August 28, 2009
(Reuters) - The U.S. Federal Reserve said on Monday it will extend to mid-2010 an emergency program aimed at boosting lending in the ailing commercial real estate market.
In a joint announcement with the U.S. Treasury Department, the Fed said it would extend its Term Asset-Backed Securities Loan Facility (TALF) to June 30 for newly issued commercial mortgage-backed securities, a program that has yet to get off the ground.
The Fed and the Treasury also extended through March 31 its TALF for newly issued securities backed by auto, credit card, student and small business loans, and existing CMBS.
Analysts said the move is most important to the commercial real estate sector, which is being buffeted by a lack of credit and as the recession curbs revenue from office, retail and apartment buildings. The industry has been often cited by Fed officials in the past month as a particular danger to a U.S. economic recovery if borrowers with maturing loans find no other outlet than default.
Lenders are reluctant to refinance billions of dollars in loans made under easy terms and aggressive expectations that rents and property values would rise. But revenues are falling and prices nationally are now off 35 percent since October 2007, forcing borrowers to either put more equity in their properties or plead for extensions of current loan terms.
Read the whole story at :
http://www.chicagorealestatedaily.com/cgi-bin/news.pl?id=35147
August 19, 2009
10 Cities Leading the Market Recovery
Here’s more evidence that housing is turning around. Forbes magazine identified 161 of the country’s largest metro areas where sales activity has increased compared to 2008, and where foreclosure sales as a percentage of total sales, are low.
The magazine considers these markets as on the road to recovery.
1. Miami-Ft. Lauderdale, Fla.
2. Lincoln, Neb.
3. Colorado Springs, Colo.
4. Salem, Ore.
5. San Luis Obispo, Calif.
6. Bremerton, Wash.
7. Denver, Colo.
8. Redding, Calif.
9. Santa Barbara, Calif.
10. San Jose, Calif.
Source: Forbes, Matt Woolsey (08/13/2009)
August 5, 2009
August 5, 2009
The real estate markets have been a little rough of late in our two glitziest resort towns. Here is a quick update:
Aspen – Still the most expensive neighborhood in the US
- Sales volume and transactions are down over 50% compared to 2007 when Sales volume topped $2 Billion.
- $6.5 million median home sale price still good enough to place it at number one on the Forbes Luxury Housing Index, which tracks the 500 most expensive ZIP codes in the US.
- Snowmass Village (81615) and Snowmass (81654) aren’t far behind at fourth and seventh place on the same list with median prices of $3.99 million and $3.7 million respectively.
Telluride – Time to buy a condo!
- Condos sold in all of 2008, 45 (median price = $687,000)
- Condos sold so far in 2009, 8 (median price = $296,000; down 57%)
- Single family homes sold in all of 2008, 42 (median price = $1,562,500)
- Single family homes sold so far in 2009, 6 (median price = $2,500,000)
- Inventory is very high at over 1700 properties (all types) listed.
On a side note, economists polled by USA Today, say that, although the recovery may be several months away, many of them (68%) think existing-home sales have bottomed out.
Overall, the economists say unemployment won’t peak until the first half of next year and credit markets will remain tight.