Investors Losing Interest…

Investors Losing Interest in Housing, Despite Rise in Distressed Sales Share

Institutional investors appear to be losing interest in purchasing foreclosed properties for rentals in the face of rising property prices and interest rates and increased competition from homebuyers.   According to RealtyTrac's January 2014U.S. Residential and Foreclosure Sales Report, the share of home sales tied to institutional investors – entities that purchase ten or more properties in a calendar year – dropped to 5.2 percent in January, down from 7.9 percent in December and 8.2 percent in January 2013.  The January number was a 22 month low.

Daren Blomquist, a RealtyTrac vice president said, "Many have anticipated that the large institutional investors backed by private equity would start winding down their purchases of homes to rent, and the January sales numbers provide early evidence this is happening.  It's unlikely that this pullback in purchasing is weather-related given that there were increases in the institutional investor share of purchases in colder-weather markets such as Denver and Cincinnati, even while many warmer-weather markets in Florida and Arizona saw substantial decreases in the share of institutional investors from a year ago."

The fall back in institutional investors occurred in nearly three-quarters of the metropolitan areas tracked by the Irvine California company.  Areas with particularly large declines from a year earlier included Cape Coral-Fort Myers, Florida (-70 percent); Memphis (-64 percent), Tucson (-59 percent), and Tampa (-48 percent).  Institutional activity increased in 23 of the 101 areas with Austin, Texas notable for a 162 percent rise while Cincinnati was up 83 percent and Dallas 30 percent.

Institutional investment remains a major factor in sales in several areas including Jacksonville, Florida at 25.5 percent, Atlanta, (25.1 percent), and Austin (18.0).

Sales of all U.S. residential properties including single family homes, condos, and townhomes were at an estimated annual rate of 5.126 million units in January, a less than 1 percent increase from December and up 8 percent from a year earlier.  The rate of sales declined in seven states and 17 of the 50 largest metropolitan areas.

RealtyTrac said that foreclosure-related and short sales accounted for 17.5 percent of all residential sales in January, up from 14.9 percent in December.  In January 2013 distressed properties accounted for 18.7 percent of sales.  The distressed sales breakdown in January as a percent of all sales was 5.9 percent short sales, 10.2 percent bank owned real estate (REO) and 1.5 percent properties sold at foreclosure auction.

All-cash sales accounted for 44.4 percent of all U.S. residential sales in January, the seventh consecutive month where all-cash sales have been above the 35 percent level.  In several metro areas the majority of sales were all-cash; Miami (68.2 percent), Jacksonville, (66.2 percent), Memphis (64.4 percent) Tampa (61.5 percent) and Las Vegas (56.5 percent.)

The national median sales price of U.S. residential properties – including both distressed and non-distressed sales – was $165,957 in January, down 3 percent from December but up 1 percent from January 2013. The 3 percent monthly decrease was the biggest monthly drop since February 2013.  Some of the markets which had shown the fastest appreciation posted declines in January.  Some cities where prices fell 1 to 2 percent were San Francisco, Sacramento, Memphis, Cincinnati, Phoenix, and San Jose.  Prices in each, however, were a minimum of 19 percent above year-ago levels.

Best Regards, Chris Mesunas.

 

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Bay Area Home Investors Driving Up….

Bay Area investors, commuters driving up San Joaquin Valley home prices

 

Published: Monday, Sep. 23, 2013
GIFN5LUQ.6Staff Photographer

Bart Ah You / The Modesto Bee

In the housing bubble of 2004 and 2005, Stanislaus County’s median peaked at $396,000

Bay Area investors and long-distance commuters are hitting the road again and bidding up home prices in the Northern San Joaquin Valley,which until recently was the epicenter of the nation’s housing market collapse.

Stockton, which became a Wall Street punchline in the housing boom and filed for bankruptcy protection after the bust, has seen its medianhome price rise by 30 percent in the past year, according to DataQuick.

Tracy, a burgeoning bedroom community for Bay Area “super commuters” in the boom, experienced a nearly 40 percent gain in the median home price from August 2012 to August 2013, the San Diego-based real estate information service said.

And Lathrop, a former farm town that sprouted roomy, suburban-style houses, saw its medianhome price soar by nearly 50 percent, one of the biggest increases in the nation.

