News outlet CNET said Wednesday it has issued corrections on a number of articles, including some that it described as “substantial,” after using an artificial intelligence-powered tool to help write dozens of stories.
The outlet has since hit pause on using the AI tool to generate stories, CNET’s editor-in-chief Connie Guglielmo said in an editorial on Wednesday.
The disclosure comes after CNET was previously called out publicly for quietly using AI to write articles and later for errors. While using AI to automate news stories is not new – the Associated Press began doing so nearly a decade ago – the issue has gained new attention amid the rise of ChatGPT, a viral new AI chatbot tool that can quickly generate essays, stories and song lyrics in response to user prompts.
Guglielmo said CNET used an “internally designed AI engine,” not ChatGPT,to help write 77 published stories since November. She said this amounted to about 1% of the total content published on CNET during the same period, and was done as part of a “test” project for the CNET Money team “to help editors create a set of basic explainers around financial services topics.”
“Editors generated the outlines for the stories first, then expanded, added to and edited the AI drafts before publishing,” Guglielmo wrote. “After one of the AI-assisted stories was cited, rightly, for factual errors, the CNET Money editorial team did a full audit.”
The result of the audit, she said, was that CNET identified additional stories that required correction, “with a small number requiring substantial correction.” CNET also identified several other stories with “minor issues such as incomplete company names, transposed numbers, or language that our senior editors viewed as vague.”
One correction, which was added to the end of an article titled “What Is Compound Interest?” states that the story initially gave some wildly inaccurate personal finance advice. “An earlier version of this article suggested a saver would earn $10,300 after a year by depositing $10,000 into a savings account that earns 3% interest compounding annually. The article has been corrected to clarify that the saver would earn $300 on top of their $10,000 principal amount,” the correction states.
Another correction suggests the AI tool plagiarized. “We’ve replaced phrases that were not entirely original,” according to the correction added to an article on how to close a bank account.
Guglielmo did not state how many of the 77 published stories required corrections, nor did she break down how many required “substantial” fixes versus more “minor issues.” Guglielmo said the stories that have been corrected include an editors’ note explaining what was changed.
CNET did not immediately respond to CNN’s request for comment.
Despite the issues, Guglielmo left the door open to resuming use of the AI tool. “We’ve paused and will restart using the AI tool when we feel confident the tool and our editorial processes will prevent both human and AI errors,” she said.
Guglielmo also said that CNET has more clearly disclosed to readers which stories were compiled using the AI engine. The outlet took some heat from critics on social media for not making overtly clear to its audience that “By CNET Money Staff” meant it was written using AI tools. The new byline is just: “By CNET Money.”
Ultra-high net worth real estate has long been full of hot shots, narcissists, and bravado.
In turn, unscripted reality shows like Bravo’s “Million Dollar Listing” and Netflix’s “Selling Sunset” have minted ratings and superstars out of realtors and developers, many of whom were just scrapping to get a listing or a loan a few years earlier.
Luxury real estate is also rife with hyperbole: browse through most multi-million dollar listings in Miami, Manhattan, or Los Angeles, and you’d be tempted to believe that every kitchen is fit for a Michelin-starred “chef” and that each fixture and finish belongs in the Louvre.
Acqualina Resort & Residences Master’s-quality oceanfront lawns and red umbrellas are two of its … [+] signature design elements
Courtesy of Acqualina Resort & Residences
The North and South Towers of The Estates At Acqualina and Villa Acqualina in between are the Trump … [+] Group’s latest magnum opus in Sunny Isles Beach, Florida 30 minutes north of Miami
Courtesy of The Estates At Acqualina
Against this background, it wouldn’t be unreasonable therefore to think that the tagline for the recently completed Estates At Acqualina in Sunny Isles Beach—a.k.a “The World’s Finest Residences”—might whiff of a little aggrandizement.
If you’re familiar with Florida’s “other Trumps”, however, you’d also be totally wrong since hyperbole is not their style and perfection is what they do.
Acqualina Resort & Residences 25′ arched dome lobby evokes the grandeur and opulence of the world’s … [+] finest hotels
Courtesy of Acqualina Resort & Residences
Seventeen years ago in 2006, South African-born brothers, entrepreneurs, and real estate developers Jules and Eddie Trump, along with Jules’ wife Stephanie (none of them related to the former President), opened Acqualina Resort & Residences, spanning 4.5 oceanfront acres with 98 guest rooms, 188 residences, and award-winning restaurants and amenities all wrapped up within a 51-story tower fronted by 400’ of perfectly-manicured Atlantic Ocean beach 30-minutes north of Miami.
Acqualina Resort & Residences includes more than 1200′ feet of prime South Florida beachfront with … [+] four oceanfront pools
Courtesy of Acqualina Resort & Residences/Benjamin Edelstein
Acqualina’s uber-luxe oceanfront suites have unobstructed views stretching all the way to the … [+] Bahamas
Courtesy of Acqualina Resort & Residences/Troy Campbell
In the process, the Trumps succeeded in setting a new high bar for luxury real estate and hospitality in South Florida. More substantially, Acqualina also put Sunny Isles Beach on the map as the epicenter of Florida’s new “Riviera”.
Over the next few years, Acqualina quickly became one of the most coveted hotel reservations in the world (no hyperbole here). It’s earned Forbes Travel Guide’s Five Star and AAA’s Five Diamond Awards—both luxury hospitality gold standards—fourteen years in a row, and recently was ranked the #1 Best Destination Resort in America by USA Today.
As a result, if you call up to book a room at Acqualina on any date other than a Monday in August, you’ll likely to be met with a typical, perpetual refrain: “Sorry. We don’t have anything available for those days”—which, if you’re the Trumps, is a good problem to have when your starter rooms go for an average of $1,200 a night.
“Our initial vision with Acqualina was to build a family-run hotel that had all of the elements of the finest resorts in Saint-Tropez with the elegance of a great, historic city hotel,” says Jules Trump about their original vision for Acqualina and the gap they presciently saw in the market.
“Stephanie, Eddie, and I all felt back then that what was really missing in luxury hospitality were great amenities and creature comforts, particularly while spending the day on the beach, including everything from dining and drinks to exceptional service and spas. We wanted our guests to step into the exclusive world of Acqualina and feel as though their every wish and desire had been anticipated before they even had to ask for it.”
The four pillars of Acqualina are spread out along 1,200 of pristine, uninterrupted South Florida … [+] oceanfront. From left to right: The Mansions At Acqualina, Acqualina Resort & Residences, The Estates At Acqualina South Tower, Villa Acqualina, and The Estates At Acqualina Boutique North Tower
Courtesy of The Estates At Acqualina
Using Acqualina Resort’s success as a springboard, the Trumps opened The Mansions At Acqualina next door a decade later in 2015, which consisted of 79 private residences in an iconic 47-story building designed by Cohen Freedman Encinosa & Associates that’s still the tallest in Sunny Isles Beach at 643’.
