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Report – GRX Quarter 2 2010

In La Bourse on July 2, 2010 at 1:24 AM

The Georgia Real Estate Index (GRX) is an economer-original index composed of 3 publicly-traded companies headquartered in Georgia: Beazer Homes USA, Inc., Cousins Properties, Inc. and Post Properties, Inc. Together the companies construct a market capitalization-weighted approximation of the Georgia real estate market. Read the previous article — GRX — for an explanation of the index. With second quarter results in, here is another inspection underneath the hood of the Georgia Real Estate Index.

Ending its second quarter in existence, quarter 2 of 2010, the GRX has angled downward 2 percentage points measured from March 31, 2010 through June 30, 2010, symbolizing a reversal in movement compared to the previous quarter-to-quarter level of change, that is, 12 percentage points. Referenced below in the following figures, the 3-component index is referred to as GRX[3]. Time-series numbers composing the graphs are provided under the section entitled — Indices.

An additional 7-component market capitalization-weighted index is defined and provided — GRX[7]. At 7 pounds and 3 ounces, GRX[7] is born from the 3 original components and a few residual younger Real Estate Investment Trusts (REITS): Invesco Mortgage Capital, Inc. and Roberts Realty Investors, Inc. Rounding things out, included are buildings contractor Servidyne, Inc. and buildings operator Piedmont Office Realty Trust, Inc., representing SIC codes 1540 and 6512, respectively.

Economers Bill McBride of CalculatedRisk and James Hamilton of Wall Street Journal-ordained blogger machine Econbrowser are suggesting a persistent decline in home prices spanning “the 2nd half of 2010 and into 2011– probably another 5% to 10% for the major house price indexes.” Additively evident in the headlines, the wider financial regulatory reform bill is apparently on track to exclude any Great Reformation of Fannie Mae and Freddie Mac and their incubation of the secondary housing market.

Realtor-organized lobbying gluttony and full-fledged, midnight-hour persuasion efforts are being reported by CNBC in an auspiciously timed new series called “Housing Fix,” with the Center for Responsive Politics providing a lug-house of numbers regarding lobbying estimates — read Housing’s Powerful Lobby Surges Ahead. They report that considering the lobbying efforts of the National Association of Homer Builders and the Mortgage Bankers Association, “you get a force that spent $5 million in just the first quarter of this year and is on pace to break last years $27 million tab.”

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  1. hey, send me an email that i can use to get in touch with you during the day. I would love to talk some economics with you.

    Mills (Neil’s Drummer)

    william.garwood@etrade.com

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