An Uptick In Price Cuts As The Market Forces Ambitious Sellers To Accept Reality
A report from the Wall Street Journal on New York. “Kushner, the company once led by President Donald Trump’s son-in-law Jared Kushner, is dramatically lowering the price of the last remaining apartment at its Puck Penthouses condo project in New York. The company plans to relist the sprawling duplex that tops the building for $42.5 million, down from its original asking price of $66 million when it first listed in 2015.”
“Karen Zabarsky, a spokeswoman for Kushner, called the price cut ‘a response to the market,’ which has been soft in New York in recent months amid an oversupply of luxury product.”
From QNS on New York. “Compared to Manhattan and Brooklyn, which each saw an 18.4 percent increase and 21.9 percent increase, respectively, Queens saw the most significant jump in sales inventory with a 26.5 percent increase year-over-year.”
“‘With a strong economy and home-shopping season right around the corner, plenty of New Yorkers are well-positioned to buy this spring. However, many are willing to walk away from deals that just aren’t financially attractive and continue renting instead — creating a market poised to punish sellers who don’t price their homes sensibly,’ said StreetEasy Senior Economist Grant Long. ‘When the inevitable wave of new inventory hits the market this spring, interested buyers should expect to see an uptick in price cuts as the market forces ambitious sellers to accept reality.'”
The Daily Mail on Florida. “Liverpool owner John W Henry has slashed a whopping $10million (£7.6m) off of the asking price of his Florida mansion as he looks to sell the luxury seven bedroom property. The Anfield chief has now set an asking price of $15m, which Henry initially had put up for sale for a price of $25M.”
“The estate agent tasked with selling the property, Senada Adzem, said: ‘We looked at everything that’s currently pending, available and what the competition is. We decided that we want to be priced very competitively because there is a relatively high supply of trophy properties on the South Florida market now.’ The property, based in the Le Lac neighbourhood in Boca Raton and has seven bedrooms and 14.5 bathrooms across 27,832 square feet.”
From Florida Weekly. “The year is off to a good start for homebuyers. Visitors looking to purchase a home in the Naples area during January were pleasantly surprised with their options as inventory levels increased 7 percent to 8,154 homes for sale in January 2019 from 7,605 homes for sale in January 2018.”
“According to Cindy Carroll of Carroll & Carroll Appraisers & Consultants LLC, new home construction is tempering price increases in many areas of the resale market. ‘More builders are using the MLS and reaching out to brokers and Realtors with purchase incentives, which will make it necessary for homeowners to price their homes more competitively.'”
“‘Fee heavy condominiums are hurting,’ said Adam Vellano of BEX Realty – Florida. Even though inventory rose 6 percent in the under $300,000 condominium market in January, closed sales for this product in January dropped 25 percent.”
“The Naples area has seen its resale market inventory climb over the last few months. As such, there was 8.4 months of inventory in January 2019, typically indicating a buyer’s market, up from 6.3 months of inventory in January 2018.”
The Tampa Bay Times in Florida. “Apartment dwellers in downtown Tampa and Hyde Park pay the highest average rents of any in the Tampa Bay area, a new report shows. That might not be true much longer. Rents in downtown Tampa have dropped 4 percent in the last three months.”
“‘All of a sudden you’re looking at an oversupply of units,’ said Bruce McClenny, president of ApartmentData. ‘It will definitely be a desirable place to live, it’s just the timing of all these units coming on got a little ahead of the demand. The nice part about it for renters is there are some deals to be had in very nice brand new units.'”
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‘More builders are using the MLS and reaching out to brokers and Realtors with purchase incentives, which will make it necessary for homeowners to price their homes more competitively’
When new builds are pressuring existing shacks, the market is toast. But that’s been the case in Naples for a while.
‘Henry has slashed a whopping $10million (£7.6m) off of the asking price…has now set an asking price of $15m, which Henry initially had put up for sale for a price of $25M’
14 bathrooms?
white el·e·phant
/ˌ(h)wīd ˈeləfənt/
noun
noun: white elephant; plural noun: white elephants
-a possession that is useless or troublesome, especially one that is expensive to maintain or difficult to dispose of.