Billed as Florida’s first “mansions in the sky”, The Mansions At Acqualina delivered on almost every detail, finish, and amenity that hadn’t previously been pushed in luxury real estate before. It also set a new standard for what the synergy of world-class design, art, architecture, and lifestyle on the beach could look like—something which every other South Florida developer is still trying to catch up and outduel each other on.
Not surprisingly, especially given their perfect timing well after the Great Recession, The Mansions At Acqualina fully sold out within months of launching sales, further solidifying the Trumps’ repute as one of the leading luxury real estate developers in the world—even if their legendary lack of presence in the press and shouting their success from their penthouse rooftops belies their more innately modest and humble side.
The Estates At Acqualina’s Boutique North Tower will begin moving its first residents in in spring … [+] 2023. A select few residences are available for re-sale in both towers ranging from $39 million to $85 million
Courtesy of The Estates At Acqualina
The Estates At Acqualina like the resort and The Mansions effortlessly blend contemporary … [+] architecture and design with old world European style
Courtesy of The Estates At Acqualina
Fast forward another six years to now and the Trumps’ newest development—The Estates At Acqualina, which brings to market 245 residences in two gleaming, glass waterfront towers this time on the north end of the resort—somehow manages to raise the luxury real estate bar again.
The Estates’ budget is part of that success, which at $1.8 billion makes it one of the most expensive new residential developments in America. This perfection-at-any-cost ethos ensured that no expense would be spared to surpass buyers’ expectations at every level, from the world-class architects, interior designers, and craftsmen behind the planning and construction down to every material, finish, and fixture and the bolts, screws, and rivets that hold it all together.
With a budget of $1.8 billion The Estates At Acqualina is one of the most expensive residential … [+] developments in America and also its most luxurious
Courtesy of The Estates At Acqualina
Jules, Eddie, and Stephanie Trump’s original vision for The Estates At Acqualina was to combine … [+] unparalleled art, architecture, and lifestyle with the finest amenities in the world
Courtesy of The Estates At Acqualina
The other driver of The Estates’ success has been clarity of vision—and equally importantly, the ability to execute on it, which not coincidentally has been one of the Trumps’ real estate hallmarks for more than four decades since they first developed Miami’s Williams Island back in the 1980s.
Since its origin moment, the Trump Group’s aspiration for The Estates at Acqualina was to create a luxury lifestyle that would set it apart from anything else in the world, and to design a building from the inside out within which those details, experiences, indulgences, and amenities could be brought to life in a way that would be effortless and osmotic.
“Perfection in anything isn’t easy to achieve,” says Jules, “But The Estates at Acqualina is quite simply that. After the incredibly successful opening of Acqualina Resort & Residences fifteen years ago, followed by the creation of The Mansions at Acqualina, The Estates go even further than we ever thought we could go. No expense was spared to design and build the two towers, everything is the best in its class, and our quality is incomparable in terms of the materials we’ve used including mosaics, marbles, and metals. The Estates are also a celebration of art, architecture, and lifestyle and a pursuit of perfection that you’ll see manifested everywhere, from the grand formal entrance to the signature integration of modern and classic architecture to the exemplary services that we offer to our residents.”
Acqualina’s indoor ice skating rink within the Circus Maximus
Courtesy of Acqualina Resort & Residences
The Estates At Acqualina’s private poolside cabanas
Courtesy of Acqualina Resort & Residences
The Estates At Acqualina include almost 6 acres of outdoor amenities and greenspace
Courtesy of Acqualina Resort & Residences
Not surprisingly—and with a little boost from the pandemic which sent 40 and 50-something, deep-pocketed buyers from New York in particular fleeing to Florida for larger floor plans and an upscale work-from-home lifestyle—both The Estates’ North and South Towers pre-sold out by mid-2021 within six months of launching sales.
The Estates’ amenities and exclusivity were a big part of that, in addition to the towers’ beachfront real estate and Florida’s tax advantages, says Jules, which helped to attract buyers with younger families who naturally gravitated to six acres of Masters-quality lawns, landscaping, and pools on the ocean, a quarter-mile of postcard beachfront, five restaurants, and over 45,000 SF of indoor and outdoor amenities within the Tuscan-styled Villa Acqualina connecting The Estates’ two towers.
Private bowling lanes are one of the dozens of family-centered amenity perks at The Estates At … [+] Acqualina
Courtesy of The Estates At Acqualina
The Wall Street Traders Club at The Estates At Acqualina was designed with buyers from New York City … [+] in mind
Courtesy of The Estates At Acqualina
The Estates At Acqualina’s night club in Villa Acqualina is designed so that parents are afforded as … [+] much fun as their children
Courtesy of The Estates At Acqualina
The entrace to The Estates At Acqualina’s world-class private spa and AcquaFit wellness and fitness … [+] sancutary
Courtesy of The Estates At Acqualina
“The Estates not only provides the world’s finest residences,” Jules tells me with a rare note of self-satisfaction, “But also the world’s most luxurious amenities for our residents, redefining the standard for sophisticated living. The Acqualina brand has always prided itself on putting our residents first, and Villa Acqualina is an unprecedented offering in a residential development, including a spa, an ice skating rink, bowling lanes, a movie theater, a kids club, a teen room, an amazing health and fitness sanctuary called Acquafit with a juice bar, salt room, and boxing gym, and a Wall Street Trader’s Club where residents will have access to ticker tape, computers, and a board room.”
Karl Lagerfeld’s exclusive lobbies are The Estates At Acqualina are his only residential commission … [+] in the U.S.
Courtesy of The Estates At Acqualina
Lobbies by Karl Lagerfeld are one of The Estates At Acqulina’s signature design elements
Courtesy of The Estates At Acqualina
If The Estates At Acqualina has a penultimate pièce de resistance, however, for Jules, Eddie, and Stephanie it’s the towers’ lobbies, both of which were designed by German designer Karl Lagerfeld, who was for decades was creative director for the French fashion house Chanel. The Estates’ lobbies are Lagerfeld’s only residential commission in the U.S. (Lagerfeld died in 2019), so they hold a special place for the Trumps given their reverence for world-class design and architecture.
“The Estates architecturally are purposefully a combination of contemporary elements and design merged with European Old World style that Eddie and I, along with my wife Stephanie, personally love,” says Jules. “We’ve found that our buyers love it too. So, when we committed to creating ‘The World’s Finest Residences’ at The Estates at Acqualina, we knew that had to be apparent from the minute our residents stepped through the door. Thus, the lobby design was a very important decision. Toward that end, it was an obvious choice to have our lobbies designed by one of the world’s most important designers: Karl Lagerfeld, the very master of modern creativity. We also take great pride in the fact that Karl chose Acqualina as his first residential project in the United States to bring his eye for opulence, luxury, design, and style to.”
