Archive for Real Estate

  • Real-estate shares’ premium to wider market at four-year high
  • Sector will benefit from expanding economy, BDO Unibank says

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Philippine real-estate stocks will extend a market-beating rally, the country’s biggest money manager is betting, unfazed by the most expensive valuation in four years.

The Philippine Stock Exchange Property Index has climbed 24 percent this year as investors became more sanguine about President Rodrigo Duterte’s pivot to China and his U.S. counterpart’s insular approach to trade, which could hurt outsourcing companies. The measure now commands the highest premium since 2013 over the stock benchmark, which is up 17 percent…

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The company plans to redevelop the student housing into conventional apartments. Renovations will be made to the unit interiors, as well as to the exterior.

Waypoint Residential continues its round of student housing purchases with the addition of a 288-unit community located in Tallahassee, Fla. This time, the company plans to redevelop the property from student housing to conventional apartments.

WAYPOINT’S RENOVATION PLAN

Located near various retail and transportation options, the redevelopment includes amenities such as a fitness center, a computer lab, business center, conference room, movie theater, swimming pool, a full-size basketball court and a sand volleyball court…

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  • Values in London fell in May for the second consecutive month
  • London market most impacted by Brexit and higher sales taxes

The eight-year bull run for London home values appears to be finally coming to an end.

Values fell 0.5 percent in May from April, according to the LSL Acadata Home Price Index, and will show little or no growth this year, broker Savills Plc forecasts. PricewaterhouseCoopers LLP predicts that price growth will continue to slow in 2018 and 2019 as economic uncertainty and increased stamp duty taxes damp demand.

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Residential construction ended the second quarter on a stronger note as groundbreaking on new homes rebounded in June to the fastest annualized pace in four months, Commerce Department data showed Wednesday.

Key Takeaways

The pickup in construction last month reflected more starts of single-family homes as well as apartment and other multifamily dwellings. The gain in June starts ended a three-month slide that indicates residential building will do little for second-quarter economic growth.

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Sentiment among American homebuilders deteriorated to an eight-month low in July on concerns about higher material costs, according to data Tuesday from the National Association of Home Builders/Wells Fargo.

HIGHLIGHTS OF HOMEBUILDER SENTIMENT (JULY)

  • Builders’ Housing Market Index decreased to 64 (est. 67) from 66 in June (revised from 67)
  • Measure of six-month sales outlook dropped to a five-month low of 73 from 75
  • Index of current sales fell to 70, the weakest since November, from 72
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  • They had record 33% of portfolios in property, survey says
  • Investor wagers on hedge funds fell to record low 4%

Wealthy investors boosted bets on real estate and left hedge funds and equities as concern over high valuations and geopolitical risk push them back to basics.

They had 33 percent of their portfolios on average in real estate at the end of the second quarter, according to a survey by Tiger 21 released Tuesday. That’s a record since the group of high net-worth investors started measuring aggregate allocations in 2007.

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Rental listings generally don’t include tenant complaints or fire code violations. Rentlogic is changing all that.

The for-rent advertisement on East 75th Street in Manhattan, just a half-block from Central Park, boasts natural light, a marble bathroom, and a granite kitchen. It sounds lovely, a gem of the Upper East Side—perhaps even “triple mint,” as some real estate ads breathlessly proclaim.

It better be, given that the price for the apartment is $4,095 a month.

What the listing doesn’t mention is that the building has a long history of tenant complaints and city-issued violations. Issues over the years have included mold, cockroaches, and fire safety. That information is accessible on public databases, but it can be difficult to dig up for the uninitiated…

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  • Second-quarter sales of homes being built rise by 30%
  • Total number of unsold homes under construction reaches record

London home starts rose to the highest in 18 months even as the number of unsold properties under construction climbed amid uncertainty surrounding Brexit.

Construction began on 6,962 units during the second quarter, according to a report by Molior London seen by Bloomberg News. That’s 42 percent higher than a year earlier and the most since the fourth quarter of 2015. A spokesman for Molior declined to comment…

London New Home Starts Surge 42% as Builders Ignore Brexit Woes

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  • House-price inflation set to slow to 3.7% from 7% last year
  • Inflation, Brexit will weigh on consumer spending, investment

The U.K. housing market will cool this year as uncertainty around Brexit hits the economy, according to PricewaterhouseCoopers LLP.

