Real Estate posts
FeedPosted Nov 3rd 2009 3:40PM by Tom Johansmeyer (RSS feed)
Filed under: Indices, Economic data, Housing, Recession, Financial Crisis
Investment-grade commercial real estate prices gained 4.4% in the third quarter of this year. But, it's hard to tell if -- like brief blips of hope we've seen in consumer spending, unemployment and even luxury meals in London -- this is a change in the market or just a tease.
This increase in the MIT Center for Real Estate's transaction-based index (TBI) is the first up-tick in more than a year and the biggest gain since the middle of 2007. One quarter doesn't make a trend, cautions David Geltner, director of research at the MIT Center for Real Estate, but he says, "this is the strongest sign of a bottom that we've had in two years." The TBI reached 36.5% below its 2007 peak last quarter, up from 39% from the high-water mark in mid-2007.
Continue reading Commercial real estate comeback
Posted Oct 5th 2009 9:00AM by Tom Johansmeyer (RSS feed)
Filed under: Good news, Economic data, Headline news, Housing, Recession
A year ago, Manhattan homeowners lived within the firm grasp of the worst recession in 70 years. A skyrocketing real estate market seemed ready to come back to Earth, as carnage in the financial services industry – which spread to just about every other business – decimated incomes and net worths throughout the city.
From the second quarter to the third, this year, the sale of co-ops and apartments spiked between 46% and 69% according to several reports from the real estate business. Sales are still lower than last year, but the recovery has been nothing short of amazing (to the chagrin of those of us who had dreams of one day moving up from the rental class).
Prudential Douglas Elliman reported a price increase of almost 2% from the second quarter, though the median was down 8% to 18% from last year – to the $760,000 to $850,000 range. Jonathan Miller, president and CEO of Miller Samuel Inc., a real estate appraisal and consulting firm, calls this good news, but cautions that it doesn't mean we're at the bottom.
Continue reading Pricey Manhattan homes are moving again
Posted Sep 9th 2009 1:50PM by Steven Halpern (RSS feed)
Filed under: Newsletters, Stocks to Buy, Housing, Recession
"Right now, I believe real estate investment trusts (REITs) are one of the worst places you can put your money; but there is one exception," says Tom Dyson.
In Daily Wealth, he looks to Realty Income (NYSE: O), explaining, "This REIT -- which has paid 463 consecutive quarterly dividends -- is one of my all-time favorite income investments." Here's his review.
"I see abandoned real estate all over my town. Half the businesses still operating are running on fumes. Our Kmart is a basket case. It's always empty. The Walgreen's is a teardown. Sears has gone. The carpet store has gone and they've boarded up the car dealership.
Continue reading Realty Income (O): 'Rock solid' in real estate
Posted Aug 17th 2009 4:30PM by Michael Fowlkes (RSS feed)
Filed under: Forecasts, Good news, Market matters, Money and Finance Today, Housing, Recession, Financial Crisis
Homebuilder confidence hit a 1 year high today, providing another sign that the worst of the housing melt down may have passed.
The housing market started to crumble back in 2006, and since that time foreclosures and falling home prices have hit the economy hard, and played a major role in the recession that has effected millions. Today the The National Association of Home Builders/Wells Fargo confidence index climbed to 18, the highest level that it has been since June 2008.
Continue reading Homebuilder confidence hits 12 month high
Posted Aug 2nd 2009 11:30AM by Tom Johansmeyer (RSS feed)
Filed under: Private equity
Private equity returns are down 27.6% year-over-year for the 12-month period ending July 30, 2009, according to a Preqin report received by BloggingStocks. The London-based research house notes, however, that the global private equity industry's dry powder (i.e., uncommitted assets) continues to exceed $1 trillion, suggesting that there is still plenty of capital waiting for a rainy day.
Returns for the past 12 months reflect all the nastiness we've seen and lived -- bailouts, company collapses, equity and credit market mayhem and unemployment rates dangerously close to double-digits. But, the money is still coming in. Preqin puts the rate by which contributions outpaced distributions at 235% for buyout funds in 2008. This category raised $148 billion while distributing only $63 billion, making last year the most imbalanced for these two measures in history.
Continue reading Private equity returns down, still plenty of cash on the sidelines
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