Avra Miami is one of the city’s hottest new dining spots
Courtesy of The Estates At Acqualina
Avra Miami includes more than 12,000 square feet of indoor and outdoor oceanfront dining space
Courtesy of The Estates At Acqualina
On the culinary front, The Estates is no less world-class in its A-list, pursuit of perfection than its lobbies, architecture, and amenities.
Avra—the first expansion of the iconic New York City Greek restaurant—recently opened in Villa Acqualina in November 2022 to great fanfare and is now one of Miami’s hottest new dining spots.
“At The Estates, Avra has quickly become one of the biggest selling points,” says Jules. “It’s more than a $10 million venture—the restaurant is 12,000 square feet, including an al fresco dining area that overlooks the ocean. The design includes an infinity pool, a collection of contemporary art and a panoramic bar. The restaurant flies in fish from the Mediterranean every day and has its own network of fishermen and produces its own olive oil. Based on my numerous times dining at Avra in New York, dining there is an experience that transcends your typical meal out and creates a one-of-a-kind experience.”
The entrance into the two-story Casa D’ Oro priced at $39 million
Courtesy of The Estates At Acqualina
Casa D’ Oro features more than 11,000 square feet of living space in two-stories with direct beach … [+] access and a private pool
Courtesy of The Estates At Acqualina
The view in the morning from Casa D’ Oro’s master bedroom quite
Courtesy of The Estates At Acqualina
If everything about all of this sounds appealing, billionaire neighbors are your thing, and you have a few million to spare, a few residences at The Estates At Acqualina can still be yours via re-sale.
The first is Casa D’ Oro, a two-story, turn-key, single-family home in the South Tower that’s just re-hit the market for $39,000,000.
Furnished by Fendi Casa, Casa D’ Oro flips the script on the typical South Florida condo model which for decades has priced properties vertically—namely that the higher up you go the more expensive (and usually larger) units sell for per square foot.
Casa D’ Oro is the anti-penthouse, located on the South Tower’s ground floor right next to the Acqualina resort with direct beach access, a private pool, outdoor summer kitchen, a private elevator, a four-car garage, 11’ ceilings, and six bedrooms and 7 ½ baths spread out across 11,605 impeccably furnished square feet.
Every residence at The Estates At Acqualina features sweeping oceanfront views all the way to the … [+] Bahamas
Courtesy of The Estates At Acqualina
The second is an unfinished 15,000-square-foot, four-story residence located in the Boutique North Tower that’s now on the market for $85 million—which if it sells for anywhere near its asking price would be the most expensive condo ever sold in South Florida, besting the current record of $60 million hedge fund billionaire Ken Griffin paid for his 12,500 square foot Faena House pad in Miami Beach in 2015.
Named Casa di Coba after its current owners Joshua and Jenni Coba—who made a fortune in haircare and are reselling the condo to take advantage of Miami’s still smoking hot real estate market—the residence has seven bedrooms, nine bathrooms, six powder rooms, a private pool and four-car garage, its own elevator, a three-story spiral staircase, a 3,100 square foot guest house, and a private oceanfront cabana furnished by Fendi.
Acqualina Resort & Residences is the most award-winning oceanfront resort in the world 14 years in a … [+] row
Courtesy of Acqualina Resort & Residences
As for the Trumps next magnum opus after The Estates, Jules, Eddie, and Stephanie remain coy. But inertia isn’t their thing.
“We’re always looking at new opportunities and places where we can raise the bar again and build something that sets a new standard for luxury and lifestyle,” Eddie tells me with a wry smile. “Where and what that is, you’ll just have to wait and see.”
Judging from what he, his brother Jules, and Stephanie have done before, however, every other developer should be holding their breath as well.
Take in gorgeous views from this contemporary mountain home in the exclusive community of Red Ledges.
Situated atop one of the most prominent ridgelines in Red Ledges, this home features five bedrooms, a gourmet kitchen, a theater and generous outdoor living spaces sited to take advantage of the incredible views and privacy that this wooded property provides.
The home features two large open living areas. Sold fully furnished, the home is ready for family vacations and entertaining.
These are tricky times in the stock market, so it pays to look to the best stock-fund managers for guidance on how to behave now. Veteran value investor Bill Nygren belongs in this camp, because the Oakmark Fund OAKMX he co-manages consistently and substantially outperforms its peers.
That isn’t easy, considering how many fund managers fail to do so. Nygren’s fund beats its Morningstar large-cap value index and category by more than four percentage points annualized over the past three years. It also outperforms at five and…
It may come as no surprise that among millennials who have intended to buy a house this year, 92% said in a recent survey that inflation has impacted their goal.
Yet most of them aren’t letting it serve as a roadblock, according to the survey from Real Estate Witch, an education platform owned by real estate data firm Clever.
While 28% of those millennials are delaying their buying plans, the remainder say they’re responding by saving more money for the purchase (59%), spending more than expected (36%), buying a fixer-upper (26%) and buying a smaller home (25%).
Millennials — who are roughly ages 27 to 42 — are in their prime homebuying years. The typical first-time buyer was age 36 in 2022, up from age 33 in 2021, according to the National Association of Realtors.
Last year, first-time buyers made up 26% of home purchases, compared with 34% in 2021. The combination of year-over-year double-digit price jumps for much of 2022 and rising mortgage rates created an affordability problem for many buyers.
However, the situation is gradually improving as home prices continue sliding. The median price for an existing house was $366,900 in December, just 2.3% higher than a year earlier and down from $370,700 in November, according to the Realtors association. Last June, the median price was $416,000 — 13.4% higher than in June 2021.
Additionally, interest rates on mortgages have eased. The average for a 30-year fixed-rate loan is 6.21% as of Jan. 24, according to Mortgage News Daily. That compares with 7.32% in late October. As buyers know, the higher the rate, the more their monthly payment is.
While it’s impossible to predict where rates will be as the year progresses, experts say buyers shouldn’t wait around for mortgage rates to drop to where they were in 2020 and 2021 — below 3% or not much over it — because it’s unlikely to be seen again anytime soon.
Rates were that low due to emergency actions taken by the Federal Reserve to prop up the economy in the wake of the Covid pandemic hitting the U.S. in 2020.
“Those were unusual circumstances,” said Lawrence Yun, chief economist for the National Association of Realtors.
“Buyers should have the mindset that the new normal is a rate of 5% or 6%,” Yun said.
One headwind that buyers may face is limited choices.
