GLG News by Homebuilding Joint Venture Experts

I continue to think that we are a minimum 18 months away from a resolution or recovery in our housing market.  And I don’t think we have reached a bottom.  We haven’t seen a glimmer of stabilization in our major home builders.  I think this will be confirmed when these companies show...

Horton has primarily catered to entry-level homebuilders in the Phoenix metro area.  The builder has responded to current market conditions with even lower pricing than it previously had offered.

Subprime loans have become popular on the fringe areas of Phoenix.  Tightening subprime standards poses a threat to the market recovery.

The combination of an institutional investor already at major risk in a transaction plus a professional developer/manager with a great industry record has the best opportunity for success in this turnaround.  I remember also that Simon in the past had a major investment in Mills which it withdrew. ...

When you have a median housing value of say $ 650,000 and a location where the existing housing stock approximates the median, you have an opportunity to sell attached housing at $ 350,000 to $ 400,000 per copy when the supply is otherwise constrained.

I believe there is more pain to go in the housing market including serious defaults where home and land prices will implode.  I believe you won’t see the turn until 2008 and even then not until the latter half.  And I think the turn will stabilize at a lower overall construction number since...

As the article points out, REIT stocks have doubled on average in the last three years.  No doubt that in the mid 1990’s, commercial real estate was out-of-favor – for a song prices.  But dividend yields are now at 3.78 % - negative leverage to the private exit buyers.  So REIT investors...

Brookfield has offered $ 156.25 per sq. ft. for the 48 million sq. feet in the remaining 38 shopping centers in the Mills portfolio.  Eighteen percent of the cost in cash will be paid at closing.  I believe that the deal will not return historical costs to the shareholders and reproduction...

I believe we will see a further significant downturn in housing prices which will follow an abundant oversupply of homes on the market produced by defaults over the next year.- Real estate broker volume may increase but home building and land development will be off.- The purchase side of mortgage banking...

I believe we will now have a business downturn as result of reduced demand in the housing and auto industries and the debt service requirement on the federal budget.  I think China and other offshore sources have been funding our consumer spending with low interest rates when they advance funds...