It’s Friday desk clearing time for this blogger. “Here are some of my observations from Mortgage Bankers Association convention I attended in Austin last month. One exhibit hall lender offered primary residence mortgages void of any income information or any income documentation so long as you put 35% down and have a minimum 680 middle FICO score or higher. We are talking loan amounts to $2.5 million to boot. And, your rich uncle can gift you 100% of the down payment if you can’t cough up the dough on your own.”
“‘Prices ‘are taking a timeout,’ said Elliot Eisenberg, an economist who does consulting for MLSListings, the multiple listing service for several counties, including San Mateo and Santa Clara. ‘There isn’t that much money around anymore.’ Chinese buyers have retreated from the market since the government made it much harder to get money out of the country.”
“The median Bay Area single-family home price was $910,000 in the most recent quarter, down 7.1% from the previous quarter and down 4.2% from a year ago.”
“The Bay Area residential market has seen year-over-year sale prices drop in several months this year. That follows a record run of rising home prices that began in April 2012 and ended in March. Matt Rubenstein, a Compass agent in Walnut Creek, has noticed some nervousness among buyers — the market has stayed strong for nearly eight years, and some are concerned about an inevitable drop.”
“Home prices in King County peaked this year in May, at $700,00, down from the all-time peak of $726,275 in May 2018. Year-over-year, condominium prices in King County were down 3.75% overall, to $385,000, and nearly 7% in Seattle, to $460,000.”
“A ‘reel’ estate investment is now on the market for $7.51 million following a price drop and broker swap. The parlor floor of the townhouse at 108 Eighth Ave. in Park Slope was used for scenes in HBO’s ‘Boardwalk Empire’ and in the Martin Scorcese film ‘The Age of Innocence.’ It was priced at $8.8 million in 2018.”
“The unit was first listed in May at $2.788-million, but after extensive marketing no offer came in. The seller reduced the price 72 days later to $2.688-million. Six weeks later, they accepted an offer of $2.45-million, the amount the seller had paid in 2017. The buyer is a Vancouverite who intends to reside in the apartment. ‘It is a sign that prices have reversed in the last two years on many high-end condos,’ listing agent Paul Albrighton says. ‘The number of transactions in downtown over $2-million are very low.’”
“Buyers are paying less than a year ago in 26 London boroughs, according to Land Registry data. Colliers Wood resident Emily Howarth, 25, said: ‘Even though prices have fallen, they’re still unaffordable for the majority of first-time buyers as what you get for your money compared to further out of London isn’t comparable.’”
“A rising supply of new housing units on the market combined with a slight rise in interest rates and stricter capital requirements seem to be having an effect. The housing association OBOS that ranks among Norway’s largest residential developers reported a decline in prices in Oslo in October, down 2.8 percent from the month before. Prices were down 3.7 percent from September on a nationwide basis, and OBOS chief economist Sissel Monsvold called the declines ‘suprisingly large. ‘One reason can be that there’s a lot of housing on offer and buyers have a lot to choose from,’ Monsvold stated.”
“New fluctuations in rent costs and apartment prices across Switzerland have shown that renting may be where the smart money is – at least in the short term. The authors of the report said that while apartment prices were likely to remain stable, an oversupply of rental properties was likely to further reduce rental costs. ‘We expect stagnant or falling rents in the coming months. [Tenants] are spoiled for choice and they have increasing bargaining power relative to donors,’ the statement read.”
“The desert gave Dubai an easy excuse to keep building. But five years into Dubai’s property funk, the emirate’s leadership is drawing the line. Unsettled by chronic oversupply, property prices are down around 30% in the last five years. ‘If this oversupply continues it will be a disaster,’ Hussain Sajwani, chairman of Damac Properties PJSC, said. ‘The banking system will get affected and that’s something we can’t afford.’”
“REA Group chief executive Owen Wilson has blamed the banking regulator and state governments for intervening in the property boom and causing the most difficult market for real estate sales in decades. ‘It’s about as bad as it can get … It’s the worst market we’ve ever seen,’ Mr Wilson said. ‘APRA [the Australian Prudential Regulation Authority] looked at the housing market and decided it was getting too hot. They brought in lending restrictions on interest only loans, investor loans, foreign borrowers,’ Mr Wilson said, adding that state governments had also slugged foreign borrowers with higher stamp duties.”
“It was a lofty government rebuild plan to help repopulate central Christchurch with a range of homes across six city blocks for 2200 residents. Once built it was assumed the homes would easily fill. Just one-fifth are either sold or under contract to buyers. ‘I think we’ve built too many homes in Christchurch, and we are continuing to build them. The Fletcher-Ōtākaro project to build 900 units is over-reaching. I don’t think the demand is there for that number,’ said Mike Blackburn, a management consultant specialising in construction in Christchurch. ‘It’s not good to see all those Fletcher homes unsold – it’s not good for the market and property values.’”
“Blackburn says the Government had a ‘if you build it, they will come’ attitude. ‘It seems clear that nobody has looked at the demand side of the equation. I don’t see a strategic view.’”
“The growth rate in Shenzhen, China’s hi-tech hub, slid to its lowest level in 40 years during the first nine months of the year. ‘We industry insiders have been saying that business has been difficult, but we are still very surprised by Shenzhen’s GDP data,’ said Cindy Huang, a veteran saleswoman of high-end serviced offices in Shenzhen’s central business district. ‘It seems to be ironclad proof telling us the economy is really bad.’”