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Oct 29

Signs of improvement in the real estate market

Investors eager

Investors have been getting more bullish about housing as sales of existing homes reached a seasonally adjusted annual pace of 4.8 million in August, the highest level in more than two years.

Believing in a  nascent housing recovery and an improving economy as the general trend in unemployment rates trend downward, some investors are eager to find a way to bet that home sales and home prices will inversely mirror the drop in unemployment and rise in the coming years.

Real estate company stock offerings

  • Real estate company stock offerings doing well:  Realogy, which owns Century 21, Coldwell Banker, Sotheby’s International and other residential brokerage franchises, raised $1.1 billion by selling shares that were intially priced at $27 on the New York Stock Exchange and closed at $34.20.  , the WSJ reported
  • Other successful real-estate initial public offerings, including home-listing websites Trulia Inc., Zillow Inc.. and HomeAway, Inc., have combined raised nearly $400 million on public markets through September. Wall Street Journal
  • Builder stocks have risen 160% since August, 201 with the nine biggest publicly traded home-construction companies currently trading at an average multiple of 1.85 times book value, the high end of the historical trading range.

Miami waterfront sales sky-rocket

A strong demand for expensive Miami waterfront properties, much of it coming from South Americans and other foreigners looking to park their cash, has the industry punch-drunk with enthusiasm. Miami agents are putting off vacations (lest they miss a big sale), and some are regularly flying to South America on sales missions.

It’s a roller coaster that has a lot of people shaking their heads in disbelief. After all, as recently as two years ago, Miami was the poster child for distressed real estate while now it appears to be redefining itself through luxury real estate.

 

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