As of last month, there was a 2.9-month supply of homes — meaning at the current sales pace, that’s how long it would take to sell all listed houses if no more came on the market. That’s down from 3.3 months in November but up from 1.7 months in December 2021. A balanced market involves a supply of four to five months, according to Redfin.
“There’s not that much inventory in the marketplace,” Yun said.
“Even with the housing slowdown, days on the market are still less than a month,” he said. “That implies that people in the market to buy are finding a listing they want and snatching it up quickly.”
If you’re hoping to find a seller who’s more likely to come down on price, one strategy is to look for homes that have been on the market longer.
“There’s usually a lot of competition for new listings,” he said. “If you find a home that’s been on the market for at least a month or two, it’s a great opportunity … sometimes sellers will take 10% to 15% off the list price.”
Additionally, be aware that while sellers had been less likely to go under contract with a contingency — i.e., making the final sale contingent upon, say, a home inspection — that dynamic has largely changed.
“Waiving the appraisal and waiving of inspections really walked hand in hand with low interest rates,” said Stephen Rinaldi, founder and president of Rinaldi Group, a mortgage broker based near Philadelphia.
Except for in premium areas, in most cases sellers are back to allowing contingencies.
Stephen Rinaldi
founder and president of Rinaldi Group
“Except for in premium areas, in most cases sellers are back to allowing contingencies,” Rinaldi said.
Also, if you’re looking at homes close to a city, it may be worth expanding your search radius, Yun said.
“There are always more affordable houses further out,” he said. “And those homes tend to stay on the market for a longer period.”
It may also be worth considering an adjustable-rate mortgage if you’re trying to bring the cost down, Yun said.
With an ARM, the appeal is its lower initial rate compared with a traditional fixed-rate mortgage. That rate is fixed for a set amount of time — say, seven years — and then it adjusts up, down or remains the same, depending on where interest rates are at the time.
“Usually the first home isn’t owned for a long period, usually it’s five or seven or 10 years,” Yun said. “So with that in mind, an ARM might make more sense because it offers a lower rate and by the time it’s set to adjust, it’s time to sell the house.”
While there’s a limit to how much the rate can change, experts recommend making sure you’d be able to afford the maximum rate if faced with it down the road.
You may be able to find an ARM whose introductory rate is at least a percentage point below fixed rates, Rinaldi said.
“I think it’s worth evaluating, depending on the person’s situation,” he said.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($726,200 or less) decreased to 6.2% from 6.23%, with points increasing to 0.69 from 0.67 (including the origination fee) for loans with a 20% down payment. That rate was just about half that one year ago.
Applications to refinance a home loan saw the sharpest gains, up 15%, compared with the previous week. They were still 77% lower than the same week a year ago, but that annual gain is now shrinking fast.
Mortgage applications to purchase a home rose 3% for the week but were 39% lower year over year. Homebuyers are still trickling back into the market, as house prices ease slightly. There is still, however, precious little to choose from with inventory low.
“Homebuying activity remains tepid, but if rates continue to fall and home prices cool further, we expect to see potential buyers come back into the market,” said Joel Kan, an MBA economist. “Many have been waiting for affordability challenges to subside.”
Mortgage rates have moved slightly higher to start this week, but are still well within the new lower range. Some real estate brokerages, like Redfin, are reporting an uptick in buyer interest with rates at these levels, but the housing market still seems to be in a holding pattern, as potential sellers and buyers sit tight, waiting to see where prices shake out.
Recognized for their impact on the architectural landscape of Los Angeles, Mehdi and Mandi Rafaty of the lauded firm of Tag Front create homes with a unique modern aesthetic, incorporating refined textural and sculptural details that bring complexity, simplicity, and functionality into stylish harmony. A singular construction, this one-of-a-kind 20,000-square-foot residence unites soothing surfaces of blonde hardwood with aluminum, steel, and expanses of glass, resulting in bright, airy interiors and a façade that seems to disappear amid sunsets, clouds, and sky from its perch on one of the finest estate sites in Los Angeles. Interior design by the esteemed César Giraldo furthers a sense of home as both a sophisticated hideaway and a veritable personal museum.
A dedication to distinctive design is immediately apparent in the organically curving roofline. At the home’s entrance, a manicured pathway leads beside a lush living wall and across a water feature, introducing views of the ocean, Catalina Island, hills, and canyons. Indoors, the creative inspiration continues in clean lines, geometric shapes, and eye-catching angles. A striking bespoke light fixture formed from a constellation of glass globes descends at the center of a winding, spiraling staircase that becomes a veritable art installation hovering above the living and entertaining areas.
One lofty, relaxed space is warmed by a multi-sided contemporary gas fireplace, while the formal dining room is wrapped in glass. Separated by an artful assemblage of open shelves are a lounging area giving way through a disappearing glass wall to a chic verandah and a casual living space adjoined by a bar with a sculptural wall. Nearby is a streamlined Poliform kitchen with a breakfast area and discreet caterer’s galley—all sure to satisfy the aesthetically minded as well as cooks of all skill levels.
In the impressively spacious owner’s suite—one of nine bedrooms—the curved architectural roof creates an oversized skylight on the edge of the suite’s soaring ceiling. Also included are a sitting area, a fireplace, two walk-in closets with numerous built-ins, and a sleek spa-like bath with tubs, a glass-walled steamshower, and dual vanities. A private glass-railed balcony gazes out toward the hills and horizon.
Leisure and wellness are easily accommodated on the lowest level, which includes a theater with eye-catching ceiling sound baffling, a Technogym-equipped gym with a mirrored wall, a sauna, and “wet room” with a soaking tub and open rain shower, and a contemporary wine lounge with capacity for a collection of more than 1,100 bottles.
Just outside the main level, the home’s lustrous glass rear façade is mirrored in the smooth surface of the alluring infinity-edge pool and spa. Beyond, seemingly suspended over the canyon, are some 1.6 acres encompassing lush lawn, a lanai, and a patio area with a gas fire pit set amid verdant grass and privacy hedges—a serene sanctuary high above bustle of the city.
This dip in rates provides welcomed relief for many potential homebuyers who’ve put their dreams on pause thanks to high mortgage interest rates, which have drastically reduced their buying power.
On top of reduced interest rates, the Federal Housing Finance Agency (FHFA) has announced changes to its fee structure beginning May 1, 2023. These changes affect conventional loans and will reduce the cost of a loan for certain borrowers (while increasing it for others).
Plus, according to Redfin, average home prices in the U.S. have continuously dropped, albeit slowly, since hitting their peak in May 2022.
With rates lower than they have been and fee changes coming down the pipeline, it’s a good time to reassess the home-buying plans you may have put on hold and decide if now is the time to act.
