It’s Friday desk clearing time for this blogger. “‘I don’t see a crash in prices coming, but I do see that our prices could level out in the coming months,’ says Jena Turner, owner of Houston’s Found Realty. ‘I see that happening as inventory increases, and as buyer demand may slow down, honestly because of the fear of not being able to find something.’ The inventory increase is already happening, with the number of single-family homes under construction in the U.S. at a 14-year high.”
“Robert Rutley with Mott & Chace Sotheby’s International discussed where the real estate market is still hot in Rhode Island, where it might be cooling. ‘I have heard from some other agents in tertiary neighborhoods that right not be as hot [saying], ‘We’re not getting a ton of offers’ — and I think that’s happening because they were riding that wave of high prices — and instead of really comping out properties where they should be selling at, they’re listing them high in anticipation that this wave is going to continue,’ added. ‘You have to list your properties properly, otherwise they’re going to sit on the market.’”
“Home sales dropped in July by 26 percent compared to the previous July, according to the Utah Association of Realtors, and the buying process is calming down some. Andrew Wiggins is getting ready to put his house in Salt Lake City’s Liberty Wells neighborhood on the market. ‘I hope that we get a lot of interest,’ said Wiggins, while acknowledging the market isn’t as red-hot as it was earlier this year. ‘I’m not anticipating it being quite the same as if we were to sell it in June or July.’”
“Forty-nine percent of the 292 REALTORS® from across Kentucky expect greater price-cutting by sellers over the next twelve months. ‘The data point to a seller’s market that has run its course,’ explained Vidur Dhanda, author of the survey. ‘We are seeing an increase in new listings, and as inventory increases, homeowners will be further motivated to list their properties. As builders’ supply issues resolve, new construction will also pick up. Prices are bound to stabilize. Additionally, buyers are increasingly unable to bid up prices. The recent price growth is not sustainable.’”
“After four years on and off the market, Scottie Pippen has finally scored a buyer for his Chicago estate. The home received a pending offer on Tuesday for $2 million. The six-time NBA champion first listed the property in 2016 for $3 million. Pippen purchased the Highland Park home in 2004 for $2.23 million at the time.”
“Attom released a special report looking at condominium sales and prices in oceanfront counties around the U.S. Median condo prices decreased in seven of the 86 counties, let by Santa Rosa County, FL (east of Pensacola) (median down 22 percent); Onslow County (Jacksonville), NC (down 18 percent); Suffolk County (Boston), MA (down 11 percent); Juneau County, AK (down 10 percent) and Queens County, NY (down 8 percent).”
“A San Francisco real estate firm is the key bidder on about five dozen multifamily and commercial properties in Marin and Sonoma counties that are set to be sold next month to settle bankruptcies stemming from the late Ken Casey’s $330 million Ponzi scheme. An audit of Casey’s estate led to a U.S. Securities & Exchange Commission investigation. Creditors forced a Chapter 11 reorganization filing in July 2020, and the SEC filed criminal charges last September. Late last year, Lewis Wallach pleaded guilty over $26.7 million embezzled from PFI while he was CEO, the Journal reported. About 1,300 investors put $330 million into the Casey companies, federal prosecutors said.”
“After a boom in Hyderabad’s real estate sector over the last six years, the sharp increase in land and apartment prices have made them unaffordable for many people, leading to a slump in registration of plots and flats. Buyers are waiting for prices to cool off and many who were earlier keen on buying land and houses as a means of investment, are now wondering if the market’s getting a bit too unreal.”
“Compared to H1 of 2020, when the number of unsold housing units were 4,037, the figure has risen to a worrying 11,918 in H1 2021. Which brings forth the question: Is the real estate bubble set to burst in Hyderabad? CV Reddy, Director of Aparna Constructions and Estates, says the real estate sector has slowed down in the past few months across Hyderabad city. ‘Land rates have peaked and increase in registration charges has thrown a wet blanket over prospective buyers.’”
“Economists and property professionals are starting to question the sustainability of never ending Australian housing price rises. Louis Christopher, managing director of SQM Research, points out that property asking prices in Sydney have fallen for several weeks in a row. He also says there are signs banks’ lending criteria are tighter than last year, when they were happy to accept JobKeeper payments as a form of income. ‘I would think if Sydney were to stay in lockdown through to December, it would be bad news for the local economy and that would feed through to the housing market,’ said Christopher.”
“The market is continuing to play chicken with the RBA, essentially saying that while the Board remains concerned about the fiscal side of the economy, they will vacillate about reigning in bond purchases, never mind raising the reference interest rate. For investors the the game is the same; don’t be the last one off the ship when it springs a leak.”
“South Perth builder Jaxon Construction has collapsed, after a battle for financial survival – ceasing operations as liquidators were appointed. Four construction sites in WA will be affected – while subcontractors walked off UWA’s Forrest Hall site because they hadn’t been paid. ‘It’s just such a sad indictment of our industry at the moment – what we’ve seen over the last couple of years, Cooper & Oxley, then Pindan, now Jaxon, who’s going to be next?,’ asked CFMEU state secretary Mick Buchan.”
“Samantha Reece, director of WA Apartment Advocacy, told Perth LIVE the ripples will be felt throughout our community. ‘So we’ve added up the numbers and there’s about 600 apartment owners now, who won’t have that six-year statutory warranty that they would normally be guaranteed,’ she said. ‘I do feel for the subbies, but I also feel for the apartment owners, who in some instances, especially with these luxury developments, have paid over a million dollars and now if there are any defects, they have no recourse but to actually pay for them, themselves.’”