While prices in the San Joaquin Valley remain far below their boom-era peaks, “you have an eye-poppingly high gain,” said DataQuick analyst Andrew LePage.

From August 2013 to August 2013, the city of Sacramento experienced a nearly 40 percent rise in its median home value, DataQuick figures show.

Experts said the same factors that have driven up Sacramento-area home prices in the past year – heavy investor activity, record low mortgage rates and tight inventory – are at work from Stockton to Modesto. But those areas also are seeing a growing number of buyers from the Bay Area, where homes cost two or three times as much as homes in inland areas.

“Especially Tracy, Lathrop and Manteca have really felt the Bay Area influence coming out,” said Aaron West, an agent with PMZ Real Estate in Modesto. Prices fell so low the the homes looked like bargains compared with the rent they would generate, he said.

At first, the buyers were professional investors scooping up cut-priced homes 10 at a time, he said. Then came some Bay Area residents who wanted to buy one or two rental homes. Now, with prices rising fast in the Bay Area, homeowners are once again driving across the Diablo Range to seek out homes they can afford, he said.

West said he expects prices to continue rising because there is more buyer demand than supply. Few new homes have been built in Northern California’s inland communities since the market crashed in 2007, he said.

“Until the new home builders really start building in force, there just aren’t enough homes for the amount of qualified buyers that are out there,” West said.

In the housing bubble of 2004 and 2005, Bay Area commuters, speculators and local buyers – many using subprime loans – pushed prices in the Northern San Joaquin Valley beyond all reason. Houses in some Valley towns sold for $800,000 or more before plummeting in value by more than half.

Stockton’s median home price reached $370,000 in 2005. Jobs in the largely blue-collar city couldn’t support such prices over the long term.

“I don’t think you’ll find anywhere that the bubble was inflated as much as it was in Stockton,” said Jeffrey Michael, head of the Business Forecasting Center at the University of the Pacific in Stockton.

City leaders relied on a sustained housing boom and surging tax revenues to fund waterfront redevelopment and generous pay and benefits packages for public employees and retirees.

Meanwhile, Wall Street traders joked that Stockton was a “subprime nirvana” that helped pioneer the so-called NINJA mortgage, which stood for “no income, no job, no assets,” Lawrence McDonald, a vice president at Lehman Brothers wrote in his book “A Colossal Failure of Common Sense.” Lehman Brothers, one of Wall Street’s biggest investment banks, collapsed in 2008 under the weight of failing subprime mortgages.

When home prices came crashing down in Stockton, the city became America’s foreclosure capital. Developer fees and property taxes dried up. Last year, the city of 300,000 became the largest to declare bankruptcy until Detroit filed for Chapter 9 protection in July.

“The primary driver of Stockton’s bankruptcy,” Michael said, “was the housing collapse combined with a city that made a lot of risky and poor financial decisions.”

The median home price in Stockton fell to less than $115,000 in early 2012, DataQuick reported. In August, the median sales price was $155,000 – 30 percent higher than the same month a year ago but still nearly 60 percent lower than the peak of 2005.

Such low prices, combined with today’s ultra-low mortgage rates, make it more affordable to buy than to rent and have drawn would-be homeowners despite the stigma of the city’s bankruptcy, Michael said. Rising home prices will help boost city revenues, but “it’s not the cavalry that’s going to save the city from bankruptcy,” he said.

South of Stockton, areas such as Tracy, Manteca and Lathrop still make sense as communities where Bay Area workers can afford large suburban homes on middle-class salaries, even if it means a lengthy commute. Median home prices there are now in the $250,000 to $350,000 range after soaring above $450,000 in the boom years.

While home prices in those areas became “unhinged from reality,” it wasn’t irrational for Bay Area buyers to want to move there, Michael said. The cities are connected by interstate highways to the much pricier Bay Area via the Altamont Pass.

“That’s why driving over the pass doesn’t look so bad to people,” Michael said.

 

 

 

 

 

Bay Area investors and long-distance commuters are hitting the road again and bidding up home prices in the Northern San Joaquin Valley,which until recently was the epicenter of the nation’s housing market collapse.

Stockton, which became a Wall Street punchline in the housing boom and filed for bankruptcy protection after the bust, has seen its medianhome price rise by 30 percent in the past year, according to DataQuick.