“a huge white elephant of a house that needed ten thousand spent on it”
It’s called a trophy property Ben. Imagine the cost to keep this thing cool in the summer
Whether you are there or not!
I’m pretty sure someone who buys a $25M house doesn’t sweat A/C bills. And besides as soon as AOC becomes president, A/C will be banned and they won’t have to worry anymore.
‘someone who buys a $25M house doesn’t sweat A/C bills’
This is the old ‘rich people don’t mind losing money’ thing. In fact, they are the first to bail on an underwater shack and slash prices to get the heck out.
No. This is the argument that is one can afford $25M for a vacation home, one doesn’t worry about electric bills. Whether old or young.
It’s the same argument I sometimes see about high end cars that need premium gas. OMG OMG that car only gets 18 MPG and it needs premium too!!!! Who would buy it? Well, it costs $125K so there’s your answer. Someone who drops $125K on a car, doesn’t care about gas costs.
Ahh…the Johnny Depp or Nickolas Cage mentality. It worked well for them .
They may not care but the potential buyers will.
Zuckerpig doing what he does best, lie – in this case in order to buy land on the cheap
https://www.thegardenisland.com/2019/03/21/hawaii-news/new-allegations-in-kuleana-dispute/
Land is cheap because there is a globe full of dirt.
Never pay more than $500-1,000 an acre.
Cuckerberg is one of the biggest hypocrites this world has ever seen. He’s selling personal information for profit while building walls for privacy at his gated fortress. If you use Fakebook, YOU ARE THE PROBLEM.
But how else can you brag about the awesome meal you cooked, about how proud you are of your amazing children, how incredible your spouse is and just how much you love him/her, and in general, just how BLESSED you are? Isn’t this required behavior in modern society? Aren’t you now obligated to hit the “like” button all day long to keep up with your hundreds (thousands) of “friends”? Aren’t you considered anti-social if you don’t participate in this daily madness?
Oh wait, how else can you possibly go on vacation, that exotic trip where you get to “get away from it all”? Aren’t you now required to post photos each and every day while you are in Timbuktu so your eager and willing sycophants back home can “like” “love” or “wow” what you are doing? How else can you get your ego massaged? Aren’t you now required to announce when you’ve landed at the airport, when you’ve checked into your lodging and then immediately post a video of your amazing AirBnB and the view you have? How else will everyone know how “blessed” you are?
Oh, and if you DO buy a house, don’t you have to post photos of it so everyone can congratulate you and hit “like”, “love” or “wow”? And then don’t you have to post daily photos of your gut rehab so everyone can see the progress, how hard you are working, and then the reward, you get to brag via new posted photos of your amazingly rehabbed new HOME?
“…Aren’t you considered anti-social if you don’t participate in this daily madness?…”
Welcome to our instant gratification society.
People spending money that they don’t have on things they don’t need to impress people they don’t know.
When you get right down to it, Madison Ave has done a genius job of convincing Joe Average that you will be a nobody, will never have any friends, will never enjoy life, and will never get laid unless you buy all the latest junk.
Never mind 15 minutes of fame. No thank you, Andy Warhol!
Now Joe Average gets hours of daily fame via his Facebook feed! His ever growing legion of fans possessed by the lure of internet fame! A nation, actually – a world – of willing and eager “like” button addicts who will obligingly stroke Joe Average’s ego all day long. Life is good! Joe says: I’ll “like” your photo, thought, opinion if you “like” mine and heck, everybody’s happy!
(I’m not usually this cynical….Oh, well…..OK, maybe when it comes to social media….and oh…a few other things.)
So basically a modern, techno-version of, “If a tree falls in the woods and no one is there to hear it, did it make any noise?”
California is in the midst of an affordable housing crisis. Yet, despite the state’s dire situation, it would take some California jurisdictions more than 1,000 years before they meet their state-mandated housing goals, according to a report by the nonprofit think tank Next 10 and Beacon Economics.
https://www.bisnow.com/index.php/los-angeles/news/affordable-housing/report-shows-it-will-take-1000-years-for-some-california-cities-to-meet-its-affordable-housing-goals-97788
But, we’re all gonna be dead in 12 years?
not dead, just sweaty and moving to higher ground.
