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Posts Tagged ‘1 billion’

Canadians Investing Large in U.S. Housing Markets

August 29th, 2014 Comments off

canada-us-flags-wikicommons-posted-daily-business-news-mhpronews-com-“In the U.S., given the affordability and the fact that prices in the suburbs went down more significantly than in the cities you will see more and more options and opportunities outside big cities,” said Benjamin Tal, Canadian Imperial Bank of Commerce (CIBC) analyst. With Canadian markets hot – and some fear over-heating – the bargains south of the border in the U.S. are appareling, Reuters  tells MHProNews.

Compared to Canadians, U.S. home builders may be more tentative. Canadian firms such as Mattamy Homes, Landmark Group and Brookfield Residential are targeting suburban U.S. markets, where they believe they see more value and lower costs. Some are planning 2 years out, when they believe U.S. recovery will be more solid; a nice way of saying that the bargain deals are here now.

Privately held Mattamy Homes is Canada’s biggest builder. They’ve purchased 9,600 acres in Florida alone this year, but also are operating in Minnesota, Arizona, North Carolina.

Landmark Group is a leader in Alberta. They’ve invested in land in Phoenix, Arizona, to build their first U.S. condos. Texas, California and Georgia are all on their radar.

Calgary, Alberta-based Brookfield Residential announced developments will start developing several new projects this year, ahead of their initial 2016 schedule. 

This news comes on the heals of China-based Landsea’s announcement that they will be doing 1 billion dollars in new U.S. Housing. Canadians investors are among those targeting the U.S. for manufactured home community purchases, for more, click here. ##

(Image credits: WikiCommons)

UFPI Income Quintuples over Prior Year

February 14th, 2013 Comments off

MHProNews has learned from BusinessWire, Universal Forest Products, Inc. (UFPI), component supplier to the manufactured housing industry, posted net sales for 2012 of $2.1 billion, 12.8 percent better than 2011. Net income for 2012 of $23.9 million more than quintupled the $4.5 million net in 2011. While net sales for Q4 2012 of $470.8 were up 11.5 percent over the previous year, the $1.9 million net loss was higher than the $1.7 million net loss for the fourth quarter of 2011. In its manufactured housing division, gross sales for the 2012 totaled $314.1 million, a 28.4 percent spike over the prior year. For the fourth quarter 2012, gross sales of $74.6 million showed an increase of 26.3 percent over the same period in 2011.

(Photo credit: UFPI)

China Backing Major U.S. Housing Project

December 13th, 2012 Comments off

The World Property Channel reports China is backing the development of 20,500 homes in San Francisco to the tune of $1.7 billion, a development project at two former naval bases that will hire 5,000 over a six year period. Borrowing the money is Miami-based Lennar Corp.; terms were not disclosed. Hunters Point Naval Shipyard will receive $1 billion to build 12,500 homes, and 8,000 homes will be built at Candlestick Point at Treasure island for $700 million. The total build out is expected to take 20 years. Although a Lennar spokesman would not confirm the transaction, a property editor at the San Francisco Times says the general contractor will be China Railway Construction Co., which is the world’s second largest contractor, and that the China Development Bank has tentatively approved the loan. All parties hope to seal the deal before year’s end because the Foreign Account Tax Compliance Act goes into effect Jan 1. It requires disclosure compliance agreements with the U.S. Treasury for foreign financial institutions. MHProNews has learned from the Military Analysis Network that Hunters Point, which closed as a naval base in 1994, is a toxic waste dump and the target of a lawsuit alleging 19,000 violations of the Clean Water Act.

(Photo credit: Wikipedia–Hunters Point Naval Shipyard)

 

 

Could FHA Topple?

July 10th, 2012 Comments off

HousingWire says seriously delinquent mortgages insured by the Federal Housing Administration hit 713,104 in May, the highest since the beginning of the year, but 23 percent higher than May 2011, and more than double the seriously delinquent loans from Fannie Mae and Freddie Mac—3.5 percent versus 9.4 percent for FHA. In addition, of FHA-backed loans modified in 2011, more than double the number for Fannie and Freddie re defaulted within 12 months. The $1 billion settlement from Bank of America over the Countrywide fiasco saved it from a Treasury Dept. bailout; it also raised insurance premiums to further its funding. FHA insured 18.9 percent more mortgages in May 2012 than a year ago, and 4.9 percent more than the prior month. With a stalled economy and sluggish job growth, MHProNews.com has learned a rise in delinquent mortgages could deplete the resources of the FHA.

(Image credit: Federal Housing Administration)

Sun Stock Gets High Marks

June 4th, 2012 Comments off

SeekingAlpha‘s Tim Plaehn, who has 25 years experience with the stock market, ranks Sun Communities, Inc. as one of the top performing high yield real estate investment trusts (REITs) that is below the radar of the Vanguard REIT Index ETF (exchange-traded fund), which measures the performance of the larger REITs. With a current yield of 6.12%, Sun’s stock is up 12.8% through the end of May and has outperformed Vanguard, which is up 7.78%. Sun has a market cap of $1.1 billion, and has had a steady dividend over three years. MHProNews.com understands the company currently owns and operates a portfolio of 162 MH and RV communities comprising approximately 55,900 developed sites.

(Photo credit: Sun Communities, Inc.)

The Economy Nudges Upwards

May 1st, 2012 Comments off

The Commerce Department says construction spending grew +0.1% from Feb. to $808.1 billion in March, six percent higher than the $762.6  billion of March 2011, and notes the suggestion of improvement in the housing industry. Meanwhile, the LATimes says, the Institute for Supply Management (ISM) reports in their index the overall economy grew for the 35th straight month. Manufacturing in the U.S. grew to a ten-month high, expanding in April at the fastest pace in almost six months. MHProNews.com has learned activity increased at 16 of the 18 industries surveyed by ISM, including machinery, paper, transportation equipment, and petroleum and coal.

(Photo credit: Tim Saville/Gen. Truss)

 

FHA Insurance to Increase

February 29th, 2012 Comments off

HousingWire tells MHProNews.com the Federal Housing Administration (FHA) will raise the mortgage insurance from one percent to 1.75 percent to make up for the drop in the Mutual Mortgage Insurance (MMI) Fund below the Congressionally mandated two percent, to 0.2 percent. The FHA said the increase will add $1 billion to the MMI Fund, and combined with the nearly $1 billion coming from settlements with mortgage servicers, should allay fears professed by some analysts that FHA will need a government bailout much like Fannie Mae and Freddie Mac. For loans under the $625,000 limit the annual insurance mortgage premium will increase by ten basis points in April; for loans above that amount the premium will increase by 35 basis points beginning in June. FHA Commissioner Carol Galante, addressing the Mortgage Bankers Association (MBA), said, “These modest increases are one of several measures we are taking towards meeting the Congressionally mandated 2% reserve threshold, while allowing FHA to remain a valuable option for low- to moderate-income borrowers.”

(Photo credit: moneycontrol)