GLG News by Land Acquisition Experts (US)

There has been considerable recent press coverage about alleged mortgage abuses by Beazer Homes.This appears to be compounded by overall concerns about subprime mortgage activities.It is important to maintain perspective on this issue as it relates to Beazer

  Recent slowdowns in the absorption of housing inventories have resulted in a series of earnings charges from writeoff. of land deposits, preacquisition costs, goodwill and other intangibles, and the creation of valuation reserves for land, work in process and finished homes. This article...

 Let’s suppose you bought an 8 year supply of land at the historical peak of the market both as to land prices and annual housing production.Further, let’s suppose that you have positioned yourself to develop a wide spectrum of commercial and industrial property types in many multi-phase developments...

 Add the following to the contents of the referenced article: 1.The prices recording now are not the story of the housing market where many who wish to sell do not or cannot because the prices they want are unaffordable for the available buyers.That inventory lingers unlisted for the most part...

Commercial real estate pricing is accelerating because investors have money to spend: 1.This capital is drawn from the national coffers by increasing the amount of debt versus equity – in other words, we are leveraging our national economic future for this market; 2.The leverage shown throughout...

Subprime lending may be putting the breaks on recent positive trends in the Phoenix housing market.

The mortgage market will benefit from: 1.  A new sub-prime industry with an equity requirement for buyers; 2.  The resurgence of the FHA; 3.  Attractive lender financing for foreclosed property.

Here’s what the future holds: 1.  Accelerated foreclosures/deeds in lieu/short sales leading to record inventories of unsold houses and for-sale pricing crashes nationwide; 2.  The inability of home builders, land developers and leveraged land investors/speculators to hold their positions...

The most recent article on speculative homes published in The Arizona Republic reports 12,000 to 15,000 units are sitting on the market - a drastic change from the 25,000 units reported by the same source just 3 months ago.  Do you trust the source of your information?

Mortgage defaults and tightening lending standards should be on the minds of those active in the home building industry. Not only are subprime lenders struggling, Alt-A mortgage providers are experiencing higher than expected default rates.