Sellers Are Coming Down From Over-Priced Listings
A report from Curbed New York. “The first quarter market reports are in, affirming a report released last week that found the resale market is strong throughout the city. Jonathan Miller, who crunches the numbers for Douglas Elliman’s report, believes one big reason the resale activity increased ‘is more about the seller coming down to meet the buyer, than the buyer coming up to meet the seller.’”
“Case in point: listing discounts for all Manhattan sales was 4.2 percent, up from 2.1 percent last year. ‘It’s not high, but it doubled,’ Miller says. ‘Sellers are coming down from over-priced listings to begin with.’ A sign that buyers are willing to wait, also, is that the days listings spent on the market rose 16.1 percent from a year ago. As for luxury inventory, it’s the same old story: Prices continued to decline and the overpriced luxury resale listings continued to flounder on the market before being removed, Douglas Elliman found.”
“As for Manhattan’s median sales price, it declined 3.3 percent to $1.1 million. The sales median for co-ops was $775,000, unchanged from last year. For condos, it was $1.65 million, a 10.6 percent decline from last year. Corcoran also tracked a steady market pace, reporting that the number of signed contracts rose for the second quarter in a row, with this being the first year-over-year increase of contracts signed in six quarters. Pricing, however, remained flat and ’sellers became more realistic this quarter,’ according to the report.”
From Mansion Global. “The median sales price in Manhattan fell 3.3% to $1.1 million in the first three months of the year, compared with the same period a year earlier. This was the second consecutive quarter prices fell. ‘Every single submarket saw the listing discount increase, and that means sellers were willing to travel farther to meet buyer on price. The buyers weren’t budging,’ added Jonathan Miller, the chief executive of Miller Samuel.”
The Real Deal. “Going once, going twice, rented! Apartment-rental websites like the San Francisco-based Rentberry and Biddwell in Vancouver want to turn the apartment hunting process into an eBay-style auction, the Wall Street Journal reported. Experts told the Journal that in markets like New York City where there’s already plenty of public information on the rental market, auction sites may have little effect on pricing.”
“When Rentberry launched in early 2016, the company said it would raise rents on average by 5 percent. But the company’s founder said tenants have actually saved 5.1 percent compared to listed prices in the 10 cities where it active. It should be noted, though, that nationwide there is an oversupply of apartments, said Bozzuto Group executive Toby Bozzuto, who manages 60,000 apartments in the country.”
The New York Post. “A few weeks ago, we reported on uptown Third Avenue’s many retail vacancies. The tenement building at 1330 Third Ave. at 76th St. was asking $420,000 for just 1,500 square feet. Now, the price has been slashed to a mere $360,000 a year.”
From Spectrum News. “A 32-year-old Democrat from Binghamton is hoping to be the new leader of the city in 2018. Michael Treiman announced his plans to challenge current Mayor Rich David at a press conference Tuesday afternoon. Treiman said while he supports student housing, he believes it’s oversaturated and says the city should instead focus on more housing for the elderly. ‘People are getting priced out of rental properties because the downstate investors expect a certain amount of money per month that they’re accustomed to downstate, and they brought that market up here, and it’s not something that’s sustainable for local residents,’ said Treiman.”
The Glen Falls Post Star. “The Mill apartment complex at the corner of Hudson Avenue and Elm Street has been sold and the new owners plan to renovate unfinished space on the second floor for additional apartments. Sale of the complex was completed on Friday to a real estate group that includes ‘a local investor,’ said Keith Flores of Sunrise Management & Consulting, an Albany-based real estate company that manages the property. A limited liability company affiliated with Amalgamated Bank has owned the complex since 2010. The bank financed the $26 million project, completed in 2009, and took ownership from developer Bruce Levinsky under a settlement agreement to avoid foreclosure.”
“Levinsky headed an investment group that added three stories to a historic former glove factory building. The project was originally intended to be condominiums, but no condominiums were sold once the national recession caused the market for condominiums to drop off. Amalgamated Bank has rented housing units instead of selling them as condominiums.”