Subscribe to the Select Newsletter!
Our best selections in your inbox. Shopping recommendations that help upgrade your life, delivered weekly. Sign-up here.
If a painfully-high interest rate was the only thing holding you back from signing a mortgage, then you may want to jump on today’s (relatively) low rates.The Federal Reserve has been steadily increasing its benchmark Federal Funds rate and has signaled its intent to continue this pattern until inflation is under control. As long as the Federal Funds rate stays high, so will mortgage rates.
The recent dip in rates represents a significant savings for home buyers. Today’s 30-year mortgage rates are currently 0.93% lower than they were last fall, when rates hit 7.08%. For a $500,000 home loan, a 0.93% lower rate saves you $300+ on your monthly payment and over $110,000 in interest over the life of the loan.
To get the lowest interest rate on your mortgage, however, you’ll want to make sure your credit score is as high as possible. This may be the most-important step you can take when trying to get the best terms on a mortgage.
But before committing to buying a home, you’ll need to save up money for a down payment and closing costs. These upfront costs can easily add up to 10%- 20% of the home’s purchase price. On top of that, it’s a good idea to have money set aside for maintenance, repairs and moving costs. You’ll need to make sure you have enough money saved up before starting your home search.
One way you can reduce some of the upfront costs of buying a home is to compare offers from lenders that don’t charge origination fees. Here are some of the best lenders with no origination fees according to our rankings:
The upcoming FHFA fee changes affect conforming conventional loans, which can be sold to Fannie Mae or Freddie Mac by lenders. More niche mortgages, such as jumbo loans, FHA loans and VA loans will not be affected by these changes.
The specific fees that are changing are known as Loan Level Price Adjustments (LLPAs), which are risk-based fees applied to loans. Lenders base these fees on factors such as the borrower’s credit score, the loan-to-value ratio (LTV) and the type of mortgage. In general, you’ll pay more if your credit score is lower or if you’re borrowing a higher percentage of the property’s value (i.e. higher LTV).
The future fee changes will add an additional layer of complexity to a process that already causes heads to spin. For example, the LLPAs for a purchase mortgage will drop for some borrowers with lower credit scores, while borrowers with higher credit scores could be paying more in certain circumstances.
Given the amount of nuance with LLPAs, it’s important to have a conversation with your lender (or multiple lenders) to see how the upcoming changes could affect your home loan. Keep in mind that although the changes apply to loans sold to Fannie Mae or Freddie Mac from May 1, 2023, lenders will begin adjusting their fees well before that deadline.
Mortgage rates have dipped in recent weeks, which can help make your future mortgage payments more affordable. Just be sure to pay attention to the fees, in addition to the rate, when you are comparing mortgage loan offers.
Also, certain fees associated with conventional loans are changing soon, which could save you money or cost you more depending on your situation. So if you’re in the process of buying a home, talk with your lender to figure out how you’ll be affected.
Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.
Opinions expressed by Entrepreneur contributors are their own.
Due to higher home mortgage loan interest rates, many homebuyers are sitting on the sidelines, waiting to purchase a home. The high-interest rates have also reduced the homebuyer’s purchasing power making a once manageable monthly mortgage payment an unaffordable expense.
However, homes that show well, are priced well and are in a highly desirable part of town will sell very quickly with multiple offers. If not, your home may be on the market for 30-plus days before you receive an offer.
If you’re thinking of calling an agent, like me, to purchase or sell a home, here are a few ways to prepare yourself for the journey ahead; have all of the money matters taken care of. What I mean by that is to be pre-approved for a mortgage loan if you’re purchasing a home and know how much you’re going to net off the sale of your current home if you’re planning to sell it. Assuming the home is presentable, we’ll be ready to show it within a few days.
You already know buying or selling is not an overnight task, but how much time it takes depends on the layout of your home and your budget. Don’t take the chance of making a bad first impression in real estate.
To decide on an agent, first complete the following:
1. Get a mortgage pre-approval
To begin, research your mortgage choices before signing a contract with a real estate agent. The mortgage you can afford depends on several factors, including the length, price and interest rate of the mortgage you choose.
Getting pre-qualified for a mortgage is not the same as getting pre-approved. Both pre-qualification and pre-approval need a thorough examination of your financial situation, but only the latter requires a formal mortgage application.
Your search for a new home should be limited to properties within the price range established by the mortgage for which you have been pre-approved. However, if you plan on selling simultaneously, you should research comparable homes in the neighborhood. Remember that the asking prices listed in real estate ads, whether online or in print, are all you will learn. A real estate agent can provide information on how long a home has been on the market, if there have been any price reductions and, most crucially, how much you may expect to pay at closing.
While studying the real estate market is crucial, avoiding falling in love with any particular property is essential. If you need to sell your current house before buying a new one, there’s a good possibility the property won’t still be available when you’re ready to purchase. Offers contingent on selling another property, known in the real estate market as “yes, but…” offers, have a lower likelihood of being accepted by the seller than those with a stable financial background.
Many of us have seen “Trading Spaces” and feel confident in our home-staging abilities. You probably already know that making a good impression on your real estate agent is crucial. If you want your real estate agent to see the full potential in your home, you should have an open house before they come over.
Extra shoes and coats should be stored. Keeping these items in plain sight indicates a closet or storage area deficiency.
Take off your belongings. Potential buyers want to envision themselves living in your home, and seeing photos of your family reunion can soon dash any hopes.
Empty the fridge. The home’s appearance of order and tranquility is ruined by the accumulation of alphabet magnets, postcards, and receipts.
Clear out the clutter. Larger homes with more open floor plans give visitors more room to move about and think creatively about how they may use the property.
If you’re trying to sell your property, a spotless look will get you far further than you think. A neat dwelling indicates a sense of ownership and pride. The entrance, for example, should be given as much care and attention as the rest of the building. Clean up the area around your entrance, mailbox, mat and trim. While you might not give much thought to dust and insects living in your light fixtures and shades daily, prospective purchasers who do their due diligence might be put off by such slovenly maintenance.
Window cleanliness is directly proportional to the amount of natural light let in and the degree to which one can take in the scenery outside. It’s a good idea to change out the furnace filter once a month to keep the air flowing freely and to keep the air quality high in your home. Finally, make sure the restroom is spotless. The ancient rule of bathroom etiquette that states you shouldn’t touch anything other than the toilet, the bathtub and the tiles suddenly becomes extremely important. Do not stand on the toilet seat.
Many long-term residents have come to accept the need for constant maintenance and the presence of outdated or broken fixtures. Walls, for instance, need to be patched and painted. Neutral paint colors make it easier for potential buyers to picture themselves in your home (like a blank canvas), and a fresh coat of paint on an undamaged wall shows that you take pride in maintaining the property.
