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Real Estate News - December 2007
The following news stories are those which are most important for understanding the house price crash and the impact on house prices going forward...
December 29-30-31
Some of the City's biggest investment banks have stopped lending to commercial property buyers, stifling deals in an already depressed market according to reports in the Sunday Telegraph
Banks Abandon Effort To Set Up Big Rescue Fund
MERRILL IN TALKS FOR BIGGER BOOST TO CAPITAL: REPORT
DEFAULTS ON INSURED MORTGAGES AT RECORD HIGH
Guardian: Merrill seeks more funds to avoid crisis
HOUSE PRICE GROWTH FALLS AGAIN
GoldMoney Alert - 29 December 2007
December 28
OFFICE PROPERTY MARKET PUMMELLED SAYS RESEARCH
The president's bailout for subprime adjustable-rate mortgages won't help homeowners who represent the next wave of trouble: borrowers with good credit who took out option ARMS
CITI, HSBC AMONG BANKS MULLING SELLING UNITS: REPORT
The housing market remained in the doldrums in November, with mortgage approvals more than 40% below their level of the previous year, according to the trading body that represents Britain’s largest banks
NEW-HOME SALES HIT 12-YR. LOW, RAISING FEARS OF RECESSION
Nationwide: House prices fall by 0.5% in December
Times Online: Huge rate rise looming for sub-prime credit card users
December 27
Fraud Seen Driving Foreclosures
Pace of Decline in Home Prices Sets a Record
Mortgage applications fall to lowest in a year
Citi, Merrill, JPMorgan face larger writeoffs
Merrill Lynch plans to lay off 1,600: report
FT: November mortgage approvals down 40%
BBC: US asset rescue scheme abandoned
December 26
Merrill Lynch Sells Stake to Singapore Firm
Five Banks to Refinance New England Subprime Loans
S&P: Home prices in 20 major U.S. cities were down 6.1% released Wednesday by Standard & Poor's
December 25
KeyCorp Will Cut 870 Jobs, Post Fourth-Quarter Loss
Americans fall behind with cedit card payments
December 22-23-24
As real estate values fall, local governments from northern Virginia to Southern California are cutting services, eliminating staff and shelving projects
Foreclosure filings for November surged 68% from a year ago
GE buys Merrill Lynch lending unit
HOUSE SALES TAKE LONGER AS PRICES DROP
GoldMoney Alert - 23 December 2007
December 21
Fed's New Rules On Mortgages Draw Hostility from Critics
KNOCK-DOWN CITY OF LONDON PRICES REVEAL IMPACT OF CRUNCH
Friends Provident yesterday became the first property company in the current downturn to stop private investors withdrawing cash from a property fund
Reuters: Pound hits all-time low against euro
RTT News: Credit Agricole Takes Further 1.6 Bln Euros Writedown
FT: [Greed & Fear] Financial constipation: The big ‘dump’ is coming
December 20
China raises key interest rates to fight inflation
Frustration Builds As Property Taxes Rise
China Investment Corporation's $5 billion investment in Morgan Stanley marks an abrupt strategy shift for the $200 billion fund, which recently signaled a more conservative approach. The deal's structure is also a big change from the fund's $3 billion transaction with Blackstone Group.