Home-price inflation will slow to 3.7 percent from 7 percent in 2016, and London will be the most severely impacted, PwC said in a report published Tuesday. The changes reflect the wider economic picture as inflation and Brexit take their toll on consumer spending and investment…

U.K. Housing Market Will Cool This Year, PwC Says

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In her new role, Melissa Reagen will be responsible for coordinating TH’s research team, which identifies and analyzes market trends that inform clients’ investment decisions.

TH Real Estate, an affiliate of asset manager Nuveen, has appointed Melissa Reagen as head of research for the Americas. She will be based in New York City and will report to Chris McGibbon, head of TH Real Estate Americas. Reagen will also work closely with Alice Breheny, who is overseeing all research teams from London.

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  • Three-month average down 14.2% after flood of new listings
  • Bank of Canada rate hike expected to further cool market

Canada’s hottest housing market is definitely cooling down.

Total home sales in Greater Toronto dropped to 5,977 in June, the lowest level since 2010 and down 15.1 percent from the month prior, data from the Canadian Real Estate Association show. Average prices are down 14.2 percent since March — the fastest 3-month decline in the history of the data back to 1988 — while the ratio of sales to new listings sits at its lowest level since 2009…

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Marcus & Millichap represented the seller and procured the buyer for the 86-key property, which is one of several Salt Lake City hotels to change hands recently.

Marcus & Millichap has arranged the sale of a four-story, 86-key SpringHill Suites hotel in downtown Salt Lake City. This is the second Salt Lake City hotel that changed hands recently. The SpringHill Suites brand opened another property 17 miles south, an 111-key hotel in South Sudan, Utah, owned by District Hotel Partners LLC and managed by Sequoia Hospitality LLC.

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  • A squeeze on wages and inflation is holding back buyers
  • Consumer confidence fell most in more than two years in 2Q

U.K. house prices are “virtually at a standstill” as consumers contend with a squeeze on living standards, Rightmove Plc said.

Asking prices rose by 0.1 percent in July from the previous month, the property website said on Monday. The average asking price climbed to 316,421 pounds ($412,000), a “relatively subdued” 2.8 percent increase from a year earlier. The annual rate of price gains was almost 8 percent in May last year…

U.K. House Prices ‘Virtually at Standstill’

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  • RICS index drops to 7 in June vs 17 in May, lowest since July
  • Sales outlook for next year at weakest since after Brexit vote

U.K. house-price growth cooled in June as the inconclusive election weighed on demand, according to the Royal Institution of Chartered Surveyors.

RICS said its index declined from 17 in May to 7, its lowest level in almost a year, indicating that a smaller majority of real-estate agents saw price gains. A measure of predicted sales over the next year also fell to its lowest level since the immediate aftermath of Britain’s European Union referendum…

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The company’s new project marks its third in the area and will be among 15 total properties to be built with development partner Holladay Properties.

WoodSpring Hotels’ rapid national expansion continues with construction presently underway on suburban Chicago’s WoodSpring Suites Tinley Park in Tinley Park, Ill. The company is bringing the 123-suite economy extended-stay property to life in a partnership with development partner Holladay Properties.

With an address of 18644 West Creek Dr., the four-story WoodSpring Suites will rise roughly 30 miles south of downtown Chicago, with Holladay subsidiary Holladay Construction Group spearheading building activity. The approximately 50,000-square-foot property marks the partners’ third WoodSpring Suites in the Chicago area; the other two properties are in Romeoville and Darien, Ill…

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The 146-key extended-stay hotel is part of the Meridian Business Park. Sun Development and Management owns the asset that offers a combination of studio, one- and two-bedroom accommodations, with separate living areas.

Hilton opened a new property in Illinois under the Homewood Suites brand. Part of the Meridian Business Park, the 146-key extended-stay hotel is located in Aurora/Naperville, approximately 30 miles from the Chicago O’Hare International Airport. The owner and manager is Sun Development and Management.

