Back in May from various sources that socialite Cornelia Guest had put her family's estate in Old Westbury, New York on the market. The listing was available then but now we've got some interior pics of the 11 bedroom home. The two-story brick colonial manor home built in 1924 has 28 rooms in total and the grounds are home to a pool, tennis courts, barn, formal gardens, and a greenhouse.
But let's talk about the interior. Namely, the animal prints. I haven't seen quite so many animal prints used in one home since we checked out . The interior of this home is an eclectic mix of vintage antique furnishings and art combined with newer pieces from around the world. Tying it together is a whole zoo of animal prints used in the upholstery and rugs. .
For more prime properties and lush locations, see
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Posted by admin, filed under Estates. Date: July 14, 2008, 9:02 am |No Comments »
We have a couple of months to go before we have a full 12 months past Mortgage Meltdown to guide us into the future of the real estate market. But volume has really been pretty stable. As you can see from the above chart, September of 2007 is when the market dropped as to volume. Compare this to some graphs I did at the end of last year showing the Then add back in mid April of this year.
When I predicted that total single family home sales in King County would be 16,500 by the end of 2008, I was basing that on the second chart in the first link above. Let me bring that chart forward so you can follow what I’m saying better.
June 2008 sales were 1,557. June in 2005 represented 10.3% of the total year sales. 1,557 is 10.3% of 15,116. If you use April sales from the top wheel of 1,505 that would be 9% of 16,722 (which is where my prediction of 16,500 came from). While volume is clearly drastically reduced, it is not dropping out from under us. It basically dropped once and then stabilized. That’s good news, though we do see some minor slippage in the relationship between April of 2008 and June of 2008, so we will continue to track that as the year progresses.
Where prices will go in response to the change in volume is another story and where Absorption Rates become a weak indicator. Absorption Rates only work when you can expect all inventory to be “absorbed” . that is not the case. In a market like this you have to throw absorption rates out the window and try to find the point at which a property will not sell at all. The worst I have seen is a market where only 3 of 10 houses will sell PERIOD!. To say current inventory will be absorbed in eight months is not true. At the end of eight months, some of those homes will still be on market and other properties that came on market after them will be the cream of the crop that sells.
When you see prices fluctuating upward, while volume is stablilizing and absorption rate is high, that is because the small percentage of homes that sell quickly and at higher prices, are influencing and increasing the price stats. We saw that more in February, March and April than we did in May and June. That is why the April prediction of 16,500 may turn out to be 15,500, since June did not expand much beyond April levels as it usually does.
Single Family Homes in May and June look like they sold at higher prices, as does the condo market, but that is because people are opting to get more for their money. As price per square foot drops, people are opting for bigger houses and lower prices. Instead of buying an 850 square foot condo for $250,000, they are buying an 1,100 square foot condo for $300,000. So they are paying a higher price, but a lower price per square foot. Same is true for single family homes. In March the median price was $435,000 and the median price per square foot was $221. In June the median price is up to $451,000 but people are opting for the higher price AND the larger house, as they trade in the lower price per square foot of $216 for more house. (Note, homes in escrow are at $207 MPPSF - see weekly stats)
It’s really a smart move. People who are unsure of the market over the next several years are making sure they buy a condo or house that is large enough so that they can stay put, and not have to trade up as to size. Those who are buying, and there are clearly fewer of them, are not buying with the idea that they will REFI or sell in a couple of years. They are buying for the long term. They are paying a higher price, but a lower price per square foot. That is why it may appear that prices are going up, when they are really going down.
Before I do this week’s stats, note that earlier this week I did and . May and June did not do as well as expected, so the 2nd quarter did drop more as to volume YOY than the 1st quarter. But if the market can sustain at this level for another 45 days, I think by year end it will still be in the 16,500 total sales for the year range.
Sorry this post is so long tonight. There are no easy answers this year.
Changes in condo stats for this week
Active Listings: 4,014 - UP 56- median price $320,000 - MPPSF asking $313 - DOM 66
In Escrow: 847 - DOWN 23 - median asking price $297,000 - MPPSF asking $302 - DOM - 48
Sold YTD : 2,875 - UP 98 - median list price $290,500 - median sold price $285,500 - median PPSF - $289 DOM 48 Note: 35% selling in 30 days or less.
