While most home prices have doubled in the last 25 years, property owners in some cities have struggled to gain value — especially in Illinois.
Out of the 400 U.S. metropolitan areas ranked by home-price growth since 1998, six Illinois cities are in the bottom 15, according to a recent SmartAsset study.
On average, home values in the U.S. grew by 154% from the first quarter of 1998 through the fourth quarter of 2022, according to the study. However, the 15 bottom-ranked cities averaged only 66% price growth over that quarter century.
Montgomery, Alabama, is the worst city for growth, with prices rising just 59.6% since 1998. The city has a declining population with nearly a quarter of its residents living in poverty, according to U.S. Census data.
In contrast, the city with the largest home-price growth was the booming tech hub of Austin, Texas, where home values have soared 354% in that time span.
Cities across California ranked high as well. The state has the largest shortage of homes in the country, which has pushed prices up, especially in large cities like Los Angeles and San Francisco. Home prices there have grown 324.8% and 283.8%, respectively.
Values in Florida also have grown steadily over the years, with Miami and Naples both posting price growth just over 290% since 1998.
“If you have these features in your home already, you should definitely flaunt them in your listing description,” said Amanda Pendleton, Zillow’s home trends expert. “That is going to set you ahead of the competition.”
The real estate website evaluated 271 design terms and features included in almost 2 million home sales in 2022. Those that came out on top may add up to about $17,400 on a typical U.S. home.
Two chef-friendly features topped the list of those that helped sell homes for more — steam ovens, which helped push prices up 5.3% over similar homes without them, and pizza ovens, which increased prices by 3.7%.
Other features that rounded out the top 10 included professional appliances, which had price premiums of 3.6%; terrazzo, 2.6%; “she sheds,” 2.5%; soapstone, 2.5%; quartz, 2.4%; a modern farmhouse, 2.4%; hurricane or storm shutters, 2.3%; and mid-century design, 2.3%,
Zillow also looked at which features helped sell homes faster than expected.
Doorbell cameras topped that list, helping to sell homes 5.1 days faster. That was followed by soapstone, with a 3.8 day advantage; open shelving, 3.5; heat pumps, 3; fenced yards , 2.9; mid-century, 2.8; hardwood, 2.4; walkability, 2.4; shiplap walling or siding, 2.3; and gas furnaces, 2.3.
To be sure, homeowners should not necessarily add these features with the idea they will see sale premiums, Pendleton said.
Moreover, some more unique features — like she sheds, spaces dedicated specifically to female home dwellers and their hobbies — may make it so it takes a bit longer to find a buyer who appreciates the amenities.
However, the features are signals of perceived qualify a buyer associates with a nice home right now.
“These personalized features kind of add that wow factor to a home,” Pendleton said.
The current housing market is “anything but traditional,” Pendleton notes.
For buyers, there’s not as many listings to choose from as homeowners do not want to give up their ultra-low interest rates, she noted.
“Homes that are well priced and well marketed are going to find a buyer very quickly today,” Pendleton said.
Existing homeowners are now more likely to be thinking of different ways to re-envision their space, according to Jessica Lautz, deputy chief economist at the National Association of Realtors.
Personalized features kind of add that wow factor to a home.
Amanda Pendleton
home trends expert at Zillow
“There are a lot of people who want to remodel because they are locked into low interest rates and have no intention of leaving their property,” Lautz said.
At the top of homeowners’ wish lists are ways to maximize the square footage of their home, Lautz said, such as basement remodels or attic or closet conversions. Adding home offices is also very popular as people continue to live hybrid lifestyles.
Some improvements also stand to provide a 100% or more return when a home is put on the market.
The top of that list includes hardwood floor refinishing, according to Lautz, which not only makes a home look more beautiful but also makes it more marketable.
“It brings a lot of joy, and it has a lot of bang for the buck when you go to sell your home,” Lautz said.
Putting in new wood flooring or upgrading the home’s insulation also tend to provide returns of 100% or more, she said.
Zillow’s research found certain features may actually hurt a home’s resale value. That includes tile countertops or laminate flooring or countertops. Walk-in closets may also negatively impact a home’s value, as buyers may prefer to use the space for other purposes.
This is where the finest architecture meets the finest setting. Perched on a sunny, private ridgeline with panoramic views, this newly-built custom retreat was designed with mountain living top of mind.
Built with native materials on approximately two acres, the home includes approximately 2,300 square feet of outdoor space for entertainment and relaxation.
Located three miles from downtown Breckenridge, the home is sited to take advantage of world-class skiing and National Forest access.
Bill Rudin, Rudin Management Co. co-chairman and CEO, joins ‘Squawk Box’ to discuss Rudin’s concerns with the regional bank sector, the state of commercial real estate and how to balance the need for revenue and desire to attract wealthy people.
April is National Financial Literacy Month. To mark the occasion, MarketWatch will publish a series of “Financial Fitness” articles to help readers improve their fiscal health, and offer advice on how to save, invest and spend their money wisely. Read more here.
Do you know the difference between a stock and a bond, or a mutual fund and an exchange-traded fund? MarketWatch put together a meat and potatoes — although that’s always relative — quiz for our savvy readers. We’ve stuck to some familiar topics — taxes, stocks, interest rates, savings and inflation. There are 10 questions — with one bonus question thrown in for good measure.
