News
March Market Pulse
Commentary and Data Supplied by Bernard Markstein, Director of Forecasting, National Association of Home Builders Economics Interest Rates: Over the last six months, increasing weakness in the overall economy has resulted in consistently lower rates for each of these three indexes.Building Materials: While overall construction materials prices have been rising at a moderate pace, there is a pattern of declining prices in softwood lumber, plywood and gypsum.Apartment Starts: Starts remain at relatively low levels, as apartment developers wait for land prices to drop far enough to make the numbers work.Rent Changes: The recent rise in the Consumer Price Index will…
India Offers Growth Potential for Real Estate Investors
By Aniruddha Joshi, Hirco GroupThe two big emerging markets that now lead the news are China and India, but there are three key differences between these fast-developing economies that real estate investors need to understand. These market differences are: India enjoys consumption-based growth vs. export-based growth in China;India’s economy is market-driven vs. government-driven; andGrowth is based on private consumption vs. infrastructure investment.The India story is very much about growth based on consumption, as opposed to China’s, which is export-led. To illustrate that, I often say, “China’s growth depends on an American consumer walking into Wal-Mart, whereas India’s growth depends on…
Flooring | Return on Investment
By Matthew Marin, Associate EditorMultifamily developers, owners and designers are increasingly realizing the return on investment that a striking hardwood floor can deliver. There are many flooring options, but natural wood is one of the most popular choices desired by renters and buyers. Under the hardwood flooring category, there are a wide variety of choices from sleek and sophisticated to “hand-scrapped” hardwood floors that offer a loft conversion/warehouse aesthetic. “From a marketing perspective, the more upscale finishes, the better,” says Stephen Beacham, AIA, IIDA, associate principal of interior architecture for RMJM Hillier, an international architecture firm with offices in New…
Lochinvar
The new KNIGHT XL Commercial Boiler from Lochinvar is a modulating/condensing unit with 94.6 percent thermal efficiency, low NOx emissions and a fully modulating burner with 5:1 turndown. Also, because the boiler has high inputs and can be sequenced with multiple boilers to meet demand, it is suited for multifamily applications.Available in five models with 399,000, 500,000, 600,000, 700,000 and 800,000 Btu/hr inputs, the KNIGHT XL is lightweight and easy to handle. The units also feature a small footprint for space-saving versatility and zero clearance to combustible materials. Engineered with Lochinvar’s Smart System control, the KNIGHT XL offers control and…
FHA Reform Deal May Be on the Way
Washington, D.C.–Congress may approve a new Federal Housing Authority plan by early April, CNNMoney.com reported Tuesday.Different versions of the bill to update the FHA passed in the House and the Senate last year; the two chambers are working out the kinks, according to Senate Banking Committee Chairman Christopher Dodd, D-Conn., and House Financial Services Chairman Barney Frank, D-Mass.”I think we are fairly close to having an FHA reform bill that we will be able to adopt very quickly,” Dodd said last week.The proposed changes to the FHA, which provides loan alternatives to subprime mortgages, include permanently raising the higher loan…
U.K. Surveyor Home Price Results Almost Reach Historic Low in Feb.
London–The number of surveyors reporting U.K. home price declines in February hit near-historic 1990 levels, according to the London-based Royal Institution of Chartered Surveyors (Rics).Housing supply has risen as cautious buyers wait out the faltering market, BBC News reports. About 64.1 percent more surveyors saw a drop in home prices last month, an increase from 54.7 percent in January.U.K. home prices have fallen for the seventh month in a row and landed near the June 1990 low, when 64.5 percent more surveyors found home prices had fallen instead of increased.However, Scotland appears to be an exception, with 25 percent more…
One-Third of U.S. Cities See Lower Revenue Due to Housing Slump
Washington, D.C.–Rising home foreclosures have driven revenues down in one-third of American cities in the past year, according to the Washington, D.C.-based National League of Cities.Nearly two-thirds of more than 200 cities said increased foreclosures have caused one out of three to reduce community program funding, the San Diego Union-Tribune reported Tuesday. The nonprofit urban municipal association also said that growing demand for food banks and counseling are causing problems.Nonprofit and civic organizations are buffering some of the effects–more so than home lenders, the National League of Cities said.
Fed Doubles Amount It Plans to Lend to Bolster Credit Market
Washington, D.C.–Several of the world’s central banks–including the U.S. Federal Reserve–have announced a joint plan to add liquidity into money markets in North America and Europe, the Financial Times reports.On Friday, the Fed made an emergency intervention to reduce credit market strains. The Fed said this week that it would double the amount it originally had offered to lend, increasing the total by $200 billion. The money will be loaned to banks and primary dealers or brokers who trade with the Fed, which hopes it will be given to hedge funds and other market members who are having a hard…
DEAL OF THE DAY: Diamond Lakes Apartments Sold for $20.1M
By Anuradha Kher, Online News EditorLafayette, La.–Marcus & Millichap Real Estate Investment Services has arranged the sale of Diamond Lakes Apartments, a 312-unit multifamily community in Lafayette for $20.1 million, at $64,423 per unit.“Diamond Lakes Apartments is a well-maintained multifamily property in a prime location,” says Stephen St. Clair, vice president of investments and director of Marcus & Millichap’s National Multi Housing Group in Orlando, Fla. “The asset generates a reliable cash flow while at the same time possesses an inherent potential for steady rental increases.”Located at 2700 Ambassador Caffery Parkway, the 249,100-sq.-ft. apartment community consists of 16 two-story buildings…
Apartment Sector Remains Strong, Says NMHC Survey
By Anuradha Kher, Online News EditorWashington, D.C.–Conditions in the apartment sector remain strong, according to National Multi Housing Council’s (NMHC) latest Market Trends survey.“Apartment owners exercised great restraint during the housing boom,” notes NMHC chief economist Mark Obrinsky. “As a result, they have escaped the oversupply problems plaguing the single-family sector.”According to NMHC, the number of renters last year in professionally managed apartments increased by the largest amount since 2000. “In fact, the increase was as large as that for the previous five years combined,” says Obrinsky. Prior to that, between 2004 and 2006, 1.2 million households joined the ranks…