The numbers: U.S. pending home sales fell 4.6% in October, the fifth straight monthly decline, the National Association of Realtors said Wednesday.
Economists polled by the Wall Street Journal expected pending home sales to fall 5.5%.
The index captures transactions where a contract has been signed, but the home sale has not yet closed.
Key details: On a year-on-year basis, pending home sales were down a sharp 37%.
Sales fell in three of the four regions, with the Midwest registering an increase.
Big picture: Sales have stalled as mortgage rates have jumped, making houses less affordable. Pending home sales are a leading indicator for the sector. Some economists think that buyers might return to the market as mortgage rates have plateaued.
Americans looking to buy a house next year can expect less competition, more homes to choose from and the highest average mortgage rates in nearly two decades. Here’s what they can’t expect: A widespread fall in prices that would bring relief to priced-out homebuyers.
That’s the major takeaway from Realtor.com’s 2023 Housing Forecast released Wednesday. Home price declines “may not happen as quickly as some have anticipated,” said Realtor.com’s chief economist, Danielle Hale. Prices will be elevated during the first half of 2023 and they’ll probably fall or stay flat during the second half of next year, she told CBS MoneyWatch.
“We expect, for the year as a whole, 2023 is going to be higher,” Hale said. “Shoppers who want to buy might have to wait a little bit.”
The housing market will soon turn the page on 2022, a year that saw skyrocketing mortgage rates alongside soaring home prices. Some cities in particular — like Boise, Idaho; and Austin, Texas — saw double-digit percent increases in prices. The rising cost of homeownership deterred many aspiring buyers, who have opted instead to continue renting.
Home prices have fallen in many areas during the tail end of 2022, but mortgage rates have continued to climb. The average interest rate for a 30-year fixed mortgage was about 6.6% this week, more than double what the rate was at the start of the year.
Realtor.com expects mortgage rates to climb even further at the beginning of next year as the Federal Reserve continues to raise its benchmark interest rate. Mortgage rates could reach as high as 7.4% in the first half of 2023 before settling down to around 7.1% toward the second half of the year, the company said. When considering increases in property prices and loan rates, the typical monthly mortgage payment next year will be around $2,430, 28% higher than this year, Realtor.com predicted.
The rapid price run-up has stymied many would-be buyers. In a recent survey from LendingTree, nearly half of respondents said they were postponing major decisions, either renting for longer period of time or putting off major home renovations.
Mortgage rates grew so fast this year that they made it difficult for buyers to figure out how much home they could afford, Hale said. In 2023, interest rates probably won’t fluctuate as much, she said.
“Having more stability will make it easier for buyers when setting the right budget,” she said. “And that should help encourage people to get back into the housing market.”
Home prices will likely increase in the nation’s 100 largest metropolitan areas, Realtor.com’s report said. Expect 10% hikes in Grand Rapids, Michigan; Portland, Maine; Providence, Rhode Island; Spokane, Washington and Worcester, Massachusetts.
Higher prices will likely keep away many potential homebuyers, causing rent prices to jump 6.3% and the number of homes sold to decline by 14%, Realtor.com said. However, housing inventory — the number of homes available for sale — is expected to climb nearly 23% next year, potentially giving a wider variety of dwellings to choose from to those who can afford to buy.
To be sure, all of these predictions could change depending how the Federal Reserve handles its fight against inflation next month and early next year, Hale said. The Fed has raised its benchmark rate six times this year, and, with each hike, mortgage rates have climbed as well. Hale and other economists expect the Fed to raise its rate again next month, but perhaps by not as much as previous increases.
“The housing market has borne the brunt of the Fed’s attempt to control inflation,” Sean Black, CEO of mortgage lender Knock, said in his company’s 2023 housing prediction. “Sellers still hold the advantage in a majority of the nation’s largest metros, and many will continue to favor sellers well into 2023.”
Khristopher J. Brooks is a reporter for CBS MoneyWatch covering business, consumer and financial stories that range from economic inequality and housing issues to bankruptcies and the business of sports.
Airbnb co-found Nathan Blecharzyck discusses a new program where consumers can search for an apartment that is ‘officially’ open to Airbnb short-term subletting.
Once one of Manhattan’s bustling industrial districts, today the Tribeca neighborhood is a dynamic cultural center and prized residential destination—a nexus of painstakingly updated lofts and shops in historic, often architecturally significant buildings on charming cobblestone streets. Atop a building that dates to the beginning of the 20th century, this 5,802-square-foot duplex penthouse is a standout among these coveted residences, recently impeccably renovated to create a stunning example of stylish modern living with a strong connection to the outdoors. Select original elements—including stately concrete columns—exist harmoniously alongside contemporary features and fixtures, from sleek lines to such thoughtful built-ins as bookshelves to bunk beds.
Spaces for festive entertaining and private relaxation are plentiful and found on both of the home’s two floors. An open living room, dining room, and kitchen on the entry level is flooded with light from floor-to-ceiling windows, which afford refreshing views of the greenery of St. John’s Park. In addition to its chef-pleasing stainless-steel appliances and walk-in pantry, the inviting kitchen features a striking marble-topped island with counter seating. Throughout the space, soaring 11-foot ceilings contribute to a serene sense of airiness.
