News

Landmark Links October 30th – Too Much of a Good Thing?

  Lead Story: When tax reform was passed last year, among the biggest potentiality wins for real estate investors and developers was the creation of Qualified Opportunity Zones which instituted tax benefits in exchange for investment in certain neighborhoods. The program is fairly straight forward: those who invest in regions that neighborhoods that the designation would receive […]

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Landmark Links October 26th – Nailed It

  Must Read: Over the past summer, there was a debate raging in the investment community as to whether or not massive pension fund buying to take advantage of a lucrative tax break was suppressing yields on the 10-Year Treasury.  When tax reform passed last year, pension funds were permitted to deduct their contributions based on last […]

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Landmark Links October 23rd – Barbarians at the Gate

  Must Read: Google, Amazon and Tesla are making a push into the notoriously slow-to adapt housing industry in various ways with the benefit of having much larger balance sheets than the incumbents and cultures that encourage innovation and disruption. Economy Moon Shot: Wages for the top 1% of earners are now at their highest level […]

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Landmark Links October 19th – Cushioned

  Must Read: Based on the historical relationship, months of supply could increase 50% before we start seeing housing prices decreases (as opposed to a slowing rate of price increase that we have been experiencing) – per Calculated Risk.  See Also: The next housing downturn will be a lot different than the prior one was: In a […]

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Landmark Links October 16th – Out of its Misery

  Must Read: The long-awaited Sears bankruptcy filing is now officially upon us as the dying retailer filed for Chapter 11 this weekend in an attempt to avoid liquidation.  Of course, more stores will be shuttered which will lead to even greater vacancy in malls.  Sears’ exit could be the final nail in the coffin for mall […]

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Landmark Links October 12th – Running out of Room

  Must Read: A 5% mortgage isn’t high by historical standards but it will certainly feel that way to buyers who have become accustomed to borrowing at rates below 4%.  This is a big part of the reason why home price growth has slowed as have sale transactions, despite still-low inventory levels. This is a recipe […]

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Landmark Links October 9th – The Great Compression

  “You can’t predict. You can prepare.” – Howard Marks Perhaps its difficult to remember now but there was a period between early 2010 and late 2016 when interest rates moved predictably in a downward direction – especially on the long end of the yield curve – every time potentially destabilizing geopolitical or economic event […]

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Landmark Links October 5th – Shaken to the Core

  Must Read: UBS Asset Management is out with a fascinating white paper about how core real estate investment will have to change substantially in today’s disruptive business environment.  Here’s a snapshot: “Consequently real estate assets are likely to become more asset management intensive and core income streams may face increased volatility. On the upside, […]

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Landmark Links October 2nd – Stagnation

  Must Read: I’ve been saying for months now that higher mortgage rates in a declining inventory environment would lead to higher prices and construction stagnation rather than a decline in home values.  Ben Casselman’s story from the NY Times this past weekend does as good a job of explaining how housing is defying textbook […]

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