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Last week, the Federal Funds loan rate — which determines banks’ overnight lending rates — was lowered to 4.75 percent. The rate drop was designed to bolster the economy. Although consumer spending has remained relatively stable this year — despite a credit crisis and continued housing decline — banks aren’t so sure it will stay that way. Plus mortgage defaults have risen, making banks leery about loaning to each other. All that nail-biting nervousness is bound to seriously affect consumer attitude at some point, which is obviously a concern. Just look at the near collapse of Northern Rock, Britain’s 5th-largest…

It’s been a long, sobering week of anticipation and announcements from the Fed, from the Fed testifying to Congress, from news sources reporting the housing decline is still declining … But now it’s Friday. So let’s talk celebrities. Or, more specifically, celebrity real estate. For the non-famous, buying property is a big decision.  Although an increasing number have second homes for vacations or other uses–The National Association of Realtors says 3.34 million second homes were bought in the U.S. in 2006, up 16 percent from 2005 — it’s unlikely we commonfolk are going to buy and sell property on a…

Yesterday, we talked Dubai: Big growth, some Michael Jackson sightings and the fact it’s considering going green. But Dubai isn’t the only global power looking to add some green to its geography. Several growing countries are making efforts to incorporate sustainability in their construction plans, including: India — The real estate sector in India is growing 30 percent by 2010, to a $50 billion industry, according to Al Bawaba — prompting green building talk. The savings and environmental impact are starting to register with the country, who in 2003 had only 20,000 square feet of green new construction. Australia —…

Yesterday’s MHN news included an item about Dubai, which is mulling over a green building policy that could significantly increase its amount of sustainable buildings (the area currently has three.) What you have heard about Dubai may vary — but you’ve likely heard that it’s in the Middle East (true — it’s in the United Arab Emirates), has many wealthy residents (also true) and is somewhere Michael Jackson has been known to live (oddly enough, once again, true.) Oil was discovered in 1966, and following the first exports three years later, Dubai began to economically expand — fast. That growth…

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…