Consider the home’s street charm as well. Are the weeds pulled and the grass cut? Most potential buyers will form their first impression of your home based on its outside, so give it its best face forward.
A pre-sale home inspection might be helpful if your property is older or you suspect there may be surprises that would cause potential buyers to back out of their offer. An estimate of the repairs needed will let potential purchasers know what they’re getting into.
6. Search for prospective brokers
Try not to settle for the first agent that pops up in a web search. Find an agent who is a good fit for your needs by doing some research. Referrals from recent movers are an excellent place to begin, and there are also many online resources for researching and evaluating real estate agents. Also, it’s important to find a real estate agent who has experience selling properties in your area since they will know how to set a fair price for your property.
A real estate agent with years of expertise will know how to market your home effectively and where to look for a new one. Remember that real estate brokers can take as much as 7% of your home’s sale price at closing, so choose carefully.
The first things to do when selling or purchasing a home are the same as they would be for any other large purchase: research and planning. Before you call in a real estate agent, you must make your house look desirable. Keep in mind that if you don’t get an offer, your real estate agent can’t help you sell, and if your home isn’t in good shape, it won’t be in high demand.
Visionary works of architecture are among the most compelling showcases of human ingenuity, but is there anything more perfectly designed than nature? Across oceans and continents, terrains and biomes, the planet’s diverse vitality provides a panoply of beautiful locations where people can dwell—and supplies boundless inspiration for the forms, functions, and materiality of what they build.
Here are eight of the earth’s most enchanting and memorable landscapes and eight majestic homes that make the most of them.
With groves forming natural gardens and deciduous trees caressed by a gentle breeze, woodlands are a truly idyllic location. With its cladding of bountiful ivy and the organic color tones of its stately brick, Noxon House in Poughquag, New York is a historic Georgian mansion whose impressive structure and copious greenery are a perfect match for the tangling, towering thickets adorning its perimeters.
Coastlines are where land ends, water begins, and the sea meets and merges with the sky. These are some of the most enthralling landscapes on earth, and Can Rock, a contemporary residence in Formentera, pays homage to them. Its unique, ultramodern build playfully mirrors the sheer angles of the local cliffs, the sun-bleached color of the soft sand, and the harmonious planarity of the endless horizon.
Is there a more breathtaking landscape than a mountain? Amid the sublimity of the West Elk Mountains in Colorado, Needle Rock stands on its own—a singular outcropping of ancient igneous porphyry—made even more splendid by neighboring Mad Dog Ranch. Conceptualized by the unlikely combination of English rock royalty and an award-winning architect, this exceptional estate mimics its surroundings with immense peaks and a stony façade.
Because rivers, glaciers, and snowmelt feed their freshwater, lakeshores cut a much different figure compared to seashores—clearer, calmer, earthier, and more intimately interconnected with the land-based ecosystems surrounding them. Te Kaitaka, a tranquil retreat on the banks of Otago’s Lake Wānaka, has fully integrated with these ecosystems. Its cedar slats complement the area’s vegetation, while skylights create a sense of oneness with the vast, open expanses of the Southern Alps.
Rolling, pastoral hillsides are a completely different canvas on which to design a home. Because of their gradual curves, it’s possible to build in a way that goes with the gradient rather than against it. This property in the Berkshires shows how, with tastefully terraced contours that follow the natural descent towards the dales and meadows beyond. A location like this makes for the best all-season living, with gorgeous springs, glorious summers, astonishing autumns, and picturesque winters.
An entirely unique landscape forms in the spaces where mountains meet. Gorges, canyons, and valleys might start as modest gullies. But over the course of geological epochs, erosion carves them into wide, deep channels where rivers, forests, lakes, and mountains collide in some of earth’s most peaceful yet dynamic environments. Perhaps “peaceful dynamism” is the best way to describe this deluxe bohemian guesthouse in Cluj, whose architecture of wood, plaster, and stone is embedded directly in the local terrain and living roofs infuse the home with a vigorous, elemental energy.
Fundamentally shaped by their proximity to water, yet fully distinct in their ambience and visual appeal, marshlands are windswept vistas that demarcate the boundary between the terrestrial and the aquatic—shrubs and grasses giving way to dunes before opening onto the ocean. On the island of Sylt, this historic cabin’s thatched roof instills a sense of authenticity and continuity with the serene heath it stands upon.
Austere, severe, striking, stunning—the words used to describe deserts tend to blend their harshness and magnificence. To a lost traveler, these arid stretches may seem unforgiving; but once a home base is established and the wilderness tamed, there’s no environment more scenic. It’s therefore appropriate that this grand villa in Arizona’s Sonoran Desert is a habitable artwork of moveable glass, dubbed “The House of Doors” in LUXE Magazine. It’s a design meant to maximize views, where boulders and cactuses appear as avant-garde as the property’s meticulously curated statues.
Sometimes, the boldest statements arise out of simple humility. Instead of diminishing into the local landscape, architecture that honors its natural heritage stands out, achieving brilliance through balance and creating some of the world’s most original homes.
Black’s Island is now represented by Corcoran Reverie.
Press Release –
Jan 23, 2023 10:00 CST
PORT SAINT JOE, Fla., January 23, 2023 (Newswire.com)
– Corcoran Reverie, a high-end real estate brokerage and an affiliate of Corcoran Group LLC, is pleased to announce the marketing launch of the Bungalows on Black’s Island. Sheltered by Florida’s Cape San Blas and surrounded by the tranquil waters of St. Joseph Bay, Black’s Island will be home to 26 individual bungalow owners, with the initial release of four units now available for sale to second homeowners and savvy investors alike.
Black’s Island, reigning on over seven acres, features a robust infrastructure system providing residents with mainland comforts while remaining secluded and private. Island amenities include an outdoor spa-style pool, a private sandy shore, and ample green space. With over 3,700 feet of shoreline, the island is bordered with lush vegetation and tropical palms. Black’s Island is more than just a destination; it’s a way of life – from fishing and water sports to sunbathing and swimming, never-ending adventure awaits. Located a short boat ride away, the historic town of Port St. Joe boasts boutiques, dining, and entertainment venues for those seeking downtown adventures.
“We are honored to be exclusively representing Black’s Island and the newly developed bungalows, which will offer future owners a truly unique and private retreat. We cannot wait for residents to be immersed in the island lifestyle,” says Owner & Broker Hilary Farnum-Fasth.
