A report from Yahoo. “If you’re looking to do major upgrades or are in the middle of one with a contractor, you might want to see if you can re-negotiate the cost of materials. Gregory Kyler, a Chicago-based licensed general contractor, says that he and his team re-priced construction on a new home that ended up being 15% less than it was a month ago.”
From Madison’s Lumber Reporter. “As the second half of summer 2021 came on, there was no more clarity on the state of the North American construction framing dimension softwood lumber market than there had been for most of this year. While building, and especially housing market, activity continued relatively strong, it Seemed that quite a bit of that higher-cost inventory remained in the field. Buyers weighed the potential supply problems and logistical interruptions caused by wildfires against the possibility of further downside in prices and many decided to watch and wait.”
“Prices of dimension and studs appeared to be stabilizing while panels were in a nightmare downward spiral.”
From Mortgage News Daily. “‘While the demographics and interest for home buying remain solid, higher costs and material access issues have resulted in lower levels of home building and even put a hold on some ‘new home sales,’ said NAHB Chief Economist Robert Dietz. ‘Buyer traffic has fallen to its lowest reading since July 2020 as some prospective buyers are experiencing sticker shock due to higher construction costs,’ said NAHB Chairman Chuck Fowke.”
From Arlington Now in Virginia. “Not quite seeing the perfect ‘Just Reduced’ home here? Don’t be discouraged as these offerings are just the beginning! Nearly 50 homes experienced a price reduction in the past seven days. Taking things to the next level, a property doesn’t always have to be ‘Just Reduced’ to get a bargain. With a trusted team on your side — regardless of how hot the market is — you can negotiate in the direction you are seeking.”
The Boston Globe in Massachusetts. “The once-torrid demand for homes in the Boston area has cooled markedly this summer, and sale prices―though still hovering near historic highs ― may be starting to soften slightly, according to an industry report. Median prices for single-family homes dropped 10 percent from an all-time record high of $812,000 in June, the Greater Boston Association of Realtors said. Dino Confalone, president of the realtors’ association said said there’s been a strong supply of new homes hitting the market this summer, ‘and that’s giving buyers more options and time to look for a home.’”
The San Antonio Current in Texas. “In January, country music legend George Strait relisted his Santa Fe-style home in the ultra-pricy Dominion enclave for $7.5 million, cutting a quarter from his original asking price. And it still hasn’t moved. The price reduction, which happened more than six months ago, was only the latest for the King of Country as he looked to unload his castle. It originally went on the market in 2018 at $10 million, then the price dropped to $8.9 million in 2019.”
The Orlando Business Journal. “Central Florida’s housing market may be reaching a cooling-off period. The hottest housing market in years led to further home price escalation and quicker sales in July, according data released by the Orlando Regional Realtor Association. However, the number of sales decreased and home inventory ticked up for the third straight month as some experts expect the market to slow gently. ‘We’re seeing various indicators in the housing market to suggest it’s cooling,’ PNC Financial Services Group Senior Economist Abbey Omodunbi told Orlando Business Journal.”
“Central Florida’s home inventory on the market increased from 3,098 homes in June to 3,524 homes last month. The local housing market appears to have reached its pinnacle, 2021 Orlando Regional Realtor Association President Natalie Arrowsmith said. ‘We are seeing the housing market start to level off from its peak, but that doesn’t mean it’s less competitive.’ Indeed, Omodunbi told OBJ the recent price gains seen across the U.S. housing market in the past couple of months are ‘unsustainable,’ especially with more home listings hitting the market.”
From My News 13 in Florida. “Before the COVID-19 pandemic, Jayne Rocco managed 15 rental properties in Daytona Beach. Now, she’s down to nine — and looking to sell the rest as quickly as possible. ‘Financially, I can’t do it,’ Rocco said. ‘I’m tired of tenants, you know, chasing them for the rent, feeling like they’re entitled, that they don’t have to pay.’”
“At one property where she rents two separate homes, Rocco says she recently paid to renovate one home’s kitchen and bathroom, even though the tenants there haven’t been paying rent on time or consistently since they moved there in May. ‘I took out a second mortgage to fix it up,’ Rocco said. ‘I just break even on the two houses, so every month, I’m having to come up with $1,000 out of my pocket, at least.’”
