In April 2007, we issued a report headlined The Second Wave of the Housing Tsunami: 2007-2011 in which we suggested commercial real estate was likely to be the second shoe to drop in what was already an unnerving collapse in the residential housing market.
Bramah wrapped up the panel by saying investors should favor companies that build mass-market residential housing over luxury developments, as well as ones that focus on the slightly smaller, second-tier cities in the mainland rather than metropolises like Beijing and Shanghai.
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The housing market advanced as residential fixed investment, which includes spending on home improvements, grew by 15.3% in the fourth quarter.
U.S. economic data was mildly negative on Tuesday, with a couple of housing reports showing the residential real estate market remains depressed, while consumer confidence slipped.
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Resistance from federal housing officials nearly scuttled the residential market for property assessed clean energy (PACE) financing, as cities and counties across the country shuttered programs.
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It said that some investors had developed negative views on this market, while others thought residential housing weakness would be mild.
Residential investment also grew 15%, adding to evidence that the housing market has finally turned the corner.
As goes residential housing, so goes the rest of the higher-value consumer goods market, investors hope after all, those new homes need to be decorated.
The collateral damage from the housing market is already baked in the cake: Expect a continued slump in residential construction activity and employment, lower house prices that will force more subprime lenders to the wall and put strains on the most leveraged parts of the financial system and a slowdown in consumption expenditures.
On the residential side, private construction companies experienced disproportionately tough business trends in 2007 and 2008 as the housing market collapsed.
In recent years, SolarCity has moved beyond the residential rooftop market and is installing photovoltaic arrays on as many as 120, 000 units of military housing and has become the biggest installer of solar panels for Walmart stores.
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In light of this lackluster investment performance, and in the aftermath of the recent housing-market collapse, why is there such rapt attention to the revival of the homebuilding industry and residential property markets?
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