Many will be dead from air pollution in the world’s filthiest cities.
12 years from now will be like now only later.
Same sweat, same ground level.
And likely either houses or dollars will be worth a lot less.
“‘…All of a sudden you’re looking at an oversupply of units,’ said Bruce McClenny, president of ApartmentData….”
“All of a sudden”? – As in the last 3 years?
So Bruce, we went from “shortage” to “oversupply” “all of a sudden”?
“it’s just the timing of all these units coming on got a little ahead of the demand”
CRATER
“Kushner, the company once led by President Donald Trump’s son-in-law Jared Kushner”
So Kush is no longer leading the company, but let’s tie this to Trump anyway. Amirite WSJ?
Funny, I don’t see WSJ writing articles on Obama’s real estate transactions. Or Bernie’s. Or Beto’s. Or Kamala’s. Or Nancy’s. Or Chuck’s. Or Jeff Flake’s. Weird huh?
NeverTrumpers gotta NeverTrump.
None.Dare.Call.it.a Con$piracy! … dtRumpsis Tantrumois Chaotica only hire$ the bestest to clean.up.the.$wamp!
Paul Manafort charged with committing residential mortgage fraud — which is more common than you’d think
MarketWatch |Published: Mar 21, 2019
Mortgage-fraud ri$k has ri$en $ub$tantially in recent years as refinance activity has dried up for lender$
“I would classify it as a very plain, vanilla fraud scheme,” said Ann Fulmer, principal at Paladin Advisory Services, a consulting firm that specializes in investigating loan-quality issues for mortgage lenders. A spokesman for Manafort did not immediately return a request for comment.
What is mortgage fraud?
The Federal Bureau of Investigation defines mortgage fraud as “some type of material misstatement, misrepresentation, or omission in relation to a mortgage loan, which is then relied upon by a lender.” It can be perpetrated by prospective borrowers and housing industry workers alike.
Common forms of mortgage fraud include:
Lying about income or employment
Misstating the size or source of a down payment
Buying a property intended to be used as a rental, but claiming it will be owner-occupied
Not disclosing existing debt
Artificially inflating the property’s value, especially through illegal property flipping
Having someone with good credit act as a “straw buyer”
“Fraud happens a lot of times because somebody’s desperate,” Fulmer said. “Whether it’s a loan officer who wants to close loans on the table, an appraiser who wants to get business or a homeowner who is stuck in a loan they can’t pay and short sales.”
In many cases, people will commit mortgage fraud to secure housing. But in some cases, like the latest allegations against Manafort, they may engage in unlawful activity to earn a profit.
yep Kushner is not involved in Kushner like trump is not involved in trump. Hillary has a bridge she wants to sell you. How can you be unimpressed by a guy who inherits $100’s of million and still files BK 6x? Smart people know trump is not a billionaire and everyone else will know soon enough.
Trump has an LLC for every deal. If a deal goes bad because you have bad subcontractors or partners, you let the LLC go BK so it doesnt wipe you completely out, just the money in the LLC is lost and hopefully its a small amount.
Friends Dad had a pet store, leased the space from a bunch of idiots who owned the mall. They kept raising the rent. He asked if he could modify the space to expand what he carried so he could sell more and afford the rising rents. They said no. He came back with another proposal, they never responded. He bailed on the lease, let the LLC go BK and lost a grand or two. Was that his fault? IMO no. He moved his pet store to another location where the rent was a fraction of what he was paying. Enjoy your derangement!
Trump has a reputation. He has it for a reason, mooching is not good biz. Take some time to read, you will see the light. Trump even mooched on the pianos he bought, burning a small biz man.
Still butt-hurt, after all these years….
Yep the butthurt is indeed strong – think I saw him/her/zhe on that Seattle is dying video soiling itself! OMG, he burned a guy selling pianos! Probably Mr. Disgruntled piano salesman is just a (((leftist))) and made it all up. He related to Jussie or that Native American Drummer who looks like he’s riddled with parasites?
