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Redfin CEO Glenn Kelman joins Brian Sullivan and the ‘CNBC Special: Taking Stock’ to discuss housing data and what’s really going on in the market right now.
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Tag: real estate
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The Peebles Corp’s Don Peebles explains how rising mortgage rates affect the housing market
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Don Peebles, founder of the Peebles Corporation, joins ‘Power Lunch’ to discuss the health of the housing market.
03:36
Thu, Feb 16 20232:49 PM EST
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Average long-term US mortgage rate jumps to 6.32% this week | Long Island Business News
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The average long-term U.S. mortgage rate jumped this week to its highest level in five weeks, bad news for home shoppers heading into the spring buying season.
Mortgage buyer Freddie Mac reported Thursday that the average on the benchmark 30-year rate rose to 6.32% from 6.12% last week. The average rate a year ago was 3.92%.
The average long-term rate reached a two-decade high of 7.08% in the fall as the Federal Reserve continued to raise its key lending rate in a bid to cool the economy and and bring down stubborn, four-decade high inflation.
At its first meeting of 2023 earlier this month, the Fed raised its benchmark lending rate by another 25 basis points, its eighth increase in less than a year. That pushed the central bank’s key rate to a range of 4.5% to 4.75%, its highest level in 15 years.
Fed Chair Jerome Powell noted that some measures of inflation have eased, but he appeared to suggest that he foresees two additional quarter-point rate hikes this year.
Though those rate hikes do impact borrowing rates across the board for businesses and families, rates on 30-year mortgages usually track the moves in the 10-year Treasury yield, which lenders use as a guide to pricing loans. Investors’ expectations for future inflation, global demand for U.S. Treasurys and what the Federal Reserve does with interest rates can also influence the cost of borrowing for a home.
The big rise in mortgage rates during the past year has clobbered the housing market, with sales of existing homes falling for 11 straight months to the lowest level in more than a decade. Higher rates can add hundreds of a dollars a month in costs for homebuyers, on top of already high home prices.
The National Association of Realtors reported earlier this month that existing U.S. home sales totaled 5.03 million last year, a 17.8% decline from 2021. That is the weakest year for home sales since 2014 and the biggest annual decline since 2008, during the housing crisis of the late 2000s.
The rate for a 15-year mortgage, popular with those refinancing their homes, climbed this week to 5.51%, from 5.25% last week. It was 3.15% one year ago.
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5 Homes Built in the Early 20th Century – Sotheby´s International Realty | Blog
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The early 20th century was a period of transition, as new materials and construction techniques were used to recapture architectural styles of the past. In storied locations from Richmond, Virginia, to Paris, France, tour five historic homes built circa 1900-1920.
Richmond, Virginia
Coleen Butler Rodriguez | The Steele Group Sotheby’s International RealtyIn 1905, architect Claude Howell used diamond-paned bay windows and a unique layout to bring light into every room of this Classical Revival-style home on a rare double lot on Richmond’s premier avenue.
Le Vesinet, France
Jean-Charles Engel | Paris Ouest Sotheby’s International RealtyBuilt in the style of the Grand Trianon in 1900 by shipowner Arthur Schweitzer, Palais Rose was the home of poet Robert de Montesquiou from 1908 until 1921, and hosted General Charles de Gaulle in 1940.
Glenview, Kentucky
Claire Alagia | Lenihan Sotheby’s International RealtyConstructed in 1906 with original designs by noted architect Joseph E. Chandler, Boxhill estate is listed on the National Register of Historic Places and is available for the first time in 40 years.
Woodend, Australia
Sean Parker, Carolyn Ryan | Macedon Ranges Sotheby’s International RealtyMaloa House was built as a doctor’s residence in 1906 in the English Tudor and Federation style, and is a well-known landmark at the entrance of the beautiful Woodend township.
Princeton, New Jersey
Maura Mills | Callaway Henderson Sotheby’s International RealtyBuilt in 1915, this gracious estate located in Princeton’s historic Western Section has been carefully updated to highlight both new and original details.
Discover luxury homes for sale and rent around the world on sothebysrealty.com
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Melissa Couch
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Inflation pushes up mortgage rates for second week in a row | CNN Business
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Washington, DC
CNN
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Mortgage rates climbed higher for the second consecutive week, following four weeks of declines. Inflation is running hotter, making rates more volatile, with the expectation that they will move in the 6% to 7% range over the next few weeks.
The 30-year fixed-rate mortgage averaged 6.32% in the week ending February 16, up from 6.12% the week before, according to data from Freddie Mac released Thursday. A year ago, the 30-year fixed-rate was 3.92%.
After climbing for most of 2022, mortgage rates had been trending downward since November, as various economic indicators indicated inflation may have peaked. But a stronger-than-expected jobs report and a Consumer Price Index report that showed inflation is only moderately easing suggest the Federal Reserve could continue hiking its benchmark lending rate in its battle against inflation.
Inflation is keeping mortgage rates volatile, said Sam Khater, Freddie Mac’s chief economist.
“The economy is showing signs of resilience, mainly due to consumer spending, and rates are increasing,” said Khater. “Overall housing costs are also increasing and therefore impacting inflation, which continues to persist.”
The average mortgage rate is based on mortgage applications that Freddie Mac receives from thousands of lenders across the country. The survey includes only borrowers who put 20% down and have excellent credit. Many buyers who put down less money upfront or have less than ideal credit will pay more than the average rate.
Investors are digesting the latest economic data, said George Ratiu, Realtor.com manager of economic research.
The Fed does not set the interest rates that borrowers pay on mortgages directly, but its actions influence them. Mortgage rates tend to track the yield on 10-year US Treasury bonds, which move based on a combination of anticipation about the Fed’s actions, what the Fed actually does and investors’ reactions. When Treasury yields go up, so do mortgage rates; when they go down, mortgage rates tend to follow.
“While the Fed signaled that it will continue to raise rates this year, the moves are expected to come in 25 basis point increments, a less aggressive tightening than what we saw in 2022,” said Ratiu. “The central bank is acknowledging that it sees its monetary actions having a tangible effect on inflation. The CPI data out this week seems to confirm the bank’s views.”