HOMESTAY EXPERIENCE

The hotel, located at 4320 Meridian Parkway, offers a combination of studio, one- and two-bedroom accommodations, with separate living areas. The rooms and suites feature fully equipped kitchens with full-size refrigerators, microwaves, dishwashers as well as free internet. All amenities are designed to create a sense of homestay for guests…

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 Advances in big data at Zillow and elsewhere are helping automation creep into knowledge-based professions.
Twenty-five years ago, Brian Weaver was told at a seminar that the real estate appraisal profession would be killed off by technology in five years. It didn’t happen. But he now thinks the forecast wasn’t exactly wrong—just early…
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  • City’s residents rent units to store non-essential belongings
  • Blackstone entered market in 2015, buying MiniCo Self-Storage

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People often complain about Hong Kong’s notoriously tiny apartments, but for investors like Blackstone Group LP, opportunity can be found in small places.

Welcome to the world of self storage.

The majority of Hong Kong’s 7.4 million residents live in cramped homes with limited space for clothes, shoes, books, sports gear and other items. So there’s a desire to find somewhere else to store non-essential belongings…

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The boutique lodging property will be incorporated into the company’s 2,400-key casino resort across the street.

What a way to grow. Tropicana Entertainment Inc. will expand Tropicana Casino & Resort Atlantic City, a 24-hour gaming destination with 2,400 guestrooms and a 200,000-square-foot entertainment complex, by 300 keys and it will do so without lifting a shovel. Acting through its Tropicana Atlantic City Corp. subsidiary, the company recently purchased The Chelsea Hotel, sited just across the street, and will connect the boutique lodging property to the complex via a skyway bridge.

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Jul
10

Real Estate Check-Out Time in China

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China’s second-richest man is going asset-lite, offloading some of his real estate holdings. Perhaps you should too.

Sunac China Holdings Ltd. agreed Monday to buy hotels, land and projects from Dalian Wanda Group Co., the sprawling conglomerate controlled by billionaire Wang Jianlin.

In an interview with Caixin, Wang said he wants to position Wanda so that its brand name and management expertise is leased out to other commercial property investors, not unlike what Donald Trump has done with his real-estate empire. Wanda plans to use proceeds from the record $9.3 billion sale to deleverage, and should be able to pay back most of its bank loans by the end of the year…

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The company will be joined by Firestone Investments in the acquisition of International Market Centers. The transaction is on track to close in the third quarter of 2017.
Global investment giant Blackstone inks yet another deal that will expand its real estate holdings. Funds managed by Blackstone Real Estate Partners and Blackstone Tactical Opportunities have committed to acquiring International Market Centers Inc., the largest owner and operator of premier showrooms space for the furnishings, home decor and gift industries in the U.S. Blackstone will purchase the company, which boasts a portfolio of 12.2 million square feet of exhibition space in High Point, N.C., and Las Vegas, from Bain Capital Private Equity LP and funds managed by Oaktree Capital Management LP…
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West Hammer sold the 15,314-square-foot multi-tenant retail strip center for $7.1 million. The 1031 exchange buyer was attracted to the asset’s location and the triple-net lease structure.

Faris Lee Investments has completed the $7.1 million sale of The Shops at Hammer & West, a 15,314-square-foot multi-tenant retail strip center in Stockton, Calif. The property traded at a cap rate of 6.5 percent and a price per square foot of $460.

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James R. Williams thought he had found a great deal on a home. The monthly fee on the three-story fixer-upper in Cincinnati was cheaper than the rent on his last home. And the payments would go toward the $40,000 he needed to own the place.

But Mr. Williams will almost certainly never own the house. Instead, he was left with a grandson with lead poisoning from peeling paint in the 98-year-old home and he says around $10,000 in critical repairs to the plumbing system.

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  • Prices grow 2.6% from a year ago, slowest pace since May 2013
  • Rising inflation, tax changes continue to weigh on demand

U.K. house prices grew at their slowest pace in four years in June, adding to signs that the property market is cooling.