You don’t know what you don’t know until you get an incorrect answer in a financial literacy quiz. Some of the questions are tricky, but we hope they are fun and that — most importantly — readers learn something new. Financial literacy helps us to plan for the future, gives us peace of mind and brings more understanding and less fear about the complex world of investing and retirement.
Our aim is to raise awareness of Financial Literacy Month. If you get 10/10, including the bonus question, buy yourself (and a friend) a popsicle. If you didn’t answer all the questions correctly, buy yourself a popsicle anyway. We, at MarketWatch, aim to democratize and demystify financial news, and make this sometimes intimidating subject as accessible as possible.
If you found it useful and/or entertaining, share it with a friend.
–Quentin Fottrell
Question 1: What is the difference between a tax deduction and a tax credit?
(a) A tax deduction reduces your income taxes directly. A tax credit reduces your taxable income.
(b) A tax deduction reduces your taxable income. A tax credit reduces your income taxes directly.
(c) Both reduce your income taxes directly.
Question 2: Which way do bond prices move when interest rates rise?
(a) Bond-market prices fall as interest rates rise. Bond prices rise when interest rates decline.
(b) Bond-market prices rise as interest rates rise. Bond prices fall when interest rates decline.
(c) Bond-market prices fall as interest rates rise, but bond prices also fall when interest rates decline.
Question 3: What has been the average annual total return, with dividends reinvested, for the S&P 500 over the past 30 years?
(a) 9.7%, according to FactSet.
(b) 3%, according to FactSet.
(c) 6.5%, according to FactSet.
Question 4: What is compound interest and how does it work?
(a) Compound interest reflects the linear gain that comes from all the reinvested interest of your savings and investments, which allows your initial investment/deposit to gain value regardless of the amount of interest you pay.
(b) Compound interest reflects the exponential gain that comes from all the reinvested interest of your savings and investments, which allows your initial investment/deposit and the additional interest to increase in value.
(c) Compound interest reflects the amount of interest you pay every month on a loan, and the total amount of interest you have paid over the lifetime of that loan.
Question 5: What is APR and how is it different from a regular interest rate?
(a) APR is the annual interest on a loan calculated on the initial loan, including additional costs and fees, but not on the accumulated interest incurred on the loan.
(b) APR is the annual interest on a loan calculated on the initial loan and the accumulated interest over the first year.
(c) APR is the annual interest on a loan calculated on the initial loan, including additional costs and fees, and the accumulated interest over the lifetime of the loan loan.
Question 6: What percentage of your income should you spend on rent?
(a) Most real-estate experts say you should spend no more than 20% of your income on housing costs, which is considered to be a tipping point for becoming “cost-burdened.”
(b) Most real-estate experts say you should spend no more than 50% of your income on housing costs, which is considered to be a tipping point for becoming “cost-burdened.”
(c) Most real-estate experts say you should spend no more than 30% of your income on housing costs, which is considered to be a tipping point for becoming “cost-burdened.”
Question 7: What’s an ETF?
(a) ETFs, or Exchange-Traded Funds, are baskets of investments — stocks, bonds, or commodities — that investors can buy throughout the trading day like stocks.
(b) ETFs, or Exchange-Traded Funds, are baskets of investments — stocks, bonds, or commodities — that investors can only buy at the end of the trading day.
(c) ETFs, or Exchange-Traded Funds, are baskets of investments — stocks, bonds, or commodities — that investors can only buy during or at the end of the trading day.
Question 8: What is the difference between a stock and a bond?
(a) A stock is a temporary investment in a company, while a bond is issued by a company to reward shareholders.
(b) A stock is a share in the ownership of a company, while a bond is issued by a company to finance a loan.
(c) A stock is a share in the ownership of a company, while a bond is issued by a company to finance the stock.
Question 9: If you were born in 1960 or later, at what age can you receive your full Social Security in the U.S.? Bonus question: At what age can you receive your maximum Social Security benefit?
(a) Full retirement age in the U.S. is 65 for those born in 1960 and after. While you can start collecting your Social Security retirement benefits as early as 62, your benefits are permanently reduced. Your Social Security benefits max out at age 70. By delaying until 70, your benefit is 76% higher than if you had claimed at the earliest possible age (62).
(b) Full retirement age in the U.S. is 65 for those born in 1960 and after. While you can start collecting your Social Security retirement benefits as early as 62, your benefits are permanently reduced. Your Social Security benefits max out at age 67. By delaying until 67, your benefit is 76% higher than if you had claimed at the earliest possible age (62).
(c) Full retirement age in the U.S. is 67 for those born in 1960 and after. While you can start collecting your Social Security retirement benefits as early as 62, your benefits are permanently reduced by a small percentage each month until you reach 67. Your Social Security benefits max out at age 70. By delaying until 70, your benefit is 76% higher than if you had claimed at the earliest possible age (62).
Question 10: What is the Federal Reserve’s desired rate of inflation?
(a) 2%
(b) 3%
(c) 2.5%
Bonus question! What is considered a good credit score?
(a) 560
(b) 680
(c) 800
If you get 10/10, including the bonus question, buy yourself a popsicle.
Getty Images/iStockphoto
Answer 1:
(b) A tax deduction reduces your taxable income. A tax credit reduces your income taxes directly.