Tracy, a burgeoning bedroom community for Bay Area “super commuters” in the boom, experienced a nearly 40 percent gain in the median home price from August 2012 to August 2013, the San Diego-based real estate information service said.

And Lathrop, a former farm town that sprouted roomy, suburban-style houses, saw its medianhome price soar by nearly 50 percent, one of the biggest increases in the nation.

While prices in the San Joaquin Valley remain far below their boom-era peaks, “you have an eye-poppingly high gain,” said DataQuick analyst Andrew LePage.

From August 2013 to August 2013, the city of Sacramento experienced a nearly 40 percent rise in its median home value, DataQuick figures show.

Experts said the same factors that have driven up Sacramento-area home prices in the past year – heavy investor activity, record low mortgage rates and tight inventory – are at work from Stockton to Modesto. But those areas also are seeing a growing number of buyers from the Bay Area, where homes cost two or three times as much as homes in inland areas.

“Especially Tracy, Lathrop and Manteca have really felt the Bay Area influence coming out,” said Aaron West, an agent with PMZ Real Estate in Modesto. Prices fell so low the the homes looked like bargains compared with the rent they would generate, he said.

At first, the buyers were professional investors scooping up cut-priced homes 10 at a time, he said. Then came some Bay Area residents who wanted to buy one or two rental homes. Now, with prices rising fast in the Bay Area, homeowners are once again driving across the Diablo Range to seek out homes they can afford, he said.

West said he expects prices to continue rising because there is more buyer demand than supply. Few new homes have been built in Northern California’s inland communities since the market crashed in 2007, he said.

“Until the new home builders really start building in force, there just aren’t enough homes for the amount of qualified buyers that are out there,” West said.

In the housing bubble of 2004 and 2005, Bay Area commuters, speculators and local buyers – many using subprime loans – pushed prices in the Northern San Joaquin Valley beyond all reason. Houses in some Valley towns sold for $800,000 or more before plummeting in value by more than half.

Stockton’s median home price reached $370,000 in 2005. Jobs in the largely blue-collar city couldn’t support such prices over the long term.

“I don’t think you’ll find anywhere that the bubble was inflated as much as it was in Stockton,” said Jeffrey Michael, head of the Business Forecasting Center at the University of the Pacific in Stockton.

City leaders relied on a sustained housing boom and surging tax revenues to fund waterfront redevelopment and generous pay and benefits packages for public employees and retirees.

Meanwhile, Wall Street traders joked that Stockton was a “subprime nirvana” that helped pioneer the so-called NINJA mortgage, which stood for “no income, no job, no assets,” Lawrence McDonald, a vice president at Lehman Brothers wrote in his book “A Colossal Failure of Common Sense.” Lehman Brothers, one of Wall Street’s biggest investment banks, collapsed in 2008 under the weight of failing subprime mortgages.

When home prices came crashing down in Stockton, the city became America’s foreclosure capital. Developer fees and property taxes dried up. Last year, the city of 300,000 became the largest to declare bankruptcy until Detroit filed for Chapter 9 protection in July.

“The primary driver of Stockton’s bankruptcy,” Michael said, “was the housing collapse combined with a city that made a lot of risky and poor financial decisions.”

The median home price in Stockton fell to less than $115,000 in early 2012, DataQuick reported. In August, the median sales price was $155,000 – 30 percent higher than the same month a year ago but still nearly 60 percent lower than the peak of 2005.

Such low prices, combined with today’s ultra-low mortgage rates, make it more affordable to buy than to rent and have drawn would-be homeowners despite the stigma of the city’s bankruptcy, Michael said. Rising home prices will help boost city revenues, but “it’s not the cavalry that’s going to save the city from bankruptcy,” he said.

South of Stockton, areas such as Tracy, Manteca and Lathrop still make sense as communities where Bay Area workers can afford large suburban homes on middle-class salaries, even if it means a lengthy commute. Median home prices there are now in the $250,000 to $350,000 range after soaring above $450,000 in the boom years.

While home prices in those areas became “unhinged from reality,” it wasn’t irrational for Bay Area buyers to want to move there, Michael said. The cities are connected by interstate highways to the much pricier Bay Area via the Altamont Pass.

“That’s why driving over the pass doesn’t look so bad to people,” Michael said.

 

Bay Area investors and long-distance commuters are hitting the road again and bidding up home prices in the Northern San Joaquin Valley,which until recently was the epicenter of the nation’s housing market collapse.