At the same time, he said, many companies expect the economy will enter a recession as a result of the Fed’s rate hikes, even in the face of data pointing to continued resilience.
“This expectation is becoming more visible in the growing number of companies resorting to layoffs as a hedge against a potential economic slowdown,” he said. “People who are laid off pull back on spending, and even those who are still employed may begin to do the same due to worries about losing their job, thus potentially sending consumer spending into a downward spiral.”
For home buyers, the cost of financing a home is expected to go up.
Already, rates have been climbing in recent weeks, leading to a drop in mortgage applications. Last week, applications fell 7.7% from one week earlier, according to the Mortgage Bankers Association.
Buyers are proving to be interest rate sensitive, according to MBA.
“Purchase applications dropped to their lowest level since the beginning of this year and were more than 40% lower than a year ago,” said Joel Kan, MBA’s vice president and deputy chief economist. “Potential buyers remain quite sensitive to the current level of mortgage rates, which are more than two percentage points above last year’s levels and have significantly reduced buyers’ purchasing power.”
Mortgage rates are expected to move in the 6% to 7% range over the next few weeks, said Ratiu.
For housing markets, he said, “the rebound in rates translates into higher mortgage payments, adding pressure on homebuyers.”
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Video of the Week: An Elegant Loft in New York, New York – Sotheby´s International Realty | Blog
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Featuring curated videos from the most sought-after destinations the world over, discover this week’s Vvideo of the Week.
New York, New York | Sotheby’s International Realty – East Side Manhattan BrokerageThis mint, full floor loft on a prime block is an elegant and expansive urban space. Completely renovated, the home now offers a layout that maximizes the loft’s rare three exposures: six massive windows overlooking the building’s full frontage on Wooster Street, six unique and operational French Doors over the tranquil courtyard, and an eastern exposure with excellent morning light.
A keypad-controlled elevator opens directly into an entry foyer adjacent to the living room with soaring ceilings, original columns, and a gas fireplace. With space for dining for 14 people and an ingenious custom-designed retractable bar cart, the home is ideal for entertaining. A gourmet kitchen and a butler’s pantry with a wine refrigerator, additional dishwasher, laundry, and an abundance of storage make cooking easy.
The home also offers a wonderful office/library with city views in addition to a library/media room with built in bookshelves, storage, and French doors. The sprawling primary bedroom suite includes a dressing room and a spa-like bathroom with heated floors, a steam shower, and a soaking tub. Two additional en suite bedrooms complete the property.
Discover tours of luxury homes for sale around the world on our award-winning YouTube Channel
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Melissa Couch
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Mortgage demand drops as interest rates bounce higher
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A ‘for sale’ sign hangs in front of a home on June 21, 2022 in Miami, Florida.
Joe Raedle | Getty Images
After falling for five straight weeks, mortgage rates jumped last week, triggering a decline in mortgage demand.
Total mortgage application volume fell 7.7% last week, compared with the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($726,200 or less) increased to 6.39% from 6.18%, with points rising to 0.70 from 0.64 (including the origination fee) for loans with a 20% down payment. The rate was 4.05% one year ago.
“Mortgage rates increased across the board last week, pushed higher by market expectations that inflation will persist, thus requiring the Federal Reserve to keep monetary policy restrictive for a longer time,” said Joel Kan, MBA’s vice president and deputy chief economist.
Applications to refinance a home loan dropped 13% for the week and were 76% lower than the same week one year ago. At the current rate, 100,000 fewer borrowers can benefit from a refinance compared with just one week ago, according to data from Black Knight. A year ago, with mortgage rates at 4.05%, there were just under 4 million refinance candidates.
Mortgage applications to purchase a home fell 6% for the week and were 43% lower than the same week a year ago. Real estate agents across the country are reporting a jump in buyer demand in the past few weeks, perhaps indicating an early start to the historically busy spring market.
“I actually thought, my God, this is amazing. Look at how fast it turned on a dime,” said Dana Rice, a real estate agent with Compass, who was running a busy open house in Bethesda, Maryland Saturday. “We went from no showings and nobody coming to open houses, that every single thing that I’ve launched in the last couple of weeks has had multiple offers.”
There is, however, an abnormally high level of all-cash buyers in the market. Peter Fang is one of them. He was at the open house.
“I’m very surprised to see so many cash offers in the market. I thought I would be at a much better position but the competition is still there,” Fang said.
Mortgage rates continued to move higher this week after a government report on inflation showed it was higher than expected in January.
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India stock markets have been volatile. Analysts say these sectors are worth watching
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The Indian government announced during the annual budget on Feb. 1 that the country will increase infrastructure spending by 33% to 10 trillion rupees ($122.29 billion) in the next fiscal year.
Bloomberg | Bloomberg | Getty Images
Indian markets have been volatile as the Adani crisis continues to dominate headlines, but analysts say this could be a buying opportunity.
In particular, some are bullish about the construction sector and say an infrastructure push could benefit cement stocks.
In a January note, Bernstein analysts led by Venugopal Garre, said they were “generally optimistic about the real estate cycle and the potential for a better rural environment.”
Investors can consider playing the country’s infrastructure sector through domestic cement names, Garre said.
Cement: UltraTech, Ambuja
Bernstein likes UltraTech Cement — a company Garre said has the capacity to keep up with the growing number of real estate projects coming up in India.
He said “70% of cement demand comes from real estate, and 30% comes from infrastructure,” and added that when a new property is built, cement is needed from the first day the project cycle commences.
This is unlike electric equipment or circuitry that is only needed in the third or fourth year of the construction project, he explained.
Sanjiv Bhasin, director at IIFL Securities, also said UltraTech Cement is one of the firm’s “top picks,” along with Ambuja Cements.
Shares of UltraTech Cement was trading at about 7,123.05 on Wednesday, lower by 0.21%. The stock is close to its 52-week intraday high, according to FactSet.
The government’s spending on infrastructure is increasing and “we think cement prices are headed higher because we [are going] into a season where construction activity may be at the highest,” Bhasin said.
