Salient to Investors: The stock market is massively overvalued based on multiple measures due to crony financial leverage that has created wealth inequality that is now the worst we have seen during multiple generations. The PE ratio of the S&P 500 is 24.9, or 80 percent higher than the historical
READ MORE... →Salient to Investors: Joseph Pacini at BlackRock said: Asian institutions’ appetite for regional real estate investments has returned as they hunt for yield for their growing assets amid low interest rates and are expected to deploy more money and a bigger percentage of their property allocations to Asia, especially in
READ MORE... →Salient to Investors: Mortgage REITs yield 13 percent versus 3.8 percent for T-Bonds. In 2013 mortgage REITs lost 3 percent on average even after factoring in double-digit dividend yields – versus 30 percent for the S&P 500. Michael Widner at KBW Bank said the average mortgage REIT trades at a
READ MORE... →Salient to Investors: Zillow expects 5 percent mortgages by year-end and the 10 places where the percentage of monthly income will be pushed furthest above the average are, in order: Stockton, Ca – where the median price of a home will rise 22.8 percent by September. Honolulu, Ha – where
READ MORE... →Salient to Investors: German apartment portfolios valued at $18.8 billion changed hands in 2013, the most since 2006. German homes have been targeted by investors seeking to profit from steady rental income that is supported by a growing economy and low unemployment. CBRE said companies spent 23 percent more on
READ MORE... →Salient to Investors: Thomas Barrack Jr. at Colony Capital said: Institutional landlords building home-rental businesses in the US have yet to figure out the best way to sell their investments as they focus on expansion, while nobody is worried about an exit. 5 companies, including Colony, own 200,000 units, or
READ MORE... →Salient to Investors: Tian X. Hou at T.H. Capital said rising China home sales signal that the government won’t take irrational steps to curb growth of China’s property sector. Read the full article at http://www.bloomberg.com/news/2013-12-12/goldman-buy-call-spurs-e-house-rally-china-overnight.html Click here to receive free and immediate email alerts of the latest forecasts.
READ MORE... →Salient to Investors: Terry Kastens at Kansas State University said: Farmland values are about to stop rising rapidly, flatten out or even fall 10 percent or so, but will not crash. Rising global crop output and stable renewable-fuel standards are leading to a flattening in commodity prices. Rents in some
READ MORE... →Salient to Investors: Bengt Hansson at the Swedish National Board of Housing, Building and Planning said: The Swedish housing market is dangerously overvalued – house prices were 25 percent above fair market value in October, apartments even more overvalued. Oceans of easy credit have eroded the Lutheran tradition of always
READ MORE... →Salient to Investors: Guy Cecala at Inside Mortgage Finance said jumbo loans, mostly adjustable but also fixed-rate, increased by 34 percent in the first 9 months of 2013. Greg McBride at Bankrate said cash-rich banks, including Wells Fargo and Bank of America are using ARMs to hedge the loans’ longer-term
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