Stockton, which became a Wall Street punchline in the housing boom and filed for bankruptcy protection after the bust, has seen its medianhome price rise by 30 percent in the past year, according to DataQuick.

Tracy, a burgeoning bedroom community for Bay Area “super commuters” in the boom, experienced a nearly 40 percent gain in the median home price from August 2012 to August 2013, the San Diego-based real estate information service said.

And Lathrop, a former farm town that sprouted roomy, suburban-style houses, saw its medianhome price soar by nearly 50 percent, one of the biggest increases in the nation.

While prices in the San Joaquin Valley remain far below their boom-era peaks, “you have an eye-poppingly high gain,” said DataQuick analyst Andrew LePage.

From August 2013 to August 2013, the city of Sacramento experienced a nearly 40 percent rise in its median home value, DataQuick figures show.

Experts said the same factors that have driven up Sacramento-area home prices in the past year – heavy investor activity, record low mortgage rates and tight inventory – are at work from Stockton to Modesto. But those areas also are seeing a growing number of buyers from the Bay Area, where homes cost two or three times as much as homes in inland areas.

“Especially Tracy, Lathrop and Manteca have really felt the Bay Area influence coming out,” said Aaron West, an agent with PMZ Real Estate in Modesto. Prices fell so low the the homes looked like bargains compared with the rent they would generate, he said.

At first, the buyers were professional investors scooping up cut-priced homes 10 at a time, he said. Then came some Bay Area residents who wanted to buy one or two rental homes. Now, with prices rising fast in the Bay Area, homeowners are once again driving across the Diablo Range to seek out homes they can afford, he said.

West said he expects prices to continue rising because there is more buyer demand than supply. Few new homes have been built in Northern California’s inland communities since the market crashed in 2007, he said.

“Until the new home builders really start building in force, there just aren’t enough homes for the amount of qualified buyers that are out there,” West said.

In the housing bubble of 2004 and 2005, Bay Area commuters, speculators and local buyers – many using subprime loans – pushed prices in the Northern San Joaquin Valley beyond all reason. Houses in some Valley towns sold for $800,000 or more before plummeting in value by more than half.

Stockton’s median home price reached $370,000 in 2005. Jobs in the largely blue-collar city couldn’t support such prices over the long term.

“I don’t think you’ll find anywhere that the bubble was inflated as much as it was in Stockton,” said Jeffrey Michael, head of the Business Forecasting Center at the University of the Pacific in Stockton.

City leaders relied on a sustained housing boom and surging tax revenues to fund waterfront redevelopment and generous pay and benefits packages for public employees and retirees.

Meanwhile, Wall Street traders joked that Stockton was a “subprime nirvana” that helped pioneer the so-called NINJA mortgage, which stood for “no income, no job, no assets,” Lawrence McDonald, a vice president at Lehman Brothers wrote in his book “A Colossal Failure of Common Sense.” Lehman Brothers, one of Wall Street’s biggest investment banks, collapsed in 2008 under the weight of failing subprime mortgages.

When home prices came crashing down in Stockton, the city became America’s foreclosure capital. Developer fees and property taxes dried up. Last year, the city of 300,000 became the largest to declare bankruptcy until Detroit filed for Chapter 9 protection in July.

“The primary driver of Stockton’s bankruptcy,” Michael said, “was the housing collapse combined with a city that made a lot of risky and poor financial decisions.”

The median home price in Stockton fell to less than $115,000 in early 2012, DataQuick reported. In August, the median sales price was $155,000 – 30 percent higher than the same month a year ago but still nearly 60 percent lower than the peak of 2005.

Such low prices, combined with today’s ultra-low mortgage rates, make it more affordable to buy than to rent and have drawn would-be homeowners despite the stigma of the city’s bankruptcy, Michael said. Rising home prices will help boost city revenues, but “it’s not the cavalry that’s going to save the city from bankruptcy,” he said.

South of Stockton, areas such as Tracy, Manteca and Lathrop still make sense as communities where Bay Area workers can afford large suburban homes on middle-class salaries, even if it means a lengthy commute. Median home prices there are now in the $250,000 to $350,000 range after soaring above $450,000 in the boom years.