Bear Stearns Reports First-Ever Quarterly Loss
Goldman's big bet that securities backed by subprime mortgages would fall in value generated nearly $4 billion of profits for the firm. Next week, Goldman is expected to report record net annual income of more than $11 billion
MBIA details huge mortgage exposure
http://www.reuters.com/article/businessNews/idUSWNAS505520071220?feedType=nl&feedName=usbusinessafternoon
FT.com: Bear ends year with $1.9bn credit writedown
FT: China sinks £5Billion in Morgan Stanley
Firstrung: Woolwich restricts lending to 65% on buy to let new build
December 19
The ECB swamped money markets with $501.7 billion in two-week loans to banks, the largest sum it has lent in a single shot
DTZ issued a profit warning today on the back of economic uncertainty and 'very low levels of activity' in the investment market
MBS Apartment Titan Struggles Against Defaults - The apartment complex owner is in danger of defaulting on nearly $400 million in loans
Hovnanian shares tumble 17 percent after results
S&P changes MBIA, Ambac outlook to negative
THE BANK OF ENGLAND'S RATE-SETTERS VOTED UNANIMOUSLY THIS MONTH IN FAVOUR AN INTEREST RATE CUT
Market Watch: Pound trades back below $2 mark for first time in three months
Yahoo Finance: Morgan Stanley Post Loss on 4Q Writedown
FT: Investors stunned by ECB’s €350bn
December 18
The British government deepened its involvement in Northern Rock on Tuesday, offering to guarantee more of the stricken mortgage bank's liabilities as it battles to find a private-sector buyer
Single-family housing starts hit 16-year low
The New York Times: Housing Starts Decline 3.7%
Fool: Just Eight Balance Transfer Cards Left
GoldMoney Alert - 18 December 2007
December 15-16-17
IPD figures show November saw the worst ever monthly returns from commercial property
December home builder sentiment holds at record low
NBC-TV: Schwarzenegger Will 'Declare Fiscal Emergency' In Weeks
Financial Times: Buy-to-let financing evaporates
FT: Moody's puts B&B under ratings review
December 14
Why Borrowers May Not Benefit From Rate Cut Rates remain high on many adjustable-rate mortgages, as they aren't tied to conventional benchmarks
Inflation hottest in two years, output solid
Money Expert: Personal debt exceeds gross domestic product for first time ever
BBC: Euro inflation hits six-year high
Firstrung: Sub prime mortgage availability falls by 64% since July - Moneyfacts
BBC: Citigroup to take on $49bn debts
FLAT GLUT LEAVES REGIONAL MARKETS FACING COLLAPSE
December 13
SPIKING LIBOR RATES RAISE FEARS OF LIQUIDITY CRISIS AMONG BANKS
PROPERTY VALUES TUMBLE IN NOVEMBER
COMMERCIAL PROPERTY SUFFERS A SHOCKER
HOUSING MARKET SLOWDOWN DEEPENS
Citigroup said late Thursday that it will take $49 billion worth of assets from several investment entities that have been damaged by the subprime mortgage meltdown and add that to its own balance sheet - a move that could cut deeply into the Wall Street giant's capital base
Countrywide loan funding tumbles 40 percent in November
December 12
HOMEOWNERS PUZZLE OVER WHAT'S BETTER: TO SELL OR RENT OUT
FED CUTS KEY RATES BY ONLY QUARTER-PT.; WALL ST. NOT HAPPY
WASHINGTON (MarketWatch) -- The Federal Reserve on Wednesday announced new steps to ease the stress in financial markets
Driven by a weaker dollar and much higher prices for petroleum and natural gas, import prices surged 2.7% in November, the largest monthly increase in 17 years, the Labor Department reported Wednesday
U.S. foreclosures up 31.8% in November from previous month
Central banks in Europe and North America moved to increase the amount of money they could lend to banks in an attempt to ease the credit squeeze
Washington Mutual will reduce its dividend and sell preferred stock in a move to raise $3.7 billion in capital. More job cuts are planned
December 11
The Federal Reserve on Tuesday cut its benchmark lending rate by a quarter percentage point to help the financial markets weather a persistent credit crunch and stave off economic recession, but combined the move with a statement that disappointed many observers and sent U.S. stocks tumbling
BBC: Freddie Mac sees $12bn credit hit
Times Online: Crunch hands Lloyds TSB £201m writedown
FT: Abramovich agrees Highland Gold deal
FOOD PRICES RISING AT HIGHEST RATE FOR 14 YEARS
Bloomberg.com: Washington Mutual to Take Writedown, Slash Dividend
PROPERTY TRUST CUTS VALUE BY NEARLY 18%
Subprime hotline has 45,000 calls in three days
Freddie Mac expects $10-12 billion credit losses
Inflation Picks Up in China; Trade Gap Grows
Fed Cuts Key Interest Rate by a Quarter Point
December 8-9-10
BBC News: UK factory gate prices see jump
HOW LONG WILL THE DOLLAR REMAIN THE WORLD'S PREMIER CURRENCY?
