Sales of newly built homes sank last year at the steepest pace since record keeping began in 1963 - and home builders expect their worst recession in decades to persist until at least the middle of this year.
New home sales totaled 774,000 in 2007, off a staggering 26% from 2006. The median price was nearly flat at $246,900. Since peaking in July 2005, new home sales have plunged nearly 57%, and construction permits have fallen to half the level they were then.
For December 2007, adjusted annual rate, of 604,000 homes sold - down 41% from last December.
Prices are down 10%, to $219,200.
The National Association of Home Builders says about 4% of builders were guaranteeing home values, 58% were offering price cuts, more than half were paying some buyers closing costs and 61% were offering free upgrades, according to its November survey of about 400 builders nationwide.
Tuesday, January 29, 2008
Weekly Box Office
Opening week for each:
#1 Meet the Spartans $18.5 million
#2 Rambo $18.2 million
#7 Juno, total $100 million in 8 weeks
#8 National Tresure, total $205 million in 6 weeks
#1 Meet the Spartans $18.5 million
#2 Rambo $18.2 million
#7 Juno, total $100 million in 8 weeks
#8 National Tresure, total $205 million in 6 weeks
Countrywide - Regulatory Crackdown
The fear of potential regulatory crackdowns helped drive Countrywide Financial Corp into the arms of acquirer Bank of America Corp, people familiar with the situation say. Though the big home mortgage lender faced large and unpredictable losses on defaults, the more immediate danger was pressure from regulators, politicians and rating firms. The $4 billion deal was announced Jan 11th.
Countrywide could no longer raise money through short-term borrowings in the capital markets or sales of mortgages other than those that could be guaranteed by government sponsored investors Fannie Mae and Freddie Mac. That forced Countrywide to rely much more heavily on two other sources of funding: deposits at its savings bank unit and borrowings - so called advances from the Federal Home Loan Banks system. In 2007, 1st quarter $26.5 billion, 2nd quarter $28.8 billion, $51.1 billion, $47 billion. Countrywide was already near a cap on the amount of FHLB borrowings it could obtain under rules that limit those to 50% of assets held by the borrower.
Countrywide could no longer raise money through short-term borrowings in the capital markets or sales of mortgages other than those that could be guaranteed by government sponsored investors Fannie Mae and Freddie Mac. That forced Countrywide to rely much more heavily on two other sources of funding: deposits at its savings bank unit and borrowings - so called advances from the Federal Home Loan Banks system. In 2007, 1st quarter $26.5 billion, 2nd quarter $28.8 billion, $51.1 billion, $47 billion. Countrywide was already near a cap on the amount of FHLB borrowings it could obtain under rules that limit those to 50% of assets held by the borrower.
Friday, January 25, 2008
Toilet Tattoo
www.toilet-tattoos.com
Adorn the lid with a vinyl film that is removable, reusable and wipes clean. They're $10 each and come in a slew of patterns.
Autographed decals are being auctioned on Ebay beginning Feb. 11th, to raise money for the American Cancer Society.
Adorn the lid with a vinyl film that is removable, reusable and wipes clean. They're $10 each and come in a slew of patterns.
Autographed decals are being auctioned on Ebay beginning Feb. 11th, to raise money for the American Cancer Society.
Cool Cat
www.ModernCat.com
Cat owners, and cats, are purring over a recent onslaught of stylish cat furniture and accessories.
Litter-pan covers that double as benches, cabinets or planters (www.Kattbank.com). Wall-mounted scratching pads that look like low-hanging art works. Curvy kitty beds, chaises and perches that look like modern sculpture. Stainless-steel food dishes perfectly suited to a stainless-steel kitchen (www.FivePetPlace.com).
Cat owners, and cats, are purring over a recent onslaught of stylish cat furniture and accessories.
Litter-pan covers that double as benches, cabinets or planters (www.Kattbank.com). Wall-mounted scratching pads that look like low-hanging art works. Curvy kitty beds, chaises and perches that look like modern sculpture. Stainless-steel food dishes perfectly suited to a stainless-steel kitchen (www.FivePetPlace.com).
Home Sales Plummet
Sales plummeted 13% in 2007, the steepest annual dive in 25 years. The most severe real estate recession in a generation. And the median US home price fell, probably for the first year since the Great Depression. The 2008 outlook remains equally grim. Chief Economist for the Mortgage Bankers Association, Doug Duncan, says sales could fall a further 13% this year.
Bank of America
Yesterday, BofA sold $12 billion of preferred stock, twice as much as planned. Sold to bolster capital and help it absorb acquisitions after 4th quarter profit fell 95%. The 2nd largest US bank said it sold $6 billion of perpetual preferred shares and $6 billion of perpetual preferred shares convertible into stock. Perpetual shares do not have a maturity date. The preferred shares carry an 8% dividend. The convertible preferred shares carry a 7.25% dividend and a $50 conversion price, which is 25.3% above the bank's closing price. The shares fell 1.7%, to close at $39.90.
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