The Glut Would Have Further Depressed Prices
A report from the Arizona Republic. “The five-story central Phoenix brownstone mansions known as Chateau on Central are being renamed, and the developer is lowering the remaining homes’ prices. The 21-urban home development will now be called The Arris. And prices for the 12 brownstones that haven’t sold yet will fall to the $900,000s. A couple of the mansions were listed for almost $2.5 million last year. A few years ago, one of the Chateau mansions sold for more than $4 million.”
From News Channel 5 in California. “A Del Mar home just made a housing market breakthrough, becoming the first San Diego County home since 2007 to sell for more than $20 million. $21,500,000 to be exact, down from the most recent listing price of $24,900,000. San Diego-based KGTV first showed you the home at 100 Stratford Court last August, when it was listed $1 million higher than the final listing price.”
From the Real Deal on New York. “Manhattan’s luxury market recorded 29 contracts at $4 million and above last week – the fourth week in a row contract activity topped 20 deals, according to Olshan Realty’s weekly market report. The No. 1 spot went to a 12-room co-op apartment across from the Metropolitan Museum of Art at 993 Fifth Avenue with an asking price of $17 million. That’s a nearly 32 percent reduction off the original ask of $24.9 million when the unit was first listed in May. The Met, meanwhile, is considering selling its executive apartment on the building’s 2nd floor as it looks to shore up its unsteady finances.”
“The week’s asking-price volume totaled $204.79 million, with a median asking price of $5.25 million. Luxury homes spent an average of 377 days on the market, with an average discount of 10 percent from the original ask to the final one.”
The Real Deal on Florida. “Lionel Gossaf arrived in Miami from Brussels on Wednesday evening to try to save his unit at a Miami Beach condo-hotel that has been at the center of an epic fight with the Port Orange, Florida-investment company Schecher Group. But he learned he had already lost the battle. Earlier that day, Miami-Dade Circuit Court Judge Beatrice Butchko approved the foreclosure of Gossaf’s unit and 35 others in the Sixty Sixty Resort at 6060 Indian Creek Drive.”
“Gossaf said he purchased his 10th floor unit in 2013 for $100,000 using savings from his pension. ‘I wanted to do a real estate investment in Florida because I wanted an asset in America and I thought it would be well protected,’ Gossaf said. ‘And my family and I come quite often to Miami.’”
“He said he spent $11,000 to pay for attorney fees against the Schecher lawsuit and a pending bankruptcy filing by the condo association. He spent another $1,500 to travel to Miami for the three-day trial. ‘I was very upset and angry when I learned the judge foreclosed on all of us without hearing our defense,’ Gossaf said. ‘This is not American justice.’”
From Realty Biz News. “In today’s hot real estate market, many buyers and investors have forgotten about the foreclosure market. The highest foreclosure rates are in Atlantic City, Trenton, Philadelphia, and Chicago. Overall, 28 major cities experienced an increase in foreclosures during 2017.”
“If you’ve been a student of the real estate market for a few years, you’ve likely heard of ‘REO Shadow Inventory.’ Shadow inventory are house the lenders took back during the foreclosure peak but didn’t put on the market for sale because the glut would have further depressed prices. Some of these houses are now coming on the market. Additionally, many houses remained with the original owners although they were way past the point when lenders could foreclose. This was allowed so that vacant houses didn’t further deteriorate.”
“U.S. properties foreclosed in the fourth quarter of 2017 had been in the foreclosure process an average of 1,027 days (2.8 years). Nationwide, 50 percent of all loans actively in foreclosure at the end of 2017 were originated between 2004 and 2008.”
