A Resistance To What People Are Willing To Pay
The Real Deal reports from New York. "With the stock market sliding, sales of luxury Manhattan real estate dipped last week, according to Olshan Realty’s latest report. Buyers signed just 21 contracts at $4 million and up last week, and the average number of days on the market was 345, up from 264 at this time last year."
The Denver Post in Colorado. "Metro Denver home prices jumped 10.2 percent in June from a year earlier, double the pace seen nationally, according to the Standard & Poor's/Case-Shiller 20-city home price index. But the June report might already be outdated. Local real estate agents say a chill set in on the market in July and August that will make it harder to maintain that strong rate of appreciation. 'Prices are beginning to level off, and in some cases, we're seeing price reductions come back into the marketplace,' said Anthony Rael, who tracks housing market trends for the Denver Metro Association of Realtors."
"Rael said that cooling trend is continuing into August, although it isn't certain whether home prices set a near-term peak in June or whether the usual seasonal slowdown started earlier than normal this year. 'It feels like the market is at a standstill,' said Redfin agent Michelle Ackerman. 'Showings have dropped off significantly.'"
The Houston Chronicle in Texas. "Houston's real estate market hasn't avoided the slowdown triggered by collapsing oil prices, but a more diverse economy will help offset weakness in housing and vacancies in area office towers, industry experts said Tuesday. Ricardo Rivas of Allied Orion Group, a multifamily firm, said west Houston's apartment market has been relatively stable, but there are 3,000 units under construction with more proposed. Overall, the multifamily market has peaked, Rivas said, and over the next few years 'will be going back to normal.'"
"Mollie Carmichael, principal of John Burns Real Estate Consulting, said there could be a slight oversupply of homes on the market in certain pockets and sales and prices will soften, particularly in the higher end of the market where much of the recent growth came from. 'We're producing a few more homes than we are jobs,' she said."
The Capital Gazette in Maryland. "Currently, there are around 350 detached waterfront properties listed for sale in Anne Arundel County, and the range of pricing is dramatic. More recently, there seems to be a resistance with respect to what people are willing to pay for these homes. During the 12 month period ending July 31, 2015, the average list price had fallen to $933,734, and the average sales price was only $868,568, a decline of over 25% from the peak."
"Although the housing market in general seems to be strengthening, we've been feeling some softness in demand for waterfronts. This weakness might be traced to an oversupply of waterfront homes, given the current level of demand. As we said, there are about 350 waterfront homes available for sale in Anne Arundel County. Unfortunately, only 39 such homes sold last month, meaning that we have about a 9 month supply of inventory. In a healthy housing market, where you have a good balance of buyers and sellers, there should be a 5 month supply of inventory. For waterfronts, it's almost twice that."
"When you look at waterfront homes priced over $1 million, the situation becomes even worse. In that price range, there are currently 140 homes on the market, yet only eight $1 million plus waterfront homes sold during the last month, giving us a whopping 18 month of supply for this group. So, what's wrong with waterfronts? Well, it could be traced to a number of factors. Most likely, the culprit is a weak economy."
"Additionally, because waterfront homes are expensive, they're often owned by people reaching retirement age, and because of the high tax rates in Maryland, many are opting for retirement on the Gulf Coast, rather than the banks of the Chesapeake Bay. As a result, they seem to have been willing to let the waterfront house up here go for a low price, just so they can get on with retirement down there. Nevertheless, we expect that if the economy improves, and we work our way through the current glut of waterfront homes available for sale, we'll once again see strong growth for these properties."
The Dayton Daily News in Ohio. "Foreclosures increased in 44 states last month, including Ohio, where the number of properties repossessed by lenders rose 69 percent from a year ago, according to RealtyTrac. The trend was even more pronounced in the Dayton area, where the number of bank-owned properties climbed to 352 from 46 over the same period — a whopping 665 percent increase, the analytics firm reported."
"Ralph Mantica, president of the Dayton Area Board of Realtors, said the surge in bank repossessions likely reflects the culmination of the foreclosure process for many homeowners whose foreclosures were originated months, even years ago. 'It takes a long time to get a lot of these houses to go through the foreclosure process,' Mantica said. 'Once the process starts, people can literally live in a house for more than a year before the bank actually takes possession of it.'"
The Winston-Salem Journal in North Carolina. "The Winston-Salem metropolitan statistical area experienced another sharp year-over-year increase in foreclosure filings in July, according to RealtyTrac. Daren Blomquist, vice president at RealtyTrac, said properties foreclosed in the second quarter had been in the foreclosure process an average of 629 days — 'the longest in any quarter since we began tracking in the first quarter of 2007.' 'It’s also evident that the recent surge in real-estate owned properties is in fact clearing out more of the bad bubble-era loans from the so-called shadow inventory,' he said."
"RealtyTrac data shows 61 percent of loans still in the foreclosure process were originated during the housing bubble years of 2004 to 2008, down from 68 percent last year and 75 percent two years ago."
From Michigan Radio. "Bank repossessions of Michigan homes in foreclosure were 137% higher in July than the same month a year ago. 'It's a much better time from the bank's perspective to foreclose on these homes,' says Daren Blomquist of RealtyTrac, 'and then put them on the market, because they can sell them for a much higher price point than even just a few years ago.'"
"And while public outcry a few years ago criticized banks for foreclosing on people too fast, the opposite is now happening. With so many homes in poor condition dotting neighborhoods, 'the banks are getting criticized for almost taking too long to foreclose now.'"