, primarily due to changes in state regulations and sale location closings. See comparative figures for several western states at Foreclosure Radar.
National Apartment Vacancy Rate Reaches 10-Year Low
The national apartment vacancy rate has dropped to levels not seen for a decade, while average effective apartment rents rose over two percent from the same period last year. Renting has become more popular due to a combination of strict lending standards and increased home foreclosures. Read the full article at HousingZone.com.
Renting is Becoming the New Housing Reality
Former homeowners are joined by new households in seeing renting as a viable and attractive alternative for their housing needs. This is despite record low mortgage rates and falling home prices in most markets across the country. Read the entire article at cnbc.com’s Realty Check.
Home Ownership Will Fall Until 2015 Before Rising
Research conducted by John Burns Real Estate Consulting indicates that foreclosures and cyclical trends will result in a continued decline in the national home ownership rate until the year 2015. The good news is that the home ownership rate should thereafter rise by five percentage points in the following decade. Read the entire article on HousingZone.com.
Las Vegas Housing Market May Be Ready to Rebound
Although the Las Vegas housing market has been hit hard and most likely has further to fall, many investors and home buyers expect the market to rebound. Many builders and see the current shrinking of inventory as a positive indicator of housing recovery in the region. Read the full article online at CNN Money.
Lower Home Prices and Mortgage Rates Lure Buyers
The Wall Street Journal’s recent quarterly survey of conditions in the housing markets of 28 of the nation’s largest metropolitan areas found that prices declined in 23 of these markets. In contrast, rent levels have risen substantially, while mortgage rates are the lowest they’ve been in 60 years. Read the entire article in the Wall Street Journal Online.
Housing Policy Must Adapt to Growing Rental Market
At the recent National Apartment Summit, the president of the National Multi Housing Council stated that the United States must shift its existing housing policies to recognize the increasing number of American families that are choosing to rent rather than own their homes. Read the full article on HousingWire.com.
Big Money Now Buying Foreclosed Homes
Hedge funds, private-equity firms, pension funds and university endowments are plunging into the home foreclosure market. Purchasing foreclosed homes as investment properties has traditionally been dominated by small, mom-and-pop investors. But now, the attraction of potential double-digit returns is attracting big organizations with lots of money to invest. This trend coincides with a time when most bonds and other income investments are yielding very small returns. Read the full article on The Wall Street Journal online.