Every Day Multiple Price-Reduction Announcements Pour In
A report from GlobeSt on Florida. "A Franklin Street broker who recently completed the sale of a 'workforce' housing complex here explains the several factors behind continuing investor demand. 'This includes a fear of oversupply in the Class A+ new constructions, a lack of construction in apartments and single family for the workforce segment, and a lower perceived downside risk,' Darron Kattan, managing director of multifamily investment sales at Franklin Street’s Tampa office, tells GlobeSt.com."
"He observes that there is already a trickle down if Class A stumbles that is already starting but there would have to be a significant shift in that space to have a real dent in the workforce segment of the market."
From King 5 News in Washington. "What would it take for you to sign a lease right now? A good price? A $1,000 Amazon gift card? Kim Reidy is Director of Relocation at the Seattle Rental Group. She has a good pulse on the region's rental market and says now is a good time to sign a lease."
"According to Zillow, rents in Seattle are down 4 percent compared to this time last year. 'Having the vacancies that we've had this time of year, I certainly think this is a great time for people to get out and rent,' said Reidy."
"What is extraordinary is the amount of incentives that new buildings are offering to fill vacancies. 'They're usually attached to large big buildings that are just opening, they're sitting there with 300 openings, they're not going to fill them all in one month so they can incentivize,' said Reidy."
The New York Times. "More than 20,000 new apartments in New York, both for sale and for rent, will open their doors this year — and likely just a fraction will find residents by year end."
"The affordable ones, of course, will attract thousands of applicants, but the bulk of the new units — in gleaming towers, many of them conceived at the height of the last housing boom — will enter a saturated market, where buyers and renters have ample choice and little incentive to rush."
"At the current rate of sales, it will take more than six years to sell all of the new development in Manhattan alone, which totals almost 8,000 units, said Jonathan J. Miller, the president of Miller Samuel Real Estate Appraisers and Consultants."
"'I still haven’t seen it,' said Ann Cutbill Lenane, an agent with Douglas Elliman, of the two-bedroom she bought for herself after closing on a similar unit for a client. Ms. Lenane, who went into contract about 18 months ago, said she was impressed by the amenities. 'Did I buy it a little high? Maybe,' she said."
From Crain's New York. "The city's real estate market has become a prime example of a national housing market that may be in the throes of a downturn. Home prices in Manhattan slid more than 3% in November versus the year before, according to StreetEasy data, with 18% more homes on the market that month than during the same period in 2017."
"Frederick Peters, Warburg CEO, emphasized that properties most likely will linger on the market if sellers cannot adapt to the shift in dynamics. 'Every day in our office, multiple price-reduction announcements pour in via email; sometimes it takes two or even three such reductions before a property enters the salability zone,' Peters said."
The Los Angeles Times in California. "The first step into a posh new apartment building near Marina del Rey feels like a mistake. There’s no lobby — instead the door opens to a lounge and kitchen. The idea is to encourage mingling, which is part of the appeal of a building where tenants have their own bedrooms but share common areas with people they don’t know."
"Welcome to 'co-living' in a time of sky-high rents. And while stretching out on a sofa with a stranger may strike many as unusual, it is not much of a leap to people already comfortable with Uber and Airbnb, said Ken Kahan, founder of the Los Angeles-based development company."
"'People get in other people’s cars and sleep in other people’s bed’s,' he said. 'This is a natural expansion of the housing market in the shared economy.'"
"Individual tenants at C1 pay at least $2,000 a month in the nearly $40-million building, which just opened. C1 even offers Netflix and maid services to head off squabbles over whose turn it is to vacuum the floor and scrub the sink."
"A portfolio of buildings in an established property class can get funded by banks, purchased by pension funds and even securitized in real estate investment trusts."