Posts Tagged ‘caution’

Zell Reduces Investment in Commercial Real Estate

September 12th, 2013 Comments off

One of the biggest investors in U.S. real estate in the ’90s and early part of the century, only 30 percent of Sam Zell’s personal investment portfolio is in real estate, compared to 50 percent in the 1990’s. According to the, billionaire Zell told The Wall Street Journal, “We’re dealing with a world that’s dramatically more volatile, and that requires more caution and care than before. I’m not singing ‘Kumbaya’ like other people.” Following the market collapse in 2008, he shifted his interest to natural gas, international real estate investments in emerging markets including Columbia and India, and a distressed-debt fund. As MHProNews knows, Zell is Chairman of the Board of Equity LifeStyle Properties, Inc., (NYSE:ELS) the largest owner of manufactured housing communities in North America with 380 properties comprised of over 140,000 homesites.

(Photo credit: Equity LifeStyle Properties, Inc.–Lake Haven, Clearwater, Fla.)

Stock Watcher Predicts Economic Growth

March 19th, 2013 Comments off

Mitch Zacks of zacksinvestmentmanagement says one of the major factors driving the stock market as it hits new highs is the strength of the job market, which has witnessed the strongest period of job increases in over five years, and a concurrent drop in unemployment claims to a five-year low. Zacks attributes the employment numbers to the Federal Reserve’s quantitative easing—essentially printing money, and predicts a Gross Domestic Product (GDP) growth of three percent this year, an upgrade from the 1.3 to 1.9 percent originally projected before the sequestration cuts. He says, “A fairly solid, full-steam ahead economy appears to be here.” MHProNews understands that jobs are a major factor in driving the overall housing economy. Zacks does caution that the Fed may ease the easing too soon, which could be harmful.

(Image credit: Fotosearch–Businessman with crystal ball)

Wells Fargo: Caution; B of A: Full Steam Ahead

March 11th, 2013 Comments off

According to originationnews, economists at Wells Fargo Securities have suggested that institutional investors account for 20 percent of existing home sales, but as the inventory of preferable distressed properties declines, investors may pull back from the market. Traditional homebuyers who need mortgages are not returning to the market in numbers as the housing rebound might suggest. If the investors do pullback, then median prices will not rise as fast. The median home price rose 6.4 percent in 2012 over 2011. Meanwhile, MHProNews has learned, analysts at Bank of America Merrill Lynch see clear sailing, predicting house prices will rise eight percent this year. “We believe a positive feedback loop has begun, where the rise in prices fuels expectations of further appreciation and easing credit conditions, which in turn stimulates home buying,” says their report.

(Image credit: Fotosearch)

Emotions Outweigh Finances

July 17th, 2012 Comments off

RealtorMag reports a survey by Prudential Real Estate Outlook Survey of home buyers and sellers reveals in addition to the 70 percent who believe real estate makes a good investment, many if not most have a stronger emotional tie to owning a home. Phrases like “control over living space,” a “safe neighborhood,” a “good place to raise children,” and “more space for family,” are what realtors hear often. Prudential Real Estate president Earl Lee says, “Every last emotion is rolled up into owning a home — it’s where life happens — so it’s no surprise that the emotional side outweighs financial reasons for owning a home among respondents.” Still, many expressed caution during uncertain financial times of the risks involved in buying a home.

(Photo credit: Photobucket)

Cavco’s Revenues Spiked Grandly, but……..

June 27th, 2012 Comments off

MSNBC tells us Seth Jason at The Motley Fool says he judges company performance by comparing inventory increases to revenue increases: if inventory expands faster than sales, it could indicate a problem, one which he suggests may be happening at Cavco Industries. Trailing 12-month revenue rose 157.9% while inventory increased 288.2%. When comparing the most recent quarter to the same quarter last year, revenue grew 156.3% and inventory rose 288.2%. But the sequential quarterly period saw revenue fall 13.1% and inventory drop only 0.1%. In addition, Jason notes the type of inventory—raw materials, work-in-progress, and finished goods—may be telling. A large increase in finished goods inventory may mean product is not selling well. MHProNews has learned at Cavco, on a trailing 12-month basis, finished goods inventory grew the fastest, increasing 1,023.6%. On a sequential-quarter basis, work-in-progress inventory grew the fastest, increasing 19.1%. The author does caution that numbers cannot tell the whole story: Call the company’s investor relations for a more thorough accounting. Cavco is one of the largest manufacturers of manufactured and modular housing in the U.S. Cavco’s stock gained 4.23% in today’s trading.

(Image credit: Cavco Industries, Inc.)