FactSet data showed shares of Ambuja Cements have fallen 34% year-to-date. Bhasin has said the stock is a buy and that it’s a “brilliant opportunity” despite the current market volatility.
The Adani Group owns a 63.15% stake in Ambuja Cements, Refinitiv showed.
The price for Ambuja Cements is falling “because it exists within the Adani umbrella,” said Praveen Jagwani, chief executive officer at UTI International Singapore.
“This temporary fiasco is only a buying opportunity … We still think that UltraTech and Ambuja are very, very good plays on the cement side,” Bhasin said, adding than an impetus on infrastructure spending will cause these names to outperform in the next quarter.
India’s infrastructure push
Morgan Stanley is bullish on India’s industrials sector, its analysts said in a note on Feb. 1 after the budget announcement.
“As the Budget supports capex and employment creation, we remain constructive on the domestic demand strength,” the financial services firm said.
Finance Minister Nirmala Sitharaman announced during the annual budget last week that the country will increase infrastructure spending by 33% to 10 trillion rupees ($122.29 billion) in the next fiscal year. India’s fiscal year starts in April and ends in March the next year.
India’s construction materials industry should see some upside from the rise in capital expenditure, but investors have to be “very careful” when picking cement stocks, Jagwani told CNBC.
India needs more high quality commercial buildings, roads and airports, but the country’s infrastructure sector is also “super unpredictable and risky,” Jagwani warned.
Return on investment would fall each year as infrastructure projects get delayed, Jagwani pointed out, claiming that it happens frequently in India.
Engineering: ABB India, Siemens India and more
Engineering companies that focus on infrastructure and construction are also good buys, IIFL Securities said.
They include ABB India, Siemens India, and Larsen & Turbo.
Larsen & Turbo will be coming out with “higher double digit margins, and their order flows are the strongest,” Bhasin said.
UTI International also likes Berger Paints, which Jagwani said has the “ingredients” to see a continuous growth in sales and will benefit not just from new buildings being built, but older ones that need maintenance.
“Paint is in the replacement market. People need to get their houses and apartments painted every few years because of rain and excessive heat,” he said.
The shares, however, are down 4.5% year-to-date and close to their 52-week intraday low of 527.6 rupees. Berger Paints was trading at about 555.45 rupees on Wednesday.
— CNBC’s Michael Bloom contributed to this report.
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Inside a Zero-Emissions Oasis in Malibu – Sotheby´s International Realty | Blog
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At first blush, this singular home and its verdant surroundings could easily be mistaken for a remote retreat, a consummate contemporary escape with nary a neighbor or thoroughfare in sight. This serene space of seclusion, however, is tucked into swaths of mature trees and other flora on a Malibu bluff, not far from seemingly countless boutiques, restaurants, entertainment venues, and other attractions—not to mention sandy beaches and the cool blue depths of the Pacific.
Malibu, California | Jacob Dadon, Sotheby’s International Realty – Beverly Hills BrokerageThe 14,429-square-foot residence at the heart of 2.48 acres gazes out at the mesmerizing ocean and horizon. Pervasive are an undeniable sense of loftiness and light and blurred boundaries between indoors and out—a quintessential quality of the Southern California lifestyle. The property is thoroughly integrated with its environment, perfectly positioned as it is amid hundreds of native coastal oaks, Monterey cypress, and pine trees as well as hives for bees that pollinate the organic fruit orchards and a Tuscan-inspired vegetable and herb gardens. It also encourages outdoor enjoyment with its alfresco kitchen and dining pavilion, saltwater swimming pool and spa, bocce court, putting green, driving range, and sports court.
But the dedication to nature here is more profound than mere appreciation of views and diversion amid fresh sea breezes. Known as Zero One, the estate is one of only a few unique residences that comprise the cutting-edge 80-acre MariSol Malibu community, where homes are fully ecologically responsible, eliminating emissions and generating renewable energy. This premier property was designed by award-winning architect Doug Burdge and constructed with intention from sustainable timber and recycled concrete and steel. With the help of Tesla batteries, solar panels, water vapor fireplaces, and electric vehicle charging capabilities, the home creates zero carbon emissions. The first of its kind, it earned a Zero Carbon Certification from the illustrious International Living Future Institute.
None of this should suggest that creature comforts are not fully attended to. The core of the residence is an expansive 4,250-square-foot great hall with two striking climate-controlled glass-walled wine rooms, soaring 20-foot Accoya acetylated wood ceilings, Forest Stewardship Council–certified American white oak floors, dramatic oversized skylights, disappearing walls of glass, a bar, and an impressive kitchen with Miele appliances and Caesarstone countertops. Beyond are six tranquil bedrooms, nine baths, a theater, and a well-equipped gym. A gated drive, a security system, a Josh voice-controlled home-automation system, and water and air filtration systems provide peace of mind that accompanies an assurance of superior quality and attention to the Earth and its future.
Discover luxury homes for sale and rent around the world on sothebysrealty.com
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Melissa Couch
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Microsoft and Google promised to invest in these communities. Now they’re backtracking | CNN Business
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CNN Business
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When Microsoft President Brad Smith announced in February 2021 that the tech giant had purchased a 90-acre plot of land in Atlanta’s westside, he laid out a bold vision: The company, he said, would invest in the community and put it “on the path toward becoming one of Microsoft’s largest hubs” in the United States.
The announcement, which was met with enthusiastic coverage in local media, promised the construction of affordable housing, programs to help public school children develop digital skills, support for historically Black colleges and universities, new funding for local nonprofits, and affordable broadband for more people in Atlanta.
“Our biggest question today is not what Atlanta can do to support Microsoft,” Smith wrote. “It’s what Microsoft can do to support Atlanta.”
Two years later, Microsoft announced a series of cost-cutting efforts, including eliminating 10,000 jobs, making changes to its hardware portfolio and consolidating leases. As part of those moves, Microsoft put development of its Atlanta campus on pause this month, a spokesperson confirmed to CNN.
The decision to pause plans feels like a “broken promise” that caught many residents of the predominately Black neighborhood where Microsoft planned to build the campus off-guard, according to Jasmine Hope, a local resident and chair of her neighborhood planning unit.
