Second Quarter Real Estate News

Home Prices Falling But Rising
July 22, 2009

Washington’s Federal Housing Finance Agency’s report on home sales in May 2009 shows a negative number on year-over-year, but prices actually rose from April 2009. Some of that increase may be attributed to seasonal fluctuation, as the big developing story on the year clearly is the foreclosure mess and its unemployment-enhanced stamina.

Kentucky Takeaway: Most of the hope in staving off foreclosure appears to reside in federal plans, although some places (Louisville, for example) are beginning to try local programs aimed at helping mitigate the crisis.
http://www.bloomberg.com/apps/news?pid=20601068&sid=aJQTpVkEucpQ


Foreclosures Up 11% in Second Quarter 2009
July 21, 2009

RealtyTrac numbers have been released regarding the first six months of 2009, and there is not a lot of positive news to report. Put simply, it was the worst quarter since RealtyTrac began following the numbers (which, it’s worth pointing out, was only four years ago). Nearly two million foreclosures were filed during the year’s first half, and that number translates into about one house in 84.

Kentucky Takeaway: Overall, Kentucky consistently rates among the strongest performing states, despite the nationwide crisis. Perhaps the state simply did not have as far to fall.
http://www.timesnews.net/article.php?id=9015407


Wells Fargo Sees Increase in Bad Loans
July 21, 2009

Unemployment began to take its toll in the second quarter, as Wells Fargo saw an increase in bad loans during the year’s past three months. Banks are bracing for higher foreclosure numbers amid repeated signs that fewer homeowners are going to be able to keep up with payments for the remainder of the year.

Kentucky Takeaway: As everyone understands, Kentucky is not immune to the ravages of unemployment and can expect corresponding foreclosure problems as the job cuts take shape.
http://www.bloomberg.com/apps/news?pid=20601103&sid=arWOw84xykWk


Fed Keeping Tabs On Commercial Real Estate
July 21, 2009

With the nation in recession, it comes as no surprise that there is trouble brewing on the commercial real estate front. U.S. Federal Reserve Chairman Ben Bernanke admitted that the Fed is concerned that rapid refinancing may need to take place in that sector, as well. Furthermore, Bernanke plans to assist the securitization market through some bond-related initiatives under TALF.

Kentucky Takeaway: Though this is generally a national story, the recession is affecting everyone in the business of selling. Restaurants, malls and local stores all share a stake in obtaining some leniency from lenders during rough economic times.
http://online.wsj.com/article/BT-CO-20090721-710623.html


Three-Week-Old Louisville Foreclosure Prevention Program
July 1, 2009

Starting on July 1st, Louisville began a foreclosure mediation program based on a model used in Philadelphia. With an estimated 400 foreclosures filed each month in the Derby City, it promises to be a busy process, with homeowners gaining access to free legal counsel and face time with lenders. Though foreclosure cannot be avoided in many cases, results from Philadelphia indicate that the increased communication often results in accommodations that otherwise would not be made.

Kentucky Takeaway: The hope is that more Louisvillians can keep their homes or at least work out a best-case scenario as they exit their homes.
http://www.courier-journal.com/blogs/money/blog.html