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GLOBAL MARKETS

Global Demographic Shape Future of Real Estate Three key demographic trends--aging global population, rapid urbanization and new migration patterns--will shape the real estate industry of tomorrow, according to Global Demographics 2008: Shaping Real Estate’s Future, a new publication by ULI

(ULI). The report provides insight about the effect of global demographic change on real estate through a review of critical issues, an examination of core fundamentals and an analysis of underlying factors. REALTORS® who understand these trends can make business decisions to embrace the trends and grow their business accordingly. Real estate implications addressed from the report include for these trends include: 1) Growth in the retirement housing market, medical facilities and an increased demand for affordable senior housing and senior housing options in ethnic communities; 2) Increased investment in urban infrastructure and increased need for both housing and retail services for a growing urban workforce, better land use control policies will be needed, and in stagnant or shrinking markets new construction will be viewed as replacement properties; 3) increasing and more diversified migrants will require international-quality real estate, especially in emerging markets, and the estimated $318 billion in remittances from immigrants to their families will increasingly support residential and retail development in the country of origin. Trends vary by continent with North American benefitting from migration patterns and Europe and Japan being impacted by aging populations. Investors and developers, particularly, should take note of such trends. Read a detailed Click Here for Detailed Article on the report.

"CHIMEA" is Hot New Region for Investment According to recent Real Estate Opportunity Index Click Here For Full Article, a global strategic management consulting firm, the most popular targets for companies, developers and investors scouting the world for real estate bargains is the new economic region stretching from China across India and the Middle East to Africa--dubbed CHIMEA. The Real Estate Opportunity Index reports that the top 50 emerging markets represented in the report spent a combined total of $1.7 trillion on construction in 2007, with a 5-year compound annual growth rate of up to 6%. The U.S. credit crunch has resulted in a growing number of real estate investors looking outside the United States and Europe for opportunities, and according to A.T. Kearney, international property developers are finding the CHIMEA region's large and rapidly growing markets too attractive to ignore.

Focusing on emerging global markets, the index weighs real estate development potential based on construction spending and growth as well as a combination of country risk and ease of doing business. With their rapid growth rate, China and India top the index with Thailand in a more distant third place. China’s estimated construction spending for 2007 alone totals more than $500 billion. Saudi Arabia dominates the Middle East sitting in 6th place on the full list, with the UAE coming second in the region. The Index also notes that investors from CHIMEA have $4.1 trillion to invest, and real estate development remains an attractive destination for capital. The Real Estate Opportunity Index was designed to help property developers make investment decisions outside familiar markets.

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Hundreds Charged in Fraud Sweep

A crackdown on mortgage fraud in recent months has led to charges against more than 400 developers, mortgage lenders, lawyers, real estate practitioners, and appraisers since March.

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WaMu Lays Off 1,200 More Workers

Washington Mutual Inc., one of the country's largest mortgage lenders, cut about 2.6 percent of its workforce Thursday, in an effort to return to profitability.

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Mortgage Rates Climb to 9-Month High

Freddie Mac reports a jump in the 30-year fixed mortgage rate, which analysts say contributed to the 8.7 percent drop in loan applications the past week.

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Housing Relief Bill Threatened by Veto

A bipartisan coalition is ignoring the White House's threats and working to get enough votes to be able to override any potential veto of the foreclosure rescue bill.

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Divorcing Couples Stay Under Same Roof

The slowing housing market has some divorced couples realizing they have no other choice but to live with their ex until they can sell the house.

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A Stripped-Down Approach to Selling

A Florida developer hopes to bring more buyers in to its lingering condos on the market by advertising a clothing-optional pool to sweeten the deal.

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MARKET RECAP

Last week, a leading gauge of U.S. home sales showed surprising strength. April pending home sales rose 6.3% from March to an 88.2 index in April, the highest level in six months, the National Association of Realtors reported.

More encouraging economic news was forthcoming from the retail sector, where sales rose twice as much as forecast in May, as Americans snapped up electronics, clothes and furniture, evidence that they aren't hoarding their tax-rebate checks or using them just to buy gasoline. (Indeed, sales excluding gas increased 0.8%.)

Still, signs of economic weakness persist. Bank repossessions more than doubled and foreclosure filings rose 48% in May, according to RealtyTrac, which also reported that one in every 483 homeowners lost their house to foreclosure or received either a default warning or notice that their home would go up for sale at auction.

A surge in consumer prices was another sign of continued weakness. The consumer price index increased 0.6% in May, the most since November, after a 0.2% gain the prior month. The recent surge in oil and food prices has caused traders to bet that the Federal Reserve will increase interest rates as soon as September, following seven rate reductions in the past nine months.

Top Lenders for Home Equity Loans
Customer satisfaction with home-equity lines of credit remains high, according to a recent study, which reveals customers' top ranked lenders for home equity loans.
Bank of America: 811

• SunTrust: 809
• Wachovia: 807
• Chase: 791
• Industry Average: 780
• WaMu/Washington Mutual: 773
• CitiMortgage/Citibank: 762
• National City Bank: 756
• Wells Fargo: 755
• Countrywide Home Loans: 728

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