One the last link, another that’s subscription:
‘The Mill, a $28 million development in downtown Glens Falls, New York, that failed as luxury condos but succeeded as apartments, sold Friday at a deep discount.’
Does “succeeded” mean this investment had a positive cash flow after all debt and expenses and taxes were paid?
If so, why sell them at deep discount?
Probably means they filled up. Obviously it was cash flow negative. Looking at the photo, I’d say these qualified as luxury apartments and if so it’s the first lux default I’ve read about.
http://poststar.com/news/local/the-mill-complex-sold-and-new-owners-have-plans-to/article_39b1c782-ba1b-5853-85a2-b27dfae623eb.html
This was a project conceived of during the bubble, and got the jingle mail treatment in 2010 (and owned by the bank ever since).
‘Richmond Federal Reserve President Jeffrey Lacker announced his resignation Tuesday, admitting that he discussed sensitive information with an analyst regarding the Fed’s plans for economic stimulus. Lacker, 61, became president and CEO of the Federal Reserve Bank of Richmond on Aug. 1, 2004. He is a member of the policy-setting Federal Open Market Committee.’
He’s probably a Russian plant.
This is why I donated money to Ron Paul in 2007.
The Federal Reserve is a criminal cartel.
Funny how you didn’t donate to anyone else…
—
Trump Calls For Auditing the Fed
https://www.infowars.com/trump-calls-for-auditing-the-fed/
This was written before the resignation:
‘Here’s what we know will occur: Two seats on the Fed’s seven-member Board of Governors already are vacant, and the new president has the prerogative to fill them, pending Senate confirmation. And a third governor, Daniel Tarullo, announced he will leave the central bank “on or about” April 5.’
‘Further, both Yellen’s and Vice Chairman Stanley Fischer’s leadership terms are set to expire in 2018. Their Board of Governors’ terms extend beyond that, but board members who exit leadership typically resign their seats.’
‘If that occurs, Trump appointments would make up a majority of the board, which is responsible for regulating banks and helps set the nation’s monetary policy.’
Mike is gonna be one big sad panda when he hears about this.
The Yuge-est Threat to the Trump Economy: Spiking Interest Rates.
This is not fair, Fed kept them artificial low for Obama says 45.
Mike is gonna be one big sad panda when he hears about this.
Mouse will have the last laugh I am afraid. Tru*p will appoint the ones they expect him to; probably a Keynesian, worked for big banks or for one of the think tanks and probably a tr1be member.
Quit complaining about Jews all the time. And no, Mike’s hero central bank will be transformed and audited. Who could vote against an audit after this?
Not complaining about jews at all..just making an observation.
I don’t care who he appoints. But one thing for sure: it ain’t gonna be a globalist. Remember who the PTB put in charge of setting up globalism? Greenspan and Volcker. And I’d bet neither of those guys would have run this QE shazaam.
Sec of State is a globalist, the new swamp is full of them.
It is up to Goldman, not trump.
“Who could vote against an audit after this?”
Update: No charges will be brought against Lacker.
Government shutdown, bitchez. Believe it. The meat axe cometh. Oh, uh, yeah, the housing crash, too.
“Not complaining about jews at all..just making an observation.”
I guess you were talking about the Chippewa when you mentioned the tribe.
“And I’d bet neither of those guys would have run this QE shazaam.”
Maybe not Volcker, but I wouldn’t have been surprised if Greenspan had done it.
Trump has no idea what the Fed is or what it does. If you think he is going to hand pick replacement governors, you are kidding yourself. They will be handpicked for him, and the banks will be very happy about the candidates chosen (since they will choose them).
The appointees will be selected and everyone will act shocked, just like when he chose all Goldman bankers to be his closest advisors after he won.
The bed-wetters are out today.
‘Sec of State is a globalist’
Rex is a north Texas oil guy. We’re in good hands.