Prices grew 2.6 percent compared with a year earlier, lender Halifax said in a report on Friday. On a quarterly basis, they slipped 0.1 percent, and they declined 1 percent from a month earlier…

U.K. House Prices Increase at Slowest Pace in Four Years

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  • Mayfair property had been held by Subrata Roy’s Sahara India
  • Ashkenazy also recently bought stake in NYC’s Plaza hotel

Ashkenazy Acquisition Corp., the U.S. real estate investor that recently bought a stake in New York’s Plaza Hotel, said that it acquired the Grosvenor House hotel in London, helping resolve an imbroglio that kept ownership of the famed properties in limbo for three years.

Terms of the purchase, announced on Friday, weren’t disclosed. The Grosvenor House acquisition “reflects a continued aggressive focus” on buying an additional 2 billion euros ($2.3 billion) of “global iconic assets” over the next two years, New York-based Ashkenazy said in a statement

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  • Price of Israeli housing is still rising, but more slowly
  • Social protests made housing costs a hot political issue

Housing prices in Israel have been rising for so long that many residents don’t remember what it’s like when they fall. They may be about to find out.

Signs are growing that Israel’s housing boom is sputtering, with fewer investors snapping up homes as mortgage rates rise. That hasn’t yet dented home values but it has slowed appreciation, suggesting that a 10-year trend that weighed heavily on homebuyers and policymakers may be reversing course…

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Jul
06

Buffett Extends His Bet on Housing

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  • Factory builder uses deals to expand into on-site construction
  • Buffett also benefits from housing recovery with bricks, paint

Clayton Homes, the unit at Warren Buffett’s Berkshire Hathaway Inc. that assembles houses in factories for delivery to lots, bought Colorado’s Oakwood Homes to expand a push in site-built construction.

The deal includes about 18,000 lots controlled by the developer, Clayton said Thursday in a statement that didn’t disclose terms. That’s the largest figure in deals disclosed by the homebuilder, which added 1,200 in a Missouri transaction and fewer than 4,000 through a Tennessee agreement last year…

Buffett Extends His Bet on Housing

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  • Guocoland’s Cheng sees change in sentiment since last year
  • Price gap narrows between high-end, mass-market homes: Cheng

Singapore’s luxury home prices, which have been the worst hit by the government’s property curbs in recent years, are finally showing signs of a recovery, according to developer Guocoland Ltd.

High-end home sales in the city-state had been on an upswing even before the government in March eased some of its cooling measures in place since 2009, according to Cheng Hsing Yao, group managing director at Guocoland. The changes in March may have added more fuel to the buying sentiment, he said…

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  • German insurer will contribute Manhattan office tower to deal
  • Columbia brings two California properties to joint venture

Allianz SE, Europe’s biggest insurer, is partnering with Columbia Property Trust Inc. to create a $1.26 billion joint venture for U.S. real estate.

The German insurer contributed an office tower at 114 Fifth Ave. in Manhattan that’s valued at $220 million to the partnership, Allianz’s real estate unit said in a statement Thursday. Columbia added University Circle, a $540 million office complex in Palo Alto, California, and 333 Market St., an office tower in San Francisco’s financial district valued at $500 million…

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  • Luxury sellers cut prices 10% on average, the most since 2010
  • ‘Sellers definitely got it’ in second quarter, broker says

Manhattan homebuyers found deals they couldn’t refuse in the second quarter, driving up sales of previously owned properties by the most in more than two years.

Purchases of resale homes jumped 16 percent from a year earlier to 2,597, according to a report Thursday by appraiser Miller Samuel Inc. and brokerage Douglas Elliman Real Estate. Buyer interest was fueled by average price cuts of 6.1 percent across all property types. The last time the average discount was larger was the third quarter of 2012, when it was 7.2 percent.

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Jul
06

Nidec Shimpo Sells Itasca HQ

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NAI Hiffman represented the company, a supplier of drive technology and gearing solutions, in the sale of its 24,428-square-foot building located in Itasca, Ill.