“All the promises of, ‘We’re going to put a grocery store here, we’re going to bring jobs to the area, we’re going to have a pipeline between the schools and Microsoft to create jobs,’ all that seems like it’s out the window,” she told CNN. “But the consequences are still being felt by the neighborhood.”
A Microsoft spokesperson said the land is not for sale, “and we still aim to set aside a quarter of the 90 acres for community needs.” Microsoft will continue efforts “to create a positive impact in the region and be a contributing community partner,” the spokesperson added.
As the tech industry boomed in the United States throughout the past decade, cities across the country vied to become tech hubs. State and city officials competed for Silicon Valley giants to bring offices, data centers and warehouses to their communities in hopes of creating jobs and bringing other benefits that cash-strapped local governments might struggle to fund on their own. In perhaps the biggest example of this, 238 communities submitted bids in 2017 to be home to Amazon’s second headquarters, with some offering major tax breaks or even to rename land “city of Amazon.”
But now, a number of large tech companies are rethinking their costs, after years of seemingly limitless hiring and expansion. The reason: a perfect storm of shifting pandemic demand for online services, rising interest rates and fears of a looming recession. Much of the focus of this tech downturn so far has been on the long list of layoffs, but companies have also teased plans to dramatically reduce real estate expenses across the country.
Facebook-parent Meta, Microsoft, Salesforce and Snap have each shuttered offices or announced plans to cut back on real estate, according to recent corporate announcements, filings and local news reports. Some tech companies have said they’ll let leases expire or go fully remote. Meta CEO Mark Zuckerberg said his company is “transitioning to desk-sharing for people who already spend most of their time outside the office.”
The effect of those pullbacks can already be felt across the country, from New York City, where Meta reportedly scaled back its real estate footprint in the Hudson Yards neighborhood, to San Francisco, where some local businesses say they are facing the ripple effects of remote work and multiple tech office closures.
“Tech had pretty much gained market share to become the top industry leasing office space across the US, and that started back in 2012, 2013,” said Colin Yasukochi, the executive director of the Tech Insights Center at CBRE, a commercial real estate firm. In 2022, however, finance and insurance companies overtook the tech industry for the highest share of US office leases, according to CBRE’s data.
“Really, over the last couple of quarters, you’ve seen the tech industry decrease its leasing activity pretty significantly,” he added. “That’s really, I think, the biggest impact that you’ve seen regarding these layoffs and austerity measures: the leasing activity pullback by the tech industry.”
But the impact of that pullback is perhaps most stark in the communities with less robust tech hubs.
Quarry Yards, on Atlanta’s westside, has been a source of some promise and dashed hopes. In 2017, Georgia officials included the formerly industrial area on a list of sites where Amazon could build its second headquarters, as part of its pitch to the e-commerce giant. Amazon ultimately went with other cities, but four years later, another Seattle tech giant scooped up the land.
After the purchase, Microsoft described Quarry Yards as a place with “wide, tree-lined streets” but “broken sidewalks.” The area, Microsoft said, is “food desert with no grocery store, pharmacy or bank.”
The community, according to Hope, consists of “a lot of elderly, Black neighbors.” These residents, she said, have been worried about gentrification and displacement for years as housing prices and property taxes surge in the metro Atlanta region.
“Just the announcement of Microsoft coming into town” brought new buyers and developers into the area, she said, exacerbating these longstanding concerns. Data from Zillow indicates average home values in the neighborhood surged more at a significantly faster pace between January 2020 and December 2022 than Atlanta as a whole.
But residents also had cautious optimism about the benefits Microsoft promised to the community, according to Hope. Now, the community is left with higher prices but none of the promised improvements or economic opportunities. “We’re not going to see any benefits and only deal with the consequences,” she said.
“It feels like the community is now going to be burdened by this,” she said.
Hope’s community isn’t alone in confronting the whiplash of Silicon Valley’s real estate pullback. Late last month, the city of Kirkland, Washington, said in a press release that it had been notified by Google that the company will not be proceeding with its proposed redevelopment project that initially aimed to bring a massive new campus to the city.
In a Kirkland City Council meeting held just last summer, representatives from Google teased a slew of community benefits from the build — including infrastructure improvements, such as the creation of bike lanes and pedestrian trails, as well as a more than $12 million investment in affordable housing. The planning process between Google and the city had been taking place since the fall of 2020.
“As we continue to shape our future workplace experience, we’re working to ensure our real estate investments meet the current and future needs of our workforce,” Ryan Lamont, a Google spokesperson, told CNN in a statement. “Our campuses are at the heart of our Google community, and we remain committed to our long-term presence in Washington state.”
Even San Francisco, whose fortunes are tied to Silicon Valley more than any other city, is showing signs of strain from the one-two punch of the shift to remote work and office closures.
Office vacancy rates in the city hit a record high of 27.6% in the final three months of last year, according to CBRE, compared to the pre-pandemic figure of 3.7%.
“The previous high was about 20%, after the Dotcom bust,” Yasukochi, of CBRE, told CNN. “We’re at the highest point that our records have shown.”
The rise of remote and hybrid work had been a major driver in tech giants cutting back on their real estate investments, Yasukochi said. Then came the recent cost-cutting measures.
Local business owners say they are now feeling the impacts.
Mark Nagle, the owner of a 21-year-old Irish pub and restaurant in downtown San Francisco called The Chieftain, told CNN he has witnessed a “cascade of closures” of tech and corporate offices in his neighborhood recently — including the shuttering of a Snapchat office just down the street.
“We’re in a great location normally, we’re downtown,” Nagle said. But now his business is surrounded by several vacant retail spaces and multiple lots that are under construction.
The number of workers regularly coming into the area has not bounced back since the start of the pandemic, Nagle said, and neither has his business. Nagle said that in addition to workers stopping by for a drink at the end of their days, nearby companies would frequently hold events and meetings at The Chieftain, but that those have also largely dropped off.
At least six bars and restaurants in a two-block radius of him have shuttered in recent years, he said.
“You’re making do with less and it’s made the business so much more unpredictable,” he added. “And we’re one of the lucky ones that can keep their doors open.”
– CNN’s Clare Duffy contributed to this report.