Look Natty Ice Dude, I get it. You’re butt-hurt. You don’t like the big meddel fanger the country gave you. But you’re on the bench for the duration, while the adults clean up your messes.
Nice work so far. It is not about the talk, independents look at the results. Blind faith in 45 won’t help you and the few who still have their fingers crossed and eyes closed.
Reagan still tripled the deficit and trump is lined up to beat that.
Can you believe it? No one has bothered to get their torn ass stitched up yet.
“Rex is a north Texas oil guy. We’re in good hands.”
Amen. Reminds me of a St. Bernard being yapped and nipped at by a bunch of vicious little chihuahuas.
‘the few who still have their fingers crossed’
No, it’s still millions of meddel fangers straight up to you!
http://www.rollingstone.com/politics/features/taibbi-putin-derangement-syndrome-arrives-w474771
‘This testimony was brought out by Virginia Democrat Mark Warner. Warner has been in full-blown “precious bodily fluids” mode throughout this scandal. During an interview with The Times on the Russia subject a month back, there was a thud outside the window. “That may just be the FSB,” he said. The paper was unsure if he was kidding.’
‘If the party’s leaders really believe that Russian intervention is anywhere in the top 100 list of reasons why some 155 million eligible voters (out of 231 million) chose not to pull a lever for Hillary Clinton last year, they’re farther along down the Purity of Essence nut-hole than Mark Warner.’
When the Rolling Stone starts laughing at Democrats, it’s Whig party time. BTW, win-win ya leaving?
Hey Donk…. Fetch NattyIceBoi another round.
Butt Hurt Cream is on Aisle 6.
They have a special this week on Crow Meat. $0.99/lb!
That Audit the Fed bill is interesting, but in addition, I’d like to know whether we have any gold left in Fort Knox, or if they gave it all away.
T. Rex looks so calm and collected. It would be neat if they’ve been keeping the secret of a hidden ocean of oil underneath Texas that would make the rest of the world’s reserves look like a drop in a bucket. One so big, it would last the USA another 1,000 years.
And then we also find out that the Fed have been good guys all along and have stockpiled 90% of the world’s physical gold, too. All to be revealed at a time when the rest of the world is going down the tubes.
I’ve never seen anyone handle a bunch of Congressional skanks like he did. Iron fist in the velvet glove. That’s why he’s the top diplomat.
“Congressional skanks”
There’s your cesspool. Filthy, corrupt, rigged swamp loaded full of bought out lying POS.
Ho, ho HO!
Susan Rice’s White House Unmasking: A Watergate-style Scandal
http://www.nationalreview.com/article/446415/susan-rice-unmasking-trump-campaign-members-obama-administration-fbi-cia-nsa
Ho, ho HO!
Nah. media will bury it. You can’t taint the black jesus’ legacy.
“Nah. media will bury it.”
Wut? The media is not burying it at all. Some of the media may not be covering it the way others would like them to, but they’re covering it. Bloomberg. NBC. MSNBC. Fox. Breitbart. ZeroHedge. Infowars. Even CNN is covering it, by declaring they’re not going to cover it, and then discussing how they’re not covering it at great length.
Read the article: Rice was a consumer of intelligence, not a collector or generator. She had no business doing this. Good thing we have some investigations forming.
A video title from yesterday:
Sources: Unmasking allegation is false
CNN
One hour ago:
Rice says politics did not play a role in the unmasking
Fox News
“Read the article”
Last line: at least she didn’t blame it on a video.
National Review, more media covering, not burying it.
And let’s not forget that the story was broken by Cernovich Media. No, he’s not the NYT, WaPo, any of the networks, etc.
So what? He’s new media, like him or not. And he broke a legitimate story and lit the fire and forced Bloomberg to follow on.
If there’s one thing I’ve learned as a result of the whole election cycle and the aftermath, it’s that the Agenda Driven Media is exactly that: not MSM, not Legacy Media, not Dinosaur Media. Agenda Driven Media, or Agenda Drivel Media. ADM. All BS, too. Nothing but propaganda and crap.