Residential:
In Escrow: 2,771 - UP 11 - median asking price $434,000 - DOM 49 - MPPSF $207
SOLD YTD: 8,612- UP 297- median asking $449,950 - median sold price $440,000- DOM 49 - MPPSF $218 Note: 36% selling in 30 days or less.
Actively for sale 12,184 - UP 281- MPPSF <$800,000 is $220- MPPSF >$800,000 is $337
Note that the MPPSF Asking prices of homes not sold is virtually unchanged week to week while those going into escrow are the ones asking less and less each week.
(above info and graphs not compiled, published or verified by NWMLS - required disclosure)
As we are finding out (some for the first time), housing and the mortgages that finance it is a key economic engine.
Question: Is it important that the agent and/or loan officer you are working with have a keen understanding of fundamental market knowledge and economics? Should they show competency in basic fundamental economics and how it impacts housing?
How would you rate the importance:
1) Very important (it could make the difference in working with the agent/loan officer or not).
2) moderately important (would allow for good discussion, but it would not necessarily dissuade a working relationship).
The floated on Friday regarding Fannie and Freddie turned out to be true. This first bailout proposal, released a few hours ago, has three parts. I say “first” because there is no way that this is going to be enough to save what’s headed our way nor will this be the only time the government will need to ”bailout” F&F.
The U.S. Treasury plans to seek approval for granted to Fannie Mae and Freddie Mac. They will also , and the Federal Reserve voted , if needed, giving F&F access to the Federal Reserve’s discount window.
The the U.S. Treasury and The Federal Reserve are doing this mainly to boost confidence in F&F, not necessarily because any of this is needed, which to me seems to be a flat out lie.
The weekend move means that Fed Chairman Ben Bernanke, who has been steadily accumulating authority as the U.S. grapples with the financial crisis, will have even more power. The Treasury envisions the Fed working with the mortgage giants’ regulator to help prevent situations that could be a risk for the entire financial system. The move builds on Treasury’s broader goal of remaking financial regulation to give the Fed broader influence over financial-market stability.
I’m not sure if we’re suppose to be happy or scared at the thought of Ben Bernanke accumulating more power. Maybe what’s really going on is some preemptive planning due to known or unknown possibilities that tomorrow’s auction of Freddie Mac debt
The Sunday move was designed in part to head off fears about Monday’s auction of Freddie Mac notes. While small, the planned sale had assumed an outsized importance as a test of investor confidence. Freddie should be able to find buyers for its three- and six-month notes, market analysts said. But there is a chance that some financial institutions and investors may demand higher-then-usual yields.
Similar Freddie and Fannie notes that are currently outstanding yield around 2.5%. If weak demand for Freddie’s auction leads to sharply higher yields on the new notes, that could trigger a selloff across a wide range of debt issued by the companies, some analysts said. But most said such a scenario is unlikely.
I’ve been glued to the web, the radio, and my phone since Friday evening reading, listening, and talking about this with friends and colleagues. If the federal government choses to provide (the implied) government backing for bondholders, then the United States increases our national debt by 5 trillion dollars which would have a profoundly negative impact on the value of the dollar and potentially bankrupting the U. S. economy. If the federal government chooses to do nothing and F&F are forced to mark their portfolio closer to market value and sell off assets to accumulate capital, then the true value of what’s in the bag becomes known. The secret will be out and now nobody will be interested in buying our Residential Mortgage Backed Securities, the market will know the true value of the loans currently being held by banks all over the U.S., mortgage lending slows way down, interest rates go way up, and the housing market goes cliff diving.
It seems to me that with this first bailout proposal (I am preparing for more bailouts as should you) everything is just going to be delayed as long as possible, taking us down further into a deeper recession step-by-step.
This bailout proposal is not enough. We have only just begun to see foreclosures rise. We still have the rest of 2008 to get through, when another round of pay option ARMS originated in 2006 begins to adjust, and through 2009 when the ARMs originated in 2007 adjust. Defaults and foreclosures are far from over.
There was a guy who predicted the demise of Fannie and Freddie back in 2006. is that we nationalize Fannie and Freddie, quit pretending that they’re a private company, and restructure the debt, thereby forcing the bondholders to take a haircut.
“So what happens to the shareholders? Do any of these plans ensure that there is no dilution of equity if any form of bail-out were to occur? If the GSE shareholders aren’t protected then we could see a complete abandonment of the financial system by investors. Who will want to buy shares in financial firms if the government isn’t going to ensure their investments remain safe?”
