Displaying items by tag: Residential Real Estate

Wednesday, 14 October 2009 00:00

Reggie Middleton's Real Estate Rehash - 10/14/09

I read the Real Deal magazine, a NYC real estate rag. Although they have never quoted me or even bothered to feature my rather dashing picture in their publication, a reporter or two does keep in touch to get my opinion on things valuation related. This is some of their latest stuff:

Manhattan residential market reports bring good news, experts cautiously optimistic
Third-quarter Manhattan market reports released by the city's residential brokerages this week paint a grim picture compared to the same period last year, but show a marked improvement from earlier this year. "For New York, the worst is over," said Dottie Herman, president and CEO of the city's largest residential brokerage, Prudential Douglas Elliman. Still, experts caution that while the pace of decline is slowing, recovery is not yet imminent. "I'm very pleased with what we saw this summer and it’s a step in the right direction, but I still think we have a ways to go," said real estate appraiser Jonathan Miller, the CEO of Miller Samuel, who prepared Elliman's report.   

Well, I wouldn't stake my future on those prices skyrocketing any time soon. To begin with, there is a market difference between prices improving verses prices getting worse at a slower pace. Words, after all, do have meanings, don't they? Below is the Case Shiller seasonally adjusted index for Condos, to put things into perspective.

The other shoe is dropping on the banking industry, and market reaction seems muted. This is interesting, for the demands of cash, deviations from expected returns (the technical definition or risk) and murkiness in realistic valuation of assets and liabilities are all converging to a point that bank insiders fear to tread.

First we will go through yesterdays news, then prance through some BoomBustBlog.com exclusives in a separate post...

The other shoe is dropping on the banking industry, and market reaction seems muted. This is interesting, for the demands of cash, deviations from expected returns (the technical definition or risk) and murkiness in realistic valuation of assets and liabilities are all converging to a point that bank insiders fear to tread.

First we will go through yesterdays news, then prance through some BoomBustBlog.com exclusives in a separate post...

Thursday, 24 September 2009 05:00

Real Estate Research Note for Subscribers

It has been a while in the making, and during an aggressive bear market rally to boot, but the cash shortage event appears to be on track - ala GGP. See ACC 9-09 research note 9-09 research note 2009-09-24 12:31:24 1.03 Mb

Published in BoomBustBlog
Thursday, 24 September 2009 00:00

Real Estate Research Note for Subscribers

It has been a while in the making, and during an aggressive bear market rally to boot, but the cash shortage event appears to be on track - ala GGP. See ACC 9-09 research note 9-09 research note 2009-09-24 12:31:24 1.03 Mb

Thursday, 24 September 2009 00:00

Real Estate Research Note for Subscribers

It has been a while in the making, and during an aggressive bear market rally to boot, but the cash shortage event appears to be on track - ala GGP. See ACC 9-09 research note 9-09 research note 2009-09-24 12:31:24 1.03 Mb

Wednesday, 23 September 2009 05:00

More on kicking that housing can down the road...

As explained in "The ARE trying to kick the bad mortgages down the road, here's proof!", the banks are delaying the inevitable. Here is more on the topic.

Delayed Foreclosures Stalk Market

Debra and Arthur Scriven were served notice in June 2008 that their mortgage lender, a unit of Citigroup Inc., was preparing to foreclose on their home. Fifteen months later, the Scrivens are still in their home near Columbia, S.C., and battling to stay there, even though a dispute with the lender over how much they owe prompted them to stop making regular payments last year.
...

Published in BoomBustBlog
Wednesday, 23 September 2009 00:00

More on kicking that housing can down the road...

 As explained in "The ARE trying to kick the bad mortgages down the road, here's proof!", the banks are delaying the inevitable. Here is more on the topic.

Delayed Foreclosures Stalk Market

 Debra and Arthur Scriven were served notice in June 2008 that their mortgage lender, a unit of Citigroup Inc., was preparing to foreclose on their home. Fifteen months later, the Scrivens are still in their home near Columbia, S.C., and battling to stay there, even though a dispute with the lender over how much they owe prompted them to stop making regular payments last year.
...
Wednesday, 23 September 2009 00:00

More on kicking that housing can down the road...

 As explained in "The ARE trying to kick the bad mortgages down the road, here's proof!", the banks are delaying the inevitable. Here is more on the topic.

Delayed Foreclosures Stalk Market

 Debra and Arthur Scriven were served notice in June 2008 that their mortgage lender, a unit of Citigroup Inc., was preparing to foreclose on their home. Fifteen months later, the Scrivens are still in their home near Columbia, S.C., and battling to stay there, even though a dispute with the lender over how much they owe prompted them to stop making regular payments last year.
...

There have been a lot of theories and anecdotal evidence indicating that banks are letting defaulted mortgage borrowers stay in their houses in lieu of taking possession of said properties and recording the writedown on thier books, particularly once the property is sold at auction. The auction sale will actually set a hard market price for the property that cannot be fudged, and will reveal the amount of losses on said banks books from the (most likely severely underwater) mortgage.

Published in BoomBustBlog
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