This 20-slide presentation was prepared by Hessam Nadji, managing director of research services at Marcus & Millichap for the recent Multifamily Executive Conference in Las Vegas. Nadji has indicated that the housing market has bottomed, though he expects prices to continue declining for nine to 12 months due to foreclosures. But the really good news, in Nadji’s mind, is that the government averted a collapse of the financial system. “The government did avert the worst-case scenario. A year ago, we were very close to a run on the banks… As bad as things are, they could have been a lot worse.”
BLOGGER COMMENT: I attended a Wells Fargo Private Bank Economic Summit this past Wednesday in Tampa… They flew economist Ronald Florance in from California to speak to our luncheon crowd. Great quote: ‘risk is on sale around the world… now is a great time to buy multi-generational assets at a significant discount to replacement cost.’ What this says to me is that the rich will get richer and highly liquid investors will use the lack of liquidity in the real estate market to their advantage and buy legacy assets for much less than intrinsic value.