Answer 2:
(a) Bond-market prices fall as interest rates rise. Bond prices rise when interest rates decline.
Answer 3:
(a) 9.7%, according to FactSet.
Answer 4:
(b) Compound interest reflects the exponential gain that comes from all the reinvested interest of your savings and investments, which allows your initial investment/deposit and the additional interest to increase in value.
Answer 5:
(c) APR is the annual interest on a loan calculated on the initial loan, including additional costs and fees, and the accumulated interest over the lifetime of the loan.
Answer 6:
(c) Most real-estate experts say you should spend no more than 30% of your income on housing, which is considered to be a tipping point for becoming “cost-burdened.”
Answer 7:
(a) ETFs are Exchange-Traded Funds. These are baskets of investments — stocks, bonds, or commodities — that investors can buy or sell throughout the trading day.
Answer 8:
(b) A stock is a share in the ownership of a company, while a bond is issued by a company to finance a loan.
Answer 9:
(c) Full retirement age in the U.S. is 67 for those born in 1960 and after. While you can start collecting your Social Security retirement benefits as early as 62, your benefits are permanently reduced. Your Social Security benefits max out at age 70. By delaying until 70, your benefit is 76% higher than if you had claimed at the earliest possible age (62).
Answer 10:
(a) 2%
Answer for bonus question!
(b) 680. Although credit scores vary depending on the model, according to Experian, credit scores between 580 and 669 are considered “fair,” scores between 670 and 739 are regarded as “good”; 740 to 799 are considered “very good”; and scores of 800 and above are considered “excellent.”
U.S. stocks closed mixed on Wednesday as weaker economic data weighed on equities and focus among investors returned to recession concerns. The Dow Jones Industrial Average DJIA, +0.24%
gained about 80 points, or 0.2%, ending near 33,482, according to preliminary FactSet data, but the S&P 500 index SPX, -0.25%
and Nasdaq Composite Index COMP, -1.07%
fell 0.3% and 1.1%, respectively. That left the S&P 500 down for two straight days and the Nasdaq lower for a third day in a row. Investors were focused on an ADP report showing that private-sector employers added 145,000 jobs in March, well below the 210,000 expected by economists surveyed by The Wall Street Journal. Also, the bellwether Institute for Supply Management’s service sector activity index showed business conditions at U.S. companies fell to a three-month low of 51.2% in March.
Apartment building sales are dropping at the fastest rate in 14 years.
Rising interest rates and regional banking disarray is contributing to the drastic fall in demand, The Wall Street Journal reported. Citing data from the firm CoStar Group, the outlet reported that $14 billion worth of apartment buildings were purchased in the first quarter of 2023, marking a 74% decrease from the same period the previous year and a 77% decreasesince 2009.
Following record highs for rent and home purchasesin 2021, the housing market began to cool in 2022 and has continued to decrease since the beginning of the year despite minor upticks in buyer interest following slight decreases to mortgage rates. Still, rising interest rates have also made real estate a less attractive investment because financing a building is more pricey than it was one or two years ago.
“Nobody wants to take a loss when they don’t have to,” Graham Sowden, chief investment officer at real estate investment firm RREAF Holdings, told The Wall Street Journal.
Sowden told the outlet that his firm has pivoted to other property investments — such as recreational-vehicle parks — while buyers and sellers remain ambivalent on what apartment buildings are truly worth in the current and near-future market.
However, while investors pull back on apartment building purchases, one group may benefit: renters.
With less demand and purchasing, landlords are less likely to raise the rent for tenants — a phenomenon that swept American cities following a housing boom during and shortly after the pandemic. While rent across the country rose by 2.6% in March as compared to a year earlier, the rate at which rent is going up is far slower than the pandemic highs, according to a report by Apartment List.
“This month marks the lowest year-over-year growth rate that we’ve seen since April 2021 and represents a return to a level of rent growth that was the norm in the years leading up to the pandemic,” the report said.
Basketball is a game beloved by millions across the globe, and played by people of all backgrounds, genders, ages, and abilities. And while March Madness—college basketball’s season-ending tournament and one of sports’ most popular spectacles—lasts less than a month, enthusiasm for the game endures perennially.
As such, home courts have long been a sought-after amenity in the world’s most impressive properties. Here’s a closer look at five incredible homes and the sport that helped inspire them.
Located amid the beauty of Blue Heron Lake in Bedford, New York, this magnificent country lodge is set between two basketball landmarks. Not far to the north, Springfield, Massachusetts, is the birthplace of James Naismith, who invented the sport in 1891.The iconic Madison Square Garden is not far to the south in New York City.
Naismith would be proud of this property’s indoor basketball court, as his mission was to devise a game for students to play on rainy days. It delivers stylish functionality with a climbing wall behind the backboard and immediate access to the garden.
Illinois may be best known in basketball circles for being the state of the legendary Chicago Bulls, but it has another hardwood-specific claim to fame. It was here the term “March Madness” was officially coined by Henry V. Porter in 1939 to describe the collegial furor that surrounded basketball tournaments in the state.
It’s therefore fitting that this elegant Georgian-style estate, dating from 1936, boasts its own scenic half-court, along with a soccer field, swimming pool, spa, and expansive, beautifully landscaped yards. The majesty of the exteriors is matched by the interiors, which were fully renovated over the course of more than three years.