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Home prices may harden in the spring, says Black Knight’s Andy Walden
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Andy Walden, Black Knight, joins ‘The Exchange’ to discuss rising rates and their impact on the housing market heading into the spring.
02:59
Mon, Feb 13 20231:44 PM EST
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Leading Texas Real Estate Team Forms New Company Under Sotheby’s International Realty Brand – Sotheby´s International Realty | Blog
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Sotheby’s International Realty has announced that Southern District Properties Group has joined the network and will now operate as Southern District Sotheby’s International Realty. The addition marks the brand’s continued growth in Texas and its 28th office in the state.
In 2022, the team achieved more than US$71 million in sales volume and has consistently been recognized in RealTrends’ rankings by volume and by transactions in Texas, achieving a Top 10 sales ranking for the last three years for Washington, Austin, and Fayette Counties. Southern District Sotheby’s International Realty is owned and operated by Cari Goeke who brings more than 20 years of experience to the firm.
“I am thrilled to welcome Cari and her powerhouse team to our network,” said Philip White, president and CEO, Sotheby’s International Realty. “Their expertise and industry recognition enables us to effectively target a growing market, which was recently described as ‘the Hamptons of Texas.’ The area has become popular for second homes, farms, and ranches, exemplifying the growing trend of buyers expanding their searches, and we look forward to supporting Southern District Sotheby’s International Realty.”
“Sotheby’s International Realty is the real deal,” said Goeke. “They are leaders in luxury and possess a phenomenal network around the globe, something we have been longing for in a company. Our clients come back to us time and time again because we work with integrity, and they trust that we always have their best interest in mind. Our affiliation with Sotheby’s International Realty allows us to build on our local knowledge and expertise that will further benefit our agents and clients.”
The company has two offices, one in Brenham, and another in Bellville, Texas. They also plan to open a third location in College Station. The company will service the South-Central Texas region, consisting of the greater Brazos Valley, Bryan-College Station and popular towns such as Brenham, Bellville, LaGrange, and beyond.
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Melissa Couch
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Dubai boom sees Russian cash, high rents and reborn projects
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DUBAI, United Arab Emirates (AP) — Fourteen years after a financial crisis nearly brought Dubai to its knees, several major abandoned real estate projects are finally showing signs of life as part of a new economic boom in the city-state.
As with previous upturns in Dubai, war is a driving force. But this time it’s Russian investors fleeing Moscow’s war on Ukraine, rather than people escaping Mideast battlefields.
“There’s lots of parts of the world where there are real challenges and people looking for a safe haven,” said Richard Waind, group managing director for Betterhomes, a real estate brokerage in the emirate. “I think that’s a safe haven both for the capital but also for their families.”
While there’s no sign the market could be in similar trouble as in 2009, some concerns have started to surface. Skyrocketing rental costs are worsening a cost-of-living squeeze for the foreign workforce that powers the emirate.
Meanwhile, the U.S. Treasury is worried about the amount of Russian money flowing into the real estate market of the most populous city in the United Arab Emirates.
“In theory, there should be significant reputational risk with the UAE apparently acting as a willing bridge, enabling Russian oligarchs to use the Emirates as a waystation between the Russian financial system and that of the West,” said Jodi Vittori, a nonresident scholar at the Carnegie Endowment for International Peace who has written extensively on Dubai being a money-laundering haven.
“But the reality seems to point otherwise,” she said.
Dubai’s government and the UAE’s Foreign Ministry did not respond to detailed questions from The Associated Press.
It’s hard to overstate just how much the Emirates has changed over the last half century. Since 1968, the seven sheikdoms that make up the UAE have grown from a British protectorate of some 180,000 people to a federation that’s home to more than 9.2 million. Government statisticians say 3.5 million people live in Dubai alone, with an additional 1.1 million who temporarily live in the city or commute there for work each day.
Oil, much of it from Abu Dhabi’s vast reserves, fueled the UAE’s initial modernization. After Dubai began allowing foreign ownership of “freehold” properties in 2002, the world’s tallest building, cavernous malls and sprawling subdivisions emerged from what once were uninterrupted stretches of windblown sand dunes.
Real estate now represents some 10% of Dubai’s overall gross domestic product. After a slump due to COVID-19 restrictions, Dubai saw 86,849 residential sales in 2022, beating a previous record of 80,831 set in 2009.
Buyers and renters have filled exclusive neighborhoods such as the Palm Jumeirah, a man-made archipelago in the shape of a palm tree that juts into the Persian Gulf.
The average asking rent for an apartment there is over $67,600 per year, with a villa renting for $276,000 annually, according to real estate firm CBRE. Analysts attribute growth in the luxury market to the wealthy fleeing pandemic restrictions elsewhere.
That pressure has grown even outside the world of the ultra-wealthy. Rents on average across Dubai are up 26.9% year-on-year, even with anti-price-gouging protections. Families living in villas can expect to pay median rents of $76,000 a year.
The sudden increase in rent prompted Gavin Hill, a 34-year-old car salesman from Essex, England, to move with his partner from a villa in the Dubai Hills neighborhood near downtown to a smaller apartment some 20 kilometers (12 miles) south.
“In terms of looking for a new place, previously it was reasonably easy,” said Hill, who has moved four times in the six years he has lived in Dubai. “This time it’s a minefield”
Russian money has helped fuel this.
Betterhomes, which has operated here since 1986, saw Russians lead all other nationalities in purchases by non-residents for the first time last year. Other real estate brokers have also acknowledged anecdotally the influence Russians have had.
“Since the crisis in Eastern Europe, we have seen a lot of Russians, a lot of Ukrainians as well, looking to both move their family and and money out there,” Waind said.
Dubai has a history of seeking a business advantage in crises like the Arab Spring, COVID-19 and now Russia’s war on Ukraine. During the Iran-Iraq war of the 1980s, its new Jebel Ali port repaired ships damaged by explosions and gunfire in the Persian Gulf. The U.S.-led wars in Afghanistan and Iraq saw wealthy émigrés arrive in Dubai and the wider UAE.