A casual skylit living room and a media room with a convenient kitchenette are located on the upper floor. Just outside a pair of glass doors is a private landscaped and irrigated terrace, an enviable escape for enjoying fresh air and views of the Freedom Tower and the Midtown skyline. High above it all on the rooftop is a rare second terrace that awaits the finishing touches of a discerning new owner.
For more private moments, the residence offers five bedrooms, chief among them a primary suite with walk-in closets and an eye-catching marble bath with a luxurious soaking tub and unique rain-shower. The four guest bedrooms are accompanied by en suite baths and generous closets. Other highlights include office space to satisfy the busy professional, a cheerful play area with abundant built-in storage options, and rooms suitable for nearly any sort of fitness. Despite the home’s historic provenance and locale, every modern comfort and convenience has been seen to, from automated blinds and top-tier audiovisual components to a digital Savant system to maintain it all from anywhere around the world.
Located on the corner of Laight Street—just across the street from the Hudson River Park—the building is a pet-friendly pre-war collection of condominiums with a part-time door attendant. The neighborhood offers delightful sidewalk cafes, some of the city’s best restaurants, cutting-edge galleries, artists’ studios, theaters, music venues, and a riverfront trail.
Income-seeking investors are looking at an opportunity to scoop up shares of real estate investment trusts. Stocks in that asset class have become more attractive as prices have fallen and cash flow is improving.
Below is a broad screen of REITs that have high dividend yields and are also expected to generate enough excess cash in 2023 to enable increases in dividend payouts.
REIT prices may turn a corner in 2023
REITs distribute most of their income to shareholders to maintain their tax-advantaged status. But the group is cyclical, with pressure on share prices when interest rates rise, as they have this year at an unprecedented scale. A slowing growth rate for the group may have also placed a drag on the stocks.
And now, with talk that the Federal Reserve may begin to temper its cycle of interest-rate increases, we may be nearing the time when REIT prices rise in anticipation of an eventual decline in interest rates. The market always looks ahead, which means long-term investors who have been waiting on the sidelines to buy higher-yielding income-oriented investments may have to make a move soon.
During an interview on Nov 28, James Bullard, president of the Federal Reserve Bank of St. Louis and a member of the Federal Open Market Committee, discussed the central bank’s cycle of interest-rate increases meant to reduce inflation.
When asked about the potential timing of the Fed’s “terminal rate” (the peak federal funds rate for this cycle), Bullard said: “Generally speaking, I have advocated that sooner is better, that you do want to get to the right level of the policy rate for the current data and the current situation.”
Fed’s Bullard says in MarketWatch interview that markets are underpricing the chance of still-higher rates
In August we published this guide to investing in REITs for income. Since the data for that article was pulled on Aug. 24, the S&P 500 SPX, -0.29%
has declined 4% (despite a 10% rally from its 2022 closing low on Oct. 12), but the benchmark index’s real estate sector has declined 13%.
REITs can be placed broadly into two categories. Mortgage REITs lend money to commercial or residential borrowers and/or invest in mortgage-backed securities, while equity REITs own property and lease it out.
The pressure on share prices can be greater for mortgage REITs, because the mortgage-lending business slows as interest rates rise. In this article we are focusing on equity REITs.
Industry numbers
The National Association of Real Estate Investment Trusts (Nareit) reported that third-quarter funds from operations (FFO) for U.S.-listed equity REITs were up 14% from a year earlier. To put that number in context, the year-over-year growth rate of quarterly FFO has been slowing — it was 35% a year ago. And the third-quarter FFO increase compares to a 23% increase in earnings per share for the S&P 500 from a year earlier, according to FactSet.
The NAREIT report breaks out numbers for 12 categories of equity REITs, and there is great variance in the growth numbers, as you can see here.
FFO is a non-GAAP measure that is commonly used to gauge REITs’ capacity for paying dividends. It adds amortization and depreciation (noncash items) back to earnings, while excluding gains on the sale of property. Adjusted funds from operations (AFFO) goes further, netting out expected capital expenditures to maintain the quality of property investments.
The slowing FFO growth numbers point to the importance of looking at REITs individually, to see if expected cash flow is sufficient to cover dividend payments.
Screen of high-yielding equity REITs
For 2022 through Nov. 28, the S&P 500 has declined 17%, while the real estate sector has fallen 27%, excluding dividends.
Over the very long term, through interest-rate cycles and the liquidity-driven bull market that ended this year, equity REITs have fared well, with an average annual return of 9.3% for 20 years, compared to an average return of 9.6% for the S&P 500, both with dividends reinvested, according to FactSet.
This performance might surprise some investors, when considering the REITs’ income focus and the S&P 500’s heavy weighting for rapidly growing technology companies.
For a broad screen of equity REITs, we began with the Russell 3000 Index RUA, -0.04%,
which represents 98% of U.S. companies by market capitalization.
We then narrowed the list to 119 equity REITs that are followed by at least five analysts covered by FactSet for which AFFO estimates are available.
If we divide the expected 2023 AFFO by the current share price, we have an estimated AFFO yield, which can be compared with the current dividend yield to see if there is expected “headroom” for dividend increases.