Since 2008, the Sports & Fitness Industry Association has been tracking people’s participation in major team sports—and year after year, basketball has beaten baseball, soccer, football, and hockey by an enormous margin. Its 2022 report states that 27.1 million Americans over the age of six played basketball at least once the previous year.
So it comes as no surprise that when this brand-new mansion was recently built on the banks of the Potomac River, a state-of-the-art basketball court was included. It’s truly a masterpiece, with its own exterior entrance for players and spectators, the same flooring as pro stadiums, and authentic Spalding hoops.
Aspen, Colorado, has a well-deserved reputation as one of the world’s great recreation capitals, so it’s a perfect place for a basketball aficionado to call home. After all, the game requires some intense feats of physicality—in a single game, a professional player might run the equivalent of four miles.
Along with its regulation basketball court, this sprawling ranch features a professional tennis court, racquetball court, swimming pool, steam room, and fully equipped gym—all part of an indoor athletic facility spanning nearly 16,000 square feet. There are also 21 acres of fields, forests, and pastures on the property, so residents can immerse themselves in the great outdoors.
Any true basketball fan will feel at home in California, which boasts more professional teams than any other state. This palatial property, dubbed the Prancing Horse Estate, is close enough to Los Angeles that you could pull for either the Lakers or the Clippers—though its panoramic outdoor court is decidedly Lakers-themed.
The basketball court isn’t the only showstopper on the grounds. Formal gardens, equestrian facilities, koi ponds, citrus groves, and vineyards growing Grenache and Pinot Noir make this Santa Barbara mansion feel like a royal residence, as do the breathtaking views of the surrounding valley.
Basketball is a game that has justly earned worldwide acclaim, and this hasn’t been lost on the world’s best architects and designers. So when looking for a luxury home that encourages an active, vibrant lifestyle, keep an eye out for hoops.
If you invest in dividend stocks, you are probably looking for long-term growth to go with the income. Otherwise you might be content to hold one-month U.S. Treasury bills, which yield 4.5% or park your money in an online savings account for a yield close to 4%.
Below is screen of stocks with current dividend yields ranging from 4.14% to 8.46%. What sets these apart from other stocks with high dividend yields is that their payout increases are expected to accelerate in 2023 and 2024 from those in 2022.
On Tuesday, S&P Dow Jones Indices said in a press release that it expected dividend payments by publicly traded U.S. companies to continue to hit record levels in 2023. But Howard Silverblatt, a senior index analyst with the firm, said that the pace of dividend increases in the first quarter had slowed and that he expected this year’s increases to be “at half the pace of the double-digit 2022 growth.”
Silverblatt also said current events in the banking industry were “expected to negatively impact future spending from both consumers and companies, which in turn may curtail corporate dividend growth.”
For many banks, there’s another big item on the table. A focus on share buybacks in recent years is very likely to end — this is a use of cash that can raise earnings per share if the share count is reduced, but there can be consequences, especially after a year of rising interest rates that pushed down the market value of banks’ investments in bonds.
In a note to clients on March 16, Dick Bove, a senior research analyst with Odeon Capital, predicted that stock repurchases in the banking industry would be “meaningfully cut back if not flat out eliminated.” He made three general points about buybacks in the banking industry:
Buybacks remove working capital that would otherwise provide returns to a bank.
Buybacks mean a bank’s board of directors is “in favor of flat-out giving capital away to investors that want nothing to do with the bank — they are selling its stock.”
Buybacks do “nothing to increase bank stock prices – many bank stocks are selling at below their prices of five years ago.”
A company might find it much easier to curtail or stop buying back shares to preserve cash than it is to cut regular dividends. Preserving and increasing the dividend over time has been correlated with good performance for stocks over time. These articles provide examples of how dividend compounding is correlated with long-term growth as income streams build up:
The S&P Dow Jones Indices report raises the question of which stocks might buck the trend.
Starting with the S&P 500 SPX, -0.50%,
there are 71 companies stocks with current dividend yields of at least 4.00% indicated by annual payout rates. Among these companies, 68 increased dividends during 2022, according to data provided by FactSet.
Then we looked at the pace of dividend increases in 2022 and the consensus estimates for dividends paid during 2023 and 2024, among analysts polled by FactSet. Among the remaining 68 companies, there are 29 for which the estimated 2023 dividend increase is higher than the 2022 dividend increase. Narrowing further, there are 14 for which the estimated 2024 dividend increases are higher than the estimated 2023 dividend increases.
Here are the 14 stocks that passed the screen, sorted by current dividend yield:
Click here for Tomi Kilgore’s detailed guide to the wealth of information available for free on the MarketWatch quote page.
Any stock screen is limited, but can be useful as a starting point or supplement to your own research. If you see any companies of interest, do some research to form your own opinion of how likely they are to remain competitive over the next decade, at least.
Major U.S. stock indexes fell on Tuesday, with the Dow and S&P 500 both snapping a 4-session win streak, as economic data showed more signs of a sputtering U.S. economy. The Dow Jones Industrial Average DJIA, -0.59%
fell about 198 points, or 0.6%, ending near 33,403, while the S&P 500 index SPX, -0.58%
shed 0.6% and the Nasdaq Composite Index COMP, -0.52%
fell 0.5%, according to preliminary FactSet data. Investors were eyeing less robust economic data out Tuesday. The number of U.S. job openings in February fell to a 21-month low, while orders for manufactured goods fell for the third time in the past four months. Gold prices GC00, -0.04%
were flirting with a return to record territory, trading above $2,000 an ounce. The 2-year Treasury rate TMUBMUSD02Y, 3.854%
stayed below 4% at 3.84%.
