Virtual Open Houses

Reusing and revitalizing Brooklyn’s deteriorated East River waterfront began with a groundbreaking in February on the piers area and now a $48 million contract was awarded to Skanska for Phase I of the Brooklyn Bridge Park project in New York City.

Home prices posted another record decline in October, falling 18% in October compared with a year earlier, according to a closely watched monthly report released Tuesday.

Where were you in March 2004? Because that's the last time home prices were as low as they are now, according to the Standard & Poor's/Case-Shiller 20-City Composite Home Price Index for October 2008, which was released on Dec. 30.

Back then, prices were going up. Now they're going down. The nation's mood could not be different. Euphoria then; a deep purple funk now.

So back to the question. Where were you in March 2004? Negotiating for a nifty option ARM? Scouting out a home in a new subdivision in the remotest exurbs? At the time--and this was before things really got crazy on prices and crappy mortgages--everything seemed possible.

I searched the Factiva database for housing-related articles that appeared in local newspapers in March 2004. Here are a few I found.

From The Desert Sun newspaper in the Coachella Valley, east of L.A. and San Diego:

"World Development, the Palm Desert company putting up Waring Palms, is having a hard time keeping up with Coachella Valley's sizzling demand for new homes, said Executive Vice President Scott Stokes. He and other builders say they can't find enough skilled workers in the valley to build as fast as customers are buying their homes."

From The Patriot Ledger of Quincy, Mass.:

"Another big boom emanated from the South Weymouth Naval Air Station property this week, but it had nothing to do with planes.

"Rumors started flying that 3,000 or 4,000 homes could be part of plans for the 1385-acre property that lies in Weymouth, Abington and Rockland. Numbers like that scare the wits out of local residents and officials because of the impact so many homes would have on local services. The reaction was predictable."

From the San Antonio Express-News:

"Jaime Arechiga - a Laredo land developer who expanded his horizons to San Antonio four years ago - is carving up lots all over Bexar County and New Braunfels.

"'I'm in the community. I'm here to stay,' said Arechiga, who now maintains residences in Laredo and San Antonio."

From the Las Vegas Business Press:

"New legislation and rising land prices are helping fuel Southern Nevada's condominium market. In 2003, vacant land prices averaged $202,100 an acre in the Las Vegas Valley, a 27 percent increase from the previous year, says Applied Analysis, a locally-based economic research firm. The southwest submarket reported the largest land appreciation at $244,200 an acre, a 32 percent increase over 2002."

From The Washington Times:

"As home prices climb in the Washington area, buyers in the upscale home market can expect to spend more than ever before for a home with opulent features.

"Home price is not simply a function of the quality of construction and finishes, nor is it based solely on size. Prices often are based more on location. Buyers of luxury homes are sometimes looking for an exclusive, gated community; sometimes wanting plenty of land for privacy; and sometimes desiring a home as close as possible to Washington.

"Many buyers want to live in a planned community with recreational amenities and the convenience of a local retail center. Some luxury homes are found in developments with these amenities, often including a golf course.

"Other expensive homes are smaller homes in fashionable enclaves on small homesites.

"Priced from the $700,000s and up, upscale homes do share an abundance of opulent features such as hardwood flooring throughout the main level; two- or three-piece crown and chair-rail moldings; oversized ceramic-tile flooring; or even marble flooring in the baths and a master bath with a tub and a separate shower upgraded with more space, a seat, steam showers and multiple shower heads. 'Walk-through' showers with two doors or even without doors and just perhaps a glass-block divider are becoming popular for those homes with the space for an extended master bath."

How silly that seems now.

Last but not least, here's an excerpt from an article by Michael Gregory in Investment Dealers Digest that all of us should have paid more attention to:

"But despite the benefits of structure that allow them triple-A-status, events in recent years have shown that asset-backed securities have their own risks. The collapse of Heilig-Meyers in late 2000, the messy servicing transfer that followed and the ultimate disturbing recoveries to the once triple-A-rated bonds offer the clearest lesson of the huge risks for ABS investors."

Happy new year!

The hot water goes cold, the air conditioner goes hot or maybe the washing machine's spin cycle is starting to sound like a Harley-Davidson rally. Alas, your warranty on the appliance in question expired long ago. Suddenly you're faced with a tough, potentially pricey decision: fix the broken item or replace it? Repair would cost less in the short term, but you'd hate to invest in something that could spring another problem soon. These guidelines will help you decide.

My favorite movie, hands down, is It’s Wonderful Life. Director Frank Capra’s tale of a small town banker who realizes in the midst of a banking panic who is true friends are is holiday classic for good reason.

I got this email advice recently from life coach Patrick Wanis:

"George Bailey experiences an epiphany and has a renewed zest for life. We can do the same but we must first lower our expectations and let go of the myths that even the movie created while still seeing the beauty and magic that does exist. Yes, we all would love to have the perfect family and perfect life but we must accept that it simply doesn't exist.

Learn to become grateful for whatever you have and to become aware of your significance. If all you have is your health, be thankful for that; if it is cold outside, be grateful that you are warm and have shelter. If you are feeling alone, useless or invisible, write a list of the people whose life or lives you are impacting in a positive way. If you cannot come up with one name, then go out and donate one hour to serving at a soup kitchen or the like. You will realize how you can bring joy to others and you will realize that your life isn't so bad after all."

"May your Holidays be blessed and may you find love, joy and inner peace," he concludes.

I couldn’t have said it better myself.

Happy Holidays!

So much about home prices, what about investments in shopping centers?

The research firm Green Street Advisors says real estate investment trusts that own strip shopping centers are taking a beating as consumers cut back on spending this holiday season. As aresult the shopping center operators have cut their own spending for development and acquisitions and focused just on keeping their centers leased. To do that they’ve been offering rent relief or concessions to struggling tenants, particularly smaller mom and pop owned stores.

The firm figures occupancy rates will drop to about what mall owners saw in Texas during the 1980s bust. If you're looking for investment advice, Green Street says buy Federal Realty and Regency Centers. Sell Equity One and Kimco Realty.

The number of existing homes sold during November plummeted 8.6% as prices plunged by record amounts, according to a closely watched housing industry report issued Tuesday.

My friend Bill is always complaining that he should have stayed in the Army. He would have had such a better life, cared for by the government, he says. Now in his 40s, he lives in his parents home again in Boston. Then I got the notice from a company called Balfour Beatty Communities, a private sector company which manages residential units on military bases. That's one of their properites in Fort Eustis, Virginia above and Jacksonville below. Wow!

Expanded construction budgets have greatly improved family housing at many military bases, the press release read. It went on: At Marne Point, a garden-style apartment community that will be Balfour Beatty's first apartment complex to provide military housing for single soldiers, the $37 million complex feature private bedrooms and baths, full kitchens, and living rooms. Every apartment has a private entranceway, and is equipped with a walk-in storage closet and washer and dryer. Nine-foot ceilings provide an open, airy feel. Marne Point will also include a community and recreation center with a clubhouse, full basketball court, heated pool, car wash station, and running trails.

Maybe my friend Bill was right.

At Naval Base San Diego, Clark Realty Capital and the Department of the Navy opened the doors of Pacific Beacon (pictured), the first of three 18-story luxury apartment buildings in the country's first large-scale housing privatization initiative for unmarried military personnel.

Sacramento County’s supervisory board has unanimously approved the final environmental impact report for GenCorp Inc.’s 1,400-acre mixed-use project and amendments to the county’s general plan for the project.