From everything I’ve read over the weekend, the government likely will not protect shareholder equity. Whether or not they should is up for debate.
It's a bit eclectic and not really an estate but I just love the livability of today's home which was written up in the. Owned by Doug "SA" Martinez of the band 311 this home in the Los Angeles neighborhood of Los Feliz was built in 1927. The Spanish Colonial home is full of archways and stucco and original wood details. The four-bedroom home has two tiled balconies, one that is off of the master suite. No decorator here, this home is a riot of different colors and styles, a comfortable hodge-podge of unmatched furniture, colorful art and books everywhere stuffed into armoire-like cases. The kitchen is the only room that looks bland. The brilliant blue-tiled bathroom is a bit much but I love it for its vibrancy. The outdoor space is nice too with a saltwater pool and a custom Tennessee oak-covered patio with views of the Griffith Observatory.
For more prime properties and lush locations, see
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Posted by admin, filed under Estates. Date: July 13, 2008, 9:02 am |No Comments »
From the --Florida car dealer, Terry Taylor has listed his Palm Beach home, shown above, at $72.5 million which is almost three times what he paid in 2003. The main house was built circa 1924 and designed by veteran Palm Beach architect Addison Mizner. It has nine bedrooms, 15 bathrooms, a movie theater with a ticket window and concession stand, an exercise room, a wine cellar, pool, large pool house and two three-car garages, each with a second-floor guest apartment. --Joseph Simmons, better known a Rev. Run, has relisted his suburban New Jersey house for $5.2 million.
From the --William Chadwick has put his home in the pricey Carbon Beach area of Malibu on the market for $65 million. It was our --"Family Guy" creator Seth MacFarlane picked up a home in Beverly Hills that wasn't listed for $13.5 million. Television producer Jay Tarses has sold a home he built in 1987 in Pacific Palisades for $2.995 million. The home was first listed in January for $3.489 million. --Singer Doug "SA" Martinez of the band 311 has listed his funky Spanish colonial in Los Feliz. It's our estate of the day later today. --Philippe Naouri -- a.k.a. the Vintage Denim King has put his Hollywood Hills contemporay on the market for $3.185 million.
From the --Rage Against the Machine drummer Brad Wilk has picked up a home in Calabasas that was listed at $5.89 million. Britney Spears has also been said to be looking at homes in the same area of Calabasas. --Hugh Laurie has paid $3.84 million for an English Country style residence located in the Outpost Estates section of the Hollywood Hills from music manager Pat Magnarella who bought the home in 2001 for $2 million. --Actor Justin Long has picked up a two-bedroom bachelor pad in the Blue building on Norfolk Street in New York for $2.425 million. --Businessman Peter Morton has put a seven bedroom home on the market in Beverly Hills for $22.5 million. and notes that the home has such a view that the property will be shown only on a clear day. --Ambleside, the Indian Hill, Ohio residence of late Cincinnati Reds owner Marge Schott has hit the market for $5.4 million.
From the --Katie Holmes has been spotted duplex penthouse at Trump park Avenue with a $200,000-a-month price tag. --A new listing in the famed Dakota building is hitting the market with a $7.5 million asking price. --Alex Rodriguez, aka A-Rod, was seen a few weeks ago checking out units at 15 Central Park West just two blocks from where Madonna lives. He's been checking out the four-bedroom duplex that Lindsay Rosenwald has put unofficially on the market for $90 million through Brown Harris Stevens.
From --Nicole Kidman has purchased record producer and songwriter Ron Fair's house in Beverly Hills, Calif. for an undisclosed price after it had been listed for $4.795 million. --Los Angeles anchorman Harold Greene and his wife, Charlene have put their Toluca Lake home on the market for $2.299 million. --Basketball star Elton Brand has placed his three-bedroom, Hollywood Hills home on the market for $4,998,500, two years after he first had listed the house at close to $5 million.
From --Golfer Phil Mickelson's house, built on 4.55 acres in Rancho Sante Fe, California is on the market for $10,750,000 - $12,225,876.
From --Russell Crowe is renting a home for around £20,000 in London's Mayfair district while he films a movie in England. | |
Posted by admin, filed under Estates. Date: July 13, 2008, 5:02 am |No Comments »
I can’t give you the whole list here in a blog post, as it is against one of the many mls rules But tomorrow there will be at least 15 Open Houses in Bryant. Many agents from different offices have gotten together to have their properties open tomorrow. Most from 1-4, but some for other times within that range.