I donated money to Rand Paul’s primary campaign in May 2015. After The Donald’s descent on that escalator (has there ever been a grander entrance than this?) I knew it was over for the quasi-libertarian who only stands at 5′8″ tall. They played some golf together recently, and The Donald now has some support in the Senate, certainly not from McCain and Graham. I think Rand Paul will only make The Donald’s administration better, time will tell…
“I think Rand Paul will only make The Donald’s administration better,”
I agree. And I also think that the Donald has made Rand Paul better, too. I think a lot of what Rand was lacking, which is mainly some major stones, he is picking up from the Donald and incorporating it into himself, modified by his own style and intellect. I think Rand has learned that it’s OK to grow a pair, that you don’t have to shrink from the media or apologize or soft-pedal or pander.
I’ve seen him do some media appearances recently and it’s amazing how far he’s come in a brief amount of time. He’s only 5′8″? I never noticed that. He actually projects much taller.
lacker is scooting just in time
give lame excuse
Yellen will quit before selling any bonds from the cesspool
heh, looks to me as if Janet is being positioned to be the scapegoat: “UBS Blames Fed For “Crisis High” Subprime Defaults; Says Auto Is Just The Beginning”
I think you’re right, she’ll probably move on soon.
Jeffrey Lacker announced his resignation Tuesday, admitting that he discussed sensitive information with an analyst regarding the Fed’s plans for economic stimulus.
Cute. Information is a necessity for becoming very wealthy. Jacob Fugger (heh), perhaps the wealthiest man who ever lived, was an information dealer among other things: “He also had a thirst for information about trade and commerce that led him to create a network of couriers whose reports to Augsburg were printed and distributed to clients in the form of a primitive newspaper. Fugger had invented the world’s first news service.”
Being in a position to be able to get a Fed president on the phone is very useful in that regard. I’m sure that ability can lead to obtaining a great deal of useful information. This “transgression” seems highly technical, and it seems suspicious that Lacker would be penalized for it. Technically, he’s not being penalized in any way (”Lacker’s attorney told CNBC no charges will be filed”) other than moving up his retirement from the Fed a few months.
On the market: Foreclosure, pre-foreclosure homes in Southwestern Conn. April 2017
Lidia Ryan Published 1:08 pm, Monday, April 3, 2017
IMAGE 1 OF 46
In an area like southwestern Connecticut, where luxury homes come with a big price tag, foreclosures can be a home buyer’s answer.
http://www.ctpost.com/realestate/article/On-the-market-Foreclosure-pre-foreclosure-homes-11046584.php
Redding, CT Housing Prices Crater 9% YoY As Housing Demand Plummets
https://www.zillow.com/redding-ct/home-values/
Zillow should have tax per sq ft
Any retired coal miners on here?
The Glen Falls Post Star. “The Mill apartment complex at the corner of Hudson Avenue and Elm Street has been sold and the new owners plan to renovate unfinished space on the second floor for additional apartments
the glove biz
amazing how much of upstate was in the skin trade
Vancouver, the loneliest city, full of lonely people.
https://www.theguardian.com/world/2017/apr/04/vancouver-loneliness-engaged-city-taskforce-canada
Maybe they are lonely because of all the empty houses. Well, never fear, the government is taking steps to battle the loneliness, because it’s a public health issue.
Manassas Park County, VA Housing Prices Crater 9% YoY
https://www.zillow.com/manassas-park-city-county-va/home-values/
No zillow forecast= weak
We already know what the forecast is my good friend. We already know.
Coral Gables, FL Housing Prices Crater 6% YoY
https://www.zillow.com/coral-gables-fl/home-values/
There’s been a lot of news in Australia lately. They must be getting panicked or something. I thought this was interesting. “Negative Gearing”. I’d never heard of that before.