For example, if we look at Vornado Realty Trust VNO, +1.03%,
the current dividend yield is 8.56%. Based on the consensus 2023 AFFO estimate among analysts polled by FactSet, the expected AFFO yield is only 7.25%. This doesn’t mean that Vornado will cut its dividend and it doesn’t even mean the company won’t raise its payout next year. But it might make it less likely to do so.
Among the 119 equity REITs, 104 have expected 2023 AFFO headroom of at least 1.00%.
Here are the 20 equity REITs from our screen with the highest current dividend yields that have at least 1% expected AFFO headroom:
Click on the tickers for more about each company. You should read Tomi Kilgore’s detailed guide to the wealth of information for free on the MarketWatch quote page.
The list includes each REIT’s main property investment type. However, many REITs are highly diversified. The simplified categories on the table may not cover all of their investment properties.
Knowing what a REIT invests in is part of the research you should do on your own before buying any individual stock. For arbitrary examples, some investors may wish to steer clear of exposure to certain areas of retail or hotels, or they may favor health-care properties.
Largest REITs
Several of the REITs that passed the screen have relatively small market capitalizations. You might be curious to see how the most widely held REITs fared in the screen. So here’s another list of the 20 largest U.S. REITs among the 119 that passed the first cut, sorted by market cap as of Nov. 28:
From a US$28.5M sale in Makena, Hawaii to a SG$18.5M sale in Singapore, here are five sales represented by the Sotheby’s International Realty® global network in October.
Santa Monica, California
Robin Walpert | Sotheby’s International Realty – Santa Monica Brokerage, US$11,351,000
Singapore
Steve Tay | List Sotheby’s International Realty, Singapore, SG$18,500,000
Daniel Lacalle, chief economist at Tressis Gestión, says investors should be diligent in considering which sectors in China to invest in, and adds that “it’s not going to be a year of looking at an index” or of “being passive.”
Estate agents “Sold” and “For Sale” signs outside residential properties in the Maida Vale district of London, UK, on Thursday, June 30, 2022.
Bloomberg | Bloomberg | Getty Images
Demand for U.K. residential properties has nearly halved following September’s government budget that spooked financial markets and toppled the prime minister, research Monday showed.
The fiscal package, announced Sept. 23, caused a sell-off in bonds and led to predictions of a potential housing market crash as interest rate expectations rose sharply. In the wake of the budget, a record number of mortgage deals were pulled and many lenders paused offerings as they assessed the volatility.
Buyer demand fell 44% year-on-year in the four weeks to Nov. 20, according to property website Zoopla, while new property sales declined 28%. The stock of homes for sale was up 40% over the same period.
Zoopla said demand had fallen to levels usually seen over Christmas — among the quietest time for property markets — as buyers waited to assess the outlook for mortgages, along with their own jobs and wages.
Richard Donnell, Zoopla’s executive director for research, said the company expected house price falls of up to 5% in 2023.
“But the number of sales going through will remain buoyant for a range of structural, demographic and economic factors,” he said, including ongoing housing scarcity, with the average number of homes on offer per estate agency still a fifth lower than before the pandemic.
Although a fall in house prices is widely predicted, the company’s predictions are less bearish than others.
Economists at Pantheon Macroeconomics forecast a decline of 8% over the next year, while Nationwide, one of the U.K.’s largest mortgage providers, said earlier this month that house prices could collapse by up to 30% in its worst-case scenario.
In contrast, the U.K.’s Office for Budget Responsibility has said it expects house prices to drop 1.2% next year and by 5.7% in 2024.
It comes after a desire for different kinds of property during the pandemic, the suspension of a purchase tax on homes under $500,000 from July 2020 to July 2021 and ongoing supply shortages saw house prices rocket to record highs.
Zoopla said there was currently a “widespread” repricing of homes occurring, but that it was modest in size. It puts U.K. house price growth at 7.8% year-on-year.
Its report described market trends as a “shake-out rather than a pre-cursor to a housing crash” and said the mini budget had “delivered a shock” to sellers and buyers.
“All the leading supply and demand indicators we measure continue to point to a rapid slowdown from very strong market conditions. We do not see any evidence of forced sales or the need for a large, double digit reset in U.K. house prices in 2023,” its report said.
Meanwhile, private rental costs in Britain have risen to record highs amid intense competition for properties, according to separate data published by the website Rightmove last month.
It found rents in London were up 16.1% year-on-year, the highest growth of any region on record.
One of the benefits of owning an expansive estate is being able to offer visitors their own truly private quarters. From Sagaponack to Sonoma, these guesthouses are secluded spaces to relax in comfort and style.
On Sonoma’s desirable east side, just blocks from the historic plaza, this modern estate epitomizes chic wine country living. The private 2.5-acre property includes a light-flooded three-bedroom main residence with stunning vineyard and mountain views, 1.5 acres of recently planted pinot noir hobby vineyards, a refreshing pool and spa, covered and open-air spaces for alfresco dining and lounging, an outdoor kitchen, and an inviting guesthouse with a living area, a thoughtful kitchenette, and one stylish bedroom and bath.