Those booms included what the West would consider dirty money as well. Some of the nearly $1 billion embezzled in the 2010 Kabul Bank scandal in Afghanistan went toward luxury homes on Palm Jumeirah. A cousin of Syrian President Bashar Assad tied to Assad’s sanctioned business dealings also owned property there.
It remains unclear how many Russians have bought in Dubai — and whether the purchases involve people fleeing potential conscription into the Russian army or mass purchases that can be the work of money launderers. Unlike in the U.S., where property records are public, Dubai does not offer an easily accessible database of transactions.
A team from the U.S. Treasury stopped in the UAE on a Mideast tour in January.
A senior U.S. official told The Associated Press that the agency is concerned about the Russian money coming into the Dubai real estate market. The official spoke on condition of anonymity due to the sensitivity about discussing sanctions.
Already, the Treasury has issued an alert aimed at U.S. commercial real estate stating that Russian oligarchs and their intermediaries could use “highly complex financing methods and opaque ownership structures” to hide illicit funds.
But it remains unclear what, if any, action Treasury would take, considering the defense and economic ties the U.S. has with the Emirates. A global body focused on fighting money laundering put the UAE on its “gray list” over concerns it isn’t doing enough to stop criminals and militants from hiding wealth there.
Once-abandoned projects that are showing new life include the Dubai Pearl, a planned $4 billion luxury development that was supposed to host multiple hotels and apartments in four, 73-story towers. Those plans collapsed during the 2009 financial crisis, brought on by the Great Recession, that forced Abu Dhabi to provide the city-state a $20 billion bailout.
Demolition crews are now bringing down the concrete husk of the Dubai Pearl, though plans for the site remain unclear.
Plans for the development of Palm Jumeirah’s forgotten twin, the Palm Jebel Ali, are also being relaunched.
One practice that helped fuel Dubai’s 2009 crisis involved speculators buying yet-to-be built properties. “Off-plan” flipping is growing again as initial buyers “are capitalizing on the current market upswing and cashing out with a premium in hand,” local firm Property Monitor said.
That company and others warn that speculative purchasing could lead to another bubble.
“This does suggest a rise in speculative activity, which is a feature of any market that is seeing price rises,” said Scott Livermore, the chief economist at Oxford Economics Middle East.
Hill — the renter from England — would like to buy a place if the market comes down again. But he’s cautious after what he’s seen in this boomtown.
Dubai “can eat people out and spit them out quite quickly,” Hill said. “I’ve seen too many people go crazy and then go bust very, very fast.”
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Follow Jon Gambrell on Twitter at www.twitter.com/jongambrellAP.
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KBKG Promotes Amar Patel to Principal of Cost Segregation
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Press Release
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Feb 13, 2023 09:00 EST
ATLANTA, February 13, 2023 (Newswire.com)
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KBKG, a tax credits and incentives consulting firm, has announced the promotion of Amar Patel to Principal of Cost Segregation. Patel is based out of the firm’s Southeast office and most recently spent the past two years as the Director of Cost Segregation.“Amar and I have known each other our entire careers, so I know what kind of person he is and what he is capable of,” said Jonathan Tucker, Principal. “Ever since Amar joined our team, he has continually proven why he is one of the best in the business at what he does. Amar is more than deserving of this promotion, as his work ethic is reflected in his ability to find tax-saving solutions for our clients. Everyone he works with enjoys his presence and what he brings to the table. I couldn’t be happier to be partners with my colleague I started my career with and to see how he will help our company continue its upward trajectory.”
For the last 16 years of practicing, Patel has become an expert in cost segregation and large fixed asset depreciation reviews for purposes of identifying federal, state, and property tax benefits. In his elevated role as Principal, Patel will lead KBKG’s cost segregation practice for the firm’s Southeast region, which includes cost segregation, fixed asset reviews, and tangible property reviews. Patel will also take on a national role of overseeing accounting method issues related to capitalization, Section 1031 interplay with cost segregation, and develop tax planning insights, as well as thought-leadership related to tax capitalization.
Along with his Georgia CPA license and American Institute of CPAs membership, Patel is also part of the American Society of Cost Segregation Professionals and is a Certified Authorization Filer with the IRS.
KBKG’s Southeast operations are based in Atlanta, Georgia, with a network of remote support throughout the region. Tucker is the firm’s Southeast regional leader and Principal of R&D Tax Credit Services. He oversees a growing team of technical experts that serve businesses located in Georgia, Florida, South Carolina, North Carolina, Tennessee, Alabama, and Mississippi.
About KBKG
Established in 1999 with offices across the U.S., KBKG provides turn-key tax solutions to CPAs and businesses, including research and development tax credits, cost segregation, green building tax incentives (45L tax credits and 179D deductions), transfer pricing for multinational businesses, and more. KBKG has office locations nationwide with employees located in Los Angeles, San Diego, San Francisco, Seattle, Chicago, Detroit, Atlanta, New York City, and Dallas-Fort Worth.For more information about KBKG, please visit KBKG.com.
Source: KBKG
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Fall Head over Heels for These 4 Romantic Homes – Sotheby´s International Realty | Blog
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Near the coast in Florida and California and amid the rugged terrain just outside Santa Fe, these four inviting homes feature firelit spaces, secluded suites, relaxing pools and spas, and private balconies with dazzling views—all creating an ideal environment for romance.
Sophisticated Santa Fe Estancia
Britt Klein | Sotheby’s International Realty – Santa Fe BrokerageOn 3.11 elevated acres to the northwest of historic downtown Santa Fe, this ranch-style estate—consisting of main residence, a guesthouse, a studio, and a climate-controlled five-car garage—exemplifies a rare blend of northern New Mexico and contemporary styles. Lofty ceilings with sturdy wood beams, warming river-rock fireplaces indoors and out, luxurious finishes and amenities—including a soaking tub with a picturesque view—and captivating mountain outlooks combine to create a uniquely enchanting ambience.