When a project unites the insights and skills of design impresario Ken Fulk and lauded industry-leading architect Toby Levy, cutting-edge infrastructure, intriguing lines, a dedication to light and volume, and an enchanting, atmospheric assemblage of the finest materials in an array of colors and textures should come as no surprise. This penthouse and its aptly named “sky garden” live up to that expectation, commanding some 6,900 magnificent square feet atop an enviable building where nearly every space—including the owner’s bath and walk-in closets—are suffused with natural light and windows and walls of glass blur the line between indoors and out.
Constructed in 1901 and meticulously renovated, the 7,000-square-foot residence is—at approximately 20 feet wide—impressively spacious and exudes a style that is both timeless and sophisticatedly modern. Many period details have been painstakingly retained: six wood-burning fireplaces, classic moldings, and richly hued oak paneling and floors. An elevator links all seven levels, including the finished basement. An ambience of wonderful airiness and light pervades nearly every space thanks to lofty ceilings and plentiful windows. All of the home’s baths have been stylishly renovated.
In an uncommon configuration, the private quarters are located on the main level along with a well-appointed lounge featuring floating ceilings with built-in LED lighting, paneled walls, artful built-in storage, and a discreet wet bar with a sink and an undercounter refrigerator. One guest bedroom suite adjoins the lounge, while tucked on the sunny southwestern corner of the home is an additional bedroom with automatic shades, a sizeable closet, a colorful rolling industrial “barn” door, and a bath thoughtfully outfitted with Blu Bathworks fittings and fixtures.
Beyond a sturdy pivoting door crafted from iron and glass is the primary bedroom wing, which boasts a light-filled owner’s bedroom; a walk-in closet resembling a tony boutique; and an enviable gym with a mirrored wall, cork flooring for soundproofing, a unique glass-enclosed infrared sauna, and a refreshing steamshower. The spa-like owner’s bath offers dual sinks, a strikingly angled contemporary tub, a separate shower with a rain head and body jets, and a window gazing into the treetops. Near the center of the main floor, a sequestered office with backlit shelving is perfectly suited for quiet contemplation. Rack-based technological equipment cleverly cached in the handsome laundry room.
Glass-sided stairs rise to the home’s upper level, which primarily comprises an impressive great room encompassing living and dining spaces warmed by a dazzling double-sided steel fireplace and a streamlined chef’s kitchen with superior appliances and counter seating. Multiple senses are engaged here, with mesmerizing views, a notable tinted-glass-walled wine room, a wet bar, and theater components ingeniously concealed behind automatic sliding panels bearing a dramatic wood-grain pattern.
Measuring roughly 3,000 square feet, the sky garden was, without a doubt, created for sophisticated living and grand-scale gatherings amid a setting of towering rooftops and wide-open blue sky. Wrapping around the interior spaces of the home’s upper level, it boasts views that stretch toward the downtown skyline and resort-caliber amenities unprecedented in a private residence: TopLine artificial turf that contributes to the vibrant verdancy; an outdoor kitchen with quartz countertops, a sink, and a built-in grill accompanied by two burners; a Moroccan-inspired cabana; a hot tub; a built-in audio system; and custom lighting that illuminates dining space for a crowd and two lounge areas—one with a fire table.
A 21st-century Bay Area home demands top-caliber comforts and conveniences, which here include whole-house lighting, window shades, audiovisual, and climate systems maintained by Lutron and Savant controls and security and surveillance configured by PAC Integrations. With its majestic Palladian windows and remnants of railroad tracks, the building itself makes a nod to history and its provenance as a 1920s warehouse that was painstakingly rejuvenated and updated. Prestigious offices, exceptional restaurants, and other amenities are within easy reach. Steps away is the street’s eponymous park, which dates to 1855 and survives as another piece of the city’s history that—like this penthouse and its building—now thrives as a modern-day gem.
A version of this story first appeared in CNN Business’ Before the Bell newsletter. Not a subscriber? You can sign up right here. You can listen to an audio version of the newsletter by clicking the same link.
New York CNN
—
Some of the world’s largest oil exporters shocked markets over the weekend by announcing that they would cut oil production by more than 1.6 million barrels a day.
OPEC+, an alliance between the Organization of the Petroleum Exporting Countries (OPEC) and a group of non-OPEC oil-producing countries, including Russia, Mexico, and Kazakhstan,said on Sunday that the cuts would start in May, running through the end of the year. The news sent both Brent crude futures — the global oil benchmark — and WTI — the US benchmark — up about 6% in trading Monday.
OPEC+ was formed in 2016 to coordinate and regulate oil production and stabilize global oil prices. Its members produce about 40% of the world’s crude oil and have a significant impact on the global economy.
What it means for Putin: OPEC+’s decision to cut oil production could have big implications for Russia.
After Russia invaded Ukraine last year, the United States and United Kingdom immediately stopped purchasing oil from the country. The European Union also stopped importing Russian oil that was sent by sea.