On the banks of Lake Houston, this majestic estate is surrounded by trees on 2.17 forest-like acres. The idyllic property includes a unique pool with a waterfall, a spa, a pond, a waterfront gazebo, the lake’s largest boat house, a lighted basketball court, and a five-bedroom main residence with elegant living and entertaining areas, an elevator, and a five-car garage. The European-inspired casita enjoys its own covered patio, a well-appointed kitchen, and other versatile spaces.
Occupying a tranquil corner lot in a prestigious gated Westlake Village enclave, this 3.16-acre estate is a timeless, stylish retreat with mountain and golf course views. In addition to a single-level Mediterranean-inspired main residence with a four-car garage, a pool with a casita, two spas, a pergola, and other outdoor entertaining areas, the compound offers a spacious guesthouse featuring a private courtyard, a living room with a fireplace, kitchen and laundry facilities, and one bedroom and bath.
This bucolic compound of approximately four acres—which includes some 1.4 acres of conservation land and specimen trees—is the site of one of Sagaponack’s first summer homes. Dating to 1899, when it was a summer getaway and horse farm, it features a timeless gambrel-style main residence, a three-bedroom carriage house with a two-car garage, a woodshop created from the property’s former stables, and a one-bedroom, one-bath guesthouse with its own charming living and dining area as well as studio space for the artist.
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.
It’s no exaggeration to say that Miami Beach is a marvel—a marvel of nature, culture, engineering and ingenuity. Barrier islands, some of which were man made, stretch between the radiant waters of Biscayne Bay and the turquoise tides of the Atlantic. They are home to some of the world’s finest resorts and residences, shopping and dining, and art, architecture, and design.
But the best work of art and architecture is one that you can call your own—one that you can call home. And to that end, nothing compares to this custom, canal-side masterpiece located in the exceptional Biscayne Point, one of the most prominent communities in Miami Beach. Every day spent in this stunning villa, and in this vibrant city, brings new spaces to explore.
Morning: From the Beaches to the Boardwalk
When the sun’s first rays fan over the eastern horizon, reaching across the open expanse of the ocean, you’re already enjoying it from your rooftop sundeck, sipping your coffee next to the plunge pool. The tropical foliage sways lightly in a mild breeze, and it’s so pleasant that you’re tempted to head to North Beach Oceanside Park, a renowned (yet still tranquil) nature area that you can drive to within minutes.
But you’ll have plenty of other days to relax on the beach; right now, you have plans. You go to the garage, get the car, and head out onto State Road A1A—also known as the iconic Collins Avenue—which parallels the shoreline all the way from your home in Biscayne Point to South Pointe Park at the southernmost tip of Miami Beach. It’s a scenic drive, and as you approach the city center, near 17th Street, you park so you can stroll down the famous Miami Beach Boardwalk.
Once you reach the acclaimed Lincoln Road, it’s time for breakfast. This one-of-a-kind pedestrian mall, designed by the distinguished architect Morris Lapidus, was constructed in 1960, has a global reputation for its restaurants, cafés, shops, and galleries. It’s not busy right now and you can take your time touring the picturesque coastal boulevards; Arts Center South Florida, the Colony Theater, and the New World Symphony are all located here, and you make a mental note to check out their programs this season.
Noon: Art Basel Arrives in the Art Deco District
Now for the real reason you’ve come to the middle of town today: as November draws to an end, the city is preparing for the launch of Art Basel. That means the best of the international art world has landed in the Art Deco Historic District, energized by premier exhibitions, inspiring installations, elegant parties, and a broad selection of curated ancillary events.
By the time you return home in the early afternoon, you’re invigorated. You prepare a light, delicious lunch in your state-of-the-art, open-concept dining and living space, with its vaulted wooden ceilings and garden views. A retractable wall of glass grants immediate access to your immaculate poolside patio.
Admiring your property, you can’t help but notice how the main level—with its purpose-built art walls lined with hardwood, perfect acoustics, and open floor plan—would be an ideal showcase for several of the pieces you just witnessed. As you return to Art Basel Miami Beach in the days ahead, you’ll have an eye for expanding your private collection.
Night: A Twilight Cruise Through Biscayne Bay
You’re excited to return to the southern portion of the city because Art Basel isn’t the only festival to showcase color and sound late in the season. At the end of November and the beginning of December, SCOPE Miami Beach brings approximately 150 artists with diverse contemporary practices to different sites around town.
After browsing the work on display at SCOPE Miami Beach, you head a little further west along 8th Street to the Designer District, an urban enclave of upscale boutiques where you can not only engage in a little retail therapy, but meander north back onto the Art Deco streets of downtown, and find a fashionable restaurant to order some dinner.
When you arrive home, the sun is setting over mainland Miami, and you just have to soak in the beauty. Luckily, just beyond your covered terrace, personal spa, and infinity pool, your home is among those with exclusive waterfront access. With your beautiful private boardwalk leading straight to the brand new dock and proprietary boat lift, setting sail is enviably easy. It takes no time for you to settle comfortably in your personal vessel and head out onto Biscayne Bay to make the most of the breathtaking evening views. As the sun sets and you chart a course homeward, you’re already thinking about what tomorrow holds in store.
Germany’s central bank is predicting a slowdown but no significant correction in the country’s property market despite warnings of overvaluation, according to a report published Thursday.