From today:
http://www.smh.com.au/business/the-economy/malcolm-turnbull-has-the-medicine-to-fix-the-housing-bubble–he-just-wont-administer-it-20170403-gvcfbu.html
If I understand it right, the idea is that investors buy income properties to intentionally lose money in order to get tax benefits for other things. Apparently this is a widespread (?) activity in Australia, and they want to ban it.
From wikipedia:
“Negative gearing is a form of financial leverage whereby an investor borrows money to acquire an income-producing investment property and expects the gross income generated by the investment, at least in the short term, to be less than the cost of owning and managing the investment, including depreciation and interest charged on the loan (but excluding capital repayments). The investor may enter into such an arrangement and expect the tax benefits (if any) and the capital gain on the investment, when the investment is ultimately disposed of, to exceed the accumulated losses of holding the investment. The investor would take into account the tax treatment of negative gearing, which may generate additional benefits to the investor in the form of tax benefits if the loss on a negatively geared investment is tax-deductible against the investor’s other taxable income and if the capital gain on the sale is given a favourable tax treatment. Some countries, including Australia, Japan, and New Zealand, allow unrestricted use of negative gearing losses to offset income from other sources. “
There is a lot out of Australia right now. These guys pretend to be concerned about house prices while they’ve spent decades encouraging speculation. A phenomenal percentage of shack owners do so at a loss, which would be much harder if not for the tax thing. And they had laws against foreigners buying existing houses. Then someone looked into it and found it had never been enforced. Everybody involved knew and not one person said boo. The worst is the central bank. Like China they say one thing and can be counted on to do another. Now oversupply has gotten undeniable and that’s probably what has them spooked.
Imagine if you were at the economic helm of things in Australia, facing an out-of-control property bubble, and you have all these economic and regulatory knobs and levers you can use to adjust things at your control.
What would you do? Go the sudden and more drastic route, and turn all the knobs far to one side, completely deflating the bubble but with a lot of pain? Or, would you take the gradual approach, and turn the knobs slower.. or even try to engineer a “plateau” or “soft landing” ?
If it were me in real life, as much as I’d like to say I’d take the drastic route, most likely I’d also choose the incremental approach. Even though it might be fruitless in the long run.
The reason why they don’t want to burst their bubble is because they are afraid of what might happen. And they should be worried.
What would you do? Go the sudden and more drastic route, and turn all the knobs far to one side, completely deflating the bubble but with a lot of pain? Or, would you take the gradual approach, and turn the knobs slower.. or even try to engineer a “plateau” or “soft landing” ?
Or just take the American approach and go for new highs. Why accept that there needs to be a deflation at all?
Or, like that one person said, there is the option of just ’sitting in the corner and not doing a thing’. Don’t touch the control panel!
Regardless, eventually there will be some kind of “dislocation” event, and maybe things will work themselves out, with much drama and gnashing of teeth.
Sorry, not banning it, but restricting it. Yeah, like how they “clamped down” on the interest-only mortgages last week to be 30% of all mortgages instead of 40%. Big whoop.
If they want to use interventions to pop their bubble — these minor adjustments don’t seem like very serious efforts.
Negative gearing, or negative leverage, can also be explained as a situation where the interest rate on the debt exceeds the cap rate of the property. Conversely, positive leverage occurs when the interest on the debt is less than the cap rate of the property.
Think of it like this. If you are buying a property at 6% cap rate and your mortgage has a rate of 4.5%, then the property is producing a return at a rate that exceeds the cost of the debt, so your levered (or geared) return will be in excess of the 6% cap rate (i.e., positive leverage).
If you are buying a property with a 6% cap rate and your mortgage has a rate of 7%, then the property is producing a return a rate that is less than the cost of the debt, so your levered (or geared) return will be less than the 6% cap rate (i.e., negative leverage).
what is the correlation between housing busts and the credit cycle?
