News Alerts. Sept. 22, 2013. Afternoon Edition. #RealEstate

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  1. Five Years After Lehman Brothers Fall: Big Banks Even Larger

    The Real News Network has another interesting interview investigating the situation of big banks five years after the collapse of Lehman Brothers. It looks like not much has changed after all.

    Read the source article …

  2. Analysis: Waning investor demand opens door for first-time U.S. home buyers – Yahoo News News Alerts. Sept. 22, 2013. Afternoon Edition. #RealEstate

    WASHINGTON (Reuters) – Wall Street’s billion-dollar bargain hunt for homes in depressed markets across the United States appears to have plateaued, potentially helping to cool the steep run-up in home prices and bring first-time buyers back into the market.

    “Investors helped jump-start things for us and put the market back on course. They cleaned up and took a lot of housing product and made it useful again, instead of it being vacant, empty and unusable,” said Harvey Blankfeld, a real estate agent with the Prudential Americana Group in Las Vegas, Nevada.

    …the number of occupied rental apartments and townhomes in the United States has been rising since 2009 as millions of home owners were forced out of their properties by foreclosure. At the same time, stricter mortgage requirements have made it harder for would-be buyers to obtain loans.

    “The total demand for shelter across … the country is increasing. At the same time, the percentage of owners versus renters is decreasing,” said Oliver Chang, a former Morgan Stanley analyst who is the founder of Sylvan Road Capital LLC, an Atlanta-based asset management firm.

    “Investors like ourselves whose long-term plan is to rent properties out and manage them on an ongoing basis see this as a macro trend that is supportive of our industry,” he said.

    Read the source article …–sector.html

  3. Why real estate stocks are tumbling – Yahoo India Finance News Alerts. Sept. 22, 2013. Afternoon Edition. #RealEstate

    Real estate is one of the most preferred investment options in India. But, its stocks have taken a beating. If you had invested in the Bombay Stock Exchange’s realty index in October 2009, when it reached its five-year peak, the value of your investments would now be down a whopping 70%. The index crashed 38% this year alone.

    This is because, financial health of realty companies have been hit. “The real estate developers have been caught in a trap of ambitious expansion, decelerating sale, hardening interest rate, and weakening cash flow,” Knight Frank, a real estate consultancy firm, said in a report.

    Moreover, chances of revival seems bleak, according to the firm. Here’s why: …

    Read the source article …

  4. Why real estate doomsayers continue to be wrong | Financial Post News Alerts. Sept. 22, 2013. Afternoon Edition. #RealEstate

    We don’t have the same feel for the Canadian real-estate market that we do for the US, so this article isn’t one where we can take much exception or chime in in agreement.

    We do remember the articles from shortly after the Great Recession hit the US where many were predicting it would hit Canada soon. However, we also remember the reasons cited by Canadians for why it wouldn’t happen. Those reasons were not unreasonable. The two nations have fundamentally different financing markets.

    “I don’t think there’s going to be blocks of houses on fire,” says Vancouver, B.C.-based McLister. “Nothing’s really convinced people that a crash is imminent.” He cites growing employment and wage stability, near-rock-bottom lending rates and consistent demand from immigrants and first-time buyers as key reasons why the market hasn’t wavered. Affordability, which is heavily dependent on low interest rates and lending flexibility, is almost the same or better than 20 years ago, according to the Bank of Canada’s Housing Affordability Index. Fear, he says, has helped deter people from “doing stupid things.”

    But McLister warns that while we may not be facing “catastrophic risk,” the market is far from risk-free: A significant rate hike, widespread job losses and mortgage-lending restrictions are game-changers that could all come to pass.

    Read the source article …

  5. Bank of England is unlikely to raise rates before unemployment falls to 7% | Business | The Guardian News Alerts. Sept. 22, 2013. Afternoon Edition. #RealEstate

    From the way Carney [Bank of England’s Governor Mark Carney] spoke last week, there is little chance of a knock-out blow pushing him off course. He thinks the economy’s underlying situation is weak, wage rises remain below inflation, household debt remains high, savings are low and the coalition, which is on course to double the national debt by the next election from the £700bn it inherited, is in no position to help. In this environment, he is unlikely to raise rates even when 750,000 jobs have been created.

    Listening to him carefully only reinforced this interpretation.

    Listening to the central bankers carefully on forward guidance is critical, as not listening carefully to Ben Bernanke before the last FOMC meeting attested.

    Read the source article …