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When reporting on multifamily finance in the 2000s, I came across a common refrain from desperate mortgage bankers again and again: “There is a surplus of money chasing a limited amount o f product.” This intensely competitive environment—for lenders, that is—went on for years, seemingly never-ending. But the capital “surplus” environment did come to an end. What Sam Chandan, chief economist of Reis, said recently at the company’s third quarter briefing throws light on the situation. He cited an essay about banking crises. Such a crisis happened, famously, in Japan in the 1980s. The cycle begins thus: There is some…

"I think we will see a rebound in the economy partly because of this substantial easing that we've seen from the Fed, but I think it will be delayed. I think we are likely to see clear evidence of this emerging towards the end of the fourth quarter this year and a rebound well under way in the first quarter next year." Actor Jimmy Stewart, 1949 Seen this movie before? There have been a lot of questions lately about how the multi-family industry is faring against the backdrop of all of the Federal initiatives. One of the favorite holiday classics…

As the holidays approach, observers of the economy are likely in anything but a festive spirit. A rash of recent news has proven that the turmoil is far from over, and the situation may well become significantly worse before it gets better. The auto industry’s requested bailout remains in limbo at the moment, with President Bush saying he might use funds from the Troubled Asset Relief Program to aid automakers in avoiding bankruptcy. Bush would not provide a timeline for such a plan, which would involve providing the Big Three auto companies with money from TARP, which was originally earmarked…

This is an unprecedented time, as far as I can tell. In the height of the holiday season, when thoughts usually turn to snow angels, twinkling lights and shopping deals, the reverie usually reserved for festive parties has been stolen and replaced by endless news about layoffs, failed federal policy responses and endemic fears about losing one's job. Recently it has come to light that the TARP initiative has failed to provide any modest level of relief for the property sector because the banks taking advantage of the funds haven't followed through on loosening credit standards to average borrowers. Although…

There is a distinction in examining renter trends that often gets overlooked. One of the smartest guys in this business is a research guru at a large owner, who bristles at the idea that there are "shadow markets." In conversations about rental markets, and rightly so, I believe, the point is made that in most metropolitan areas, there have always been renters in a wide variety of housing types and that no one is hiding in the shadows, even though that term has gained great popularity. A leading expert in monitoring markets nationally, Greg Willett, MPF wunderkind and the sultan…

By Keat Foong, Executive Editor When reporting on multifamily finance in the 2000s, I came across a common refrain from desperate mortgage bankers again and again: “There is a surplus of money chasing a limited amount of product.” This intensely competitive environment—for lenders, that is—went on for years, seemingly never ending. But the capital “surplus” environment did come to an end. What Sam Chandan, chief economist of Reis, said recently at the company’s third quarter briefing throws light on the situation. He cited an essay about banking crises. Such a crisis happened, famously, in Japan in the 1980s. The cycle…

"There's something happening here What it is ain't exactly clear"© Buffalo Springfield The recent employment situation report from the Bureau of Labor Statistics released today show a decline in payroll employment of over 530,000 jobs in November, the ugliest report since 1974. Major revisions to earlier releases including September and October suggest that in the past three months combined, the U.S. has lost 1.256 million jobs. The unemployment rate increased to a staggering 6.7%. According to some analysis of the Mortgage Bankers Association data, about 10% of all U.S. households are in default in one way or another on their…

With so many companies now cutting back on holiday celebrations, this could be the season when property managers can really make a difference in their residents’ lives as well as in their communities. Simple opportunities for get-togethers may now be appreciated more than in previous years when budgets were more lavish. Perhaps the time is right for a return to basics, like a homemade cookie exchange or carol singing. This is the time of year that people especially value warm greetings and times together. They're a welcome antidote to the worrisome headlines of daily news reports.. And with reduced corporate…

Are we bailing on the automakers? Any astute observer of the auto industry will tell you that there is pretty direct correlation between auto sales and housing starts. It's likely that the home equity mortgage withdrawal from the wealth effect is part of the cause, but more importantly the auto industry has created millions of jobs and helped to create the middle class. Taking a moment to look at the history of the industy, since the 1950s, the unions have held an iron grip on labor negotiations, forcing the big 5, now the big 2 (you gotta wonder about Chrysler)…

According to RealtyTrac and some other sources tracking foreclosure activity, approximately 280,000 foreclosure filings occurred in October, up about 5% from the prior month, but up almost 25% year over year. Foreclosures were probably accelerating at a more rapid pace than these numbers might suggest because many states enacted measures to slow or change the process, thereby skewing the resulting counts. To give you an example, those fun loving legislators in Colorado lengthened the process from 45-60 days to 110-125 days, and New York, historically not a huge foreclosure problem compared to other states, now requires that subprime mortgagees be…