Nidec Shimpo, the supplier of drive technology and gearing solutions, sold its 24,428-square-foot headquarters in Itasca, Ill., and moved to a new facility in Glendale Heights, Ill. NAI Hiffman, which recently closed on another office deal in Hoffman Estates, Ill., represented the seller in the transaction. Lee & Associates negotiated on behalf of the buyer, The Finer Line, a retailer of awards and promotional products.

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  • Home sales in Canada’s biggest city drop 37% from year earlier
  • Toronto real estate board lowers forecast for sales, prices

Toronto’s housing market is losing steam.

A series of government measures and the prospect of higher interest rates boosted listings and sparked the biggest sales decline in more than eight years last month, the Toronto Real Estate Board reported Thursday. Average home prices rose just 6.3 percent to C$793,915 ($612,000), the smallest annual increase since January 2015.

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  • Moody’s warns Illinois’s rating could still be cut to junk
  • State bonds rallied as lawmakers moved to end record impasse

Illinois ended a record-long impasse as lawmakers overrode Republican Governor Bruce Rauner’s veto to increase taxes and enact a $36 billion budget, prodded by warnings from credit-rating companies that the state’s bonds could be cut to junk if it failed to act.

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  • Prices plunge 3.1% in Oslo in June as sellers rush to unload
  • Houses out for sale increased by 17% from a year earlier

One of the world’s hottest housing markets is now cooling fast, sparking concern that a bubble is bursting after the rapid price increases over the past years.

Average nationwide house prices fell seasonally adjusted 0.7 percent in June, declining for a second month, Real Estate Norway, Eiendomsverdi and Finn.no said Wednesday in Oslo. Annual nationwide gains slowed to 6.3 percent from 8.3 percent in May and to 11.5 percent from 16.5 percent in Oslo. In the month, prices in the capital plunged 3.1 percent…

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  • Hosts to pay 3 percent transaction fee on short-term rentals
  • City will only allow rentals of principal residences

Vancouver is set to introduce new restrictions on Airbnb Inc., Expedia Inc.’s HomeAway unit and other short-term rental operators as Canada’s priciest housing market seeks to ease its near-zero supply of homes to let.

“Housing is first and foremost for homes, not to be operated as a business,” Mayor Gregor Robertson told reporters on Wednesday.

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  • Ontario releases data on foreign buyers after imposing tax
  • Estimates are in line with other real estate surveys

The Ontario government said overseas buyers accounted for just 4.7 percent of home purchases in the Toronto area over a recent one-month period. The new data is in line with other surveys, signaling that foreigners haven’t been major drivers of real estate prices in one of Canada’s most expensive markets.

Non-residents bought about 860 properties between April 24 to May 26 in the so-called greater golden horseshoe region of Ontario which includes Toronto, Hamilton and Peterborough, the province said in a statement Tuesday…

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 Student loans are a problem for all of us, not just the young.
Having been rejected by young people in the recent U.K. election, a senior minister in Theresa May’s government called at the weekend for a “national debate” on England’s 9,250 pound ($12,000) yearly student tuition fees — which the opposition Labour Party wants to abolish…
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San Francisco real estate is deep into a tech driven mania.  Home prices in the Bay Area are comically out of reach for most families and people are getting squeezed out like ketchup in a disposable packet.  What seemed like a new peak was once again surpassed.  The housing market is running on massive fumes and delusions run rampant.  The justifications for current prices run abound.  Yet the truth of it all is that we are deep into a manic phase of the market.  The current median price for a home in San Francisco is now $1.5 million.  This is for your standard crap shackflavored box.  People are still buying even though volume has trended lower but just look at the current price range.  A lot of this is being fueled by wildly high tech valuations and people believing that prices will never adjust.  In other words, a bubble…

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InterContinental Hotels Group completed a multi-million dollar renovation of the 150-key Holiday Inn Presidential Downtown Little Rock. The property features 5,000 square feet of meeting space.

InterContinental Hotels Group unveiled Holiday Inn Presidential Downtown Little Rock’s recently renovated rooms and suites in Arkansas. The hotel’s 5,000 square feet of meeting space have also been upgraded to accommodate up to 200 people. The LTD Hospitality Group owns and manages the hotel.