Casa de Sueños
Lisa Mastronardi | Sotheby’s International Realty – Palm Beach BrokerageDeftly combining Mission and Mediterranean aesthetics, this four-bedroom 1925 residence in Palm Beach and has been painstakingly renovated by an acclaimed designer. Contributing to the beguiling mood are a serene palette, luxurious baths, eye-catching woodwork, arched windows and French doors, a kitchen perfect for preparing gourmet feasts, a family room with a wet bar and a gas fireplace, and a very private yard with sunny terraces, breezy pergolas, colorful flora, a dramatic swimming pool, an outdoor fireplace, and an alfresco grilling area.
Peaceful Privacy in Beverly Hills
Marc Noah | Sotheby’s International Realty – Beverly Hills BrokerageA bastion of relaxed sophistication and modern Mediterranean style, this 6,561-square-foot villa enjoys a peaceful gated location on a cul-de-sac in Beverly Hills. Highlights include extensive use of soothing organic materials, a remarkably generous owner’s suite with a sitting area beside a fireplace and two spa-like baths, a casual living area with a stone fireplace and a private balcony enjoying sparkling skyline and mountain views, a heated covered outdoor living area with a kitchen, swaths of lush lawn, and a serene pool and spa.
Award-Winning Santa Fe Style
Tara Earley | Sotheby’s International Realty – Santa Fe BrokerageOn 1.57 gated park-like acres in the exclusive community of Las Campanas, this elegant 7,000-square-foot estate—a main residence and a casita—has been thoughtfully remodeled and is the recipient of multiple local design awards. Surrounded by gardens, a landscaped courtyard with a tranquil waterfall, and multiple outdoor lounging areas, it offers formal and casual living areas, a beautiful dining room, a stylish chef’s kitchen, a handsomely finished media room, extensive use of glass and river rock, and 10 warming fireplaces.
Discover luxury homes for sale and rent around the world on sothebysrealty.com
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Melissa Couch
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Luxury Real Estate Headlines: Second Week in February 2023 – Sotheby´s International Realty | Blog
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Highlights from this week’s top news stories on luxury and global real estate, art, collectibles, and home.
Potomac, Maryland | TTR Sotheby’s International Realty
The mansion was the formal estate of King Hussein and Queen Noor of Jordan.
Washington Commanders Owner Lists Potomac, Maryland, Estate for $49 Million – Mansion Global
Greenwich Estate That Held Title of America’s Priciest Home Lists – $150M – The Wall Street Journal
Showdown of the Super Bowl LVII Cities: Two Must-See Listings in Kansas City and Philly – Cottages & Gardens
Super Bowl LVII Kicks Off the 2023 Homebuying Season – Nerd Wallet
Greek Mansion With Roof Deck Overlooking the Aegean Sea Lists for €6.5 Million – Mansion Global
10 Best Places to Live on the East Coast – Travel + Leisure
Jim Carrey’s Los Angeles Estate Hits The Market For $28.9 Million – Forbes
5 art deco homes for sale in Belgium and France – The Spaces
In Eclectic Tel Aviv, Everything in Park Tzameret Is Shiny and New – Mansion Global
Sparkling Glass House Tees Up Carmel’s Best Ocean Views for $18.5M – Realtor.com
$370,000 Homes in Indiana, Vermont and Georgia – The New York Times
Lakefront Illinois Mansion With Hidden Theater Lists for $2.3 Million – Mansion Global
Joan Didion’s New York Apartment Is on the Market – Vogue Australia
Massive Waller County Ranch Hits Market for $35M – The Real Deal
This $45 Million Home At Dorado Beach Is Puerto Rico’s Most Expensive Listing – Forbes
The Most Expensive Home in the Florida Keys Lists for $29.75 Million – Mansion Global
On the Market: The ‘Entourage’ Mansion, a Tiny Skyscraper, and More Great Homes for Sale This Week – Dwell
6 Luxurious Homes with Great Bedrooms – The Week
This beautiful townhouse in Hudson will make you feel like you’ve never left Brooklyn – 6sqft
Homes for Sale in Manhattan and Brooklyn – The New York Times
$1.3B Robyn + Rachel Group rejoins Sotheby’s after 1 year at Compass – Inman
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Melissa Couch
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Builders will scramble to catch up to demand for years, says Santander’s Stephen Stanley
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UBS’s John Lovallo and Santander’s Stephen Stanley join 'The Exchange' to discuss the state of housing as more affluent Americans rent.
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Here’s what’s happening with home prices as mortgage rates fall
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An aerial view from a drone shows homes in a neighborhood on January 26, 2021 in Miramar, Florida. According to two separate indices existing home prices rose to the highest level in 6 years.
Joe Raedle | Getty Images
The U.S. housing market cooled off pretty dramatically last year, after mortgage rates more than doubled from historic lows. Home prices, however, have been stickier.
Prices began falling last June, but are still higher than they were a year ago. Now, as demand appears to be coming back into the market, due to a slight drop in mortgage rates, prices are pushing back.
In December, the latest read, U.S. home prices were 6.9% higher year over year, according to CoreLogic. That was the lowest annual appreciation rate since the late summer of 2020. Last April, annual price appreciation hit a high of 20%.
Falling home prices were reflecting weaker housing demand, as inflation, job cuts and uncertainty in the economy piled onto the barrier put up by higher mortgage rates. But mortgage rates began to fall in December, and prices reacted immediately. The cooling continued, but not as much as in the months before.
“While prices continued to fall from November, the rate of decline was lower than that seen in the summer and still adds up to only a 3% cumulative drop in prices since last spring’s peak,” said Selma Hepp, chief economist at CoreLogic.
Hepp notes that some of the exurban areas that became popular during the first years of the pandemic and saw prices rise sharply are now seeing larger corrections. But she doesn’t expect that will last long.
“While price deceleration will likely persist into the spring of 2023, when the market will probably see some year-over-year declines, the recent decrease in mortgage rates has stimulated buyer demand and could result in a more optimistic homebuying season than many expected,” Hepp said.
A monthly survey of homebuying sentiment from Fannie Mae showed an increase in January for the third straight month. Consumers surveyed said they still expected to see prices either fall or flatten over the next year, but the share of those who think it’s a good time to sell a home increased to 59% from 51%.
Early spring market surge?
More inventory on the market would help bring more buyers back into the market. Anecdotally, real estate agents are reporting an earlier-than-usual surge in the spring market, with open houses seeing more foot traffic in the last few weeks. Some also reported the return of bidding wars.
