Optimism for real estate recovery

Mar 13
2012
Richard Davis, US Bank CEO

Richard K. Davis, Chairman, President and CEO of US Bank

The speakers at the real estate conference I attended on March 2 handed out a dollop of optimism for us to stir into our coffee as we listened to their projections about the future of commercial and residential real estate.

This was the Burnham-Moores Center’s 16th Annual Real Estate Conference. About 700 people gathered downtown to hear presentations by Richard K. Davis, chairman, president and CEO of US Bank, San Diego Mayor Jerry Sanders, and Frank Nothaft, chief economist at Freddie Mac.

Richard Davis spoke about the coming recovery of the commercial real estate industry as we “put the bad behind us.” He used analogies from basketball, and even a clip from the Gene Hackman movie, Hoosiers, to make compelling points about the economy being at “halftime” in this recession/recovery.

I thought it was particularly interesting how he contrasted football and basketball.  In football, 11 offensive players leave the field and have time to reset their strategy with their coaches.  In basketball, on the other hand, the team plays both offense and defense, transitioning seamlessly from one to the other.  Richard drew parallels to the need for businesses to be nimble and do this kind of transitioning, especially in this time of slow recovery.

Frank Nothaft spoke about the residential mortgage market for multi-family and single family residences; it looks good for multi-family, but for single family, not so much. Nothaft sees for 2012 a gradually strengthening economy, about 5% higher home sales over 2011, a large inventory surplus of unsold homes still in the market, and conditions improving in the apartment market in most metro areas.

Frank Nothaft presentation

Presentation by Frank Nothaft, Chief Economist, Freddie Mac

The detailed information Frank presented for both San Diego and the US is very interesting and up-to-the-minute. You can see all of it for yourself right here.


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  • http://www.brettcairns.ca/ Brett Cairns

    While some of the charts in the presentation forecast improvements the one on consumer confidence does not. How can there be optimism for a real estate recovery when governments around the world have yet to get their economic houses in order?

    • http://www.mswoods.com/Carmel-homes-for-sale-city.htm Mike Woods

      Couldn’t agree more. As a real estate broker myself I worry about the financial ‘super structure’ globally. Here at home, I have to wonder how long until the Fed’s Incessant printing of money will finally come back to bite us.

      • http://www.theforeclosuresinfo.com/foreclosure-list.html What is Foreclosure

        ohh they will keep doing it until the trees are all gone or China stop lending America money!

        • http://www.facebook.com/people/Michael-Woods/763312565 Michael Woods

          ha!

  • Dave Pyke

    Good point Brett. We see the volatility in the stock market swings as the world reacts to the latest news on Greece. One gets an overall upbeat mood, but certainly not consistently. And definitely a slow progress.

  • http://www.agentstealth.com/realtor_marketing.html Anthony Keeling

    One simple way that comes to mind is posting a simple ad on Craigslist and other sites, telling people what you’re looking for. This gets me leads consistently every week.