Comments on: Keeping It Real Estate: Collapse in Luxury Market More Revealing Than It Appears http://ciriosrealestate.com/2009/08/04/keeping-it-real-estate-collapse-in-luxury-market-more-revealing-than-it-appears/ Fri, 12 Mar 2010 05:33:50 +0000 http://wordpress.org/?v=2.6 By: RT http://ciriosrealestate.com/2009/08/04/keeping-it-real-estate-collapse-in-luxury-market-more-revealing-than-it-appears/#comment-650 RT Mon, 10 Aug 2009 16:06:54 +0000 http://ciriosvaluations.com/?p=3425#comment-650 The banks are still in a position where they will take huge losses if they unload all the properties they own at once. As a result, they continue to listen to the White House because they are still not sure they will not need more money to cushion the housing losses if the market continues to fall. However, if the market turn around, the banks can put their properties on the market one at a time and spread their losses over numerous quarters. And Yes, even if the market does turn around they will still take losses on the properties they own. Finally, the carrying costs for these properties is minimal when compared to the losses they would take if they had to write down the value of these homes. The banks are still in a position where they will take huge losses if they unload all the properties they own at once. As a result, they continue to listen to the White House because they are still not sure they will not need more money to cushion the housing losses if the market continues to fall. However, if the market turn around, the banks can put their properties on the market one at a time and spread their losses over numerous quarters. And Yes, even if the market does turn around they will still take losses on the properties they own. Finally, the carrying costs for these properties is minimal when compared to the losses they would take if they had to write down the value of these homes.

]]> By: Edgar http://ciriosrealestate.com/2009/08/04/keeping-it-real-estate-collapse-in-luxury-market-more-revealing-than-it-appears/#comment-647 Edgar Sun, 09 Aug 2009 00:21:41 +0000 http://ciriosvaluations.com/?p=3425#comment-647 As Wells Fargo (WFC), Bank of America (BAC), Citigroup (C), and JPMorgan (JPM) — the biggest holders of property in the country — continue to bow to White House demands to keep housing inventory off the market. Why do the banks continue to listen? What is in it for them? Is it just basic economics, keeps supply up, so the price does not go down. Aren't the banks losing a lot of money just holding on to these properties? or will it work out for them in the long run (i.e. they will put the houses on the market when prices are higher)? As Wells Fargo (WFC), Bank of America (BAC), Citigroup (C), and JPMorgan (JPM) — the biggest holders of property in the country — continue to bow to White House demands to keep housing inventory off the market.

Why do the banks continue to listen? What is in it for them? Is it just basic economics, keeps supply up, so the price does not go down. Aren’t the banks losing a lot of money just holding on to these properties? or will it work out for them in the long run (i.e. they will put the houses on the market when prices are higher)?

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