CLICK HERE TO READ PALACE #27

Properties

Picking Some Property Gems In The Stateside Slowdown

While the great Stateside post-recession price boom appears to be losing steam, you’d only need a discerning mind to pick out some property gems.

Nov 26, 2018 | By Joe Lim

The great American post-recession price boom appears to be losing a little of its steam. While the numbers don’t lie, there are still some property gems to be found. It pays to be observant even if you’re hunting for a property in the stateside slowdown. Hmm, and there’s even a charming waterfront property in Idaho, too.

One Steuart Lane project, San Francisco

The recovery from the Great Recession and housing bust have been underway since at least 2012, but the upcycle in home prices appears to be running out of fuel as buyers across the US struggle to keep pace with price increases. “It appears sales activity crested in late 2017,” said Freddie Mac Chief Economist Sam Khater. “It is clear affordability constraints have cooled the housing market, especially in expensive coastal markets.”

THE WEST COAST BEARS THE BRUNT
Rising home prices and interest rates are worsening affordability and damping home sales across the country, but the West, which has seen a particularly sharp run-up in prices in this six-year housing rebound, is bearing the brunt of the slowdown, agents say. Existing-home sales in the western region, including California, Washington and Arizona, declined 4.1 per cent in the second quarter compared with the first quarter, according to data released by the National Association of Realtors (NAR). “The West region has the fastest job-growing regions in the country, yet sales are coming down because prices have risen so much,” said Lawrence Yun, chief economist at the NAR.

One Steuart Lane apartments provide stunning views

FOREIGN BUYERS BACK OFF
Purchases by international buyers totalled USD 121 billion in the fiscal year ended in March down from USD 153 billion the previous year, according to a recently released survey from the NAR. That 21 per cent decline was the largest on record, the association said. Economists say the sharp decline in purchases reflects higher home prices, a strengthening US dollar and intensifying political tensions between the US and other parts of the world. “The [discussion of a] trade war or just the rhetoric against foreigners may have dampened some of the enthusiasm to buy property in the US,” said Lawrence Yun, chief economist at NAR. Chinese buyers remained the largest purchasers of US homes, but their purchases fell 4 per cent from the previous year to USD 30.4 billion. Purchases by Canadians, the second-most prolific purchasers, dropped 45 per cent to USD 10.5 billion.

A SELLER’S MARKET
Annual home-value appreciation has been faster in 2018 than it was in 2017, and inventory has fallen on a year-over-year basis for 42 consecutive months. These conditions have put sellers in the driver’s seat, and experts say home sellers likely will continue to hold more negotiating power than buyers for the next year and a half. But recent data suggest the balance may be starting to tilt back toward buyers as home-value growth is slowing in more than half of the nation’s 35 largest metros, and price cuts are becoming more common.

The Chamberlain

PRICE REDUCTIONS
During June 2018, 14 per cent of listings across the country saw a price reduction; the highest rate in years for some markets according to research released by realty marketing site Zillow. In Seattle, a city where the market has of late been characterised by multiple offers and double-digit appreciation, 12 per cent of listings got a price reduction in June, the highest rate since 2014. (The city’s median cut was 3.1 per cent.) Across the country, reductions are occurring most frequently at the upper end of the price spectrum, cuts jumped to 16.2 per cent in June.

NOTABLE LUXURY LAUNCHES
New development on Manhattan’s Upper West Side is rare. However, projects such as The Belnord, designed by Robert A.M. Stern Architects, and The Chamberlain, by FXFOWLE and Champalimaud Studio, offer brand new living spaces modelled after the stately prewar buildings of the 1920s and 1930s. The Chamberlain on West 87th Street features charming Juliet balconies, bronze-finished double entry doors and a garden courtyard. Apartments range from two- to five- bedroom residences to duplex townhouses and full-floor penthouses. Prices start at USD 2.5 million. San Francisco’s newest waterfront building – billed as the last of its kind – is

The Belnord, Manhattan

One Steuart Lane, a 20-storey condominium designed by Skidmore, Owings & Merrill (SOM). The project includes 120 one- to three-bedroom residences and select penthouses ranging from 900 to 3,100 square feet. Many units have private balconies or terraces with unobstructed views of the Bay Bridge and Ferry Building. Amenities include a private fitness center and spa with water therapy, sauna and an outdoor Jacuzzi. Pricing hasn’t been announced yet. During June 2018, 14 per cent of listings across the country saw a price reduction; the highest rate in years for some markets according to research released by realty marketing site Zillow. In Seattle, a city where the market has of late been characterised by multiple offers and double-digit appreciation, 12 per cent of listings got a price reduction in June, the highest rate since 2014. (The city’s median cut was 3.1 per cent.) Across the country, reductions are occurring most frequently at the upper end of the price spectrum, cuts jumped to 16.2 per cent in June.

NOTABLE LUXURY LAUNCHES
New development on Manhattan’s Upper West Side is rare. However, projects such as The Belnord, designed by Robert A.M. Stern Architects, and The Chamberlain, by FXFOWLE and Champalimaud Studio, offer brand new living spaces modelled after the stately prewar buildings of the 1920s and 1930s. The Chamberlain on West 87th Street features charming Juliet balconies, bronze-finished double entry doors and a garden courtyard. Apartments range from two- to five- bedroom residences to duplex townhouses and full-floor penthouses. Prices start at USD 2.5 million. San Francisco’s newest waterfront building – billed as the last of its kind – is One Steuart Lane, a 20-storey condominium designed by Skidmore, Owings & Merrill (SOM). The project includes 120 one- to three-bedroom residences and select penthouses ranging from 900 to 3,100 square feet. Many units have private balconies or terraces with unobstructed views of the Bay Bridge and Ferry Building. Amenities include a private fitness center and spa with water therapy, sauna and an outdoor Jacuzzi. Pricing hasn’t been announced yet.

 


 
Back to top