Members of the G7 — an organization of leaders from some of the world’s largest economies: Canada, France, Germany, Italy, Japan, the United Kingdom and the United States — have also imposed a price cap of $60 per barrel on oil exported by Russia, keeping the country’s revenues artificially low. If oil prices continue to rise, some analysts have speculated that the US and other western nations may have to loosen that price cap.
US Treasury Secretary Janet Yellen said Monday that the changes could lead to reassessing the price cap — though not yet. “Of course, that’s something that, if we’ve decided that it’s appropriate to revisit, could be changed, but I don’t see that that’s appropriate at this time,” she told reporters.
“I don’t know that this is significant enough to have any impact on the appropriate level of the price cap,” she added.
Russia also recently announced that it would lower its oil production by 500,000 barrels per day until the end of this year.
Just last week Putin admitted that western sanctions could deal a blow to Russia’s economy.
“The illegitimate restrictions imposed on the Russian economy may indeed have a negative impact on it in the medium term,” Putin said in televised remarks Wednesday reported by state news agency TASS.
Putin said Russia’s economy had been growing since July, thanks in part to stronger ties with “countries of the East and South,” likely referring to China and some African countries.
Russia, China and Saudi Arabia: The OPEC+ announcement came as a surprise this week. The group had already announced it would cut two million barrels a day in October of 2022 and Saudi Arabia previously said its production quotas would stay the same through the end of the year.
“The move to reduce supply is fairly odd,” wrote Warren Patterson, head of commodities strategy at ING in a note Monday.
“Oil prices have partly recovered from the turmoil seen in financial markets following developments in the banking sector,” he wrote. “Meanwhile, oil fundamentals are expected to tighten as we move through the year. Prior to these cuts, we were already expecting the oil market to see a fairly sizable deficit over the second half or 2023. Clearly, this will be even larger now.”
Saudi Arabia stated that the cut is a “precautionary measure aimed at supporting the stability of the oil market,” but Patterson says it will likely “lead to further volatility in the market,” later this year as less available oil will add to inflationary feats.
Still, the changes signal shifting global alliances with Russia, China and Saudi Arabia around oil prices, said analysts at ClearView Energy Partners. Higher-priced oil could help Russia pay for its war on Ukraine and also boosts revenue in Saudi Arabia.
The White House, meanwhile, has spoken out against OPEC’s decision. “We don’t think cuts are advisable at this moment given market uncertainty – and we’ve made that clear,” National Security Council spokesman John Kirby said Monday.
– CNN’s Paul LeBlanc and Hanna Ziady contributed to this report
The crisis triggered by the recent collapses of Silicon Valley Bank and Signature Bank is not over yet and will ripple through the economy for years to come, said JPMorgan Chase CEO Jamie Dimon on Tuesday.
In his closely watched annual letter to shareholders, the chief executive of the largest bank in the United States outlined the extensive damage the financial system meltdown had on all banks and urged lawmakers to think carefully before responding with regulatory policy.
“These failures were not good for banks of any size,” wrote Dimon, responding to reports that large financial institution benefited greatly from the collapse of SVB and Signature Bank as wary customers sought safety by moving billions of dollars worth of money to big banks.
In a note last month, Wells Fargo banking analyst Mike Mayo wrote “Goliath is winning.” JPMorgan in particular, he said, was benefiting from more deposits “in these less certain times.”
“Any crisis that damages Americans’ trust in their banks damages all banks – a fact that was known even before this crisis,” said Dimon. “While it is true that this bank crisis ‘benefited’ larger banks due to the inflow of deposits they received from smaller institutions, the notion that this meltdown was good for them in any way is absurd.”
The failures of SVB and Signature Bank, he argued, had little to do with banks bypassing regulations and that SVB’s high Interest rate exposure and large amount of uninsured deposits were already well-known to both regulators and to the marketplace at large.
Current regulations, Dimon argued, could actually lull banks into complacency without actually addressing real system-wide banking issues. Abiding by these regulations, he wrote, has just “become an enormous, mind-numbingly complex task about crossing t’s and dotting i’s.”
And while regulatory change will be a likely outcome of the recent banking crisis, Dimon argued that, “it is extremely important that we avoid knee-jerk, whack-a-mole or politically motivated responses that often result in achieving the opposite of what people intended.” Regulations, he said, are often put in place in one part of the framework but have adverse effects on other areas and just make things more complicated.
The Federal Deposit Insurance Corporation has said it will propose new rule changes in May, while the Federal Reserve is currently conducting an internal review to assess what changes should be made. Lawmakers in Congress, like Democratic Sen. Sherrod Brown, have suggested that new legislation meant to regulate banks is in the works.
But, wrote Dimon, “the debate should not always be about more or less regulation but about what mix of regulations will keep America’s banking system the best in the world.”
Dimon’s letter to shareholders touched on a number of pressing issues, including climate change. “The window for action to avert the costliest impacts of global climate change is closing,” he wrote, expressing his frustration with slow growth in clean energy technology investments.
“Permitting reforms are desperately needed to allow investment to be done in any kind of timely way,” he wrote.
One way to do that? “We may even need to evoke eminent domain,” he suggested. “We simply are not getting the adequate investments fast enough for grid, solar, wind and pipeline initiatives.”
Eminent domain is the government’s power to take private property for public use, so long as fair compensation is provided to the property owner.
