It’s Friday desk clearing time for this blogger. “Southern California’s cutthroat housing market has cooled in recent months. Price drops became more common. ‘We were expecting at some point this buyer frenzy is going to cool off. We are seeing that now,’ said Selma Hepp, an economist with CoreLogic.”
“The Central Texas housing market is catching its breath. ‘We are beginning to see a glimpse into what buyers and sellers can expect in our housing market moving forward,’ said Susan Horton, the Austin Board of Realtors president. ‘More new listings are hitting the market, a trend that we have seen continuously for the past eight months, and when coupled with fewer closings (sales) across the (region), prospective buyers have more options.’”
“The metro Detroit housing market remains hot for sellers and often frustrating for would-be buyers, but continues to come down from its spring and early summer highs. ‘Is it cooler so to speak than it was in the spring? Yes,’ said Jeanette Schneider, president of RE/MAX of Southeastern Michigan. ‘Back then we were seeing lines to get into homes, literally, and you would have potentially 20-plus offers on some listings. What we’re seeing nowadays, if there are multiple offers, it might be two, three or four.’”
“Buyers also have become more judicious about properties, and aren’t making as many ‘fear-of-missing-out’-type offers as they were. ‘I really do think that some folks just stepped back and said, ‘What are we doing?’ she said.”
“Debra Winger and her husband have listed their Upper West Side home at 300 W. 109th St., for $1.77 million — just a tad below the $1.85 million they paid for it, in 2015, when it was on the market for $1.75 million.”
“It’s unclear how many people in North Carolina face foreclosure on their homes now that the moratorium has been lifted. It’s been eight months since Congress authorized emergency funding to help people out with their mortgages and yet, the portal to apply hasn’t even opened. ‘I don’t have all that much money that’s gonna let me go another several months, while I’m waiting for the HAF program to start,’ said Chris Telesca, an event photographer. ‘I can’t tell you how stressful it is.’”
“Tanya Rocca, a real estate agent with Royal LePage Burloak Real Estate Services, is still seeing lots of buyers migrating out of Toronto to Burlington and Hamilton and beyond. The market in her area has calmed compared with the craziness of February and March, she says, adding that she welcomes the cooler temperature. ‘There are multiple offers but there are also times when there are not multiples.’”
“With many economists forecasting rate hikes in 2022 and a possible levelling off in house prices, lenders have become more conservative, says Leslie Battle, a real estate agent with Royal LePage Real Estate Ltd. ‘It’s very different to work with banks right now – they’re asking for blood.’”
“Another cladding victim, Will Martin, 33, described it as being ‘like a ball and chain wrapped around your legs.’ Mr Martin is a junior doctor who owns a flat in Sheffield with dangerous cladding. Mr Martin says he deeply regrets his decision ever to buy a flat. ‘I was so embarrassed and utterly ashamed that I, a sensible person, made this colossal mistake and error of judgement by buying this property. The last four years and the impact it has had on my mental health will stay with me forever. It has been torturous,’ he said.”
“A luxury Queenstown mansion once marketed as New Zealand’s ‘most expensive house’ has just sold for $17 million – half what its owners were seeking four years ago.”
“Home vendors are starting to offer discounts to secure a sale, new data shows, especially in Sydney and Melbourne where signs point to the super hot market beginning to cool. Domain chief of research and economics Nicola Powell said the number of price edits on online listings was pointing to the markets in most capital cities slowing down.”
“‘The number of price edits increases when the market slows down and that’s what we’re seeing now, even in Melbourne,’ Dr Powell said. ‘Because the discounting numbers are now tracking higher, we’re seeing steam come out of the market and vendors are having to adjust their price expectations. It’s an awakening for sellers that homes are not selling like they did in the first six months of the year.’”
“China Vanke, the country’s third-biggest home seller by sales, told its staff to ‘live frugally, spend small money and do big things’ at a meeting on Tuesday, according to an internal document seen by the Post. Likening the circumstances to a ‘war time’ mentality, the company asked employees to book cheap tickets and hotels when travelling and cut their spending on treats and gifts.”
“The Shenzhen-based company, which is in good shape and under less liquidity pressure compared with many of its peers, said staff cannot continue to think and work as if it is still the golden era of the real estate sector and urged them to raise their ‘crisis awareness.’ Vanke’s move to tighten the purse strings comes amid a real estate slump in China as cash-strapped developers frantically offload assets to stay afloat. ‘This downturn is unlike previous corrections as it has already contributed to a number of developer defaults,’ said S&P Global Ratings credit analyst Matthew Chow.”
“China’s Evergrande Group, with on the books liabilities in excess of US$300 billion is on the brink of collapse. Other companies, like Suzhou Gold Mantis Construction Decoration Co. have millions of dollars in unpaid invoices and are reportedly working with Evergrande to resolve the payment issues however stated in a recent regulatory filing that there was ‘significant uncertainty’ concerning how or even if, Evergrande would settle its debts. Some suppliers and contractors have said that they have stopped accepting work from Evergrande.”
“Compounding the problem is that home buyers, who have recently taken possession of ‘finished’ Evergrande homes, are reporting defects such as unfinished interiors and gas and water leaks, according to complaints posted on government websites and social media.”
“As the crisis unfolds, new home sales are plummeting as buyers wait and see how things progress and Chinese developers are seeing a huge spike in the selloff of their bonds. Many developers have either defaulted on obligations or asked investors to wait for repayment. The credit market has made it near impossible for them to sell any new bonds eliminating a key tool developers had to raise funds and to support cash flow.”