Well the Sallys gonna need more houses. LOL
Meet Sally, the Robot Who Makes Perfect Salads
Chowbotics Inc. claims that its device can make a salad faster and more precisely suited to your caloric desires than a human can.
https://www.bloomberg.com/news/articles/2017-04-04/meet-sally-the-robot-who-makes-perfect-salads
What does FB stand for?
Facebook
Unbelievable:
http://www.urbandictionary.com/define.php?defid=2785008&page=3&term=FB
OK, I’ll give the true story. There was a f***ed borrower blog, run by a loan officer in California. We used to correspond and he’d post links here. I told him once, “man, the name of your blog is off-putting.” He didn’t care. Anyhoo, so when I would refer to it (or a person in that situation) I started using FB. And now it’s in the urban dictionary.
Lol, that definition has 79 down votes. Probably all FBs, too.
“FB’s face a bleak future of certain losses, and nearly certain bankruptcy, credit destruction, and long term cascading/follow-on financial and opportunity losses.”
Hey, make the best of it! Maybe we can help.
https://www.youtube.com/watch?v=LARx7M9s15w
Excellent! The HBB registers new coinage in The Urban Dictionary. We should take stock of our internal vernacular to make sure it is fully represented.
“Prices continued to decline and the overpriced luxury resale listings continued to flounder on the market before being removed, Douglas Elliman found.”
Apparently the denial stage of the Housing Bubble Stages of Grief is in full swing.
Woodland, WA Housing Prices Plummet 11% YoY As Housing Market Tanks
https://www.zillow.com/woodland-wa/home-values/
Sorry Race, ain’t happening here yet. My office mate is trying to buy a house right now. I get the gory details every week. Prices are up, up and up!
Data my friend. Stick with the data.
Sisters, OR Housing Prices Plunge 15% YoY
https://www.zillow.com/sisters-or/home-values/
Well, maybe this is beating a dead horse at this point, but here’s another one from Australia today. This one shows that no matter what the regulators try to do, Australia still finds a way to bubble. The author suggests Australia should take draconian measures like in Taiwan with its 45% property sales tax.
https://www.bloomberg.com/gadfly/articles/2017-04-04/an-asian-lesson-for-sydney-s-property-bubble
I had no idea what a disaster Australia really is.
or just get GOV out of housing
no gov=no problem
see 1950’s for results
HC
EDU
etc………….
In the words of Ben… Oh Dear
https://twitter.com/mrmarkhanson/status/849366028928913412
HANSON, HOUSING BUBBLE 2.0 IN FULL BLOOM..”INTEREST ONLY LOANS UP 37% YY IN 16″. Herd mentality is a fun thing to watch & ALWAYS ends badly
how is that sht even legal?
VIX 11.1 at 10.5 I’m going all in
UBER
SNAP
derb
doof
fart
Why fight it?
Step 1. Smoke a lot of high quality crack cocaine.
Step 2. Close eyes and buy with both fists.
…
Step 12. Jump out of building.
You can bet your last dollar that the majority of these desperate house lives are mortgaged up to their eyeballs.
Half of American families are desperately living paycheck to paycheck
By Quentin Fottrell
Published: Apr 4, 2017 10:32 p.m. ET
Recession-era debt and stagnant wages are a bad combination
…
My wife is always telling me stories of co-workers who tell her exactly this. one of her former managers works a 2nd retail job in addition to her $125k+ job for “the discounts.” Women talk. Most of my coworkers are dudes and won’t admit anything, except for my last manager who told me he and his wife couldn’t last 2 weeks when I told him I was quitting without anything lined up. freedom >> overhead
“Recession-era debt and stagnant wages are a bad combination”
These debtors need to visit the neighborhood Mosque.
Habitat for Humanity fixing up zombie homes
http://queenscrap.blogspot.com/2017/04/habitat-for-humanity-fixing-up-zombie.html
Interesting show on NPR yesterday. If you listen halfway through, the guest Susan Wachter from the Wharton School says: “there is NO bubble”:
http://www.wbur.org/onpoint/2017/04/04/spring-real-estate-market
OMG… is this really Susan?