Time to sell off real estate assets?
A fire sale of sorts for commercial real estate is imminent. At least that's the take at Newport Beach-based AppraiserValues.com's Cap Rate News Blog. In the wake of the Wall Street meltdown, "liquidation of real estate assets will be one of the first places firms will look for cash."
If you think this doesn't matter, you must not be a public servant who hopes to retire one day. Writes Warren K. Hoppke, senior real property analyst and a member of the Appraisal Institute: "The nation's largest public pension fund, the California Public Employees Retirement System (CalPers), could take a hit as large as their $2 billion dollar residential mortgage portfolio."
Hoppke sees a "long flat period of very weak demand for real estate" that could last for the next decade. In the short term, "expect to see commercial real estate price declines throughout 2009 and 2010."
-- Lauren Beale
Thoughts? Comments?
Photo: Irfan Khan / Los Angeles Times
L.A. County Median Home price
1989 214,831
2000 215,900
11 years last down market
http://www.laalmanac.com/economy/ec37.htm
Posted by: D | September 23, 2008 at 01:08 PM
Lauren,
Why don't you do some further investigation and find out what this means for teachers who are already retired?
Posted by: annoyed | September 23, 2008 at 01:40 PM
Wells Fargo 30 Year Jumbo Mortgage Rates at 9.2% APR
SEE YA LATER WESTSIDE
Posted by: x-man | September 23, 2008 at 02:09 PM
Teachers!?
Try:
POLICE
FIRE AND PARAMEDIC
SANITATION
PUBLIC WORKS
PARKS AND RECREATION
LIBRARIES
BUILDING AND SAFETY
TRANSPORTATION
ALMOST ALL State and Local government employees are CalPERS members.
Posted by: LA | September 23, 2008 at 02:32 PM
Not true LA. All City of LA employees are independent of Calpers and some are independent of each other like Police, Fire and DWP. I am confident that many other local cities are not in Calpers.
Posted by: Mucker | September 24, 2008 at 01:27 AM
Not true LA. All City of LA employees are independent of Calpers and some are independent of each other like Police, Fire and DWP. I am confident that many other local cities are not in Calpers.
Posted by: Mucker | September 24, 2008 at 01:27 AM
The time to sell was 18 months ago. I got rid of all my real estate exposure and bought CPR, CNR and CEF in mid 2007 when it looked like things were going to go bad. Some loss, but much less than what it could have been.
To suggest selling now is the proverbial closing the barn door after the horse has run off.
Posted by: Ian | September 25, 2008 at 03:13 PM