A report from the Record Courier. “A lack of inventory, low interest rates and eager buyers have sent Douglas County home prices into the stratosphere. Nevada Board of Realtors President Brad Spires said that the median price per square foot was $326. ‘During 2010 that was under $100, so that number per square foot is incredible,’ he said. ‘There are 54 homes on the market over $1 million. Some of those are people looking at the market and thinking maybe it’s time for us to downsize, or to buy a motorhome and travel for three years. With numbers escalating the way they have, a lot of people are testing the market.’”
From KUNR in Nevada. “The median price for a house in the Truckee Meadows remained at $530,000 in July. That’s according to the latest data from the Reno-Sparks Association of Realtors. The latest data show a notable increase in the number of houses on the market last month, helping to keep the median price unchanged from June.”
The Idaho Press. “The Treasure Valley’s housing market is starting to cool off. It’s still a strong seller’s market, but rising inventory means buying a house has tended to be a little less of a frenzy than it was a few months ago. Christina Ward, a Realtor with Keller Williams Realty Boise, said she’s seeing a combination of some more sellers and a few less buyers. Ward has noticed buyers not having to be in as many big, competitive bidding wars as well as some price reductions on listings. Both coincide with the rise in inventory, which is a ‘huge relief’ for buyers, she said.”
From Boise Dev in Idaho. “There’s a rare decline in median prices in Canyon County. It’s the first significant drop in median price since before the pandemic in Canyon County. The median price level in Ada County returned to increases in July, but nowhere near the breakneck pace seen this spring. Another key metric – homes available for sale – saw a big increase in both counties, with more homes available for sale in both counties.”
“Combined, the inventory metric showed 1,731 houses for sale across the two-county region, more than triple the inventory available in January when just 429 homes were listed for sale. The data also shows there are 64% more homes available than in July of 2020, and 43% more than just a month prior. In another sign that the housing market has cooled a bit since the same time a year ago, the number of homes sold or pending backed off the highs seen last summer. The number of houses sold between the two counties stood at 1,643 – a decline of 53% from the 2,522 sold a year prior.”
From Biz West on Colorado. “Looking at recent headlines, there are indications that many housing markets around the country are starting to see an uptick in housing supply. Nationally, inventory totals have been rising steadily since January, reaching 2.5 months of supply for single-family homes by the end of May. Realtors in our area are, in fact, witnessing that homes are spending slightly more time on the market, and the volume of available homes for sale is making small gains. But the data for months of supply in Northern Colorado does not reflect any uniformity that could cause us to see a trend in the making. Local markets that have experienced a slight month-over-month uptick in months of supply are Estes Park, Johnstown, Loveland, Mead, and Wellington.”
“Competitiveness among buyers in our local markets has eased in some communities, but the necessity to pay over list price is still a very common occurrence here, with all local markets showing sale price-to-list price averages above 100%. Local Realtors have also witnessed a reduction in the ‘feeding frenzy’ environment, where sellers are receiving multiple offers — but they still exist. Markets such Berthoud, Estes Park, Fort Collins, Greeley/Evans, and Johnstown have all seen increases to the average sale price-to-list price ratio. While Longmont, Loveland, Mead, Milliken, Severance, Timnath, Wellington, and Windsor all show some reductions in the ratio, and hopefully some relief for frustrated buyers.”
The Dallas Morning News in Texas. “North Texas home sales fell for the second month in a row in July, giving pause to the run-up in property buying that began more than a year ago. Last month, sales in the area fell by 17% year-over-year. July’s decline followed a 3% dip in June. The recent decreases in single-family home purchases all but erased gains in the first five months of 2021. Year-to-date sales by real estate agents are just 2% ahead of last year’s record pace, according to data from the Texas Real Estate Research Center and the North Texas Real Estate Information Systems.”
“‘The rise in inventories and listings are at the higher price ranges, if we would have more home for sales the sales numbers would be higher especially at the lower price ranges,’ said Dr. Luis Torres, an economist with the Texas Real Estate Research Center. ‘I do also believe some households are being priced out given record price increases. If you add the possibility of interest rates rising in the coming months, I would say probably that demand has reached a peak.’”
From Fox Baltimore. “A realtor in Central Maryland says he is seeing a resurgence in a real estate practice that has been uncommon since the housing crisis of 2007 and 2008. Robert McArtor, CEO of Maryland Homes Team, Inc. of RE/MAX Components, says he is noticing an uptick in short sales on homes in the region. ‘Basically asking their lender to accept the net proceeds of their property short of their outstanding mortgage,’ said McArtor, describing the process of a short sale.”
