June 27, 2018

Eager To Cut A Deal And Unload Old Inventory

A report from the Chinook Observer in Washington. “The housing crisis hits low-income, disabled and senior folks the hardest all over the nation. On every possible data point, our county numbers are much worse than either the state or national averages. The relative numbers of ‘housing-impaired’ individuals in our county are scary. The median age in Washington state and the nation as a whole is 38 years old. The media age in Long Beach is 53. Likewise, the median income in Washington state is $62,800; while the median income in Pacific County is $38,000; and a shocking $26,800 in Long Beach. Every demographic related to a housing crisis in our county is dramatic and several times over the national averages.”

“According to data on actual structures, we have a total of 15,977 housing units in our county. Of those nearly half — 6,700 — are unoccupied and assumed to be second homes or vacations homes. Many of these second homes sit empty or are used as short-term rentals. and, therefore, are not available for rental housing.”

From Inman News. “Realtors in the rapidly gentrifying San Francisco Bay Area city of Oakland, California, have been caught on camera giving advice on how to use legal loopholes to evict tenants to a local news reporter posing as a prospective buyer. In early June, KPIX 5 reporter Susie Steimle attended at least three open houses for renter-occupied duplexes and triplexes in the Oakland area, and at each one, real estate agents coached Steimle on how she could use an exemption in Oakland’s ‘Just Cause for Eviction Ordinance’ to evict tenants without notice and make a profit.”

“‘You can move in, and then once you have lived in the property, then the… umm… the restrictions on evictions and stuff go away,’ said the first agent who was giving a tour through a triplex. ‘A lot of people, that is what they do for a living,’ said a second agent who was listing a duplex. ‘They will buy apartments that have below market rate rents, and figure out a way that they can get them up higher so they can sell it for a profit.’”

From Capital Public Radio. “California has one of the highest percentages of seniors living in poverty in the United States, behind only Washington DC, according to the Kaiser Family Foundation. One in five seniors in California live in poverty, after adjusting for spending on basic necessities. Each month, Rosanne Goodwin scours her one-bedroom apartment outside San Diego for possessions to sell on eBay.”

“‘I’ve sold photo albums,’ Goodwin said. ‘I’ve sold whatever I could that’s just around the house, hand tools that I’ve had since I was in my 20s that my dad had given me for being out on my own. I just look around and wonder what can I sell now that will generate some income?’”

The Houston Chronicle in Texas. “At Arabella, a high-end condominium tower along the West Loop, buyers with good credit can qualify for a mortgage with just 10 percent down. But those with an M.D. after their name can get a mortgage without putting down a penny. Through a lending program with Iberia Bank, doctors can qualify for 100 percent financing, said Arabella developer Randall Davis. ‘They’re also working on a program for lawyers,’ Davis said.”

“Iberia, Bank of America and a number of other banks have special loan programs for physicians and other professionals. Arabella is under construction at 4521 San Felipe. The building has 99 units priced up to about $4 million. The units are 75 percent sold.”

The Daily Mail on Florida. “Joanna Krupa has now slashed the price of her stunning $1.9 million Miami apartment by $300,000, despite the abode boasting floor-to-ceiling windows and skyline views. The 39-year-old Polish model’s former home was dropped to $1.595 million in the hopes of a quick sale, after she and now ex-husband first purchased the home in 2013 for $1.4 million.”

From Globest on Florida. “Veteran developer Inigo Ardid says that market conditions in Miami have prompted his firm to take advantage of a unique opportunity here. Ardid, co-president of Key International, says his firm and partners Integra Investments and Wexford Capital will begin marketing its 32-unit ultra-luxury condominium project in East Boca Raton later this year. The fact that Miami has seen approximately 11,000 new condominium units hit the market in the last two to three years has cut into demand for new product, he notes. ‘The market in Miami has been soft and we began looking outside of Miami,’ he says.”

“While pricing has not been set as yet, Ardid says each 4,000-square-foot home will be priced in the ‘multi-millions.’ ‘It will be a very high-end project,’ Ardid says.”

From Mansion Global on New York. “Manhattan luxury housing rebounded in the second quarter of 2018 from a gloomier-than-usual winter real estate season, according to the Olshan Report. Developers eager to cut a deal and unload old inventory helped drive luxury deals in the second quarter. Between April and the end of June, developers sold 43% of all apartments—many at a discount—up from 38% in both 2017 and 2016, according to the report.”