Claudia Buch, vice president of the Bundesbank, told CNBC’s Joumanna Bercetche: “We do see a slowdown in the price growth for residential real estate, but it’s not that the overall dynamic has reversed.”
“So we still have overvaluations in the market,” she said.
The report notes the strong rise in German residential property prices from 2010 to mid-2022 and says overvaluations in the market have increased, ranging between 15% and 40% in both German cities and towns and the country as a whole in 2021.
Some analysts, including at Deutsche Bank, have forecast a sharp decline for the sector. House prices have already declined around 5% since March, according to Deutsche Bank data, and they will drop between 20% and 25% in total from peak to trough, forecasts Jochen Moebert, a macroeconomic analyst at the German lender.
Buch said the central bank’s concern was the extent to which overvaluation was being driven by the loosening of credit standards by a very fast growth in credit residential mortgages.
“There we also see a slowdown,” she said. “So we don’t currently think that additional measures are taken to slow down the build-up of vulnerabilities in this market segment, but we do think we need to keep monitoring the market because we know that private households are very much exposed to mortgage loans, so that’s the biggest component in private household debt.”
The German market has a high share of fixed-rate mortgages so households are less vulnerable to rising interest rates than in some other countries, she continued.
“Of course the risk doesn’t disappear, it’s still in the system, but this exposure to interest rate risk is largely with the financial sector, the banks who’ve done that lending with regard to mortgages.”
The Bundesbank’s Financial Stability Review for 2022 highlights other issues, including deteriorating macroeconomic conditions and the slowdown in German economic activity, increases in energy prices and the fall in real disposable income.
It describes the German economy as at a “turning point” following price corrections in financial markets, which have led to write-downs on securities portfolios. It also cites increased collateral requirements in futures markets and increased risks from corporate loans.
It says there has been no fundamental reassessment of credit risk in German banks so far but says its financial system is “vulnerable to adverse developments.”
“The message is very clear, we need a resilient financial system, we need to keep building up resilience over the next period of time,” Buch told CNBC.
Opinions expressed by Entrepreneur contributors are their own.
If you’re looking for some high-end real estate with historical connections, Marilyn Monroe’s and Arthur Miller’s former home near Sutton Place is on the market for $3.05 million — a notable drop from its original $3.75 million asking price.
Fox Photos | Getty Images
Monroe was married three times; her final and longest marriage (five years) was to Miller.
During that time, the pair lived in a 1927 14-story building at 444 E 57th St. in a 2,190 square foot prewar home with a formal dining room, fireplaces, and coveted views of the East River.
It’s a prestigious address. The New York Post notes that designer Bill Blass once lived there in the building’s penthouse and other notable residents have included royalty such as Sweden’s Princess Madeleine.
The apartment itself is one of two on the floor. It’s listed by Brown Harris Stevens, whose listing has more detail on the residence’s many amenities:
It features a large entry foyer leading to a grand living room with wood burning fireplace, 9ft ceilings, and picture windows. Off the entry foyer is a powder room with tasteful built-ins. The spacious, contemporary dining room easily accommodates 10 people and is perfect for entertaining. A third bedroom, currently a library, has a wood burning fireplace, custom cabinetry, and pocket doors. The large, exceptional, renovated chef’s kitchen with a center island is adorned with marble counters, lots of custom white cabinetry, top-of-the line appliances including a Wolf stove top, stainless steel hood plus two Dacor ovens and two Miele dishwashers.
When Monroe and Miller lived at the address, the now-iconic actor decorated in her own inimitable style. According to OtSoNY.com, Monroe “made the walls a simple white and set mirrors from the floor to the ceiling in the living-room, after having joined the two rooms. The sofa, the armchairs and the furniture were white, as was the piano.”
For his part, “Miller hung a picture of Marilyn taken by Jack Cardiff in England,” in his workroom. Though he said “it was his favorite picture of Marilyn, he gave it up when he left the apartment.”
The Post reports that the building’s amenities “include a doorman, an elevator operator, a resident manager and bike storage.” That, and some fascinating 20th-century history.
Nostalgic ’80s film fans can now own the very property where the “Truffle Shuffle” was first put out into the world.
The classic Victorian-style home where the gang from The Goonies plotted out their treasure hunt is up for sale.
From left to right, Corey Feldman, Jeff Cohen, Josh Brolin, Ke Huy Quand and Sean Astin standing on porch in a scene from the film ‘The Goonies’, 1985.
Warner Brothers via Getty Images
The Astoria, Ore., property was listed earlier this month by Jordan Miller of John L. Scott Real Estate for US$1.65 million.
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Cinephiles will be stoked to learn the home’s exterior remains very true to the 1985 film, although the window casings and door are now orange, not red. Also missing, somewhat disappointingly, is the Rube Goldberg machine that powered the home’s front gate and was featured in the movie’s opening scenes.
Nevertheless, the historic home, which was built in 1896, measures 1,935 sq. ft. and includes four bedrooms and two bathrooms. The current owner gave the home a recent refresh, with an updated kitchen, new carpet and fresh paint.
And let’s not forget the amazing ladder that led the Goonies into the attic where they discovered the map to One Eyed-Willie’s gold — that remains in the house, too.
