Regions

Washington, D.C.–Figures released Monday by the Commerce Department indicate 2007 may have been the housing industry’s worst year in nearly half a century, the New York Times says.New home sales dropped by 26 percent in 2007–the sharpest decline since recordkeeping began in 1963.In December alone, new home sales fell 4.7 percent to a 604,000 annual rate. The December sales rate is the lowest since 1995.As buyers wait for bigger bargains and homebuilders just wait, demand has greatly declined; even buyer incentives have failed to ignite the market, which saw its housing supply increase to 9.6 months in December.New home sales…

London–Higher interest rates and a bleak market outlook caused U.K. home prices to fall for the fourth consecutive month in January, Bloomberg said Monday.The average cost of homes in England and Wales declined by 0.3 percent–which was the rate of decline in December–to 174,700 pounds ($346,000), according to London-based research group Hometrack Ltd. Home prices were up 2.3 percent from a year earlier, the smallest gain since June 2006. The housing supply decreased–roughly 4.6 percent–as consumer confidence dropped in December.In addition, homes are sitting on the market longer, Hometrack says. Average selling time swelled to 8.5 weeks–its highest level since…

Brussels–Belgian and Dutch bank Fortis said Sunday its net profits before divestments from 2007 may be €1 billion lower than originally estimated because of subprime exposure, the Financial Times said Monday.The Brussels-based bank said in a statement that “if these scenarios were to be applied to the closing of the accounts of 2007–which would be subject to approval by the board on March 6–the net profit of Fortis is to be around €3 billion.”A newspaper report published Saturday indicated Fortis may need to post a €2 billion writedown in its subprime portfolio. However, although shares of Fortis fell Friday when…

Washington, D.C.–For the first time, two U.S. cities hold the top two spots on the list of global commercial real estate investors’ preferred cities, according to an Association of Foreign Investors in Real Estate (AFIRE) survey released Monday.New York and Washington ranked No. 1 and 2 on the list. Survey respondents said investing in commercial real estate in the U.S. was easier in 2007 because the credit collapse eliminated investors who used cheap debt to buy commercial properties, the Guardian reports.The Washington, D.C.-based group said global property investors still overwhelmingly prefer U.S. commercial real estate, despite the fact China is…

By Anuradha Kher, Online News EditorAlexandria, Va.–Kettler, one of greater Washington D.C.’s largest real estate development and property management companies, has been chosen to manage a new mid-rise apartment community called Monarch, located in Alexandria, Va.The 168-unit building, with rents ranging from $1,675 to $4,100, began leasing in January 2008. Monarch features apartments, penthouses and lofts with street-level retail shops, a salon and spa, a restaurant and a drycleaner. Monarch covers an entire city block, bordered by North Henry Street, Oronoco Street, Pendleton Street and North Fayette Street. The community is three blocks away from the Braddock Road Metro station…

By Anuradha Kher, Online News Editor New York– Brack Capital Real Estate (BCRE), a global real estate firm, has finished remodeling 15 Union Square West, which served as the headquarters of Tiffany & Co. in the late 19th century.The renovated building, which used to be nicknamed the Palace of Jewels, now consists of 36 two- and three-bedroom luxury condominiums ranging from 1,763 to 3,164 sq. ft. Architect and designer Eran Chen of Perkins Eastman and interior designer Vicente Wolf worked on the original 1870 design by John Kellum. BCRE restored the five-story building’s historic cast-iron arches, wrapped it in a translucent,…

Newark, N.J.–In an initiative to increase affordable housing opportunities in Newark, a joint venture of Apollo Real Estate Advisors and Radiant Property Management, a Newark-based real estate company, has purchased nine rental properties in the Newark area for $43 million.“We are excited to welcome Apollo Real Estate Advisors and Radiant Property Management as our newest partners in Newark’s transformation,” Mayor Cory Booker said today at a press conference announcing the acquisitions today.Most of the nine properties, totaling 724 units and nearly 575,000 sq. ft., are located primarily in the Weequahic section of Newark and the surrounding area. Apartments include studios,…

By Anuradha Kher, Online News EditorSan Francisco–The California Housing Finance Agency (CalHFA) Board of Directors has approved $9.6 million in long-term loans to Alexis Apartments, an affordable housing complex in downtown San Francisco. The loan will allow the owners of the building to maintain affordable rents and serve senior citizens with household incomes at or below 80 percent of the area median income (AMI). A vast majority of the seniors, who are currently and will continue to reside in the complex, have household incomes below 50 percent of the AMI.The money will go toward renovations of Alexis Apartments, which currently…

Miami–Miami-based homebuilder Lennar Corporation announced its largest quarterly loss Thursday–$1.25 billion in the forth quarter, the New York Times reports.Citing a decline in home prices and a writedown on company-owned land, Lennar also reported a $1.9 billion loss for last year. The company said it was trying to generate cash and cut inventory while taking heavy impairment charges because the market remained difficult.Lennar’s quarterly loss was $7.92 a share, compared with a loss of $1.24 a share–$195.6 million–in 2007. Revenue dropped 49 percent from $4.27 billion to $2.18 billion in the same period last year. Home deliveries declined 50 percent…

New York–The proposed U.S. economic stimulus plan announced Thursday will prevent foreclosures and make refinancing easier for mortgage seekers in high-cost markets, CNNMoney.com reports.If passed, the package will increase the dollar amount of the loans Freddie Mac and Fannie Mae are able to purchase. Currently, the government-backed lenders only can guarantee secondary market loans of less than $417,000. Private lenders are happy to offer the larger jumbo mortgages–but, because there is no guaranteed secondary market for the loans, the lenders charge borrowers more for taking on additional risk. The plan suggests raising Freddie Mac and Fannie Mae’s limit to $625,000…