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Jan

22
2008

The ax has fallen

By Jessica Swesey, Tuesday, January 22, 2008.
IntoTheBox.tv delivers a timely report on Wall St. layoffs, bonuses and the impact on the economy and housing markets.  more...

Lawyers really are recession-proof

By Jessica Swesey, Tuesday, January 22, 2008.
New York Times has a story today about a disgruntled homeowner who's suing her buyer's agent because her home lost value right after she purchased it. (See, "Feeling Misled on Home Price, Buyers Sue Agent.") Tons to discuss here, including:...  more...

Fed makes emergency rate cut

By Jessica Swesey, Tuesday, January 22, 2008.
The Federal Reserve today cut its key overnight interest rate by three-quarters of a percentage point in an effort to stave off fears over a potential U.S. economic recession. The rate on overnight loans between banks now stands at 3.5...  more...

Maryland office deal hits $135M

By Inman News, Tuesday, January 22, 2008.

JBG Cos. has purchased Artery Plaza free and clear of debt for $135 million, brokerage Holliday Fenoglio Fowler L.P. announced today.

Artery Group LLC sold the 11-story, class A office building and 800-space parking garage, which is located at 7200 Wisconsin Ave. in Bethesda, Md.

Artery Plaza has 276,191 square feet of office space that at the time of sale was 94 percent leased to tenants that included Linowes & Blocher law firm, Cambridge Information Group, PNC Financial, University Research, Edens & Avant, Greystone Servicing Corp. and The Artery Group.  more...

Silicon Valley R&D space sold

By Inman News, Tuesday, January 22, 2008.

NAI BT Commercial recently brokered the sale of more than 109,000 square feet of research and development space in separate deals in San Jose, Calif.

The total value of the transactions was not disclosed.

In the first transaction, Legacy Partners sold an 85,367-square-foot R&D building to a limited liability company, Fox Creek Fund LLC. The two-story property is located at 1980-1998 Concourse Drive.  more...

N.Y. investor lands Alabama apartments

By Inman News, Tuesday, January 22, 2008.

Arbors of Madison, a 204-unit multifamily community in Madison, Ala., has sold to an out-of-state investor for $10 million free and clear of debt.

A multifamily buyer from the metropolitan New York area purchased the property from Atlanta-based Alexander Properties Group Inc.  more...

Fed's interest-rate cuts will benefit ARM, HELOC borrowers

By Matt Carter, Tuesday, January 22, 2008.

The unscheduled and dramatic cut in short-term interest rates announced today by the Federal Reserve will provide immediate relief for borrowers with home-equity loans or facing interest-rate resets, mortgage market experts say.

But long-term rates -- which were at 2 1/2-year lows before today's 75-basis-point reduction in the discount rate and the target for the federal funds overnight rate -- could move in the other direction if bond market investors get nervous about inflation.  more...

BofA, Wachovia, Ambac reveal Q4 write-downs Premium Content

By Inman News, Tuesday, January 22, 2008.

Losses on securities and derivatives backed by mortgages and other debt largely cancelled out fourth-quarter profits at Bank of America Corp. and Wachovia Corp, and left bond insurer Ambac Financial Group Inc. $3.26 billion in the red.

Bank of America said fourth-quarter profits fell to $268 million, compared with $5.26 billion a year ago. Profits for the year were also down 29 percent, to $14.98 billion.  more...

California foreclosure activity still rising

By Inman News, Tuesday, January 22, 2008.

The number of mortgage default notices filed against California homeowners jumped last quarter to its highest level in more than 15 years, a real estate information service reported.

Lending institutions sent homeowners 81,550 default notices during the October-to-December period.  more...

Fed slashes target rate to 3.5%

By Inman News, Tuesday, January 22, 2008.

The Federal Open Market Committee today lowered its target for the federal funds rate 75 basis points to 3.5 percent -- the steepest cut since 1984 -- in an attempt to prevent a market meltdown and recession.

The Fed took this action between its regularly scheduled monetary policy meetings. It's the first time it has cut rates between such meetings since just after the Sept.  more...

Beware of kitchen-range fire hazard

By Paul Bianchina, Tuesday, January 22, 2008.

Q: I purchased a 27-inch, four-burner Wolf commercial range, with an oven, about 30 years ago. I was told when I purchased the range (commercial) that there should be at least six inches between the range and cabinets on both sides; the rear was tiled already. I had my kitchen remodeled in November 2006. Is there a way to protect my cabinets by installing any fireproofing products so that the range can set within the one or two inches against the cabinets, or should I tile the rear wall and the two sides next to the cabinets? --Fran K.  more...

Inspector clueless about furnace recall

By Barry Stone, Tuesday, January 22, 2008.

Dear Barry,

When we purchased our home, the home inspection report listed the furnace as "serviceable." After moving in, we had problems with heating, so we called a heating contractor. He said we have a Premier furnace that was recalled because of major safety problems. So now we have to buy a new furnace. Our Realtor says the home inspector is responsible. But the home inspector says he can't be expected to know about every product that's been recalled. Is the home inspector liable for having approved the furnace or are we stuck with the expense ourselves? --Jessica  more...

Fitch warns of First American Corp. ratings downgrade

By Inman News, Tuesday, January 22, 2008.

Analysts at Fitch Ratings say it's likely they'll lower the ratings of First American Corp. and its title insurance companies by a notch once the company posts results for the year on Feb. 28.

In separate announcements last week, First American said it was spinning off its title insurance and related financial business into a separate company, and that it expected to report a $50 million fourth-quarter loss (see Inman News story).  more...