The exterior view of “The Goonies” home.
Courtesy / John L. Scott Market Center
The home also features sweeping views of the Columbia River flowing into the Pacific Ocean and the listing describes it as “fully loaded with history, nostalgia and iconic level of fame.”
“It seems to be everybody’s intention to be able to open up the house a little bit more and have more access,” he said.
The current owner of “The Goonies” house gave the home a refresh, with a renovated kitchen.
Courtesy / John L. Scott Market Center
And that’s certainly a plan that would prove popular with Goonies groupies. AP reports that the current owner, Sandi Preston, has been largely welcoming of the visitors who have flocked to see the iconic house, but has been forced to close the home’s property to foot traffic at times.
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After the film’s 30th anniversary drew about 1,500 daily visitors in 2015, Preston posted “no trespassing” signs prohibiting tourists from walking up to the property. She reopened it to the public this past August.
The new owner might also have their work cut out for them in terms of keeping the peace with their neighbours.
Every level of the home has clear views of the bay, the bridge and the city.
Courtesy / John L. Scott Market Center
City officials, who restricted parking in the area, have long sought to mediate the tensions between residents and the fans hoping to see and photograph the location.
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“While the owner of this location from The Goonies is a fan of the movie and enjoys chatting with visitors making the trek to Astoria to see the film locations, as you can imagine, it gets hard having hundreds of people crowding into your personal space every single day,” the Astoria-Warrenton Chamber of Commerce wrote in August on a Facebook page they administer called Goonies Day in Astoria, Oregon .
However, Miller insists that the home would make a “fun buy.”
“Whoever buys the house is going to have a relatively steady stream of extremely happy people walking up outside to fulfill their childhood dreams.”
Sotheby’s International Realty today announced the opening of Kazakhstan Sotheby’s International Realty, signifying the brand’s continued expansion to nearly 220 offices in the EMEIA region.
Kazakhstan Sotheby’s International Realty is owned and operated by Andrei Manoukovski and will be led by CEO, Diana Alieva, who bring nearly 30 years of collective real estate experience to the company. The company is headquartered in the city of Almaty and will service the entire country, including the cities of Almaty, Astana, Shimkent, Aktobe, and Pavlador.
“Kazakhstan is known for its hospitality, authentic cuisine, and being rich in nature,” said Philip White, president and CEO of Sotheby’s International Realty. “The country debuted on the Global Fintech Index in 2021 and investors are demonstrating interest in the country’s real estate market. There is also a growing trend to increase new development projects. Our continued international expansion further enables our brand to grow strategically and provide added referral opportunities for our clients. I look forward to working with Diana and the entire Kazakhstan Sotheby’s International Realty team.”
“Our mission is to demonstrate the benefits of real estate investments to clients and our region,” said Alieva. “Kazakhstan is a country with established luxury. Clients value quality and trust brands with history. Currently, there are no real estate brands in the region that offer global recognition. Our affiliation with Sotheby’s International Realty allows us to differentiate ourselves as a company that represents high standards, heritage, and luxury.”
The company has several agents, and their team consists of financial and investment specialists to aid clients on the market and their real estate portfolios.
Hidden deep below some of New York City’s most luxurious apartment buildings is an exclusive world of futuristic parking spaces where high-end vehicles are parked and retrieved by robotic parking machines. CNBC’s Ray Parisi shows you what it’s like to drive a car into an intelligent-parking system where a single spot starts at $300,000.
Hidden deep below some of New York City’s most luxurious apartment buildings is an exclusive world of futuristic parking spaces where high-end vehicles are parked and retrieved by robotic parking systems.
The high-tech spots are a rare amenity in the Big Apple, and if you want your car to occupy one of these VIP spaces you’ve got to be ready to fork over hundreds of thousands of dollars.
The spots are only accessible to residents of buildings where the apartments will set you back several million, and if you want your car to live there too you’ll need between $300,000 to $595,000 more to score some precious space in the private garage.
CNBC found two buildings in Manhattan offering spots for sale inside a so-called robo-parking garage.
The first is located at 121 East 22nd Street near NYC’s Gramercy Park where a 140-unit condo building developed by Toll Brothers offers 24 automated parking spots.
High above the 22nd St condo’s underground garage is the wraparound terrace of a 5-bedroom duplex apartment that recently sold with a $300K parking spot for $9.45 million.
DroneHub Media
Earlier this month, Lori Alf, a full-time resident of Florida, picked up one of the rare parking spaces for $300,000 when she purchased the building’s priciest unit: a 5-bedroom duplex spanning almost 3,800 square feet.
She told CNBC the package deal, which totaled $9.45 million, was a gift to her children who are now spending more time in New York.
The sun-drenched living area inside Lori Alf’s penthouse unit at 121 E 22nd St.
Toll Brothers City Living
Now when Alf or her kids want to park the family’s Porsche Cayenne in the condo’s garage they pull up to a kiosk where the wave of a small radio frequency ID tag unlocks access to a subterranean car lair where no humans are allowed.
Pressing a button on the kiosk sends a jolt of life into an empty metal pallet one level below. It slides across a track onto a powerful lift that sends the empty pallet up toward ground-level to meet the Alfs who can then carefully position their car on top of it.
