Fed Chairman Says Housing is Still a Concern, Suggests Rate Cut Is Coming
Washington, D.C.–Federal Reserve Chairman Ben Bernanke said Wednesday that preventing an economic decline is the Fed’s main concern and is overshadowing inflation fears, the Chicago Tribune reported Thursday.Testifying before the House Financial Services Committee in Washington, D.C., Bernanke implied another rate reduction may happen in March. Analysts have speculated the cut could be half a percentage point, according to the Tribune.The Fed chairman said that “the economic situation has become distinctly less favorable” since last summer and that “the housing market is expected to continue to weigh on economic activity in coming quarters.”He also suggested Congress may need to deal…
Fannie Mae, Freddie Mac To Expand Loan Portfolios
Washington, D.C.–The regulatory agency that oversees government-backed mortgage finance companies Fannie Mae and Freddie Mac approved expanding their loan portfolios on Wednesday, the Financial Times reports.Fannie Mae and Freddie Mac’s mortgage portfolio lending caps had been imposed by their regulator, the Office of Federal Housing Enterprise Oversight, after previous accounting mishaps. However, now both of their financial statements are current, so the OFHE said it would remove the limits on March 1.However, the regulator said it would maintain a 30 percent regulatory capital surcharge for Fannie Mae and Freddie Mac, which caused investor concern that their ability to buy mortgages…
U.S. New Home Selling Price Fell in January
Washington, D.C.–The U.S. median new home price dropped to $216,000 last month–a 15 percent decline from January 2006, according to the Commerce Department.Residential construction companies are cutting prices on unsold homes as the buyer market dries up–but that hasn’t sparked home sales, The New York Times said. In January, new home sales fell for the third month in a row, slowing to an annual rate of 588,000–their lowest point in nearly 13 years and a 2.8 percent drop from December.New home sales shrank by 10.3 percent in the Northeast, 7.6 percent in the Midwest and 2.4 percent in the South….
Toll Brothers Posts First Quarter Loss
Horsham, Penn.–Homebuilder Toll Brothers, based in Horsham, Penn., announced a first quarter loss Wednesday due to the housing decline, CNNMoney.com reports.The luxury builder saw a net loss of $96 million, or 61 cents per share, including $245.5 million in pre-tax writedowns.Company earnings–not including writedowns and one-time events –totaled $57.3 million; in the same period last year, earnings were $54.3 million. Toll Brothers’ first quarter revenue, $842.9 million, declined 23 percent from the first quarter of 2007.Some markets, such as Naples, Fla., and Washington D.C.’s Maryland suburbs, seem to be improving, the company said in a conference call. However, Toll Brothers…
Luxury Penthouse Condo Sells for $15M
By Anuradha Kher, Online News EditorCentury City, Calif.–Related, a real estate development firm based in New York, has unveiled it plans for the Century Los Angeles, a 42-story luxury condominium building located in Century City, Calif.The building, designed by Robert A.M. Stern Architects LLP, is currently under construction and will be ready for occupancy in 2009, but has already sold its penthouse for $15 million, or more than $2,700 per sq. ft. “Wealthy Los Angeles buyers who have purchased multiple homes in Montecito, Malibu, New York, Aspen and other destinations, have found they can still have the Los Angeles lifestyle while…
Alliance Communities Unveils its Plans for Two Luxury Apartment Projects
By Anuradha Kher, Online News EditorAustin, Texas–Alliance Communities, the Texas division of Phoenix-based Alliance Residential Co., has begun construction on two of its newest luxury apartment developments, Broadstone Travesia and Broadstone Grand Avenue.Broadstone Travesia, which is expected to be completed by mid-2009 is situated in the far north Austin/Round Rock area. The project features 396 one-, two-, and three-bedroom luxury apartments near the 216,000 sq. ft. of Class A office space also under development in Travesia Corporate Park. The rents at Travesia will range from $785 to $1,465.Broadstone Grand Avenue, slated for completion in early 2009, is a 280-unit project…
DEAL OF THE DAY: Carlton Raises $100M Equity for Nelson Management
By Anuradha Kher, Online News EditorNew York–Carlton Advisory Services Inc., a New York-based real estate investment banking firm, has raised approximately $100 million of equity capital for a new investment fund on behalf of Nelson Management Group Ltd., a multifamily owner, developer and manager of middle-income rent-stabilized and Mitchell Lama multifamily properties throughout the New York City metropolitan area. The sponsor of the fund is Robert S. Nelson of Nelson Management Group.“The new fund will capitalize on the sponsor’s housing expertise, existing management team, and extensive knowledge of state and city housing policies, as well as an existing network of…
More Exercise? How About An On-Site Gym? Say 77 % Renters
By Anuradha Kher, Online News EditorChicago–The majority of renters lead a healthy lifestyle by eating right and working out on a weekly basis, but would also prefer to step up their current workout routine with convenient access to workout facilities, according to a fitness and nutrition survey of 536 renters nationwide, conducted by Apartments.com during February, the national heart awareness month.The survey found that an overwhelming majority of renters surveyed (77 percent) would increase weekly workouts with the addition of on-site workout facilities offered by the apartment community.While almost 60 percent of renters surveyed exercise on a regular basis, 36…
Housing Crises Calls for New Solutions, Apartment Groups Tell Congress
Washington, D.C.–The worsening foreclosure crisis provides lawmakers with an opportunity to learn from past mistakes and rethink our national housing policy, the National Multi Housing Council (NMHC) and National Apartment Association (NAA) wrote in a statement to a Senate Finance Committee hearing on the real estate market today.NMHC and NAA point out that the current situation in the for-sale housing market is unfortunate but has been made even more unfortunate by the fact that it was indeed foreseeable and preventable. The NMHC/NAA statement cites warnings from as far back as 2004 by a wide variety of housing experts, former HUD…
U.S. Home Prices Show Quarterly 0.3 Percent Drop From 2006 to 2007
Washington, D.C.–U.S. home prices showed an annual decline for the first time in 16 years in 2007, according to the Office of Federal Housing Enterprise Oversight in Washington, D.C.Home prices fell 0.3 percent from the fourth quarter of 2006 to the last quarter of 2007, BusinessWeek reports. Prices dropped 1.3 percent from the third to the fourth quarter of 2007 according to the agency, which supervises Fannie Mae and Freddie Mac. The East and West coasts had the most severe home price declines.The OFHEO index, compiled using Fannie Mae- or Freddie Mac-backed mortgage loans of $417,000 or less, showed an…