According to Trulia’s chief economist, U.S. home prices were 2 percent undervalued in the fourth quarter of 2014. But the most overvalued market in the country is now Austin, at 16 percent overvalue, followed by Orange County and Los Angeles in southern California. Nine of the 100 largest metro areas are 10 percent or more overvalued.Read More
Competition for prime assets in Europe’s major real estate markets is leading investors to continue their move into secondary assets and recovering markets, according to Emerging Trends in Real Estate Europe 2015, a forecast published jointly by ULI and PwC.Read More
The Real Estate Roundtable released the results of its fourth-quarter 2014 Sentiment Survey. Topline findings included the following: increases in interest rates are likely to play out more slowly than expected, equity and debt capital for real estate is widely available, and return expectations have been dialed down by some investors who feel we are nearing the top of the current cycle.Read More
This year’s 21st annual ULI/McCoy Symposium on Real Estate Finance, titled “Real Estate Investment and Finance in a Post-Q.E. World,” found participants to be quite positive regarding what that world will look like in 2015.Read More
The Trepp survey for the week ended December 5th, showed spreads relatively unchanged over the past 30 days, with the average spread increasing 2 basis points. The implied all-in cost of for a 10-year mortgage remains in the 3.50 percent to 4.00 percent range; last year at this time we were talking rates of 4.50 percent to 5.00 percent.
The Trepp survey for the week ending November 28, 2014, showed spreads relatively unchanged over the past 30 days, with the average spread declining 1 basis point. During the period, borrowers benefited from a 12-basis-point decline in the yield on ten-year Treasury notes. The implied all-in cost of 3.6 percent is 104—repeat, 104—basis points lower than it was on December 31, 2013.
Japan remains a favored country for real estate activity in Asia, with Tokyo and Osaka ranked first and third, respectively, in terms of investment and development prospects for next year, according to Emerging Trends in Real Estate® Asia Pacific 2015, a real estate forecast jointly published by the Urban Land Institute and PwC.
The Trepp survey was not conducted last week due to the Thanksgiving holiday. If the survey had been conducted, it most likely would have shown a decline in average spreads of 10 to 15 basis points, mirroring the recent decline in yields on ten-year Treasury bonds, which closed at 2.18 percent on November 28.
The Trepp survey for the week ending November 14, 2014, showed spreads basically unchanged as the debt markets entered the listless pre–holiday period; the time period stretching from now through the end of the Thanksgiving weekend should be moribund, with not much happening that qualifies as newsworthy.
The Trepp survey for the week ending November 7, 2014, showed average spreads basically unchanged as lenders and borrowers alike focus on getting 2014’s remaining deals “papered” by December 31. Absent the appearance of a “black swan,” we expect nothing of note to change over the next six weeks. All-in cost remains in the wildly attractive 3.50 to 4.00 percent range.