As a vehicle enters the automated system a motion board delivers messages to the driver to assure the vehicle is positioned properly for the parking process to begin.
CNBC
Before their wheels are whisked away, a set of cameras scan the system’s entryway to confirm the car’s trunk and doors are all closed — and that there are no objects or humans left behind that might obstruct the automation.
When the scanners deliver the “all clear,” the pallet, with car on top, disappears into the floor, pausing briefly as it descends into the basement to spin the vehicle 180 degrees before slotting it into one of the empty spaces.
The system can lift and shuffle two dozen cars across four rows and two levels.
A car parked on the lower level of the automated parking garage at 121 E 22nd St where prices start at $300K per spot.
CNBC
Retrieving the car is a lot like making a selection from a giant vending machine. Residents swipe their RFID tags once again, and the system delivers their cars in about 2 minutes and 15 seconds.
One of the perks for Alf: She never has to put the car in reverse to exit the building.
“The car is turned for you by the robot,” she told CNBC. “Who doesn’t live for a robot that sets you in the right direction in NYC?”
Pedro Fernandez, a local sales representative for Klaus Parking, the company that sold the German-made parking system to the building’s developer, told CNBC it’s the most automated garage he’s ever installed in Manhattan.
The company’s top-tier system typically costs between $50,000 and $70,000 per spot installed. Fernandez said developers invest over a million dollars in the intelligent parking infrastructure because it’s super efficient at arranging vehicles and maximizing space.
The view inside the robo-parking machine at 121 E 22nd St reveals a system of pallets and hydraulic lifts that maneuver cars around a two-tier subterranean parking structure.
CNBC
“There was no other way to park 24 cars,” Fernandez said of the garage space under 121 East 22nd Street.
The self-parking system can unlock more spaces per square foot because it doesn’t require the ramps and driving lanes you see in most conventional garages, he said.
”As crazy as it may sound, $300,000 for a residential parking spot is considered a reasonable price in New York City,” said Senada Adzem, a Florida-based real estate broker at Douglas Elliman, whose team represented Alf in her recent purchase.
Adzem told CNBC spots in the system that include a charging plug for electric vehicles will run you $350,000. And whether it’s electrified or not, every parking spot carries a $150 per-month maintenance fee.
“The overall lack of parking in the city, an ongoing problem with no end in sight, will only escalate such pricing,” said Adzem.
She believes short supply could turn the seemingly lavish expense into a money-maker for owners, who could eventually resell their spot at a profit.
A car inside the automated parking garage at 520 West 28th where spots start at $450K.
Martien Mulder & Related
Across town, parking spots are even pricier in a building that was once home to popstar Ariana Grande and currently houses rock musician Sting and his film producer wife Trudie Styler.
The price to park at 520 West 28th Street starts at $450,000.
The $16.5M penthouse at 520 W 28th St unfolds over the 15th & 16th floors, featuring a 2,040 sq ft terrace that wraps around the building’s curvaceous glass facade.
Colin Miller / Related
The luxe residence, designed by famed architect Zaha Hadid and developed by The Related Companies, includes a 4,500-square-foot penthouse currently on the market for $16.5 million. And according to listing agent Julie Pham of Corcoran, a parking space in the building’s garage can cost upwards of $595,000 more per vehicle.
“I’d never seen anything like it before,” Pham said of the unique amenity.
Residents can use an app to communicate with the so-called “secured parking portal” and remotely start the automated retrieval process so the car is ready to go when they are.
The $16.5M penthouse listing includes ten rooms and almost 4,500 sq ft of indoor living space, the asking price does not include parking.
Colin Miller / Related
While Pham wouldn’t reveal the identities of any past or present clients, she did tell CNBC the automated parking was a major draw for one famous resident, who had a security team examine the parking area prior to moving in.
The unnamed celebrity’s representatives OK’d the deal in part because the star could enter and exit the garage in total privacy, Pham said.
“They liked the idea that you didn’t have to engage with a valet or an attendant, or that anyone couldn’t come in right behind you,” she said.
And during the pandemic, the broker said, residents who wanted to minimize their exposure to Covid-19 loved that they could deposit and retrieve their vehicle without handing over their keys to a valet.
While the automated spots are pricey, they’re not even close to NYC’s most expensive.
In recent years, some condo developers have pushed their asking prices for a basic concrete-and-yellow-stripe parking spot to the $1-million mark, according to Jonathan Miller, president of Miller Samuel, a firm specializing in real estate appraisals and consulting. Still, he said, it’s unlikely a spot with a 9-figure asking price has ever lured in an actual buyer.
“I never found evidence of their actual closings,” he told CNBC.
Miller, who analyzed public records at CNBC’s request, said one of the most expensive parking spots sold in town last year was located at 220 Central Park South, where a parking space went for an impressive $750,000. Miller said, based on public records, it appears connected to an apartment in the building that traded for $16 million.
“It’s really tough to track since most sales are embedded in the sale of a unit,” Miller told CNBC.
And it’s even tougher to track sales of spots in the newer automated systems, because, in many cases the spots are actually licensed to buyers, not deeded and sold like most real estate, according to brokers.
Miller said his best estimate for the going rate of a single NYC parking spot: “I think $300,000 to $400,000 is the sweet spot for new development.”