“‘I just spoke with an appraiser just a few days ago — they had 13 orders just for doing appraisals for short sales,’ said McArtor. McArtor also says some of the upticks in potential short sales come from landlords and property owners who may be unable to keep up with bills and payments as some pandemic eviction moratoriums continue.”
From KJZZ. “The Arizona Multihousing Association, which represents apartment complex owners and private home owners with only a few tenants, said it has members who are owed tens of thousands of dollars in rent. CEO Courtney Gilstrap LeVinus said losing the income for 16 months has left some property owners facing foreclosure and others forced to sell.”
The Los Angeles Times in California. “One of the region’s most prolific apartment builders has sued the city of Los Angeles over its COVID-19 eviction moratorium, saying his companies have experienced ‘astronomical’ financial losses and are legally entitled to compensation from the city. GHP Management Corp., owned by real estate developer Geoffrey Palmer, said in its lawsuit that12 buildings it manages have experienced more than $20 million in lost rental income as a result of the measure. GHP, which filed the lawsuit along with several other Palmer companies, expects that number to triple by the time the moratorium’s provisions have expired.”
“Palmer’s companies said they are entitled to more than $100 million. GHP has filed a second lawsuit over anti-eviction measures enacted by Los Angeles County and the state of California. That case seeks another $50 million and deals with apartment buildings in Santa Clarita.”
The State Journal Register in Illinois. “In the maelstrom of economic chaos roiled by the COVID-19 virus, small-time landlords are struggling to stay afloat. ‘We are the only business out there that has to provide its service but doesn’t have to be paid,’ said Anthony Nudo, a Springfield landlord. While in theory landlords could eventually sue these tenants for back rent, it’s an unlikely scenario in the real world, Nudo said. ‘What I have found during my years as a landlord is that once someone is more than a month behind in their rent, you are never going to see that money.’”
From Zillow. “In August – October 2021, months of housing supply is likely to increase by 15% relative to June 2021 levels because of forbearance exits. Additional supply from distressed borrowers could represent between 5% and 26% of sales volume over that period. Approximately 850,000 borrowers will exit forbearance in August – October 2021, and because of strong price appreciation and very few loans with negative equity, open market sales are a realistic option for the majority of distressed borrowers. Over the past year, 25% of borrowers exited forbearance without a plan for returning their mortgage to good standing.”
“Low-income borrowers — who often, but not always, use federally backed programs including low down payment loans backed by the Federal Housing Administration (FHA) to help them secure a home — may be particularly vulnerable, with less savings and monthly cash flow to work their way out of forbearance. Atlanta (42,000), Houston (40,000), Chicago (28,000), and Dallas (22,000) have the highest number of borrowers behind on their FHA loans, according to an analysis of FHA data by the American Enterprise Institute. Other areas with high levels of delinquent borrowers include Washington, D.C.; Baltimore; Riverside, Calif.; San Antonio; Fort Worth, Texas; and Philadelphia.”
“The table below details three forbearance exit scenarios: In the first status quo scenario, 25% of homes that exit forbearance are sold, which is consistent with borrower actions throughout the pandemic. In a second positive outlook scenario, only 10% of forbearance exits lead to homes sold on the open market. In a third, more-distressed scenario, 50% of forbearance exits lead to homes sold on the market, a significant deterioration from current conditions.”
The Real Deal on New York. “The hits keep on coming for HFZ Capital. The troubled developer was at the losing end of a recent court decision involving a lender on the XI, HFZ’s luxury condo project by the High Line. A state Supreme Court judge ruled that HFZ owed $136 million to the U.K.-based Children’s Investment Fund, which provided a nearly $1.3 billion loan in 2017 for the West Side development, according to Crain’s. The lender claimed HFZ stopped making monthly interest payments on the loan in April 2020.”
“The court delivered a summary judgment late last month, putting HFZ and its chairman, Ziel Feldman, on the hook for the $136 million, plus interest. Stu Loeser, a spokesperson for HFZ, said the company would appeal. He declined to comment further to The Real Deal. HFZ purchased the project site for $870 million in 2015 and had Bjarke Ingels design dancing towers that included 275 apartments, a 137-key luxury hotel and a spa/wellness center.”
“Sales have been slow, however, and the developer has been beset with financial problems that have further hampered the project as well as others for the company. HFZ has lost four Manhattan condo projects and a 34-story Midtown office tower to foreclosure.”