The bungalows offer an undisturbed sanctuary for vacation residence seekers, all while remaining a short boat or helicopter ride away from the Florida coast. Each exceptional residence features a fully equipped kitchen with high-end finishes, spacious living and dining rooms, plush king-sized beds, immaculate ensuite bathrooms, and secluded balconies offering stunning views of the idyllic waters. The bungalows consist of two main floor plans: the Cay plan and the Atoll plan. The Cay Plan offers a two-bedroom, two-bathroom floor plan with 1,225 square feet of living space on one single level surrounded by 360-degree breathtaking views. The Atoll plan features three bedrooms and two and a half bathrooms with 1,425 square feet of living space situated on two distinct levels.
With a dedicated management company already in place to handle the logistics and day-to-day operations of the short-term rentals on the island, future owners will be able to take full advantage of the passive income generation by placing their units on the vacation rental program if desired. To ensure all time spent on the island is centered around relaxation and making everlasting family memories, all exterior elements are maintained by the Master Association, alleviating the common maintenance and upkeep pain points often found with traditional vacation home ownership opportunities. Future amenities will also include on-island dining and access to the Mainland Black’s Hotel, scheduled to be completed in late 2023. For additional information or to inquire about ownership opportunities, please visit: www.blacksislandsales.com.
About Corcoran Reverie
Corcoran Reverie, an affiliate of Corcoran Group LLC – a leading residential real estate brokerage firm headquartered in New York City – is a locally owned high-end brokerage specializing in the luxury home market in the greater Nashville area and across Northwest Florida from Destin to Panama City and the coastal communities along 30A. With a 220+ agent team led by broker and owner Hilary Farnum-Fasth and partner Jacob Watkins with offices in 30A, Destin, Panama City, and Nashville; Corcoran Reverie was ranked the #1 office in Northwest Florida based on closed office sales volume with over $750 million in its first year as a Corcoran affiliate, and $1.12 billion in 2021. Throughout the entire network, Corcoran is home to more than 160 offices and more than 5,700 agents in key urban, suburban, and resort markets nationwide, as well as the Bahamas, Turks & Caicos, and Puerto Rico. For more information on Corcoran Reverie, visit corcoranreverie.com.
At desirable addresses from Soho to Santa Fe, these impeccable kitchens with superior appointments and appliances unite comfort, style, and functionality.
This five-bedroom, 6,540-square-foot home brings a cosmopolitan twist to Santa Fe’s characteristic organic softness. The exceptional multilevel residence hugs a hillside and features fine finishes and customizations, a great room ideal for grand gatherings, a courtyard, a media room, a heated garage, a landscaped backyard, and an infinity-edge pool. The kitchen, designed to accommodate large groups, boasts an oversized island, counter seating, bespoke cabinets, a generous wet bar, top-tier appliances, and a wine room.
Old and new are seamlessly integrated in this warm, welcoming four-bedroom loft at a prime location at the crossroads of NoHo, Tribeca, Greenwich Village, and Chelsea. Thanks to a wall of nine-foot-tall south-facing windows, the open-plan living and entertaining area is filled with natural light and enjoys a picturesque view of the neighborhood. Custom storage and built-ins add distinctive style throughout, including in the media room and the chef’s kitchen, which features eye-catching cabinetry, a slate-topped island and counters, and stainless-steel Viking and Wolf appliances.
This enchanting four-bedroom bungalow and its freestanding casita were designed by acclaimed Galveston builder Christine Plum and are impressively detailed with repurposed vintage materials—including handmade Saltillo tile floors and antique European doors—used to uniquely stylish effect. The cook’s kitchen features a bespoke sculptural light fixture, a wall of built-ins surrounding a sideboard created from a reclaimed library card catalogue, leathered marble countertops, a colorful five-burner Kucht gas range with an artfully tiled hood, a Zellige tile backsplash, custom cabinetry, and open shelving.
Ideally sited in the sought-after Wellington community of Palm Beach Polo Club, this airy, sophisticated four-bedroom residence enjoys exceptional lake, nature preserve, and golf course views. The chic living area opens through a wall of glass to a spacious covered patio and the striking swimming pool and spa. Nearby, the kitchen features an oversized island, abundant cabinets and drawers, elegant marble countertops, superior appliances, and a dining area overlooking a sunny patio and outdoor kitchen.
CNBC’s Diana Olick with Realtor.com’s Danielle Hale join ‘The Exchange’ to discuss an uptick in first time home buyers, rising all cash sales, and the prices of million dollar homes dropping off most.
About Sotheby’s International Realty Affiliates LLC
Founded in 1976 to provide independent brokerages with a powerful marketing and referral program for luxury listings, the Sotheby’s International Realty network was designed to connect the finest independent real estate companies to the most prestigious clientele in the world. Sotheby’s International Realty Affiliates LLC is a subsidiary of Realogy Holdings Corp. (NYSE: RLGY), a global leader in real estate franchising and provider of real estate brokerage, relocation and settlement services. In February 2004, Realogy entered into a long-term strategic alliance with Sotheby’s, the operator of the auction house. The agreement provided for the licensing of the Sotheby’s International Realty name and the development of a full franchise system. Affiliations in the system are granted only to brokerages and individuals meeting strict qualifications. Sotheby’s International Realty Affiliates LLC supports its affiliates with a host of operational, marketing, recruiting, educational and business development resources. Franchise affiliates also benefit from an association with the venerable Sotheby’s auction house, established in 1744.
Sales of previously occupied U.S. homes slumped nearly 18% in 2022, the slowest year for the housing market in nearly a decade.
The National Association of Realtors said Friday that existing home sales totaled 5.03 million last year, a 17.8% decline from 2021. That marks the weakest year for home sales since 2014 and the biggest annual decline since 2008, following the foreclosure crisis of the late 2000s.
Even so, the median national home price for all of last year jumped 10.2% to $386,300, the NAR said.
Mortgage rates more than doubled in 2022, climbing to a two-decade high of 7.08% in the fall as the Federal Reserve continued to boost its key lending rate in its quest to cool the economy and tame inflation. Home sales slowed from a torrid pace at the start of the year as the surge in borrowing costs limited home hunters’ buying power.
The average rate on a 30-year mortgage rate fell this week to 6.15%, its lowest level since September, according to mortgage buyer Freddie Mac. Still, it remains nearly double the 3.56% average rate a year ago.
Existing home sales fell in December for the 11th month in a row to a seasonally adjusted annual rate of 4.02 million, the NAR said. That’s slightly better than what economists were expecting, according to FactSet.
December’s sales sank 34% from a year earlier. Excluding the steep slowdown in sales that occurred in May 2020 near the start of the pandemic, sales last month skidded to the slowest annual pace since November 2010.
Despite the slowdown, home prices continued to rise last month. The national median home sales price rose 2.3% in December from a year earlier to $366,900, the NAR said.
The numbers: U.S. existing-home sales fell 1.5% to a seasonally adjusted annual rate of 4.02 million in December, the National Association of Realtors said Friday.