NEAR HISTORIC DOWNTOWN

Located at 600 Interstate 30, the Holiday Inn Presidential Downtown Little Rock is an upscale hotel in close proximity to downtown Little Rock, Ark., at the crossroads of the River Market and the new East Village. The hotel provides easy access to the area’s major attractions such as Heifer Village and Clinton Presidential Library…

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  • 0.3% in 2nd quarter, preliminary data shows
  • Residential values have fallen 12% from September 2013 peak

Singapore home prices fell in the quarter ended June, extending the drop in property values to a record 15th quarter as most measures to cool the market remain in place despite a slight easing in March.

An index tracking private residential prices fell 0.3 percent in the three months ended June 30 from the previous quarter, according to preliminary data from the Urban Redevelopment Authority released Monday. The almost four-year decline in prices is the longest since the data was first published in 1975…

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I love getting tips from Uber drivers especially when it comes to buying real estate.  We are now back at that level where real estate can do no wrong, the house humpers are confusing luck with investment acumen, and of course the sheep dive in head first at the most frothy time.  It is clear that we are in a mania and hot money is flowing everywhere.  Credit card offers are soaring and lending is booming across all areas: credit cards, auto loans, student debt, and housing.  With housing, we are now seeing one of our favorite past-time events in treating a home like an ATM.  Home equity withdrawals are now moving up in a direction that is not exactly positive if you believe in actually keeping your equity locked in instead of cementing your belief in the bubble and adding more debt.  You do need to pay those loans back by the way which many tend to forget.  Home equity withdrawals are simply one of the final steps in the delusional mania.

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  • Sales halved in first two weeks of June, listings rose 22%
  • Slowdown puts Toronto more in line with other big cities

Here’s more evidence that one of the world’s hottest housing markets is cooling down.

Home sales in Toronto fell by half to 2,999 in the first two weeks of June from the same period a year earlier, according to preliminary data from the Toronto Real Estate Board obtained by Bloomberg News. The average price for all property types rose 6.7 percent to C$808,847 ($608,888), easing from a 17 percent gain last June. And listings surged 22 percent.

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A pickup in sales of previously owned U.S. homes signals the housing market is making progress despite inventory constraints that are sending prices to all-time highs, a report from the National Association of Realtors showed Wednesday…

U.S. Home-Sales Pickup Signals Market Withstanding Weak Supply

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An heir to the Barilla pasta fortune talks about the extensive renovations that were done to the impeccable 1830 home, bringing in state-of-the-art technology and design.

After selling their shares in Barilla S.p.A., the pasta company, Riccardo Barilla’s parents moved in 1975 from Italy to Switzerland. They bought a house on about 10 acres of land in Vandœuvres, a wealthy suburb of Geneva, and stayed in it for the next 40 years.

In 2013, after his parents’ deaths, Barilla inherited a property that was virtually unchanged from when they’d bought it. ..

What Makes This Mansion in Geneva Worth $73 Million?

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  • Vice chairman notes prices rising in several countries
  • Financial system stronger and bad lending curtailed, he says

Federal Reserve Vice Chairman Stanley Fischer said a long period of low interest rates may have contributed to “high and rising” home prices in several countries, cautioning against forgetting the lessons of the 2007-09 housing crisis.

“There is more to be done, and much improvement to be preserved and built on,” Fischer said, speaking at an event in Amsterdam on Tuesday that was closed to the press. “The world as we know it cannot afford another pair of crises of the magnitude of the Great Recession and the Global Financial Crisis.”

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  • Portfolio of commercial mortgages valued a C$1.2 billion
  • Proceeds to be used to improve liquidity and pay down debt

Home Capital Group Inc., the embattled alternative lender, agreed to sell a clutch of commercial mortgages to affiliates of KingSett Capital Inc. for C$1.16 billion ($874 million) in cash.