From a coastal villa in Long Bay, Turks and Caicos Islands, to an elegant penthouse in Chicago, Illinois, these are this month’s eight featured notable properties for sale over $10 million.
South Bank’s final offering, Arc, is a groundbreaking six-story residential building, with only 17 luxury residences for the ultimate offering in low-density contemporary Caribbean living. With multi-directional waterfront outlooks, each residence is housed in an iconic Piero Lissoni-designed “suspended” shape to promote in-villa privacy and seamless indoor/outdoor living.
This unprecedented penthouse in the Gold Coast’s most elegant, intimate boutique building offers an exclusive private rooftop deck with lounge area and pergola with four-car garage parking included. The residence was curated by Larry Booth from raw space to create a breathtaking and sophisticated custom residence.
One of Vancouver’s most iconic estates, this property is surrounded by magnificent gardens, meandering walkways, a tranquil pond, fountains and thoughtful stonework. Originally built in 1923 and extensively renovated and restored in 1997 by architect John Hollifield, the home boasts approximately 8,000 square feet of exquisite detail, superior craftsmanship, and quality finishings.
Built by Mattarosa Pellsinger, this sleek, streamlined contemporary home was constructed in 2006 on a lovely Cow Hollow block and boasts an array of consummately chic, impressively scaled rooms for living and entertaining. A façade dominated by glass introduces the singular aesthetic, which begins with a courtyard, an oversized entry door, and a roomy, welcoming foyer.
This stunning pair of bungalows was designed to cater to the needs of discerning buyers seeking privacy, security, and exclusivity. The bungalows boast contemporary architecture with clean lines, spacious interiors, modern finishes, and come equipped with the latest smart home technology to provide residents with a comfortable and convenient living experience.
Arcadia is a quintessential Watch Hill summer cottage. Built in 1898 and meticulously maintained and updated, this sprawling stone and cedar shingle-style home offers classic character, custom details, and modern amenities, all with breathtaking views and an exceptional location.
Unique on Cap-Ferrat, this beautiful new building was designed by the workshop of famed French architect Jean Nouvel. Ideally oriented, it enjoys the best sunshine and offers a beautiful view of the bay of Villefranche. Constructed on four levels, the villa is served by a lift from the six-car garage.
This exclusive St. Regis ski-in/ski-out penthouse offers panoramic views, superior finishes, a butler’s kitchen, a wine cellar, a private elevator, and expansive outdoor living spaces. The five-star luxury resort features butler service, dining, a spa, an athletic club, a ballroom, library and game rooms, a ski beach, a pool, hot tubs, a ski valet, and valet parking.
Unexpectedly strong home sales at the start of this year reversed a sharp, several-month decline in home prices. Mortgage rates are behind the swing.
Home prices nationally rose 0.16% in February, when seasonally adjusted, according to Black Knight. That is the strongest one-month gain since May of last year. Home prices are now 2.6% below their peak last June.
Of the 50 largest U.S. markets, 39 saw home prices rise in February. That’s a quick turnaround from November, when prices were falling in 48 of 50 markets.
Behind the quick change are wide swings in mortgage rates. The average rate on the 30-year fixed began rising off of a record low at the start of 2022. By June it had gone from around 4% to just over 6%. Sales slowed down, and prices followed. By fall, the rate shot over 7%, and home prices began cooling more quickly.
In December and January, however, mortgage rates began pulling back, and homebuyers were quick to take advantage. Closed sales of existing homes in February, which represented contracts signed in December and January, shot a remarkable 14.5% higher, according to the National Association of Realtors.
“Conscious of changing mortgage rates, home buyers are taking advantage of any rate declines,” Lawrence Yun, NAR’s chief economist, said in the February sales release.
As with all real estate, however, the price dynamics differ depending on location. Miami continues to see the largest price gains, along with more affordable markets in the Midwest, like Cincinnati, Columbus, Ohio, and Cleveland, according to Black Knight. Meanwhile, prices are still falling in some of the markets which saw the greatest price inflation over the last several years. Those include Austin, Texas, Las Vegas, Salt Lake City, Seattle and San Francisco.
While mortgage rates were the driving factor for the price turnaround nationally, tight supply is adding to the upward pressure, especially with new spring demand from buyers.
“The unfortunate reality is that the scarce supply of inventory that’s the source of so much market gridlock isn’t getting any better,” said Andy Walden, Black Knight’s vice president of enterprise research strategy, in the release.
The number of homes available for sale fell in February for the fifth straight month to the lowest level since May of last year, according to Black Knight. New listings were 27% lower than their pre-Covid pandemic levels.
“While some price increases – most notably in Miami, which saw the largest of the month – can be chalked up to people moving to the area, we’re seeing stronger price gains more generally in those areas with better affordability and larger inventory deficits,” Walden added.
Mortgage rates began rising again in February and then fell back slightly in March due to market fears over the U.S. banking system, amid several bank collapses.
Demand for homes, however, appears not to have been swayed by the crisis, with real estate agents anecdotally still reporting busy open houses. Black Knight is still predicting prices to move lower again throughout the rest of this year, but if supply continues to drop, keeping the competition strong, prices may not have far to fall.
Thousands of people took to the streets of Lisbon and other cities across Portugal on Saturday in protest against soaring rents and house prices at a time when high inflation is making it even tougher for people to make ends meet.
