Wednesday, February 15, 2012

The American REIT Homebuilder Recovery Hinges on Economy


A direction of the economy will largely determine how 2012 will play out for North American real estate companies to a recent report published by Standard & Poor's Ratings Services in the commercial real estate sector is in the midst of a gradual recovery that, in many markets, rests more on limited new supply than on tenant demand to remains subdued said Standard & Poor's credit analyst Lisa Sarajian.

They are our current stable outlook for REITs anticipates that they will keep outperforming the broader commercial real estate market and their private competitors and their manageable funding needs and access to diverse sources of capital position them well for growth up a homebuilders on the other hand to still face aggressive competition from foreclosures and rental properties and may need to dip into their cash reserves to pursue growth in more profitable communities.

The standard & Poor's current stable outlook for homebuilders anticipates a modest recovery for the sector this year to view hinges on continued strengthening in the economy, job formation, and business and consumer confidence in the full report, "Credit Themes: North American Real Estate Companies' Ongoing Recovery Hinges On A Strengthening Economy," was published Feb. 13, 2012, on RatingsDirect on the Global Credit Portal.

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