The Real Deal New York

Posts Tagged ‘stock market’

  • Stock volatility makes real estate shiver

    September 08, 2015 04:49PM
    From left: Ralph Modica, Thomas Kim and Susan de Franca

    From left: Ralph Modica, Thomas Kim and Susan de Franca

    From the September issue: Given how the 2008-2009 economic crisis rocked the New York real estate world, buyers and sellers can be forgiven for feeling jittery after last month’s stock market turmoil.

    “Where there is volatility, there is fear,” said Julie Park, a Level Group agent. “Ninety-nine percent of my clients and people I know have money tied up in the market somehow.”

    Spurred by China’s economic woes, the Dow plunged 1,000 points shortly after the markets opened Aug. 24, and despite a partial rebound, ended the day down 3.6 percent. Many of the top real estate stocks got hit hard. It was the scariest day of a week that saw broad swings in stocks, reminding many investors of 2008 and early 2009. [more]

  • Bag

    From the September issue: On Oct. 3, 2008, Daniel Herzberg, a British expatriate in Spain, called his bank, the Icelandic Landsbanki, to ask if his money was safe. He had read reports about financial difficulties, but got an encouraging reply and told his wife “everything will be fine.”

    Four days later, his account was frozen and the bank was nationalized. Herzberg’s fate, reported in the Wall Street Journal at the time, was not unusual. When the U.S. housing bubble burst in 2008, it exposed a complicated web of financial stakes that few were aware of.

    Banks in Iceland, Germany and elsewhere — not to mention U.S. institutions such as Bear Stearns and Lehman Brothers — suddenly faced default as a result of their investments in U.S. mortgage-backed securities. Many of the individual depositors who got burned were fanned out across Europe. And the European economy is still reeling from that domino effect. [more]

  • The New York Stock Exchange and Marc Holliday and Steven Roth (inset)

    The New York Stock Exchange in the Financial District (inset, from left: Marc Holliday and Steven Roth)

    UPDATED, 1:00 p.m., Aug. 25: From commercial brokerages to real estate investment trusts, it was hard to find a publicly-traded real estate firm that didn’t take a beating on one of the most volatile days in the stock market’s history. [more]

  • 19 stocks to play the housing recovery

    January 24, 2015 10:00AM

    screen shot 2015-01-23 at 11.15.39 amFundstrat’s Tom Lee is bullish on housing in 2015. To play the housing recovery, Lee recommended that investors buy homebuilder stocks.

    “From 1992 to 2005, homebuilders tracked housing starts pretty closely,” Lee wrote in a recent note to clients. “Even the dips and surges were fairly closely tracked. From the 2009 depths, this has continued to hold as well.” [more]

  • house down arrow

    Mortgage rates fell to lows not seen since November, in response to yesterday’s stock market plunge. As the S&P 500 got shellacked, mortgage rates fell about 0.06 percent yesterday, and the most highly-qualified borrowers could be looking at 30-year fixed mortgage rates of 4.25 percent. [more]

  • alternatetext
    From left: Town Residential’s David Salvatore, Prudential Douglas Elliman’s Sonia Stock and Fredrik Eklund, UrbanDigs’ Noah Rosenblatt and Gary Malin, president of Citi Habitats

    With the stock market posting its best first quarter in 14 years, real estate agents and brokers are beaming about the effect it’s having on interest, sales volume and open house attendance in their day-to-day business, despite little data to definitively confirm a causal relationship between the performance of stocks and the real estate market (see charts prepared for The Real Deal by Miller Samuel after the jump). … [more]

  • Commercial real estate giant CB Richard Ellis announced today that it will sell 14 million shares of its Class A stock to hedge fund Paulson & Co. for $100 million and plans to raise another $50 million in periodic stock sales in order to pay down its debt of nearly $2.4 billion. Most of that debt was incurred following CBRE’s $1.9 billion purchase of Trammell Crow in 2006. CBRE owes $310 million in debt payments beginning next year, according to Bloomberg data. CBRE stock rose 15 percent to $9.38 per share in afternoon trading today. TRD[more]

  • Stocks surge on housing news

    May 04, 2009 02:34PM

    Stocks rose today after unexpected increases in pending home sales and construction spending. The Dow Jones jumped about 150 points and stocks overall rose about 2 percent. Pending home sales rose 3.2 percent for the second straight month, according to the National Association of Realtors. Construction spending rose 0.3 percent in March after a five-month drop. It remains to be seen whether the market will continue rising once the April employment report comes out Friday.