The FDIC plans to auction more than $1 billion in assets seized from failed banks next month and this may require write-downs that weaken lenders nationwide. Note that 140 banks failed last year, 26 thus far in 2010, and as of December 2009, over 700 banks are on the FDIC’s watch list. You do the math.
Interestingly, retail sales are up for the third consecutive month, indicating that the worst may be over and an easing of fears about spending. Or, maybe we just can’t take it anymore and we are going to reward ourselves with new stuff; as job prospects still look bleak and personal income has actually shrunk when taking into account inflation.
On the local scene, the battle between the Mayor and the Developer regarding the former Filene’s site seems to be heating up – will be interesting to watch what develops. Can you force a developer to proceed when demand and financing are not available? Just look at values of commercial sites like 230 Congress Street, 10 Milk Street and, the XV Beacon Hotel.
According to a recent Business Week article, cash rich builders are buying land again at huge discounts in the hopes that the market for new homes will turn around soon (note homebuilding is at the lowest point since records have been kept). Of particular attraction are broken subdivisions where most of the infrastructure has been installed – someone’s problem is another’s opportunity.
Last but not least, out of Housing Zone ‘Does Green Help Sell Homes?’ the answer seems to be ‘yes’ but when you survey the major home builders, less than 1/3 are building certified green or high-performance homes and do not advertise these benefits. Is the buying public ahead of the curve on this issue?
Keith Munsell 
