But the Wall Street Journal (sub. req'd) reports today that some lenders are actually rolling out incentives to win business.

The Journal says that the influx of cash into U.S. treasuries, coupled with a sharp decline in refinancing applications, is responsible for the trend.

Here in California, Union Bank was cited as a lender working hard to attract customers, especially for jumbo rate mortgages.

The article still cautions that "many would-be applicants remain sidelined because they can't meet the long list of qualifications." But any signs the mortgage market is starting to return to more normal levels is a good thing.

Reporter Jim Puzzanghera notes that the fee - which, remember, is paying for a two-month extension of the payroll tax cut - would cost the buyer of a $200,000 home an extra $4,000 over the life of the loan. He also says increasing the fee paid on loans sold to Fannie Mae or Freddie Mac will further complicate efforts to reform the so-called GSEs. 

The article quotes Jaret Seiberg, senior financial policy analyst at Guggenheim Parters in Washington:

Housing doesn't need any more speed bumps, and this is a speed bump. It's not a big one, but every extra penny that it costs to finance a home puts that much more downward pressure on home prices.

And as the article also points out, "The collapse of the housing market triggered the Great Recession and led to a wave of foreclosures as housing prices plummeted nationally. The market has been struggling to recover amid weak economic growth and high unemployment."

NAHB, the Realtors and the mortgage bankers all urged Congress not to use the fee to pay for the tax break.

A table detailing production in the two counties has been posted here, while statewide data can be found here.

SANTA CLARITA – The first phase of the long-delayed Blvd6200 complex in Hollywood next to the Pantages Theater accounted for the bulk of new housing permits issued in Los Angeles and Ventura counties in November, the Los Angeles/Ventura Chapter of the Building Industry Association of Southern California reported today.

According to data compiled by the Construction Industry Research Board (CIRB), there were just 775 permits pulled in L.A. County during the month – 166 single-family homes largely concentrated in the Santa Clarita and Antelope valleys and 609 multifamily permits. The Hollywood mixed use development accounted for 535 of those new units.

In all, housing starts countywide jumped by 84 percent compared to the previous month and were down just 1 percent from November 2010.*

During the first 11 months of the year, multifamily permits – almost all for apartments – were up almost 48 percent from the same period a year ago to 6,632, while single-family permits were flat, down by just 1.5 percent to 2,105.

In Ventura County, 20 single-family permits were issued countywide, with more than half scattered through unincorporated parts of the county – ironically, areas where development is limited by county ordinance. For the year, total housing starts are up by 8 percent countywide, due again to a surge in multifamily development.

Looking at permits by jurisdiction in the two counties, L.A. City led the way with 638, followed by the unincorporated parts of L.A. County with just 29 – 16 of which were in the county’s portion of the Santa Clarita Valley. In all, the SCV saw 27 single-family homes begin construction, while 28 homes got under way in the Antelope Valley.

Holly Schroeder, the Chapter’s CEO, said the emphasis on building apartments in L.A. and Ventura counties mirrors statewide and national trends.

“Due to perceived market demand and the fact it’s much easier to obtain construction financing for apartments than for-sale product, CIRB projects that statewide, there will be 24,500 apartments permitted this year and only 21,500 single-family homes. That would be the lowest number of single-family homes built since World War II,” Schroeder said.

“There are growing signs that the housing market is slowly recovering from the bottom year of 2009, but the overall economy would be much better if homebuilding rebounded to more normal levels. Builders continue looking for ways to cut costs and make more projects financially feasible so that they can build more homes, put people to work and help the state and regional economy get moving again.”

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* Last month, it was reported that 225 units were permitted in a large Santa Monica complex. However, only 65 of those should be counted as actual units under construction. The other units were shoring permits and have been removed from the yearly tally. The remainder of the 225 total housing permits will be issued as construction continues. In addition, the city of Glendale reported at press time to CIRB that it had permitted a 208-unit apartment building at 200 E. Broadway in November. Those units are not included in this month’s report but will be included in the preliminary year-end report that will be released in January.