The nation’s homebuilders are also reporting increased demand. Homebuilder sentiment in January rose for the first time in 12 months, the National Association of Home Builders said. Builders reported increases in current sales, buyer traffic and sales expectations over the next six months. Lower mortgage rates are driving the new demand.
“With mortgage rates anticipated to continue to trend lower later this year, affordability conditions are expected to improve, and this will increase demand and bring more buyers back into the market,” said NAHB chief economist Robert Dietz.
The NAHB’s home affordability index started this year at the lowest level since it began tracking the metric a decade ago. But lower rates are starting to turn that around.
If home prices continue to decline at the average rate they have over the past six months, annual home price growth could finally go negative sometime within the next three months, according to a new report from Black Knight. It now takes nearly $600 (+41%) more to make the monthly mortgage payment on the average priced home using a 20% down 30-year rate mortgage than at the same time last year.
Mortgage applications to purchase a home, the most current indicator of demand, rose throughout January and the first week of February, although it is still lower than the same period a year ago, when rates were nearly half what they are now.
“We can see definite signs of a January uptick in purchase lending on lower rates and somewhat lower home prices,” said Ben Graboske, president of Black Knight Data and Analytics. “But affordability still has a stranglehold on much of the market.”
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9 Design Trends That Are Contemporary and Comfortable – Sotheby´s International Realty | Blog
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Marco Santos – Peninsula Sotheby’s International Realty
In recent years, living environments often felt clinical in their sculptural surfaces, pale palettes, and polished sheen, or they completely surrendered to plushness—as though the entire home wore a pair of sweatpants.
These tired trends have finally fallen by the wayside. Today’s aesthetic focuses on the individual: expressing the self creatively, feeling inspired by everyday items and spaces, and living according to deeply held values. All of these culminate in interiors that are enlivening without being needlessly embellished, and purposeful without being pointlessly austere.
Bursts of Expressive, Exciting Colors
Serena Boardman – Sotheby’s International Realty – East Side Manhattan BrokerageMinimalism had a moment. For a while, spare, airy spaces were seen as chic, as was a colorless monochrome of whites and neutrals. But now, blanched equals bland and color has returned—for the simple reason that it sparks joy. How could you walk into this spectacular, two-floor condo above the Ritz-Carlton Hotel, with its unobstructed views of Central Park, and not feel delighted by the unique, vibrant pops of primary hues?
Lines That Carry the Eyes to the Skies
Chantel Mehrabanian – Sotheby’s International Realty – Beverly Hills BrokerageThe most impressive architecture’s grandeur can be enhanced through meticulous symmetry and geometry. Views can be guided by the clever use of vertical lines, creating interiors that feel majestic and uplifting without having to be larger-than-life. The award-winning team behind the construction of this illustrious Bel Air address understood this concept, which energizes the property through shape and substance.
“Biophilia”—the Love of Living Things
Côte d’Azur Sotheby’s International RealtyOne of the best ways to bring a home to life is by bringing life into the home. That’s why houseplants have enjoyed such a renaissance; they’re beloved for their soothing colors, calming presence, and air-purifying qualities. But now, the “biophilia” trend has gained a new perspective. Rather than growing a jungle in the bay window, designers seek innovative ways to blend the interior and exterior environment, as exemplified by this gorgeous residence in Cannes with a mirrored terrace to better amplify the view.
Appreciation for Fine Craftsmanship
Kumara Wilcoxon – Kuper Sotheby’s International Realty The world has never been more aware of the social and environmental compromises that accompany mass production. So it’s no wonder trendsetters are moving towards one-of-a-kind objects, fixtures, and furniture made masterfully by hand. That’s the concept behind this breathtaking Austin penthouse. Bespoke sliding doors that double as art, biennale-worthy lighting installations, and the primary suite’s suspended swing make this an ideal place to live, work, and play.
Reclaimed and Refurbished Materials
Angelica Ferguson and Annabel Taylor – Four Seasons Sotheby’s International RealtyThe era of throwaway convenience is over. Architects, designers, and homeowners want to minimize waste, which means using new ways to recycle and repurpose materials once deemed unsalvageable. That spirit animates this remarkable mansion in Upstate New York, which has served as everything from a church to a town hall over the centuries, but is now a modern dwelling that makes the most of its restored wood and stone.
Taking What’s Old and Making it New
Juan Torregrosa – Costa Blanca Sotheby’s International RealtyIt’s not just material infrastructure that trendsetters are creatively resurrecting. It’s also architecture and decor, which are increasingly being modelled after second-hand sources to yield an aesthetic that’s as authentic as it is eclectic. Take a look at how this property on Spain’s Mediterranean coast exudes tasteful vintage vibes through design that infuses Art Deco with Mid-Century.
A Look and Lifestyle That Goes Green
Marco Santos – Peninsula Sotheby’s International Realty Sustainability has been trendy for designers and homeowners for several years running. But as cheaply made goods and planned obsolescence become taboo, the desire for back-to-the-land living becomes more pronounced. This pastoral, lakeside retreat in Australia fully leans in, set amid a beautifully preserved bird sanctuary. It also capitalizes on several current design-forward trends, from the bold black ceilings accentuating its interior details, to “jewel box” rooms paneled in gleaming tile.
Celebrating What’s Local and Natural
Ricky Allen and Cathy Griffith – Sotheby’s International Realty – Santa Fe – Main Downtown BrokerageClosely related to sustainability is a focus on sourcing materials and furnishings from organic, hyperlocal sources. Today’s most inventive designers work with various materials—fruit peels, petals, algae, fungus—to fashion tomorrow’s textures and textiles. With American clay walls and chic adobe guesthouses, this edgy Santa Fe estate is well ahead of the curve.
Looking ahead, the emerging trends in architecture, design, and decor emphasize living consciously, conscientiously, and happily. It’s time, once and for all, to embrace living spaces that feel as fabulous as they look.
It’s easier than ever before to create a luxurious residence that’s also kind to the planet. Get inspiration with these nature-inspired design trends.
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Melissa Couch
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