The start of 2008 in the Phoenix metropolitan area was not much different from the end of 2007, as housing prices continue to decline. The only good news is that the rate of decline in January was slower than the huge drop in prices experienced by the Phoenix metro area in December, reports Karl Guntermann, a professor of real estate at the W. P. Carey School of Business.
A geographic mapping of subprime and Alt-A loans in the Phoenix metropolitan area has revealed some unexpected results: these risky mortgages are not scattered, but cluster in certain cities and neighborhoods. Subprime loans, for example, are heavily concentrated along the Interstate and on the periphery of the urban area, while the fashionable northeast sector of the city is home to a higher number of Alt-A loans. "Alt-A loans, which are low-documentation and no-documentation loans, are almost exclusively concentrated in Scottsdale," notes Anthony Sanders, a W. P. Carey professor of finance and real estate.
In Part 4 of our series on the subprime market, real estate finance Professor Anthony Sanders, Jeffrey Coles, chairman of the finance department at the W. P. Carey School of Business and Steven Davidson, vice president, capital market research, for the Securities Industry and Financial Markets Association (SIFMA), describe mortgage-backed securities, which gave rise to ambiguous financial instruments like CDOs. "The securitization process has spread the opportunities, spread the risk and spread the pain," said Davidson, a featured speaker at the recent Risk, Reward and Real Estate Conference, sponsored by the Center for Real Estate Theory and Practice at the W. P. Carey School of Business.
In Part 3 of our five-part series on the subprime market, real estate finance Professor Anthony Sanders, Jeffrey Coles, chairman of the finance department at the W. P. Carey School of Business and Steven Davidson, vice president, capital market research, for the Securities Industry and Financial Markets Association (SIFMA), predict when the dust will settle. They discuss why things will look dismal in 2008 and why loan fraud is in the way of people getting the help they need. Davidson was a featured speaker at the Risk, Reward and Real Estate Conference in Phoenix, sponsored by the Center for Real Estate Theory and Practice at the W. P. Carey School of Business.
In Part 2 of our five-part series on the subprime market, real estate finance Professor Anthony Sanders maps the occurrence of subprime loans in the metro Phoenix market. Jeffrey Coles, chairman of the finance department at the W. P. Carey School of Business and Steven Davidson, vice president, capital market research, for the Securities Industry and Financial Markets Association (SIFMA), join the conversation to talk about the resulting impact on property taxes. Davidson was a featured speaker at the Risk, Reward and Real Estate Conference in Phoenix, sponsored by the Center for Real Estate Theory and Practice at the W. P. Carey School of Business.
Knowledge@W. P. Carey recently taped a discussion about the subprime market between Jeffrey Coles, chairman of the finance department at the W. P. Carey School of Business, Anthony Sanders, professor of real estate and finance at the school and Steven Davidson, vice president, capital market research, for the Securities Industry and Financial Markets Association (SIFMA). Knowledge@W. P. Carey begins a five-part series that explores the scope and the internal workings of the subprime market, and the consequences of subprime failures. In part one, experts discuss the definition of a subprime borrower, the necessity for these loans, the complexity of the subprime market itself, and the reason why so many people are affected. Davidson was a featured speaker at the Risk, Reward and Real Estate Conference in Phoenix, sponsored by the Center for Real Estate Theory and Practice at the W. P. Carey School of Business.
