2-guys

Advisory Information

For more information contact:

Market Watch
Offering often conflicting views were economists, Dr. Sam Chandan, of Real Estate Economics LLC and Howard Davidowitz, of Davidowitz & Asoociates, Inc.
Chandan held a mixed perspective, citing positive and negative developments in the economy. The savings rate of Americans had risen to 4% from negative numbers four years ago, when home owners were busy extracting the wealth from appreciated home values. But he acknowledged that this has the negative effect of reducing consumption - an important driver for the economy.

Davidowitz took a glummer tone, responding to Chandan's remarks with one terse line: "We’re in the crapper.” He cited an $8 trillion decline in real estate values overall and projected that half of all retail centers will shut their doors, especially the luxury oriented establishments catering to discretionary spending which have become so prevalent.

Chandan observed that areas closer to transportation hubs had healthier occupancy rates. He also noted that in areas of greater delinquency, the silver lining is reduced rents which would position these areas for faster recovery.

On stimulus spending, the two again clashed with Davidowitz positing an 80% waste level of stimulus monies which have been provided to mayors and governors across the nation, and Chandan cautioning not to be too dismissive of the stimulus effect of infrastructure investments.

In closing remarks, Davidowitz concluded: a restructuring period should be marked by spending less, not more, and summarizing: “There’s only one thing that will fix this: Pain.”