Positive News
There seems to be many early buds in the recovery of the Real Estate market. Here we have identified two reports from the Real Deal as an example. The first talks about the mortgage industry and the other of the lumber industry. Neither on their own are strong enough to signal that a Spring thaw is imminent but in combination do offer some positive early indicators. Lets hope that they keep on coming to the point where consumer confidence is back towards its previous levels.
Lenders jump back into commercial real estate
February 09, 2010 10:00AM
Despite an anticipated $120 billion in commercial real estate losses between 2008 and 2011, lenders are ready to get back to business. In a Jones Lang LaSalle survey of 60 banks and other financial institutions at the annual Mortgage Bankers Association conference last week, 24 lenders each said they would make between $2 billion and $4 billion worth of commercial real estate loans in 2010. More than half of those surveyed said they were willing to lend $50 million or more toward a single property purchase, up from the $25 million most were willing to lend for a single asset last year. Some lenders were even open to the idea of $150 to $500 million loans, said David Hendrickson, managing director of Jones Lang LaSalle. While banks are still facing substantial losses, most have already set aside reserves or marked down their portfolios to reflect them, and market experts say the opportunity to pick up commercial real estate assets at discounts of 44 to 55 percent off of 2007’s peak prices, as estimated by Moody’s Investors Service, is luring lenders back into the game.
Home improvement retailers see positive signs
February 09, 2010 08:40AM
Following the news that Morgan Stanley upgraded Home Depot stocks, CNBC sat down with two hardline retail experts to discuss what potential gains in home improvement stocks say about the housing market recovery. According to Stephen Chick, managing director of hardline retail at FBR Capital Markets, lumber prices are beginning to rebound — having seen price increases over the last two to four months not matched since 2004, and that could be a positive, though often-underestimated indicator for housing. Michael Lasser, vice president and senior research analyst of hardline retail at Barclays Capital, pointed to an increased demand for appliances. Lasser said it’s too soon to tell whether indicators from stores like Lowe’s and Home Depot mean a full-fledged recovery, but retailers are certainly benefiting from higher transactional volume, stemming from more people moving to new homes and doing improvements and repairs.
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