NEW STAR SLASHES PORTFOLIO VALUE BY 8%
PROPERTY INVESTMENT DOWN 60% ON SAME QUARTER LAST YEAR
PROPERTY INVESTORS HIT BY LACK OF CASH
PROPERTY FUNDS FACE LIQUIDITY CRISIS
Pending home sales index rises 0.6% in October
Bank of America shutting $12 billion cash fund. Cash withdrawals halted; investor redemptions paid 'in kind'
UBS to take further $10 billion subprime write-down. Swiss group to post quarterly loss; gets $11.5 billion capital injection
UBS writes down $10 bln, Singapore injects capital
Toll Brothers in Red On Land Write-Downs
The mortgage plan outlined by the Bush administration won't help all borrowers with subprime adjustable-rate mortgages. We look at who qualifies for the rate freeze and options for those who don't
December 7
FT index still rising but suggests "softening market"
Seeing chance of recession, Merrill says sell credit cards
On Mortgage Relief, Who Gains the Most?
INVESTORS BALK AT $100BN BAILOUT
RBS SETS ASIDE £1.5BN AND SLAMS 'APOCALYPTIC' FORECAST FAD
White House plan may hurt mortgage investors - Resets may be frozen unnecessarily, denting value of mortgage securities
December 6
Mortgage Strategy: TML confirms administration rumours
US Home Foreclosures Hit Record High in Third Quarter, Mortgage Bankers Report
Bloomberg: Trichet Says ECB Stands Ready to Counter `Strong' Inflation
The European Central Bank (ECB) has left interest rates unchanged at 4%, in line with analysts' expectations
BANK OF ENGLAND REDUCES BANK RATE BY 0.25 PERCENTAGE POINTS TO 5.5%
BBC: RBS in £1.25bn credit crunch hit
Reuters: Sterling hits 4-1/2 yr low vs euro, eyes on rate decision
As the subprime loan crisis deepens, Wall Street firms are increasingly coming under scrutiny for their role in selling risky mortgage-related securities to investors
SUB-PRIME LOSSES COULD SOAR AS BOND FUNDS FALL
HOUSE BUILDERS RISE BUT SET TO LOSE FTSE100 STATUS
CREST SALES SLUMP AS BUY-TO-LET WOES CONTINUE
Record-setting foreclosures. Latest MBA survey shows delinquencies at 21-year high
U.S. households lost $128 billion on real estate. Net worth rose 4.4% as borrowing slowed to eight-year low, report shows
Toll Brothers swings to quarterly loss. Luxury builder suffered worst year ever, but shares surge on subprime plan
The mortgage industry has agreed on a plan to help some struggling borrowers keep their homes, Bush administration officials said Thursday
December 5
Bloomberg: U.K. House Prices Fall the Most Since December 2006, HBOS Says
Several Wall Street firms have been subpoenaed by New York state prosecutors seeking information related to the packaging and selling of debt linked to risky mortgages, according to a published report Wednesday
MERRILL VEHICLE SEES RECORD LOAN DRAWDOWN
December 4
Reuters: BoC cut raises chance of BoE move, hits sterling
MORTGAGE LENDERS TOLD TO PREPARE FOR STORM
NYTimes: The Long and Short of It at Goldman Sachs
MARKET INTEREST RATE JUMPS TO NINE-YEAR HIGH
In a move aimed at boosting its capital to manage risk in the housing and credit markets, big-mortgage buyer Fannie Mae said Tuesday it's cutting its dividend and offering $7 billion in stock
With the Bank of Canada cutting interest rates on Tuesday, the U.S. subprime mess has thus claimed another victim, contrary to the happy talk from U.S. officials earlier in the year that it would remain "contained" to a small sector of the U.S. economy
H&R Block Inc., the biggest U.S. tax preparer, shut its subprime home-lending unit and will cut 620 jobs after an agreement to sell Option One Mortgage Corp. to Cerberus Capital Management LP unraveled
Citigroup's Subprime Losses `Greatly Exceeded' Its Profits, Executive Says
BANK RATES HIT NINE-YEAR PEAK
Bank of Canada cuts base rate by quarter-point to 4.25%
December 1-2-3
CNN: Builder dumps homes in Morgan Stanley deal
Times: Buy-to-let landlords fear they may have to sell as sub-prime mortgage deals dry up