The Center Square. “Illinois’ mom-and-pop landlords say the end of the eviction moratorium that was put in place to protect people who lost their jobs or got sick during the COVID pandemic can’t come soon enough. Too many property owners are struggling with tenants who have racked up thousands of dollars in back rent balances, said Paul Arena, director of legislative affairs for the Illinois Rental Property Owners Association. Many landlords are owed thousands of dollars in back rent and they have little hope of ever getting their money, he said.”
“‘There seems to be this misconception that it is going to be OK because all this rent is going to get paid, and that is just not true,’ Arena said. ‘We have property owners who are on the brink of bankruptcy because they can’t pay their bills and they can’t afford this anymore.’”
“‘I talked to a building owner over the weekend who was out $60,000 in unpaid rents. Some of the tenants had vacated the apartments. The owner was dealing with the reality that he was not going to be compensated for those,’ Arena said. ‘He and his wife had been using their savings. They had been to the bank to borrow money to make ends meet. I could tell there was a great deal of concern.’”
From Canadian Mortgage Trends. “Real estate activity and home prices across Canada continue to retreat from their March peak. Since March, the average price has fallen 7.7%. Home sales are also down, having fallen 28% from the March peak and 15.2% since last year. ‘The slowdown we’ve seen in home sales over the last few months has not been surprising, given that the level of activity we were seeing back in March was unsustainable,’ said Shaun Cathcart, CREA’s Senior Economist.”
“‘From a bigger-picture perspective, we might be close to the point where major pandemic-era rebalancing has run its course—think single-detached versus condos, rural versus urban and cottages versus travel and other spending,’ BMO senior economist Robert Kavcic wrote. ‘One could argue that some of those shifts went too far during the height of the madness, and we could see some undoing ahead, even if a lot of the underlying change is permanent.’”
The Khmer Times. “A slide in condominium prices in Cambodia may lead to more affordable homes for locals as developers chase a dwindling number of buyers. Mid-range prices in Phnom Penh tumbled 13.5 percent in the second quarter of the year, compared to the same period in 2020. High end prices dropped 7.9 percent, while affordable home prices fell 3.1 percent, according to figures from real estate consultancy CBRE Cambodia.”
“‘In Phnom Penh, some developers have reacted to this by pivoting their projects towards the local market where they are having to compete more fiercely for a smaller pool of buyers,’ said CBRE Managing Director James Hodge. ‘Discounting has been the principal tool used by developers to compete for local investors, many of whom have been savvy bargain hunters.’”
“The situation is the same in Thailand, where condos in Bangkok’s central business district tumbled more than other Southeast Asian cities, according to a survey by property group Juwai IQI.”
From Free Malaysia Today. “Everyone loves a sale, particularly if the property is going at half price. But not earlier buyers, or investors who had bought to flip. These two groups would be unhappy. Maybe even furious. Headlines about property have been like this, of late: Is it time to buy? Is it ‘still’ a safe investment? Is there light at the end of the tunnel? There is a missing question: ‘Will prices fall further?’”
“When Chinese developer Country Garden Pacificview Sdn Bhd advertised its Danga Bay, Johor Bahru, project at 50% discount for about six weeks starting in early June, earlier buyers were angry. New buyers were delighted. A Singaporean buyer, Hassan (not his real name), who bought an apartment unit in 2015 for RM1.82 million, was shocked and upset. Overnight, his unit was worth about RM900,000.”
“‘The drop is significant. I can accept that property prices do fall, and have fallen because of the Covid-19 pandemic. Even then, I was shocked to discover that it was by so much, as though a calamity had occurred,’ he said. It was his holiday home.”
“A government-linked developer also halved prices for some of its remaining units located near the National Science Centre in Bukit Kiara, Kuala Lumpur. The units were originally priced at about RM4.5 million each. It is not clear when these units were sold. Each of these two cases involved unsold completed units. Country Garden Pacificview cited ‘current market conditions’ and ‘changing requirements of the situation.’”
“These 50% bargains from developers – the first ever in the Malaysian property sector – underscores the high number of completed units still unsold, which are a millstone around developers’ necks. According to three agents for Country Garden Pacificview, which is part of China’s Country Garden group, it had a stock of about 1,000 units and needed ‘to sell them quickly.’ About 200 units were sold, half to Malaysians and the rest to Singaporeans. The agents also said the company was ‘likely’ to have another promotion in a few months to clear the rest.”
“Buying completed unsold units may also be ‘safer’ than buying off-plan due to the on-off restricted movements which may affect delivery dates, or a cash crunch that may result in the projects being abandoned. For decades, Malaysians have been weaned on the belief that property prices can only go up. Covid-19 has made this a myth.”