GLG News in Real Estate

This article notes the recent statement building financing of financial institutions and concludes its opening remarks with “I don’t know, you don’t know, and they don’t know”.  The article states the assumptions of current bank recapitalizations and in particular recaps the Bear Stearns acquisition.  It’s notable to me that Warren Buffet recently said that he didn’t have the appetite to...

While banks are selling foreclosed homes in the Atlanta market for close to 90% of the loan amount, their vacant lots and land are not selling at all.  Builders and developers that have been paying interest for months are running out (or have run out) of cash.  Banks are struggling to find a strategy to handle what many of them expect to be an avalanche of foreclosures on vacant developed...

Bad news for some, though, will soon turn out to be good news for others.  The second half of this year will yield ample opportunities for residential land / lot buyers.  

Shanghai has a lot to offer the foreign investor who are still able to deal in China despite the approvals needed. But the story has moved on to the 2nd tier cities and increasingly the 3rd tier cities, investors just need an investment committee comfortable dealing in cities they have never heard of.

The numbers reported by KB Homes are very similar to those reported by Lennar and other major, publicly-traded homebuilders. Sales are off drastically, contract cancellations continue to be problematic and losses are mounting. For the National Association of Realtors and other trade organizations, as well as some well-known analysts, to claim that we have seen the bottom of the housing market is both...

Investors and market observers can count on continued homebuilder losses, as home prices a pushed downward further.

Life as a Developer has always been about who you know and what you know.Knowledge of building materials and cost are basic things developers need to survive. Things have changed a great deal the last 5-10 years. Most "new developers" and general contractors have never lifted a hammer or worn dirty work boots, that is a major shift and change from days past. The old model = work as a journeyman...

I agree that there is now a global connection and consequently an effect among home sales and in defaults.  However, I disagree that second homes are the first to falter in a down market. On the contrary, I have been seeing a trend particularly among US baby boomers, in which second or vacation homes take priority over primary or first homes. 

This analysis, as is the case with most of my analyzes for GLG News, could properly be classified under several different overly restrictive GLG News "Subjects".  It involves important impacts in "Retailing", "Finance",Stock Market Activity, and Shopping Center Real Estate(which as yet is not a separate category). Instead I chose to label it under the REITs category.  However,...

Home prices have indeed experienced significant corrections.  However, some reports of price reductions may be exaggerated due to innacurate methodology.