Well, he’s turned the other cheek, but this fella is gonna have a “lifetime” of butthurt issues.
‘MAGA bomber’ Cesar Sayoc breaks down as he pleads guilty, faces life in prison
By Andrew Denney and Bruce Golding |March 21, 2019
The Florida man who mailed homemade bombs to leading Democrats and other critics of President Trump broke down in court on Thursday while pleading guilty to charges that may send him to prison for life.
Sayoc also listed his targets as financier George Soros, Hillary Clinton, former CIA Director Jonn Brennan, actor Robert DeNiro, former Director of National Intelligence James Clapper, ex-President Barack Obama, Rep. Maxine Waters (D-Calif.), former Attorney General Eric Holder, Sen. Cory Booker (D-New Jersey), Sen. Kamala Harris (D-California), hedge-fund billionaire Tom Steyer and CNN.
“I also put pictures of the recipients with a red Xs over their faces inside the package,” the muscle-bound former stripper added.
Near the end of his statement, Sayoc’s voice choked up with emotion as his body shook and he scrunched up his face, apparently holding back tears.
“I am extremely sorry,” he said in a voice barely above a whisper.
He then pleaded guilty to 65 counts of use of a weapon of mass destruction, interstate transportation of an explosive device, conveying a threat through interstate commerce, illegal mailing of an explosive device and carrying an explosive during the commission of a felony.
“They kept rai$ing the rent”
How does that $quare with:
“lea$ed the $pace from a bunch of idiot$ who owned the mall.” ?
$ounds like someone was weak on the length of lea$e term$ …
They should go have a black & tan beer bash & ponder this lea$e:
“9,000 year brewery lea$e. … Arthur Guinne$$ started brewing ales initially in Leixlip, then at the St. James’s Gate Brewery, Dublin, Ireland from 1759. He signed (up to) a 9,000 year lease at £45 per annum for the unused brewery.”
And as usual you troll away into strawmen arguments about Hillary and inheriting money.
Let’s try again…..where are the WSJ articles on real estate deals by prominent Democrats? Where is the WSJ article about Nancy’s husband who owns several properties? How about Diane Feinstein’s husband who has made a fortune through govt contracting? How about Harry Reid who went to DC as a small town lawyer and retired a multi millionaire?
Wait, what? WSJ is known to have a right-leaning bias, just as NYT is known to have a left-leaning bias.
Try this article on Harry Reid:
https://www.wsj.com/articles/harry-reids-campaign-gift-to-himself-1453247943
Mortgage rates are reportedly already dropping a little, thanks to the Fed. So I’m sure housing sales will resume their blazing upward trajectory!
“So I’m sure hou$ing sale$ will re$ume their blazing upward trajectory!”
As well, as $tawk$, bitcon$, preciou$ Art painting$, beanie.babie$ & “AlGore invented the internet!” hardcover book$!
Yeah, thank you Fed! Way to kick the can Jerome.
A record-breaking kick at that. I locked in a 6 mos CD at 3% last week, then what…? moarstawks?
Tustin, CA Housing Prices Crater 12% YOY As Land Prices Collapse
https://www.movoto.com/tustin-ca/market-trends/
The solution for this country’s homeless epidemic is not just, “get a job.” Most of them are nuts and a huge liability to hire for even the most simple task. This is why we hire illegals, they work hard and won’t sue. Not sure what to do with the addicts and crazies on the streets, but it is getting worse each year. Id like to see the churches take some of that extra money from not paying taxes and help out.
The 15-year adjustable-rate mortgage averaged 3.71%, down from 3.76%.
This is from a MW article about interest rates sliding and shaping up for a strong spring market. Can anyone tell me who out there is saying “I wasn’t going to buy, but that 0.05 percent decrease sealed the deal for me”!
Real estate agents would be quick to point out how much more house your monthly payment can now afford with rates decreased by 0.05%.
Word play…….A craptacular apartment building grows in Rego Park
http://queenscrap.blogspot.com/2019/03/a-craptacular-apartment-building-grows.html