Proceeds will be used to boost liquidity and reduce the amount drawn on its C$2 billion credit facility, the Toronto-based company said in a statement on Tuesday. While the mortgages are valued at C$1.2 billion — some 6 percent of Home Capital’s total C$18.5 billion loan portfolio — about 97 percent of this will be realized with the balance subject to credit losses…

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  • Impact of higher rates on consumer debt worries policy makers
  • Canadian finance ministers also discuss Home Capital’s woes

Housing was top of mind when Bank of Canada Governor Stephen Poloz spoke with the nation’s finance ministers this week, amid signals interest rates could rise and add pressure to household budgets.

Federal Finance Minister Bill Morneau hosted provincial counterparts for closed-door meetings Monday in Ottawa, hearing from Poloz and Senior Deputy Governor Carolyn Wilkins. Topics included housing and marijuana taxation, with ministers saying afterward the central bankers outlined the broad risks of an elevated housing market…

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  • ANZ, Commonwealth, National Australia, Westpac cut to Aa3
  • High household debt, low wage growth signs of increased risk

Moody’s Investors Service cut the long-term credit rating of Australia’s four biggest banks, saying surging home prices, rising household debt and sluggish wage growth pose a threat to the lenders.

Australia & New Zealand Banking Group Ltd., Commonwealth Bank of Australia, National Australia Bank Ltd. and Westpac Banking Corp. were all downgraded to Aa3 from Aa2, Moody’s said in a statement released Monday. The ratings outlook for all four lenders is stable, Moody’s said…

Moody’s Cuts Ratings on Australia’s Banks on Housing Concern

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  • Home prices in major cities have accelerated since end of 2012
  • Gauge of real estate stocks is worst performer this year

Analysts love them, investors loathe them. Three out of the seven Indonesian stocks which have unanimous buy recommendations from analysts are residential developers and all of them have fallen by at least 18 percent this year.

Predictions that lower interest rates in Indonesia and last month’s decision by Standard & Poor’s to raise its sovereign rating to investment grade would benefit the country’s property developers, along with banks, have been undercut as soaring prices deterred home buyers.

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  • Six charts that illustrate changing risk from home loans
  • Australian regulator due to announce new capital measures

The decision by Moody’s Investors Service to downgrade the ratings of Australia’s largest banks has focused attention on the risks lurking in the country’s A$1.51 trillion ($1.15 trillion) of mortgage loans.

“The resilience of household balance sheets and, consequently, bank portfolios to a serious economic downturn has not been tested at these levels of private sector indebtedness,” Moody’s said in the statement accompanying the downgrade of Australia & New Zealand Banking Group Ltd., Commonwealth Bank of Australia, National Australia Bank Ltd. and Westpac Banking Corp…

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  • Rightmove says political instabiltity may weigh on market
  • Nationally, asking prices post biggest June drop since 2009

London home sellers cut asking prices for a second time in three months and waning buyer interest hints that the slowdown may continue.

Prices dropped 2.4 percent in June — the biggest for that month since 2010 — leaving them down 1.4 percent from a year earlier, Rightmove Plc said on Monday. Nationally, asking prices slipped 0.4 percent, pushing the annual gain to the weakest since 2013. In London, buyer activity “remains subdued compared to the recent boom years,” Rightmove said…

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  • Values gained in 56 cities in May, compared with 58 in April
  • Sales growth quickened, buoyed by smaller cities’ transactions

China’s home prices increased in fewer cities last month in the wake of cooling measures imposed by local authorities.

New-home prices, excluding government-subsidized housing, gained from the previous month in 56 of 70 cities tracked by the government, compared with 58 in April, the National Bureau of Statistics said on Monday. Prices fell in nine cities and were unchanged in five.

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Three straight months of declines in new-home construction show U.S. homebuilding may weigh on second-quarter growth, Commerce Department data showed Friday.

HIGHLIGHTS FROM HOUSING STARTS (MAY)

  • Residential starts decreased 5.5% to a 1.09m annualized rate (est. 1.22m), the weakest since September
  • Starts in April were revised down to 1.16m, while March figures were also weaker than last reported
  • Permits, a proxy for future construction, fell 4.9% to a 1.17m rate, the lowest since April 2016

Key Takeaways

May starts were pushed lower by declining construction in South, which reached the weakest level since October 2015, and in the Midwest. Construction of single-family properties dropped 3.9 percent to the lowest since September, while ground-breaking on multifamily units declined for a fifth straight month…

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A private investor sold an 87,900-square-foot, five-building shopping center in Arlington, Texas. Bill Jordan of Marcus & Millichap represented the seller and secured the buyer.