While home prices in those areas became “unhinged from reality,” it wasn’t irrational for Bay Area buyers to want to move there, Michael said. The cities are connected by interstate highways to the much pricier Bay Area via the Altamont Pass.

“That’s why driving over the pass doesn’t look so bad to people,” Michael said.

 

 
 
 
 
 
 
 
 
 

Read more here: http://www.sacbee.com/2013/09/23/5759277/bay-area-investors-commuters-driving.html#storylink=cpy

 

 

Investors scoop up 1,200 acres in Rancho Murieta

Investors scoop up 1,200 acres in Rancho Murieta

 

Published: Wednesday, Aug. 14, 2013 – 12:00 am | Page 1A

One-third of Rancho Murieta has changed hands in a massive land sale by the union pension fund that developed the still-unfinished community 40 years ago in rural easternSacramento County.

A group led by current homeowners paid an undisclosed price for 1,200 acres at Rancho Murieta, including the two 18-hole golf courses and more than 700 acres of undeveloped land that's being eyed for hundreds of additional houses.

The deal, which closed Friday, is the latest chapter in the occasionally turbulent history of the isolated slice of suburbia 20 miles southeast of Sacramento along Highway 16.

Four decades after it was founded, the county's first master-planned community has only about 2,500 homes – half as many as originally planned. Part of the problem was unstable ownership; during the 1980s and early '90s, Rancho Murieta was controlled by a swashbuckling Yolo County agribusinessman who lost the property to foreclosure.

"People who live here love it," said John Sullivan, a Rancho Murieta homeowner and leader of the group that just made the big purchase. "We've had our turmoils in the past and it's our mission … to finish the job."

Sullivan's group wants to build hundreds of homes on the property. He also plans to build an 83-room hotel and other amenities on a separate parcel that he and other investors bought last year near the community's gas station on Highway 16.

The hotel, expected to cost around $12 million, would serve visitors to Rancho Murieta's equestrian center, Sullivan said.

"The closest hotel is 14 miles away – we're looking forward to getting that hotel finished as quickly as we can," he said.

The purchase serves as further evidence of recovery in the area's housing market, said Greg Paquin of the Gregory Group, a Folsom real estate consultant.

"Clearly that's part of the message – the market's good," Paquin said.

Sullivan said his group includes the owners of the equestrian center.

Sullivan has been involved in various leadership roles at Rancho Murieta for years and is associated with two development firms, Cosumnes River Land and Lone Pine Investments.

The housing and the hotel would require approval from the Sacramento County Board of Supervisors. The housing project is probably two years away from securing approval, while the hotel proposal is much further along.

The county approved more than 600 new homes on different parcels at Rancho Murieta before thehousing market collapsed in 2007. Those plans are still pending, with permits held by several different developers.

Those 2007 approvals were controversial. The Environmental Protection Agency and other regulators questioned the potential loss of habitat. Some current residents were fiercely opposed, saying the new homes would violate earlier promises about open space.

The group that bought the land Friday could propose a development plan that would meet with fewer objections. The 700 acres could handle 1,100 new homes, but Sullivan said "our plan is to be somewhat lower in the density."The land is generally north of the Cosumnes River and east of the main entrance on Murieta Parkway.

"Most of the investors have been residents for decades," Sullivan added. "We've been in Rancho Murieta since almost the beginning, one way or another."

Rancho Murieta was developed by the pension trust fund of Operating Engineers Local 3, a major union based in the East Bay.

The union has operated an apprenticeship training program at Rancho Murieta for years. Union trainees operating heavy machinery carved out the golf courses, man-made lakes and other features of the property.

In 1985, the union pension fund sold the community to Jack Anderson, a highly successful tomato farmer from Davis.

Anderson added Rancho Murieta to a growing portfolio that included 200,000 acres of farmland, the Dunes casino in Las Vegas and the gleaming "Emerald Tower" office building on Capitol Mall in Sacramento.

The sale followed several years of litigation, in which Anderson claimed the pension fund had reneged on an earlier deal to sell him the property.

In 1993, the pension fund took Rancho Murieta back. It foreclosed on the property after Anderson defaulted on a $27 million note, one in a series of defaults and other financial troubles that would bring his empire to ruin by the end of the 1990s.

Officials with the union and its pension fund couldn't be reached for comment Tuesday. Ken Noack Jr., a Cornish and Carey Commercial broker who represented the pension fund in the sale, said he wasn't sure why the union wanted to unload the property.

