According to the U.S. Home Affordability Report from ATTOM Data, median selling prices for homes were more than most middle income families could afford. That means, that house prices are outpacing wage increases in America. Bloomberg's Alexandre Tanzi reports: The U.S. Home Affordability Report, released Wednesday by ATTOM Data Solutions, found that median selling prices were too high for average wage earners in three-fourths of the nation’s real estate markets during the second quarter of 2019. At the same time, affordability in four of five markets is starting to improve compared with … [Read more...]
Trade War Cooling Chinese Demand for American Housing?
For some time now Chinese demand for American real estate has accounted for a big part of the buying in some markets. Now, with a trade war escalating between China and the United States, it appears that some Chinese buyers may be pulling back. CNBC's Grace Shao reports: Chinese home buyers last year ponied up much less cash in the U.S. as the trade war continues to escalate between the world’s two largest economies. As President Donald Trump and President Xi Jinping prepare to meet this week, there are worries that decline in spending could extend further. U.S. property sales to … [Read more...]
The Rise of Robo-Real Estate?
Real estate firms Opendoor, Offerpad, and Zillow are developing services that purchase homes, improve them slightly, and then flip them to new buyers using apps to do most of the sales work. In my series Dead or Alive? The Future of Long-Term Investing, I questioned the benefits of using robo-advisors in place of real, warm-blooded, human beings. As I wrote then, what happens in a crisis; "We’ll see how well they do when markets crater and the phone lines light up like a Christmas tree. It’s happened twice already this century, and that’s when it matters most." The question is now, are … [Read more...]
Bargain Hunting Hedge Funders Take a Toll on Greenwich Mansion Market
In Greenwich, CT, the bedroom community of America's hedge fund giants, the real estate market it being depressed by a lack of demand for the luxury homes on the market there. Bloomberg reports: Homebuyers in the hedge fund haven of Greenwich are favoring smaller properties over the sprawling mansions the Connecticut town is known for. The average size of single-family homes that sold shrank for a third time, pulling the median price down 17 percent in the first quarter from a year earlier to $1.69 million, appraiser Miller Samuel Inc. and brokerage Douglas Elliman Real Estate said in a … [Read more...]
Can Marriott Beat AirBNB at its Own Game?
AirBNB has completely upended the way people around the world choose vacation accommodations. Now Marriott, the world's largest hotel company is fighting back by developing expanding its own home-sharing business to the U.S. Bloomberg reports: Marriott International Inc. is expanding its home-sharing business to the United States, becoming the latest hotel operator to challenge Airbnb at its own game and blurring the distinction between home sharing and the traditional hospitality companies. Marriott, the world’s largest hotel company, plans to expand the home-sharing pilot it launched in … [Read more...]
What’s Driving the Housing Market?
In February, sales of existing homes in the U.S. increased by 11.8%. Laura Kusisto of The Wall Street Journal explains that the market appears to be driven by the strong labor market and rising wages. She writes: Sales of previously owned homes posted their largest monthly gain since 2015 in February, a sign that lower mortgage rates and more attractive prices are helping to lure buyers back to the market just in time for the critical spring selling season. Existing home sales rose 11.8% in February from the prior month to a seasonally adjusted annual rate of 5.51 million, the National … [Read more...]
Are Canadian Banks in Trouble?
Steve Eisman of "The Big Short" fame believes Canadian banks are in trouble thanks to a sagging housing market and slow economy. The FT's Richard Henderson and Lindsay Fortado report: Steve Eisman, a portfolio manager at Neuberger Berman, is among a growing number of short-sellers taking positions in the likes of TD Bank and Royal Bank of Canada, in anticipation that the shares will fall. The moves come after property prices raced ahead of incomes for several years, boosted by loose lending, low interest rates and lax controls on foreign money. But new house prices in Canada slipped year on … [Read more...]
Trump Pick to Oversee Fannie Mae and Freddie Mac
Congratulations to Mark Calabria on his advance by the Senate Banking Committee yesterday to become the next director of the Federal Housing Finance Agency, which regulates Fannie Mae and Freddie Mac. I know Mr. Calabria from his work with the Cato Institute, and I like his free market principles. If confirmed this Spring, Mark will move to the FHFA directorship from his current role as chief economist and senior aide to Vice President Mike Pence. You can listen to the hearing, and read Calabria's prepared testimony below. [pdf-embedder … [Read more...]
The Richest Town in the U.S.A.
The richest town in America had an average income of $450,696 in 2017. It's tree-lined streets and acre sized lots offer the wealthy employees of Google, Facebook and Stanford University peace and privacy. The richest town in America is Atherton, CA. At Money, Shelly Hagan and Wei Lu report that Atherton, home to Eric Schmidt and Sheryl Sandberg, has placed as the nation's wealthiest town for the third year in a row. They write: “We value a semi-rural environment,” said Widmer, who moved to Atherton in 1996. “There are few sidewalks and many places don’t have streetlights.” Scarsdale, New … [Read more...]
In the Hamptons, Buyers Look for Bargain Homes under $3 Million
Oshrat Carmiel reports in Bloomberg that homebuyers in the Hamptons are looking for "bargain" homes of under $3.3 million. She writes: Buyers of Hamptons homes in the third quarter didn’t want to splurge on something too costly, but they were willing to bid up cheaper properties in their search for a vacation retreat. Purchasers agreed to pay more than the asking price in 10 percent of deals for properties under $3.3 million -- this quarter’s definition of “non-luxury” homes, making up the bottom 90 percent of the market, according to a report Thursday by appraiser Miller Samuel Inc. and … [Read more...]
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