Cost of Global House

A report from Market Watch. “The S&P CoreLogic Case-Shiller 20-city index was unchanged in April compared to March on a seasonally adjusted basis, and was 2.5% higher compared to a year ago. That was the 13th straight month in which annual growth slowed, and the lowest pace of annual price gains since August 2012.”

“A slower pace of price gains should help attract buyers, particularly those who have been frustrated by a competitive and pricey housing market. But at a certain point, would-be buyers will shy away from pulling the trigger at the “top” of the market, if they believe prices are likely to start falling.”

“‘A combined slump in house prices and housing investment in the major economies could cut world growth to a 10-year low of 2.2% by 2020 – and to below 2% if it also triggered a tightening in global credit conditions,’ said economists at Oxford Economics in a Monday note. ‘Signs of a global house price downturn are already visible, with around a third of our sample of economies seeing falling prices and world residential investment starting to decline.’”

The South Florida Sun Sentinel. “Fed up with the high taxes and regulation back home in New York, retired officer Thomas Maloney and his wife, real estate agent Theresa Hart, are looking to offload a home in Long Island — quickly. ‘It’s been a thorn in my side for the past seven years,’ Maloney said. Between regulations that favor tenants and rising city and state taxes, they say they’re ‘just not comfortable’ being landlords in New York.”

“Theresa Hart, who works for Florida Premier Realty, said she thinks Palm Beach County ‘is the next hot spot for out-of-state investors.’”

The Tampa Bay Times in Florida. “It has been more than two years since Tampa Bay Buccaneers quarterback Vinny Testaverde put his $3.95 million Odessa mansion on the market. And yet he just cannot find a buyer. The house first hit the market in June 2017, listed at just below $5 million. After almost two years with no buyer, the Testaverdes decided to up their asking price to $6 million.”

“But only a month later, the couple put their house up for auction, with no success. So they’ve now re-listed the house and dropped the price by about $2 million to its current listing of $3.95 million.”

From Tap Into Summit on New Jersey. “Prominent Property Sotheby’s International Realty’s regional Summit office provides a inside look into the Summit real estate market, utilizing Garden State Multiple Listing Service statistics illustrating the numbers and trends that tell the story.”

“April (compared to April, 2018) Active Listings: 145 compared to 105 / +38.10%. Under Contract: 64 compared to 49 / -23.44%. Average List Price: $917,519 compared to $1,033,396 / -11.22%. Average Price Closed: $1,009,620 compared to $110,064 / -9.05%.
Takeaway: Significant buyers market with considerable inventory.”

From Crain’s Chicago Business in Illinois. “A decade ago, the home was listed for $25 million. After years of price cuts, a foreclosure and a 6 million-gallon flood, the investors who own it are cutting the price to $6 million, which their agent says is less than they have spent on it.”

“A decade after it first went on the market at $25 million, a Moorish mansion in Burr Ridge is getting a million-dollar price cut, to $6 million. That’s less than one-quarter the original asking price.”

“The palatial home on County Line Road is now owned by investors who bought it after a foreclosure and rehabbed the damage from a six-million-gallon flood inside. The investors, who are not identified in public records, paid $3.1 million for the property in 2012 after the original owner, Husam Aldairi, lost it in foreclosure. The investors’ total spending on the purchase, plus the extensive rehab after the flood (which happened during Aldairi’s ownership) and other improvements, ‘is more than they’re asking for it now’ at $6 million, said Lisa Petrik, of Jameson Sotheby’s International Realty.”

“When she listed it at $7 million in November, Petrik said the asking price was break-even for the investors. To come down a full million now, she said, ‘is disappointing.’ Prior to her, another agent had it listed at almost $11 million from January 2016 through August 2018.”

From Variety on California. “After an epic $50 million price cut, the legendary Los Angeles estate of late billionaire Jerry Perenchio, in the tony heart of Bel Air and known as Chartwell, is now listed at $195 million. Astronomically high as it may be, the drastically reduced new asking price pushes up on half of the preposterously optimistic $350 million the property was privately shopped at before it was officially set out for sale on the open market last fall (2018) with an apparently still too titanic $245 million price tag.”

“Even at the drastically reduced $195 million price, Chartwell is still the highest priced house available on the open market in Los Angeles, well ahead of both Villa Firenze, the extravagant, ‘Italian village’ style spread in the Beverly Park enclave that billionaire couple Steven and Christine Udvar-Házy have had up for sale for nearly two years with no takers at $165 million, and The Manor, Petra Ecclestone’s 56,000 square foot high-glam behemoth in Holmby Hills that’s now priced at $160 million price after it was first saddled with an unrealistic $200 million price tag.”

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