The Go-To Place For Real Estate Speculation
A report from the Sacramento Bee in California. "A Carmichael resident landed in the national spotlight in March, when she put her family home up for sale. She had one special instruction for her real estate agent: Do not sell to a Donald Trump supporter. After being taken off the market temporarily, that home’s sale is now just about a done deal — with a six-figure cut to its original asking price."
"Listed for $625,000 in March, the two-bedroom, two-bathroom home is pending sale at a price of $495,000, according to documents and listings available on multiple real estate websites this week. The homeowner used a different real estate agent this time. The current listing agent said Friday she was not aware of any restrictions or special instructions."
"Ryan Lundquist, a certified residential appraiser and active real estate blogger in the Sacramento area, noted the pending sale Thursday on Twitter. Lundquist told The Bee on Friday the $130,000 price difference was most likely due to of the home being overpriced in the first place, with reasons related to politics or media attention playing less of a factor. 'Part of the problem was, it looks like it was priced like it was remodeled, when it really wasn’t,' he said."
From Bloomberg. "Warren Buffett can’t seem to close this deal. Now, he’s lowering the price of a vacation home in California by US$3.1 million to attract potential buyers and finish the sale. The price for the Laguna Beach house, earlier set at US$11 million, was cut to US$7.9 million, according to Allison Olmstead, a spokeswoman for listing agent Bill Dolby."
"Buffet put the home up for sale last year after more than four decades of owning the California vacation property. Luxury real estate can often sit on the market for longer due to a smaller pool of buyers, with some properties listed for US$4 million or more in Orange County, California, expected to spend over a year on the market, according to data-provider Reports on Housing."
From KTNV in Nevada. "Luxury real estate agents in Las Vegas say nearly a majority of their clients are people from California moving here drawn to no state income tax and less congestion. While that's good news for Las Vegans who already own homes, but for those trying to get into the market, it's making things more difficult."
"But there may be some good news on the horizon - with more homes being built, former GLVAR president Dave Tina, says according to economists, Las Vegas' market may soon level off more. 'It's not going from a sellers market to a buyers market, but it's going from a crazy seller's market where maybe you have 10 offers to just 5, so that's healthy for us,' Tina says."
The Seattle Times. "Wenatchee, a city of barely 35,000 people, now has a rush hour. Its housing market is startlingly Seattle-like in its velocity: That 'low' median home price is actually 13 percent higher than a year ago, and already out of reach for many in a town with a median household income below $49,000. Rents have risen even faster: the average two-bedroom apartment goes for $1,534, up 23 percent from a year ago, according to Rent Jungle."
"The Wenatchee Valley has been officially discovered by the outside world as the go-to place for everything from wine tourism and real estate speculation to cannabis farming and bitcoin mining. (It’s telling that Pangborn Memorial Airport in nearby Douglas County may soon offer daily air service to the San Francisco Bay Area.) And, critically, Wenatchee’s housing sector, still recovering from the recession, has fallen behind in adding new supply."
"Wenatchee realtors say a growing share of their clients are now Westsiders, who often have a significant economic advantage over locals. When they sell a Seattle-area home, they can 'come over here and pay cash and still have a chunk of change left in the bank,' says Steve Bishop, a longtime Wenatchee real estate broker."
"Worse, even as these low wages make it hard for many North Central Washington residents to pay rent and mortgages, the supply of locally affordable housing is dwindling under pressure from wealthy Westsiders and other outsiders. Outside demand for higher-end residences has become so steady that local contractors have 'a disincentive to build houses at the lower end,' says Tim Hollingsworth, a Chelan city councilmember who is active in affordable housing efforts."
"'Why would you go around and build little 1,200-square-foot houses for ‘normal’ people when you could build a luxury house for way higher margins and make more money?' he adds."
"In Chelan County, officials estimate that the number of vacation rentals has grown over the last 15 years from a few hundred to at least 2,400, most of them in tourist areas. In a county with barely 36,000 total residential units, according to the most recent survey in 2015, and less than 9,300 full-time rentals, the sharp increase in vacation rentals represents a significant loss of permanent housing. Meanwhile the number of full-time rentals in Chelan County fell 8 percent between 2010 and 2015, according to county records."
"When employers go scouting to find rentals for prospective hires, Doug England, a Chelan County commissioner says, 'repeatedly they are told ‘no, that’s been converted to a vacation rental’ or ‘yeah, they can stay there until the first of June but then can’t get back in until the first of October' when the tourism season ends."
"Some North Central Washington realtors explicitly pitch the vacation-rental concept to Westside buyers as a way to talk them into a bigger second home: a buyer with a $400,000 budget for a vacation home can afford to upgrade to a $500,000-plus home if he or she is willing to 'Airbnb it,' realtors say."