Archive for January, 2007

Economy Grows 3.5 Percent in 4th Quarter Even With Housing Slowdown

The economy has grown at a rate of 3.5 percent for the 4th quarter in 2006, higher than economists projected. Many have said that the slowdown in construction would cause a significant recession in the country by this time. However, the economic engine that is the United States has taken the real estate slowdown and [...]

31Jan2007 | Tom Royce | 0 comments | Continued

San Diego Real Estate Fraud Ring Convicted

A real estate investment fraud ring was convicted in San Diego yesterday. The group, First Latino Group, defrauded investors of over 1 million dollars by promising to build low cost housing. These thieves targeted churches and religious groups with sales pitches filled with prayers and Bible passages. Then they would take down payments from the [...]

31Jan2007 | Tom Royce | 1 comment | Continued

High Insurance Costs Hurting Coastal Real Estate Sales

After the hurricanes of the past few years, the insurance companies have significantly increased the insurance costs for homeowners living in coastal regions of the southeastern United States. These insurance increases have had a factor in slowing down the housing boom along coastal Florida, Georgia, South and North Carolinas.
If you think about it, it [...]

31Jan2007 | Tom Royce | 0 comments | Continued

As The SubPrime Market Disintegrates, Wachovia Shuts Equibanc Mortgage

The meltdown in the subprime market is coming to a head as Wachovia is shutting down its EquiBanc Mortgage subsidiary. The subprime lending division is facing tighter restrictions, a limited market for selling the debt, and new regulatory challenges forcing Wacovia to re-evaluate the buisiness.

The Web site of Georgia-based EquiBanc states Wachovia decided to [...]

30Jan2007 | Tom Royce | 0 comments | Continued

New Competition Coming As Research Triangle Is Real Estate Bright Spot

When there is a slump in the marketplace, the smart business people will move their assets and businesses in the direction where there is the greatest opportunity for making a profit. Allen Tate Realtors, a dominant player in the Charlotte region is now making its move into the Raleigh Durham marketplace.
This is instructive not [...]

30Jan2007 | Tom Royce | 0 comments | Continued

Congress Introduces Community Choice In Real Estate Act, or more accurately, Keep Banks Out of Real Estate Act

There has been movement by some of the larger banks in the country to become active participants in all aspects of the real estate transaction. Since the depression banks have been limited to only interacting in the financial side of the transaction, not the brokerage side.
Obviously, the National Association of Realtors has opposed this, [...]

30Jan2007 | Tom Royce | 3 comments | Continued

Anne Pember, Former Cendant Executive, Stays Out of Jail in Cendant Fraud Case

Anne Pember avoided jail time after she plead guilty to conspiracy in the Cendant accounting scandal. Pember, senior vice president of accounting for Cendant, was an instrumental figure in the fraud that cost Cendant over 3 billion dollars. She received 2 years probation and 200 hours of community service. There was no mention of restitution. [...]

29Jan2007 | Tom Royce | 1 comment | Continued

Mea Culpa: Canadian Housing Did Not Grow 11 Percent, Instead 5.3 Percent

Last week I reported a story out of the Ottawa Citizen that housing in the country had risen over 25 years by 11 percent annually. A couple of readers pointed out the error in the math, Buford Twain and Stephen Bond, and we saw the mistake as well, albeit after we posted it to the [...]

29Jan2007 | Tom Royce | 1 comment | Continued

Danny DiVito and Rhea Perlman Selling Their Beverly Hills Home

Danny DiVito and Rhea Perlman, one of the great successful Hollywood marriages, are selling their Beverly Hills home for 32 million dollars according the Los Angeles Times. The couple also have a smaller home, 3,300 square feet, so selling the large Beverly Hills mansion is not going to crimp their style too much.

The actor, [...]

28Jan2007 | Tom Royce | 0 comments | Continued

McMansions (More Like Gentrification) Coming To The Cities

In the past, the term McMansion referred to huge suburban homes that were built at a low cost because the builder was typically able to buy inexpensive land and put large homes on them. The derogatory term McMansion stuck alluding to the mass produced estate homes in a subdivision. The term has now morphed into a [...]

27Jan2007 | Tom Royce | 0 comments | Continued