Market Studies

Both single-family home and condo sales saw remarkable growth in the month of December, but 2009's total sales were still down from overall sales in 2008, The Warren Group, a Boston-based provider of real estate data in New England, recently reported.

Although the dollar amount of mortgage fraud remained virtually unchanged last year, the number of mortgage fraud cases surged, according to a recent report on PRNewswire. Up from 1,488 cases in 2008, the number of mortgage fraud cases in 2009 jumped to 1,677.

Wells Fargo is the nation's top commercial and multifamily mortgage servicer, according to data released by the Mortgage Bankers Association (MBA) Monday, followed by PNC Real Estate and Berkadia Commercial Mortgage. New analysis by MBA also contradicts earlier doom and gloom forecasts regarding maturity levels of commercial real estate loans. The trade group says only about 13 percent, or $184 billion, of the $1.45 trillion dollars in outstanding mortgages held by non-bank investors is scheduled to come due in 2010.

As the economic recovery slowly continues, consumers are looking for ways to gain a solid financial footing. Specifically, they are asking lenders how they can raise their credit scores, reduce debt, and build their savings. That's according to the results of a financial literacy survey Wolters Kluwer Financial Services conducted with 175 banks, credit unions, and mortgage lenders.

According to a recent report by DebtX, a full-service loan sale advisor based in Boston, the aggregate value of DebtX-priced commercial real estate (CRE) loans that collateralized commercial mortgage-backed securities (CMBS) dropped to 75.9 percent as of December 31, 2009, falling 1.8 percent from November 30, 2009.

According to Freddie Mac’s quarterly Refinance Report, 33 percent of borrowers who refinanced their loan in the fourth quarter of 2009 lowered their principal balance. This was the highest cash-in share recorded since the GSE began tracking the characteristics of refinance transactions in 1985.

Marking the first year-over-year increase since 2004, single-family home sales in Rhode Island jumped nearly 12 percent in 2009 compared to 2008, according to The Warren Group, a Boston-based provider of real estate data in New England. With a total of 7,669 single-family home transactions recorded in 2009, sales were up 11.9 percent from 2008.

Despite negative reports regarding commercial real estate, this down market may be a window of opportunity for investors. According to the CCIM Institute and the Real Estate Research Corporation (RERC), commercial real estate is positioning itself to be an attractive investment on a risk-adjusted basis in 2010 and 2011. Property prices in the retail and apartment sectors, in particular, showed moderate increases in the fourth quarter of 2009, breaking the string of significant price declines during the previous 12 months.

Marking the fourth consecutive week of declines, mortgage rates inched down once again this week, both Freddie Mac and Bankrate reported Thursday. According to Freddie Mac's Primary Mortgage Market Survey, rates for 30-year fixed mortgages averaged 4.98 percent with an average 0.6 point for the week ending January 28, 2010, down 0.01 percent from last week. Compared to the same week last year, rates are down 0.12 percent.

Cities in the Sun Belt continue to post the nation's highest foreclosure rates. According to a year-end report released by RealtyTrac Thursday, four states accounted for all top 20 metro foreclosure rates in 2009. Las Vegas, Nevada registered the nation's highest rate - more than 12 percent. California claimed nine of the 20 metros with the highest percentage of foreclosures. Florida was home to eight, with the Phoenix-Mesa-Scottsdale metro area in Arizona also landing a spot on the list.