Origination

As Washington engages in a standoff over budgetary proposals to avert the fiscal cliff, several industry professionals and associations are calling upon lawmakers to avoid slaughtering what was once thought to be a sacred cow: the mortgage interest tax deduction (MID). While many housing professionals view the deduction as a break for homeowners and an incentive for others to purchase their own homes, critics call the MID a "subsidization of the real estate industry."

In Bethany, Missouri, AmeriBid LLC is preparing to preside over the bank-ordered sale of a very unusual property--a medium security prison. Recently announcing plans for a sealed-bid auction in 2013, AmeriBid's regional director Don Gabriel put a positive spin on the proceedings, noting that the 14.56-acre spread was "a great opportunity to own a multi-use property between Kansas City and Des Moines."

2012's upward trends in most housing indicators point to continued growth in the new year--but the road to recovery isn't clear yet, the National Association of Home Builders (NAHB) says in its 2013 outlook. NAHB chief economist David Crowe notes the market is transitioning from a very low demand level to a case where supply may be a problem. As new homes are built to address supply concerns, the new stock is expected to take a much more active role in the recovery.

Keefe, Bruyette & Woods (KBW), a boutique investment bank and broker-dealer, is predicting "more of the same" for the mortgage market in 2013.

Personal income jumped 0.6 percent in November--twice what economists forecast--improving $85.8 billion, while spending rose a hefty 0.4 percent, the Bureau of Economic Analysis (BEA) reported Friday. The growth in spending matched economists├â┬ó├óÔÇÜ┬¼├óÔÇ×┬ó forecasts. The jump in spending reversed a $6.6 billion decline in October but fell short of the $86.2 increase in consumption recorded in September.

On a monthly basis, home values inched up by 0.6 percent to $156,200 in November, according to Zillow's Home Value Index. Compared to November 2011, home values have increased by 5.2 percent, which is the biggest yearly gain since August 2006. Twenty-six of the 30 largest metros tracked by Zillow registered yearly gains. Not surprisingly, Phoenix led with a 23.2 percent increase. The metro was followed by San Jose (+13.4 percent), San Francisco (+12.1 percent), Las Vegas (+11 percent), and Denver (+10.8 percent).

Real GDP growth for the third quarter was revised up again, the Bureau of Economic Analysis reported Thursday, reaching a 3.1 percent annualized growth rate. The report on GDP was the third of three monthly reports tracking the broadest measure of the nation's economic health. GDP growth of 3.0 percent is considered "trend," with above-trend growth suggesting favorable conditions for hiring. In the same report, BEA said corporate profits rose $45.7 billion in the third quarter, more than double the increase in the second quarter.

ClosingCorp, a leading provider of residential real estate closing cost data and technologies for mortgage and real estate professionals, announced Mark Nogaki has joined the company as SVP of sales.

GPE Companies, a Phoenix-based commercial real estate and property management services provider, announced it has been selected as one of the Valley's "Best Places to Work" in 2012 by the Phoenix Business Journal.

Existing-home sales rose 5.9 percent in November to a seasonally adjusted annual rate of 5.04 million, the highest level since November 2009, the National Association of Realtors reported Thursday. Economists had expected the sales pace to improve to 4.9 million. The increase in sales in November was the fourth in the last six months, following a similar pattern from 2011. According to the NAR's data, November existing-home sales--closed transactions--were up 14.5 percent from one year earlier.