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Archive for the Real Estate Category

Real Estate Update

Are we there yet? Maybe some glimmerings but according to T2 and as commented on by Henry Blodgett at Clusterstock its a head-fake.

A well presented analysis can be seen here at Clusterstock.

“The credit pendulum is stuck at ‘stupid,’”

Due to the stricter lender rules good quality home-buyers are being denied mortgages. This is so typical and another case of “closing the barn door after the cows are long gone.”

Here is an example of what is going on. Fannie Mae recently toughened its policies, saying it would count only 70 percent of the value of stocks and mutual funds when calculating a buyer’s assets. Previously, that figure was 100 percent.

That is a “real smart move” after the markets have declined 40%. Where were these guys at the top of the market?

Short term and new rules notwithstanding I view this data point as positive and bullish as it indicates that there is pent up buying demand. Smart lenders and progressive banks will make a pot-full of money here taking advantage of good quality credits on which they can bump their fees and margins a bit.

For more at the New York Times go here.

Real Estate Update - The view from T2

According to T2 we are only in the 5th inning in the real estate correction with more pain to come. T2 analysis shows that banks are not prepared to handle the next wave of losses. The report is well worth a read for all investors and you can see it here.