Don't think it's as simple as that. $500M is a drop in a bucket (o.k. maybe not quite that), for Morgan Stanley, but yes, it does show that they are willing to pay 40% of listing value for a property - although a lot are vacant land and unfinished homes and those kind of property do get a beating. But Lennar is also retaining 20% of the properties and has a first right of refusal to purchase the homes at market value as well as sharing in future earnings; so the deal is worth more than the 40% they are paying to Lennar. They also have to put out capital to finish the project if so choose.
But yes, it does show a willingness for the big, conservative guy to purchase real estate but at what price? Also, those are new homes instead of resale; which is also different. Are we at the bottom yet? Iâ€™d think close, not because of this, but because of what I see on the market, during my open house, traffic and local statistics; coupling with the presumed relief, ever so slight, by the mortgage bail out, yes the atmosphere and outlook is much more uplifting than before :-))