Generally they are between 25th Ave and 40th Ave NE. Mine is at 6806 27th Ave NE from 1-4 and I will have a list and map of the other Open Houses at that location. A good opportunity to see a lot of properties within a short distance. They range in price from $479,000 to $850,000 with most of them $600,000 or less.
Agents are still sending me info, so I don’t have a complete list yet. But for those who like to view property, it’s a good opportunity to maximize the number of homes you can see in a short period of time, complete with a guide map.
Today's home is a Palm Beach, Florida classic. The five-bedroom oceanfront residence was built in 1921 and designed by architect Marion Sims Wyeth for entrepreneur Earle Perry Charlton, one of the founders of the F.W. Woolworth Company. Its name Qui-Si-Sana ("Here One Heals") comes from a hotel on the island of Capri, and the home has a Mediterranean appeal, making ample use of the outdoor space with large oceanside lawns and an open courtyard plan surrounding a private garden terrace by the formal pool. The interior includes four stately fireplaces, pecky cypress paneling, Cuban tile floors, and filigreed ironwork gates. Large hedges help preserve privacy on this corner oceanfront lot in one of Palm Beach's finest neighborhoods. While most of Florida has been faltering real estate-wise, Palm Beach has continued to rise, scoring $81.5 million for Sidney Kimmel's mansion and $100 million for Donald Trump's oceanfront flip.
For more prime properties and lush locations, see
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Posted by admin, filed under Estates. Date: July 12, 2008, 9:02 am |No Comments »
I've seen a ton of condo-hotel projects in Cabo and even a few in Ensenada, now the next stop on the Baja Peninsula to get a facelift is the l. The hotel has a long history. It started out as a 12-room hunting lodge in 1925 and played host to many celebrities including Frank Sinatra, Marilyn Monroe, Orson Wells, Rita Hayworth and John Wayne. Now the hotel will become a 500 room and suite resort with an official grand opening on August 2. They are offering a Sunday through Thursday special room rate of just $79.
New to the compound is the oceanfront 17-story, 271-suite Pacifico Tower. The new tower offers an infinity pool and a rooftop restaurant. The Pacifico Tower has fully furnished suites that are offered for sale and can be placed in the hotel rental program. One bedroom condos start at $190,000, two-bedroom condos start at $362,000 and two-story, three-bedroom penthouses start at $599,000. | | |
Posted by admin, filed under Estates. Date: July 12, 2008, 4:02 am |No Comments »
The Seattle Times tonight that a federal indictment has been issued for a Bellevue loan officer and his assistant.
A former loan officer at a Bellevue mortgage company and his assistant have been indicted on a charge of conspiracy to commit wire fraud in a scheme that prosecutors say involved using straw buyers to purchase dozens of homes at inflated prices and siphoning off the extra cash for their own use.
Christopher Brooks and Amani Moss allegedly obtained more than $27 million in fraudulent loans for the purchase of at least 54 homes beginning in 2005, according to an indictment unsealed this morning.
The charges allege that they recruited straw buyers, who would allow the men to falsify loan papers for them. At the same time, Brooks and Moss would use a realtor, who is identified in the indictment by the initials “L.A.,” to find home sellers who were willing to overstate the purchase price of their homes. The straw buyers were paid between $7,000 and $10,000 for each transaction, the indictment says.
Brooks, who worked for America Mortgage in Bellevue, would then prepare and submit the false loan papers to several lenders in the area, according to court papers.
The difference between the inflated price and the actual purchase price of the home ranged from $30,000 to $778,000 per home, and the charges allege that money was funneled through a business owned by Moss, Peachtree Development, and into their pockets..
Home sellers, if your home is not selling and someone from our industry approaches you with an idea to take your home off the market and relist at a much, much higher price, please turn the person in to his or her regulator. If you are not sure who the regulator is, contact one of us and we can point you in the right direction.
The DFI Licensee database shows America Mortgage in Bellevue as a licensed mortgage broker. I wonder how many of these loans went into early payment default and how many the broker was asked to buy back from the lender.
In order to commit fraud at this level, the Realtor and mortgage broker would have had some help from an appraiser as well as an escrow closer.
But tomorrow there will be at least 15 Open Houses in Bryant. Many agents from different offices have gotten together to have their properties open tomorrow. Most from 1-4, but some for other times within that range.