Noack said the union will lease about 50 acres back from the new owners to continue running the training center.

"They'll be here for the foreseeable future," Sullivan said.

 

 

House Flipping is Back

House-flipping is back, flourishing again
CNBC.com 07/18/13 12:52 PM ET
By: Diana Olick

For the past several years single-family housing investors have been playing the buy and hold game. Strong rental demand and soft home prices made that the best bet. Now, with home prices up more than 12 percent from a year ago, the strategy is suddenly changing.

“It’s a perfect storm for flipping right now in many parts of the country because home prices are bouncing off the bottom,” said Daren Blomquist, vice president at RealtyTrac. “That is something that flippers can catch on the coattails of and ride that wave as long as it lasts.”

Home-flipping, defined as buying and selling the same home within six months, came roaring back in the first half of this year. There were 136,184 homes flipped, an increase of 19 percent from a year ago and 74 percent from the first half of 2011, according to a new report to be released Friday by RealtyTrac.

John Paulson created quite a buzz in the housing market yesterday at the Delivering Alpha conference. CNBC’s Diana Olick digs into the latest housing data for your best investment.

Increases, however, are nothing compared with the profit jump. Investors made an average gross profit of $18,391 per home, or a 9 percent gross return. That is up 246 percent from a year ago.

“Home-flipping business has keyed up quite a bit in the last 6 months,” said Steve Jones, founder of Los Angeles-based Better Shelter. Jones, who has been flipping homes for five years, said the competition is really heating up.

“There’s not a lot of inventory, and every time a listing comes up it’s like piranha in the water,” he said.

Jones bought and flipped eight houses in the first half of this year, going in with all-cash and looking for hidden value, like unique architecture or renovation potential. He does quite a bit of work on the homes, always looking at the bottom line, but also imagining who the end buyer is going to be.

(Read more: Corelogic: There is no housing bubble)

“Some homes you do really great, and some homes you kind of do OK. I have to keep my crews busy, so it averages out,” said Jones.
The math is looking better and better to investors as prices rise, with one possible hitch: Rising mortgage rates. Investors largely use cash on the front end, but their buyers don’t.

“On the flip side, when they are actually flipping the properties to the end-users, interest rates matter because those end-users will not be able to afford as much as interest rates go up.” added Blomquist.

Carl Quintanilla spoke with John Paulson at CNBC’s “Delivering Alpha” conference. Large-scale institutional investors have been swarming the distressed housing market since the height of the housing crash, buying homes in bulk, rehabilitating them and putting them up for rent. Companies like Blackstone, Colony Capital, Waypoint and hedge fund titan John Paulson have been reaping solid rewards on the trade.

Paulson, speaking at CNBC’s Delivering Alpha conference, said he is still high on housing.

“It’s not too late to get involved. I still think buying a home is the best investment any individual can make. Affordability is still at an all-time high,” said Paulson.

Large-scale investors, however, may not be behind the surge in home flipping. They may, in fact, be the cause of it.

“Now that the institutional investors are doing buy and hold, a lot of these guys [individual investors] can’t compete with their checkbooks,” said Rick Sharga, formerly an executive at Carrington who now works for Auction.com. “In some cases the individual investors are flipping them to the institutional investors.”

While many of the large funds have teams that renovate homes, in some cases they would rather pay a premium for a move-in-ready property, rather than waste time and money remodeling.

“So the flippers are kind of the in-between middleman who is getting the property into good rentable condition and then selling to the institutional investors,” explained Blomquist.

(Read more: Map: Tracking the US real estate recovery)

The renovation of course takes away from the flipper’s profit, begging the question, if a flipper is getting perhaps a 5 percent return on the investment after costs, why not play the stock market instead? Surely they will see a bigger profit faster, but there is larger downside risk.

“You can’t control the stock market,” remarked Sharga. “You have a little bit more ability to control your success in housing if you know what you’re doing and you know your market well.”

The potential profit from house flipping varies dramatically market to market.

Formerly hot investor markets like Phoenix, Las Vegas and much of Southern California are seeing big drops in flipping, as there is very little to buy and what is available is selling at a premium.

—By CNBC’s Diana Olick. Follow her on Twitter @Diana_Olick.
Questions?Comments? facebook.com/DianaOlickCNBC.