Marcus & Millichap sold Sublett Corners Shopping Center in Arlington, Texas, to a private investor. Bill Jordan, vice president of investments in the company’s Fort Worth office, had the exclusive listing to market the property. Additionally, Jordan also secured the buyer.

HIGH OCCUPANCY

Located at 5900-5912 South Cooper St., in the heart of Arlington, the asset offers easy access to and from Highway 157 and West Sublett Road. The Stein Mart-anchored shopping center consists of five separate buildings totaling 87,900 square feet. At the time of sale, the property was 94 percent occupied…

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Elsewhere, gains are slow and low-income households are paying more rent than ever.

For further evidence of the uneven recovery among U.S. housing markets, how’s this: In the 10 most expensive U.S. metropolitan areas, median home values have increased by 63 percent since 2000, after adjusting for inflation. In the 10 cheapest metros, median values rose by just 3.6 percent.

That finding, and the others illustrated by the charts below, comes from the State of the Nation’s Housing, an annual report published Friday by Harvard University’s Joint Center For Housing Studies. While home prices have increased sharply in expensive coastal cities, plenty of urban centers are lagging behind. Home prices in 3 out of 5 metropolitan areas remain below their pre-recession peak, and home prices in low-income neighborhoods are faring even worse…

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  • Five of top 10 stocks this year are real estate companies
  • JPMorgan continues to see upside in property developer shares

Singapore property stocks are set for their best annual performance in five years, and strategists believe the rally is far from over.

With an expected pickup in real estate following the easing of housing curbs, developers are expected to be the bright spot in Singapore equities as gains in the city-state’s stocks may be limited for the rest of the year.

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  • Four deals struck already this year as sellers band together
  • Redevelopment deals on track for busiest year since 2011

Chalk up another sign Singapore’s housing market is recovering: redevelopment deals are back.

After slowing to a trickle the past three years as housing prices fell, four redevelopment deals — where a group of owners band together to sell entire apartment blocks at a hefty premium — have been struck already this year, with a combined value of S$1.5 billion ($1.1 billion). The process, also known as “en-bloc” sales, allows developers to knock down and rebuild in a city where new residential land sales are tightly controlled by the government…

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The $1.4 billion project will bring 600,000 square feet of new meeting space, while generating approximately 14,000 construction jobs and nearly 7,800 full-time permanent jobs upon completion.

The board of directors for the Las Vegas Convention and Visitors Authority approved a $1.4 billion renovation and expansion of the Las Vegas Convention Center.

“Today marks a monumental occasion for not only the LVCVA but also the entire destination,” Rossi Ralenkotter, LVCVA’s president & CEO, said in a prepared release. “We commend the foresight of our community and state leaders for recognizing the importance of the LVCCD and we are eager to get to work! We will ensure that the LVCVA continues to provide the world-class facility and experience our clients expect when they come to Las Vegas.”

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  • Exploring options beyond loan-replacement funding from banks
  • Search for new CEO yielding candidates in and outside Canada

Home Capital Group Inc.’s efforts to regain stability could take months, and all options are on the table including a backstop from Canada’s biggest banks, according to a person familiar with the company’s plans.

The C$30 million ($23 million) settlement with the Ontario Securities Commission announced late Wednesday wasn’t a precondition to win a loan to replace costly rescue financing, the person said. So it won’t speed up the funding process or other deals being discussed, according to the person, who asked not to be identified as the plans are private…

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  • Drop in Toronto May home-sales is the largest since 2008
  • National prices still up 18% from year ago; 29% in Toronto

Canadian home sales fell by the most in almost five years last month, led by a plunge in Toronto after a foreign-buyer tax was introduced to curb runaway price speculation.

Transactions nationally fell 6.2 percent in May, the fastest monthly decline since August 2012 the Canadian Real Estate Association reported Thursday. Sales in Toronto fell by 25 percent, the most since October 2008.

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