“There is a huge housing crisis today,” Rita Silva, from the Habita housing group, said at the Lisbon protest. “This is a social emergency.”
Portugal is one of Western Europe’s poorest countries, with government data showing more than 50% of workers earned less than 1,000 euros ($1,084) per month last year. The monthly minimum wage is 760 euros ($826).
Rents in Lisbon, a tourist hotspot, have jumped 65% since 2015 and sale prices have sky-rocketed 137% in that period, figures from Confidencial Imobiliario, which collects data on housing, show. Rents increased 37% last year alone, more than in Barcelona or Paris, according to another real estate data company, Casafari.
The situation is particularly hard on the young.
The average rent for a one-bedroom flat in Lisbon is around 1,350 euros, a study by housing portal Imovirtual showed.
The Socialist government announced last month a housing package that, among other measures, ended the controversial “Golden Visa” scheme and banned new licenses for Airbnb properties but critics say it is not enough to lower prices in the short term.
At the protest, which was organised by the movement “Home to Live” and other groups, 35-year-old illustrator Diogo Guerra said he hears stories about people struggling to access housing every day.
“People who… work and are homeless, people are evicted because their house is turned into short-term accommodations (for tourists),” he said.
Low wages and high rents make Lisbon the world’s third-least viable city to live in, according to a study by insurance brokers CIA Landlords. Portugal’s current 8.2% inflation rate has exacerbated the problem.
“With my salary, which is higher than the average salary in Lisbon, I cannot afford renting a flat because it’s too expensive,” said Nuncio Renzi, a sales executive from Italy living in the capital.
Scores of luxury homes are coming to major cities across the United States.
Analysts at Yardi Matrix projected that more than 400,000 units were completed in 2022, and they expect another strong showing in 2023. Experts believe much of this new stock is built with upper-tier customers in mind.
“You often see new housing branded as ‘luxury,’ in part because it’s new,” said Ethan Handelman, deputy assistant secretary at the U.S. Department of Housing and Urban Development. “When you get to affordable housing, we need to be providing some additional capital and/or rental assistance to help make that housing affordable to the people who need it most.”
Market-rate rents for new apartments can easily be multiple thousands of dollars monthly. For many high-wage earners in cities, this is achievable. But for moderate-income Americans, the sky-high prices appear disconnected from reality.
“The marketplace is structured not to house certain people. We need to admit that,” said Dominic Moulden, a resource organizer at Organizing Neighborhood Equity DC.
Builders say the high cost of housing in the U.S. is related to the large amount of regulation in the housing sector. For example, they say, many U.S. cities are short on land due to restrictive zoning codes.
“Currently, 40% of the cost of multifamily development is in regulation,” said Sharon Wilson Géno, president at the National Multifamily Housing Council. “We have to do something about that if we’re going to build more housing.”
In 2022, the Biden administration announced a housing action plan that aims to shore up housing supply within five years. But these efforts may not have a material impact on prices for some time.
“Unfortunately, I don’t think we’re going to see rents going down a whole lot over the next one to two years,” said Al Otero, a portfolio manager at Armada ETF Advisors. “Developers cannot make a profit at those more affordable price points. Therefore, we see the development and the new construction at the much higher, higher end of the spectrum.”
Watch the video above to see why the United States is awash in new luxury apartments.
Careful selection of interior shades is an easy way to create a reliably smart interior aesthetic. These homes ensure an enduring stylishness with swaths of calming natural colors.
Carefully designed for urbane modern living, this single-level West Hollywood condominium features two bedrooms and sun-drenched open-plan living and entertaining spaces. Tastefully remodeled, its 1,482-square-foot floor plan is replete with subdued organic hues—from white walls and stone surfaces to wood floors and kitchen cabinetry—that allow furnishings, art, and the southerly view to take center stage. The stylish Palm Terrace building offers a pool and spa, a recreation and fitness rooms, parking for two cars, and four additional spaces for guests.
On the top two floors of the famous Brooks Van Horn condominium building, this impeccably designed residence exudes a sophisticated flair. Highlights include a bright, fluid living room, dining room, and lounge; an open cook’s kitchen; a skylit primary bedroom with custom closets and an elegant en suite bath; and an upper-level loft with one bedroom and bath and access to a 700-square-foot rooftop terrace. Throughout, neutral tones—often augmented by eye-catching patterns and textures—create a striking contrast with richly hued wood.
Minutes from famed Canyon Road and Santa Fe’s historic downtown Plaza, this chic contemporary home is anchored by an open living room, dining room, and kitchen ideal for effortless living and entertaining. In addition to a breezy portal with a sweeping view of city lights, sunsets, and mountains, it offers two restful bedrooms and an office or third bedroom with its own outdoor space. Soothing natural tones—including surfaces of elegant Neolith sintered stone and white art walls—contribute to the undeniable sense of modern sophistication.
Perfectly sited on an elevated corner lot on one of the most desirable streets in Echo Park, this compelling three-bedroom midcentury modern home has been impressively updated. Light organic materials—including crisp, clean walls ideal for displaying art and blonde hardwood floors and cabinetry—contribute to its self-assured style. Covered and open-air outdoor spaces allow for enjoyment of Southern California’s sunny days and temperate nights. Across the yard, a freestanding 542-square-foot structure would make an ideal garage or studio.
