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Just over an hour ago, the Fed — for the first time since 2003 — cut its benchmark interest rate by a half-percentage point to 4.75 percent. The rate on direct loans to banks was also lowered by half a percentage point to 5.25 percent. And yes, for weeks analysts have been anticipating a cut would happen. However, many thought it would only be a quarter of a point — and the Fed had warned it would not act to bail out investors who had overextended themselves. Nothing was certain. Taking all that into account — and given that this…

Last week, we discussed some of the reasons the housing crisis seems set to continue through the next year. Many in the industry are waiting to see what the Fed announces tomorrow in regard to the interest rate: The federal funds rate has been kept at 5.25 percent for months. There’s speculation it will be lowered Tuesday. If the Fed does lower the rate, it’s not going to fix things immediately. And if the Fed doesn’t, well — it might be time to start looking at what we can do to correct our industry. But what can we do? Some…

Donald Trump is known for his high-quality, innovative buildings — but some New York City preservationists are claiming he isn’t known for his communication skills. They’re upset that Trump didn’t approach neighborhood residents about his planned 46-story Trump SoHo, planned for — you guessed it — SoHo. The building was announced last year on "The Apprentice." "Every other developer comes to us and says, ‘We’re going to build a building. What do you think of it?’"  Sean Sweeney, director of the SoHo Alliance, a group that seeks to maintain the character of the artsy neighborhood, told the Associated Press. "Trump…

Perhaps you’ve noticed recently that many residential industry insiders have started saying that they’re expecting the current housing slump — which already seems like it’s been going on forever — to last through a good chunk of 2008. Not long ago, many of those same sources were expressing hope the crisis would start a turnaround later this year — and true, it’s September, but there’s still time (and room) for improvement, right? Read the news — and the numbers — and you might think otherwise. There are quite a few reasons why the housing industry is now looking toward 2008…

Earlier this week and late last week, we touched on some of the New Yorkers who are being inconvenienced — and even possibly priced out of the city — due to the rising rental rates. Even though residential construction is doing well in the area, there is still a rental housing supply shortage. And as more people clamor for less apartments, prices are skyrocketing. As a result, some reports put the amount many New Yorkers are paying in rent as 50 percent of their salary. Ouch. Yet New Yorkers aren’t the only ones feeling the sting of housing costs. While…

One of MHN’s daily news items today — Northern Calif. Area Has Worst Housing Market in a Quarter Century — touched on California’s continuing real estate problems. The state was one of the hardest hit in the recent housing slump because it was one of the fastest rising in terms of property value and new construction a few years ago. The higher the climb; the harder the fall. But, of course, California isn’t the only U.S. area that’s seen home prices skyrocket and then plummet. An interesting article today from NuWire, a Web site featuring interviews and articles written by…

On Friday, we discussed some reasons New York’s condo market seems bust-proof. As rates fall across the nation, New York new residential construction remains strong — and prices are higher than ever. But high-end market condo prices aren’t the only rising costs. Just ask any Manhattan renter. The Wealthy New Yorker Tradition In a city in which low vacancies and a high number of residents mean rent can easily push past the $2,000 mark, purchasing a place — even an expensive one — may not seem like quite such a stretch. Buying a really expensive apartment instead of renting one…

This year has not been a good one for most U.S. residential construction markets. Kansas new home projects were 50 percent lower in June than they were a year ago. In Ohio’s Dayton area, residential contracts dropped by 38 percent in July. Northwest Arkansas saw a drop in residential building permits in the second quarter of 2007 — 56 percent less than in 2006,  according to the Arkansas Business. Yet, as different parts of the country report weakening housing markets, news of New York’s strong residential sales continues to spread. New York City will reach its highest construction spending mark…

As the residential market slows … and slows … and slows … we continue to hear reports of various cities and areas that are experiencing unusually solid housing sales. But these neighborhoods aren’t the only sector showing housing growth. Other subsets of the population remain strong prospective buyers. For example, first-time buyers will still, in some varying degree, take advantage of interest rates before they really rise, as they are predicted to do. Still, first-time buyers alone likely won’t move the market back into its previous robust state. However, one category is poised to be a huge influence on the…

Location, location, location: The old saying about what’s most important in  real estate has never held truer than in today’s tough market. Residential property spending has been dropping for months (the average U.S. home sales price dropped from $322,100 in the first quarter to $310,000 in the second quarter of 2007, according to the U.S. Census Bureau.). New properties have stalled on the market, causing many developers to postpone or cancel upcoming developments. But some residential projects are selling — well — and location plays a big part in their success. The Big Apple Goes Crazy for the Great Outdoors…