Note to editors: In California, building permits are seldom pulled until construction is ready to begin due to the tens of thousands of dollars in development fees usually due when the permit is obtained. Unlike most other states, permits issued is a good indication of the number of homes on which construction began.

BIASC is a non-profit trade association representing some 1,000 member companies in the housing industry, construction trades, and affiliated businesses throughout Southern California. The Chapter, one of four that make up BIASC, serves homebuilders in Los Angeles, Ventura and southeastern Kern counties. More information is available on the Chapter Website, www.bialav.org.

The Construction Industry Research Board (CIRB) is a Burbank-based nonprofit research center established in 1974 to provide statistical information on the California building and construction industry. More information is available on the CIRB Website, www.cirbdata.com.

SANTA CLARITA – While the number of new homes that closed escrow in October in Los Angeles County rebounded slightly from September, the median price was the lowest recorded in the past two years,  the local chapter of the Building Industry Association of Southern California reported today.

A total of 244 new homes closed escrow during the month in L.A. County, according to sales totals compiled for the BIA by Hanley-Wood Market Intelligence. Costa Mesa-based HWMI tracks closings in new-home communities of 10 units or more.

October’s total was up from the revised figure of 228 the previous month down from 263 reported in October 2010. Once again, the most sales took place in West Los Angeles (72), followed by the South Bay (48).

However, the countywide median price dropped by 4.8 percent from the previous month to $359,500, which was down 20.4 percent from the same month a year ago. The previous monthly low was the revised $360,300 recorded in August. The median has been below $400,000 for four straight months, the only times in the past two years that they have been below that mark.

The average price per square foot in L.A. County held relatively steady, falling to $276 – down about 5 percent from the previous month and October 2010.

Ventura County reported just 14 closings in October. The median price, however, soared by 26 percent from the previous month to an even $400,000. That figure was also up 14 percent from the previous year.  The size of the homes sold was significantly larger than the previous reporting periods, and the average price per square foot rose slightly from September but fell 28 percent from 2010.

Holly Schroeder, CEO of the Los Angeles/Ventura Chapter, said that coupled with historically low mortgage interest rates, today really is a good time to buy a new home in the region.

“Today’s new homes are designed for today’s lifestyles and are far more energy efficient than homes built just a few years ago. Families looking for the latest in trends and technological advances should visit new-home communities and see what builders have to offer,” she said.

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BIASC is a non-profit trade association representing some 1,000 member companies in the housing industry, construction trades, and affiliated businesses throughout Southern California. The Chapter, one of four that make up BIASC, serves homebuilders in Los Angeles, Ventura and southeastern Kern counties. Learn more at www.bialav.org.

Hanley Wood Market Intelligence (HWMI) is the housing industry’s leading provider of rich data and analytical services on residential real estate development and new-home construction and a business unit of Hanley Wood, LLC, the premier media company serving housing and construction. More information is available on the company’s website, www.hanleywood.com/hwmi, or by calling 1-800-639-3777.

HWMI tracks home closing information by builder on a monthly basis for the state of California and across the country. HWMI closings represent completed transactions during the period indicated. Median and average prices are based upon the final closing price of the transaction as recorded with the associated municipality. Through its data platform, Housing IntelligencePro, HWMI provides the most comprehensive housing data resource available.

Of particular interest were the comments of a couple of industry analysts.

Ian Shepherdson, economist, HFE: "The single-family sector will continue to lag but the surge in sales reported by the NAHB suggests the sector is beginning to wake from its long sleep; expect sustained gains in sales and start ahead.”

Paul Diggle, economist, Capital Economics: “Housing starts rose strongly in November, building on the gains seen since the start of the year. By historical standards, homebuilding activity is still very depressed, but at least it appears to be on an established upward trend.”

The question arises because the Senate chose to pay for the tax cut by raising fees on mortgages backed by Freddie, Fannie and FHA. The fee right now is only $17 a month, but knowing the way fees, once established, never go away and virtually always go up over time, we imagine this is just the proverbial camel's nose under the tent.

Here's the WaPo article if you want to read more.