PEPennington & Co Property Tax News

The Dallas Morning news reported that the number of commercial sales were down in 2007.  With the exception of retail sales all other catagories were down in 2007 as compared to 2006.

 WASHINGTON —  President Bush dismissed concerns Thursday that the economy is headed into a recession and remained confident that an economic stimulus package will help the nation amid a lingering mortgage and credit crunch. “I don’t think we’re headed into a recession, but there’s no question we’re in a slowdown,” Bush told reporters at a White House press conference. Some economists say the country is nearing a recession, but Bush expressed his support for the economic stimulus package that Congress recently passed and he signed into law last month.

The Associated Press reported yesterday that “…Sales of existing homes fell for the sixth straight month in January, dropping to the slowest sales pace on record, the National Association of Realtors said Monday.”

The Associated press reported that the forth month in a row future business activity dropped.  “…Conditions are nearing those that historically preceded recessions.”

The Fed expects “a further intensification of the housing market correction, tighter credit conditions amid increased concerns about credit quality and ongoing turmoil in financial markets, and higher oil prices.”

According to the Dallas Morning News, “Economic policymakers acknowledged Thursday that the outlook for the economy has worsened.”  Former Fed Chairman, Greenspan who months ago stated that our chances for a recession were 50%/50%, now says we are on the edge of a recession.  It would seem if we slip into a recession the Subprime Crisis would only get worse and bleed into the commercial real estate markets.

According to the Wall Street Journal (WSJ), the forecast for commercial real estate is becoming shaky. According the WST “…if it were a movie, it might be called “Subprime II: Monster in Your Mall.” We at P.E. Pennington & Co., Inc. wrote an article in August and had concluded that the single family Subprime Crisis had bled over into the commercial real estate market. Apparently CMBS are becoming to recognize the potential problem Based on the fact that “…no commercial mortgage-backed securities-pools of commercial real estate loans -were issued,” in January 2008. This is the first time that this has happened since 1990.