articles 11 to 25 of 73
Falling Prices, Foreclosures and Fear: What's Next for the Housing Market?
The U.S. housing market has been wobbly for several years, but it has shown some signs of perking up in recent months. The latest reports, however, indicate a setback, with median home prices dropping slightly and sales well below the already depressed levels of 2009. Yet a combination of low mortgage rates and apparent home-price bargains should still be drawing some buyers into the market. Knowledge@Wharton spoke with Wharton real estate professor Susan M. Wachter about the housing market's slow recovery, the prospect of another sharp dip in prices, the effect of foreclosures on the economy, and what it will take to get the market back on track.
From: October 27, 2010
The Walls Keep Tumbling Down: Foreclosure Flap and Other Housing Industry Woes
After suspending foreclosures in order to review cases that may be flawed by procedural errors or fraud, major mortgage companies have injected new uncertainty into the already weak housing market. But the foreclosure flap is just the most recent of many setbacks for the troubled industry, even as a new generation of potential buyers is rethinking the traditional dream of homeownership. As one Wharton professor notes: "Buying a home doesn't make sense for a large proportion of the population."
From: October 13, 2010
Home Is Where the Money Is: A New Incentive Program Aims to Slow Rising Mortgage Defaults
As the housing market languishes in the doldrums, an astoundingly high number of homeowners in the U.S. are defaulting on their mortgages. While some simply cannot afford the payments, others own properties that are in "negative equity" -- that is, the value of their homes is less than the amount of the mortgage. As a result, these homeowners have decided to stop paying their mortgages and start fresh. A new incentive program from Wharton finance professor Alex Edmans, however, might give the latter group another choice that could benefit them -- along with lenders and society at large.
From: September 29, 2010
Real Estate's Future: 'It Depends on What Degree of Risk You Are Looking For'
With the financial crisis wiping out trillions of dollars in property values worldwide, the challenges facing the global real estate industry are greater than they have been in decades. Within the turmoil, however, are opportunities for players in both the commercial and residential real estate markets, a point made by members of a panel at the recent Wharton Global Alumni Forum in Madrid called, "Real Estate: Exploring the Road to Recovery."
From: July 14, 2010
Drowning or Hedging? The Risks and Rewards of Owning a Home
Nearly 11 million homeowners -- or about one-fifth of those paying mortgages -- are now considered "underwater" because they owe more on their houses than they are worth. But while sharp declines in prices might be enough to make even the most cavalier consumer think twice before buying a home, new Wharton research suggests that homeownership is less risky than might be expected. Indeed, it can effectively hedge against volatile prices for shelter, including rental rates, if a buyer does not take on excessive debt to make the purchase.
From: March 31, 2010
Global Real Estate: Ready for a Rebound?
The global real estate community is breathing easier than it was a year ago, judging by the sentiments of participants at a recent Knowledge@Wharton global real estate forum titled, "The Road to Recovery: Investing in the Global Real Estate Rebound." Held at the New York Stock Exchange on December 11, in conjunction with Interconnect Events, the forum focused on the developed world's challenges in freeing up private capital and finding opportunities in distressed real estate assets, among other topics. According to some speakers and panelists, opportunities that receded in the West in the wake of the financial crisis can still be found in emerging markets, although the barriers to entry remain high.
From: January 20, 2010
Tentatively and Sporadically, Real Estate Investing Makes a Comeback
Real estate is showing some early signs of recovery as an attractive investment, at least compared to some other opportunities like corporate debt. But capital markets must open further to revive normal deal flows, said panelists at the recent Zell Lurie Real Estate Center conference. And while glimmers of confidence are returning to some sectors, the positive signs are distributed unevenly. Panelists also discussed lessons learned from regulatory lapses, ways to fix them and growth drivers that might stimulate the economy.
