Tuesday, February 9, 2010
Monday, February 8, 2010
Are banks holding on to commercial foreclosures?
Everyone was expecting fire-sale prices on commercial real estate. But it doesn't seem to be happening on the grand scale some were predicting. Many commercial properties that have been foreclosed on are being leased instead of being sold at fire-sale prices.
“All the banks are taking haircuts (losses) now, but in stages,” one banker stated. “Most banks don’t have the capital to absorb sizable losses all at once, so they are holding onto their commercial real estate to stagger the losses.”
The smaller the bank, the harder it is to absorb the loss from selling depressed properties.
The FDIC only allows banks to hold on to properties for 5 years, although banks can request extensions. During this period, banks must offer a plan to dispose of their real estate assets.
FDIC real estate assets are growing as the FDIC continues to take over insolvent banks.
Most large assets seem to be gobbled up by the REITS, which have a clear advantage over individual investors.
However, individual investors are having some success financing assets of up to $3 million through the federal government’s Small Business Administration (SBA) loan programs, like the 7(a) and 504 loans.
Monday, February 1, 2010
Texas Home Sales Volume And Prices Up in 2009-Q4
February 1, 2010 - Austin.
Release From Texas Association of Realtors Summarized by Troy Corman, t2realestate.com
The Texas A&M University Real Estate Center has released data that show that Texas' sales volume increased 16% from the fourth quarter of 2008. The average home price also jumped 2.35% to $143,400 from $140,100 in the previous year.
Jim Gaines, Ph.D., and economist with the Texas A&M Real Estate Center said, "while figures throughout the first quarter of 2009 were positive compared to 2008, they were particularly positive in October and November, which makes it clear that the first-time homebuyer tax credit is having an impact in Texas. The increase in median price also stands out, particularly compared to national figures, which are down substantially."
Texas also enjoyed a decrease in the number of homes of inventory on the market. It dropped from a 6.6 months' supply to 6.5 months. The Texas A&M Real Estate Center typically uses 6.5 months' supply as a target point for a healthy, balanced market.
To view the Texas Quarterly Housing Report for 2009, visit texasrealestate.com.
Release From Texas Association of Realtors Summarized by Troy Corman, t2realestate.com
The Texas A&M University Real Estate Center has released data that show that Texas' sales volume increased 16% from the fourth quarter of 2008. The average home price also jumped 2.35% to $143,400 from $140,100 in the previous year.
Jim Gaines, Ph.D., and economist with the Texas A&M Real Estate Center said, "while figures throughout the first quarter of 2009 were positive compared to 2008, they were particularly positive in October and November, which makes it clear that the first-time homebuyer tax credit is having an impact in Texas. The increase in median price also stands out, particularly compared to national figures, which are down substantially."
Texas also enjoyed a decrease in the number of homes of inventory on the market. It dropped from a 6.6 months' supply to 6.5 months. The Texas A&M Real Estate Center typically uses 6.5 months' supply as a target point for a healthy, balanced market.
To view the Texas Quarterly Housing Report for 2009, visit texasrealestate.com.
Friday, January 29, 2010
Thursday, January 28, 2010
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