News Alerts, Sept. 9, 2013, Afternoon Edition, 4 New Articles, Real Estate +, Don’t Miss Them

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  1. Mortgage Finance Reform Could Fall Prey to Special Interests and Bailouts – Economic Intelligence ( Mortgage Finance Reform Could Fall Prey to Special Interests and Bailouts - Economic Intelligence (

    You wouldn’t think the following is from a rather conservative institution, but it is: conservative in the libertarian sense.

    1) Why should we reward Wall Street and mortgage bankers?

    One widely floated proposal would eliminate government backed enterprises Freddie Mac and Fannie Mae while creating a new government guarantee for mortgage securities. This is perfect from the standpoint of Wall Street firms that package and distribute mortgage securities, as well as the mortgage bankers who sell their loans and depend on the securitization market. It would complete the 50-year project by these interest groups to pry the mortgage lending business out of depository institutions (banks and savings-and-loan associations) — but this shift doesn’t serve the public well.

    If anyone’s fingerprints are all over the financial crisis, it’s the mortgage bankers who only originate loans in order to pass them off to investors and the Wall Street firms who manufactured supposedly AAA-rated assets out of the mortgage bankers’ junk loans. If mortgage securitization is really a safe and efficient mechanism as its advocates claim, it should be able to survive without a government guarantee.

    Read the source article …

  2. Man Who Saw 0.5% 10-Year Yield Now Predicts 0.25%: Japan Credit – Bloomberg News Alerts, Sept. 9, 2013, Afternoon Edition, 4 New Articles, Real Estate +, Don't Miss Them

    This article covers both sides of the Abenomics debate. Here’s an interesting and important segment:

    “It’s unimaginable that Japan’s economy will continue to grow amid a declining population and a weakening aspiration among individuals for higher income,” Sano [“Kazuhiko Sano, chief bond strategist of Tokai Tokyo Securities Co.”] said.

    Japan’s population decreased 0.21 percent to 126.4 million as of the end of March from a year earlier, the fourth year of drops, according to a government survey released last month. The nation’s economy will probably grow 1.5 percent in 2014 after expanding 1.9 percent this year, according to the median estimate of economists surveyed by Bloomberg News.

    It is our view that raising the sale tax at this early stage of the Japanese recovery would be a major mistake. What your opinion on that and why?

    Read the source article …

  3. July Construction Recedes 2 Percent July Construction Recedes 2 Percent

    If you want a sweeping overview of US construction through July, 2013, here you go. This link provides it.

    Residential building, at $204.1 billion (annual rate), grew 3% in July. Multifamily housing rebounded 20% after sliding 21% in June, regaining the heightened activity that was present earlier in 2013. Large multifamily projects that reached groundbreaking in July included a $390 million condominium complex in New York NY, a $153 million mixed-use development in Boston MA, and a $117 million apartment complex in San Diego CA. Through the first seven months of 2013, the leading metropolitan areas for multifamily construction starts (ranked by dollar volume) were the following – New York NY, Washington DC, Boston MA, Miami FL, and Dallas-Ft. Worth TX. Single family housing in July slipped 1%, and over the past several months has essentially leveled off after the strong month-to-month gains that were reported throughout 2012 and early 2013. July’s volume of activity was still high by last year’s standards – up 26% from the average monthly pace for single family housing reported during 2012. By region, single family housing in July showed greater activity in the Midwest, up 4%; but declines in the Northeast, South Central, and West, each down 2%; and the South Atlantic, down 4%. Murray noted, “The rise in mortgage rates in late spring generated some concern about the prospects for single family housing, but mortgage rates have since eased back and the inventory of new homes for sale remains very low, which should encourage greater single family construction in the months ahead.”

    The also covers nonresidential building and nonbuilding construction.

    Read the source article …

  4. Industrial Rent Rollover: Threats & Opportunities – CoStar Group

    As the article’s title indicates, this concerns industrial properties under leases.

    …Exhibit 1 highlights 10 areas where the difference between in-place and market rents is expected to increase by at least nine percentage points in the next two years (again assuming a five-year lease term).

    Read the source article …