From: November 24, 2009
Peter Linneman on Real Estate: The Storm Is Over, the Wreckage Remains
Although some upbeat economic news in recent weeks might indicate the beginning of the end of the recession, there's still plenty of "wreckage" to deal with, says Wharton real estate professor Peter D. Linneman. Nowhere is this more apparent than in the housing and commercial property sectors, which have taken one of their worst beatings ever. In an interview with Knowledge@Wharton, Linneman draws on policy missteps of the past to caution the Obama administration to tread carefully and avoid "trying to cure things they can't cure," while contending that the U.S. might have more in common with countries like Venezuela, Russia and Japan than most observers think.
From: August 19, 2009
On Shaky Ground: Commercial Real Estate Faces Financial Tremors
As the global recession drags on, new concerns are rising about commercial real estate. Loans taken out during the boom years are coming due, but commercial property owners are contending with higher vacancy rates, lower rents and a less-than-receptive environment for refinancing their obligations. Industry analysts and politicians suggest that commercial real estate is about to become the next high-profile casualty in the ongoing economic meltdown. "The shoe has already dropped," says one Wharton real estate professor.
From: July 22, 2009
So You Think Owning a Home Will Make You Happy? Don't Be Too Sure
Owning a home has long been viewed as the cornerstone of the American Dream, the foundation for a happy family life and long-term financial security. Now, a new research paper challenges that conventional wisdom. Wharton's Grace Wong Bucchianeri, a professor of real estate, says her research shows that while homeowners experience significant joy, they also face more aggravation, spend less time with friends, and are even heavier than renters living in comparable homes.
From: June 10, 2009
Risky Business: An Entrepreneur's Perspective on the Brazilian Housing Market
Rafael became an entrepreneur when he moved to Brazil about a year ago to work in the country's nascent housing market. Before that, he was a successful portfolio manager at a hedge fund in London where he had been saving his bonuses and waiting for the right moment to strike out on his own. That moment came -- in the real estate industry. But it was followed by what turned out to be a devastating blow -- the global financial crisis.
From: April 20, 2009
Don't Write off the Malls Just Yet, Says Real Estate Magnate David Simon
Despite press reports to the contrary, shopping malls are here to stay, at least according to David Simon, chairman and CEO of Simon Property Group, owner of more than 350 malls, outlet centers and other retail-oriented properties in the U.S., Europe and Asia. Indeed, Simon said during a recent Wharton Leadership Lecture, his firm might consider making acquisitions again given that prices have recently fallen to levels last seen in 2002.
From: March 18, 2009
A 'Downward Spiral': Gulf Region Real Estate in the Era of Cheap Oil
In 2002, oil prices in the nations of the Gulf Cooperation Council (GCC) stood at $25 a barrel. By July 2008, that number had jumped to $147. The increase enabled the GCC's six member countries (Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates) to almost triple their gross domestic product -- from $350 billion to more than $1 trillion. Now oil prices have fallen again -- this time to below $40 a barrel -- and the oil boom and bust have come at a steep price, especially for Dubai.
From: March 11, 2009
Hirco Group's Aniruddha Joshi: 'Long-Term Drivers of India's Growth Have Not Changed'
What impact has the global financial crisis had on India's real estate market? According to Aniruddha Joshi, executive director of Hirco Group in Britain, which develops residential properties and mixed-use townships in India, the credit crisis has affected portfolio allocations. Still, Hirco's strategy toward property development in India will not change, Joshi told Knowledge@Wharton in an interview during the recent Knowledge@Wharton Real Estate in Emerging Markets Forum. "We believe that the long-term India story and the fundamentals are still intact."
From: February 05, 2009
Where the Deals Are: Real Estate in Emerging Markets
The unstoppable consumer demand and high returns once guaranteed by "hypergrowth" markets like the fabled BRICs -- Brazil, Russia, India and China -- are no longer a given, according to global real estate developers, investors, finance specialists and executives who spoke at the recent Knowledge@Wharton Real Estate in Emerging Markets Forum. Instead, investors need to evaluate each market individually and, given the current economic climate, focus on the long term.
From: January 21, 2009