Mortgage applications rose 2.2% last week compared with the previous week, prompted by a slight decline in interest rates, according to the Mortgage Bankers Association’s seasonally adjusted index.
Refinance applications, which are usually most sensitive to weekly rate moves, rose 2% for the week but were still 86% lower than the same week one year ago. Even with interest rates now back from their recent high of 7.16% a month ago, there are precious few who can still benefit from a refinance — just 220,000, according to real estate data firm Black Knight.
Mortgage applications to purchase a home rose 3% for the week, but they were down 41% from a year ago. Some potential buyers may now be venturing back in, hearing that there is less competition and more negotiating power, but there is still a shortage of homes for sale and prices have not come down significantly.
A home, available for sale, is shown on August 12, 2021 in Houston, Texas.
Brandon Bell | Getty Images
Rates are still twice what they were at the beginning of the year, but they eased somewhat last week. The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($647,200 or less) decreased to 6.67% from 6.90%, with points increasing to 0.68 from 0.56 (including the origination fee) for loans with a 20% down payment.
“The decrease in mortgage rates should improve the purchasing power of prospective homebuyers, who have been largely sidelined as mortgage rates have more than doubled in the past year,” Joel Kan, an MBA economist, said in a release. “With the decline in rates, the ARM share [adjustable-rate] of applications also decreased to 8.8% of loans last week, down from the range of 10% and 12% during the past two months.”
Mortgage rates haven’t moved at all this week, as the upcoming Thanksgiving holiday tends to weigh on volumes.
“It’s not that things aren’t moving. They just aren’t moving like normal,” said Matthew Graham, chief operating officer at Mortgage News Daily. “Expect things to get back closer to normal next week, but for the market to continue to wait until December 13 and 14 for the biggest moves.”
That’s when the government releases its next major report on inflation and the Federal Reserve announces its next move on interest rates.
North of Santa Fe, where the Sangre de Cristo Mountains begin to roll toward the historic downtown, an incomparable estate stretches gracefully across a 3.7-acre hilltop amid the piñon- and juniper-strewn terrain. Unparalleled in the area for its scope, self-sufficiency, security, and superior construction and finishes, it features four distinct residences, spa and fitness facilities, a chicken coop, a greenhouse, a resort-caliber swimming pool and spa, a veritable outdoor cinema, and numerous other alfresco entertaining spaces. Walking paths wind through colorful flora; perennial, vegetable, and herb gardens; fruit trees; berry vines and bushes; and three serene water features.
The main residence offers some 7,000 square feet of living and entertaining space. Its heart is an elegant living room and an adjoining dining room—both with fireplaces and doors to a magnificent portal and pool terrace. In addition to a well-equipped residential kitchen with a bar and a butler’s pantry, the home boasts a rare true professional kitchen with Imperial appliances, a grill top, and a pizza oven. A nearby spiral staircase leads to the 600-bottle wine cellar. The casual media room features built-in speakers.
The owner’s suite is secluded in its own secure wing and encompasses a luxurious bedroom, a courtyard with stairs leading to a rooftop deck, a spa-inspired bath with a massage area, an impressive room-sized walk-in closet, a sitting room, and a library. In a wing on the opposite end of the residence are two peaceful guest suites. An additional two-bedroom apartment with a living area and kitchen is tucked above the three-car garage. The residence also includes generous staff quarters with a catering kitchen and a professional-scale laundry room.
The chic 4,000-square-foot residence known as “Cielo” offers an entertainment area with a fireplace, a breezy portal, a dramatic balcony with a fireplace and a mountain view, a peaceful bedroom suite, and a bunk room that can sleep eight. The lower level houses fur, art, and sports-equipment storage; a massage room; a gym; a sauna; and a full beauty salon. The sophisticated 5,000-square-foot “Bella Vista” residence includes a great room with a fireplace and a 22-person dining area, a chef’s kitchen, a butler’s pantry, a plating kitchen, a wet bar, two powder rooms, an all-season portal, and a heated glass-railed balcony for appreciating the eponymous view. A family room with a bar, discreet laundry facilities, two bedroom suites, and two eight-person bunk rooms with baths are located on the lower level. The new “Verano” duplex consists of two one-bedroom apartments, each with its own stylish bath, en suite wet bar, and private outdoor space.
Santa Fe’s four distinct seasons allow for outdoor living and entertaining nearly year-round. In addition to a projector and retractable screen that face an expansive lawn, the “Campo” entertainment pavilion offers a living area with a fireplace, a dining arbor, a wet bar, and a half bath. Easily accessible from all the homes is a dazzling heated swimming pool and a 10-person spa surrounded by an expansive sun-washed terrace. Nearby is a magnificent multi-season portal with a wood-burning Anasazi-stone fireplace, heaters, and retractable screens and walls.
The estate is known familiarly as Vida Encantada, which means “enchanted life.” An unprecedented collection of refined homes, gardens, and venues for diversion, it undoubtedly lives up to its name.
CNBC’s Diana Olick joins ‘Squawk on the Street’ to discuss the impact of rising interest rates on home sale prices, drops in investor home purchases and what regions are seeing the biggest investor pullbacks.