This is the 11th straight monthly decline in existing-home sales. The losing streak is the longest since NAR began tracking sales in 1999.
Economists polled by the Wall Street Journal were expecting existing-home sales to drop to 3.95 million.
The level of sales activity was lowest since November 2010, in the midst of the foreclosure crisis in America.
Compared with December 2021, home sales were down 34%.
Total sales of existing homes in 2022 were down 17.8% from the previous year. Last year, 5.03 million existing homes were sold, which is the lowest level since 2014.
The last time existing home sales dropped by this magnitude was in 2008.
Key details: The median price for an existing home fell to $366,900 in December, from $370,700 in November.
The number of homes on the market fell 13.4% to 970,000 units in December.
Expressed in terms of the months-supply metric, there was a 2.9-month supply of homes for sale in December, down from the previous month. Before the pandemic, a four- or five-month supply was more the norm.
Homes remained on the market for 26 days on average, up from 24 days in November. Pre-pandemic, the average time for homes to remain on the market was a month.
Sales of existing homes mostly fell across the country, led by the South, which saw a 2.2% drop. Sales were unchanged in the West.
All-cash transactions made up 28% of all transactions. About 31% of homes were sold to first-time home buyers, up from the previous month.
Big picture: Mortgage rates have moved lower, and many buyers are coming back to the real-estate market.
So with rates continuing to move downwards, sales may likely rebound in the next few months, breaking an 11-month losing streak.
But the market still has to figure out inventory, since there are so few homes for sale on the market.
What the realtors said: “We really need to begin to address this supply issue,” Lawrence Yun, chief economist at the National Association of Realtors said.
Yun said that overall, homeowners have enjoyed more in home price appreciation versus their 401k performance in the stock market.
What are they saying? Even though sales dropped considerably, “this result was somewhat better than expected,” Stephen Stanley, chief economist at Amherst Pierpont, wrote in a note.
And as rates move lower, that will “help to boost demand for homes generally,” Stanley added, “but it will also lessen the impact of homeowners being ‘trapped’ in their current locations.”
Market reaction: Stocks were up in early trading on Friday. The yield on the 10-year note TMUBMUSD10Y, 3.479%
rose above 3.45%.
Homes in Rocklin, California, US, on Tuesday, Dec. 6, 2022. A record number of homes are being delisted as sellers face a sharp drop in demand, according to real estate brokerage Redfin.
David Paul Morris | Bloomberg | Getty Images
Sales of previously owned homes dropped 1.5% in December from the previous month, according to the National Association of Realtors.
Sales ended the year at a seasonally adjusted, annualized pace of 4.02 million units, which was 34% lower than December 2021. It is the slowest pace since November 2010, when the nation was struggling through a housing crisis brought on by faulty subprime mortgages.
Total sales for the year were down 17.8% from 2021.
Home sales have now fallen for 11 straight months, due to much higher mortgage rates, which began rising last spring and had more than doubled by fall. Sky-high prices, driven by high demand during the first years of the pandemic, weakened affordability even further and caused supply to fall sharply.
“December was another difficult month for buyers, who continue to face limited inventory and high mortgage rates,” said Lawrence Yun, chief economist for the Realtors. “However, expect sales to pick up again soon since mortgage rates have markedly declined after peaking late last year.”
Mortgage rates have fallen a full percentage point since their high last October, but they are still roughly double what they were one year ago.
At the end of December, total housing inventory fell 13.4% from November to 970,000 units. It was, however, up 10.2% from the previous December. Unsold inventory is at a 2.9-month supply at the current sales pace, down from 3.3 months in November but up from 1.7 months in December 2021.
Low supply continues to support prices to some extent, but the gains are shrinking compared with a year ago. The median price of an existing home sold in December was $366,900, up 2.3% from the year before. It is still the highest price recorded for December, but annual price gains had been in the double digits last summer.
“Markets in roughly half of the country are likely to offer potential buyers discounted prices compared to last year,” added Yun.
The trouble, however, is that sellers are not entering the market, given falling prices and weaker demand. The total inventory is higher than a year ago because homes are sitting on the market longer. New listings in January are down year over year.
“Evaporating demand has ended the strong sellers market of the past several years, and still-falling home sales tell us that many buyers are still not able to afford a purchase or not yet convinced that the market is tilted sufficiently in their favor to move forward. The housing market is entering “nobody’s market” territory as buyers and sellers remain largely in a stalemate,” said Danielle Hale, chief economist for Realtor.com.
First-time buyers continue to struggle in today’s market, making up just 31% of December sales. While this is up from 30% in December of last year, it is far off the historical norm of 40%.
The market continues to slow, with homes sitting on the market an average 26 days, up from 24 days in November and 19 days in December 2021.
All-cash sales rose to 28% of transactions from 23% the year before and investors made up 16% of sales, slightly down from 17% the year before.
While sales are down in all price categories, they are falling most sharply on the higher end. Sales of homes priced above $1 million were down 45% year over year, compared with sales of homes priced between $250,000 and $500,000, which were down 34%. Yun suggested that weakness on the higher end may be due to volatility in the stock market.
The average long-term U.S. mortgage rate fell this week to its lowest level since September, a potential boost to the housing market which has been in decline for nearly a year.
Mortgage buyer Freddie Mac reported Thursday that the average on the benchmark 30-year rate fell to 6.15% from 6.33% last week. A year ago the average rate was 3.56%.
The average long-term rate reached a two-decade high of 7.08% in the fall as the Federal Reserve continued to boost its key lending rate in its quest to cool the economy and tame inflation.
The big rise in mortgage rates during the past year has throttled the housing market, with sales of existing homes falling for 10 straight months to the lowest level in more than a decade.
Though home prices have retreated as demand has declined, they are still nearly 11% higher than a year ago. Higher prices and a doubling of mortgage rates have made homebuying much less affordable for many people, but recent rate declines could give some homebuyers new hope.
“Rates are at their lowest level since September of last year, boosting both homebuyer demand and homebuilder sentiment,” said Sam Khater, Freddie Mac’s chief economist. “Declining rates are providing a much-needed boost to the housing market, but the supply of homes remains a persistent concern.”
At its final meeting of 2022, the Federal Reserve raised its rate 0.50 percentage points, its seventh increase last year. That pushed the central bank’s key rate to a range of 4.25% to 4.5%, its highest level in 15 years.
Though inflation at the consumer level has declined for six straight months, Fed officials have signaled that they may raise the central bank’s main borrowing rate another three-quarters of a point in 2023, which would be in a range of 5% to 5.25%.
Rates for 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 rate for a 15-year mortgage, popular with those refinancing their homes, also declined this week, to 5.28% from 5.52% last week. It was 2.79% one year ago.
