It’s Friday desk clearing time for this blogger. “Realtors predict the market is about to take a turn and Triangle’s housing market could be booming once again. But they don’t expect to see a repeat of the COVID craze when some sellers were demanding high due diligence numbers. ‘That was a once-in-a-lifetime thing,’ said Raleigh Custom Realty Broker Steve Wall.”
“‘We usually see home sales pick up when mortgage rates fall, but this year we are seeing the opposite — sales are dropping and homes are sitting longer on the market,’ Sheharyar Bokhari, a Redfin senior economist, said. Daryl Fairweather, Redfin’s chief economist, said buyers might also be pickier about the homes they make an offer on. ‘Anyone who has been paying attention to the housing market over the past few years knows that desirable homes sell right away,’ Fairweather said. ‘Now if a home is still on the market after a few weeks, buyers assume there’s something wrong with it. That’s why it’s so important to price your home to move quickly. Buyers see the days on market, and when it starts to tick up, it’s like a scarlet letter.’”
“‘As the traditional summer home-buying season comes to an end, so does the six-month streak of increasing home sales in Alabama,’ said Senia Johnson, 2024 President of Alabama REALTORS®. Active listings increased for the seventh consecutive month, reaching 18,136 listings, the highest figure recorded in over four and a half years. Coupled with 4.1 months of available supply, Alabama’s current market offers ample inventory for buyers.”
“‘Year-over-year it’s softened. I think we’re down about four percent in the Dallas MSA. That’s why I say we’ve seen the demand wane a little bit, but we’ve also seen an uptick in inventory, so we’re almost at four months in most of the marketplaces here in DFW,’ said Ashley Gentry, the President of the MetroTex Realtors Association. Sellers seemingly are making decisions. In the last 24 hours, a thousand homes in DFW have posted price reductions. The Fed cut the interest rate by a half-point earlier this month. ‘That’s exciting for buyers who are having to spend a lot more money to get in to those homes. They have options, they have resources. Sellers are willing to be a little bit more negotiable right now,’ said Gentry.”
“The South Florida condo market is in a dive. Prices are dipping. Sales are slowing. Inventory is piling up. What is the housing inventory in South Florida? Miami-Dade: 9 1/2 months of inventory of condos, the highest amount since February 2021. Broward: 8.3 months of supply of condos.”
“Legislators plan to introduce a new bill Thursday that would provide mortgage relief and foreclosure forbearance for New Jersey families in need more than three years after the remnants of Hurricane Ida hit the state. ‘Unlike under the Governor’s conditional veto — this new bill will actually help me and the majority of our members,’ said Leanna Jones, an advocate with New Jersey Organizing Project. Jones, an Ida storm survivor, is also a single mother of two. ‘We’ve had no help from the state whatsoever in recovering from Hurricane Ida after 3 years — we need a hand to keep a roof over our heads,’ Jones said. ‘Some breathing room on my mortgage would allow me to get my head back above water.’”
“Many California families are opening their mailboxes and finding a bombshell: a letter from their insurance company saying they’re losing their homeowners’ insurance coverage, even if they live where you’d think fire risk is low. ‘I cannot sleep thinking about what’s going to happen with my home insurance,’ said East Oakland resident Maria Espada. Espada has had Safeco homeowners insurance for twelve years. But not for much longer. Safeco is dropping her homeowners’ policy. State records show Safeco dropped 75 customers in Espada’s zip code and a total of 955 customers around the Bay Area. Espada can’t wait a year to see who wins this game of chicken. She needs a new insurance policy now. So far, the only insurance she’s found costs double and could price her out of her home. ‘I’m so worried that by the end, that I am going to lose my house and be part of the list of homeless people. That’s terrible,’ Espada said.”
“The development company, Galena, owes more than $20 million to its contractors. The original project details plans for over 300 residential units, retail and office spaces. ‘I would love to see it finished. Really,’ said Domy. Alex Domy manages The Roosevelt bar in Downtown Meridian, directly across from the unfinished Union 93 project. Galena’s attorney James Donoval says it was an investor who backed out, leaving the buildings incomplete. ‘Obviously all of the contractors and subcontractors had done a lot of work and were owed money. So they all started filing liens and then ultimately filed lawsuits,’ said Donoval.”
“D.C. Council Chairman Phil Mendelson unveiled a proposal Thursday that would roll back pandemic-era rental assistance and eviction laws and make it harder for tenants to receive assistance, as millions of dollars in unpaid rent destabilizes the affordable housing market. The proposed changes come at a time of crisis for D.C.’s affordable housing sector. Providers of low-income housing are facing a severe financial crunch, and some are struggling to stay in business or to keep their properties from falling into foreclosure. Housing providers say the current policies have allowed thousands of residents to stop paying rent. At some properties, as many as 40 percent of tenants are behind on their rent, leaving the landlords in a financial hole, building owners say. As a result, some housing providers are struggling to maintain their properties, or to find buyers if they want to sell them.”
“Largely driven by the condo segment, the total number of starts in the Prairie city’s new-build market reached 11,883 in 2023 – the highest since 2014 – as investors flocked to Calgary in search of cash-flow opportunities. But the bonanza for investors could be short-lived. ‘I think we’re going to see some volatility in the condo segment due to the sheer number of buyers investing in condos,’ says Natasha Phipps, a Calgary realtor, pointing to preconstruction condo buyers looking to make a quick return upon occupancy, a common investment strategy in Toronto and Vancouver. ‘They think they can sell easily at closing, or assign it. But assignments are extremely challenging for us to successfully pull off – we’re a very different city in terms of land supply,’ she explains. ‘So it’s putting a lot of these investors potentially in a difficult situation where they were forced to close, and now they’re trying to sell.’”
“New Zealand’s population is poised to come to a standstill next year. NZ Herald business editor-at-large Liam Dann said that could put a dampener on hopes for a recovery in the apartment market, which already had an oversupply. ‘Some of those immigrants are apartment buyers, and so if you don’t have them coming in, it could have an impact there,’ he said. ‘It’s quite a dramatic shift from 136,000 coming in to maybe a net zero and presents probably as a little bit of a headwind.’ A lot of them arrive with the view of staying in New Zealand long-term, but this wasn’t always the case, said Westpac senior economist Michael Gordon. ‘If they’re tied to a certain employer and the employer is laying people off or maybe going bust, then they may be forced to go home again and that’s what we are seeing,’ he said. On top of this were the record number of Kiwi citizens who were leaving the country, in search of better job prospects.”
“Queensland property investors are already looking to exit the market amid revelations negative gearing could be abolished, agents say. Ray White Marsden principal Avi Khan said landlords he had spoken to were concerned about the federal government’s plans and already saying they may sell their investment properties before any changes are introduced. ‘The investors we have on our books are also our current buyers and they’re saying if the government is suggesting there will be changes (to negative gearing), it will make us reconsider buying,’ Mr Khan said. ‘It’s all about the signals the market sends investors. When there are signals of negative gearing changes, they don’t want to buy and think about selling.’”
“HQ Property director Shannon Davis said she was also expecting investors to flee the market. ‘This decade, a lot of properties were positive geared when interest rates were so low, and then with the 13 interest rate rises, everyone’s in a negative cash flow,’ she said. ‘As well as increased expenses for insurance, water, energy, maintenance — that would see further investors flee the market.’”
“Place Estate Agents chief auctioneer Peter Burgin said news of possible changes to negative gearing was unlikely to have a material impact on the Brisbane market — although it could work in buyers’ favour. ‘Any negativity out there probably gives buyers another tool in their belt to drive a higher bargain,’ Mr Burgin said.”