Vancouver realtors say demand picking up as prices begin to rise again

Realtors in Canada’s most expensive city for housing predict prices will continue to rise amid a shortage of listings they maintain is stifling the market.

The Real Estate Board of Greater Vancouver said Tuesday that demand picked up in the condo and townhome segment of the market, something the group maintains coincides with a shortage of supply.

“Home prices will likely continue to increase until we see more housing supply coming on to the market,” said Jill Oudil, president of the board, in a statement.

The MLS Home Price Index composite benchmark price for all residential properties in Metro Vancouver was $919,300 in March, a 1.4 increase from February but still a 0.8 decrease over the past six months.

Residential property sales in the region reached 3,579 in March 2017, a decrease of 30.8 per cent from the 5,173 sales a year earlier, a record breaking month. March, 2017 sales climbed 47.6 per cent compared to a month earlier and were 7.9 per cent above the 10-year sales average for the month.

“While demand in March was below the record high of last year, we saw demand increase month-to-month for condos and townhomes,” said Oudil. “Sellers still seem reluctant to put their homes on the market, making for stiff competition among home buyers.”

New listings for all properties in Metro Vancouver totalled 4,762 in March 2017, a 24.1 per cent decrease compared to the 6,278 units listed a year earlier. March new listings climbed 29.9 per cent from February but even with the increase it was the worst March for new product since 2009.

The total number of properties currently listed for sale on the MLS system in Metro Vancouver was 7,586, a 3.1 per cent increase compared to a year earlier and a 0.1 per cent decrease from February, 2017.

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The sales-to-active listings ratio for March, 2017 was 47.2 per cent, a 15-point jump from February. “Generally, analysts say that downward pressure on home prices occurs when the ratio dips below the 12 per cent mark for a sustained period, while home prices often experience upward pressure when it surpasses 20 per cent over several months,” the board said in its release.

In the detached property segment, there were 1,150 sales in March, a 46 per cent decline from a year earlier. The benchmark price for detached properties was $1,489,400, a 5 per cent per cent decrease over the past six months but a one per cent increase compared to February, 2017.

Sales of apartment properties in March fell 18.3 per cent from a year ago. The benchmark price of an apartment property was $537,400, a 5.2 per cent increase over the past six months and a 2.1 per cent increase compared to February, 2017.

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Is the Rent Too High? Renters May Be in Luck in These Cities

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It might seem like the cost of just about everything, from train fares to interest rates, is going up these days. And yet the pace of rising rents, one of every tenant’s worst fears, is actually slowing down in many of the nation’s most expensive cities.

The slowdown can be seen nationwide, according to a pair of recently released reports from two rental websites. Rents rose only 0.4% from February to March, according to Apartment List. Meanwhile, they rose 0.2% on one-bedroom apartments from March to April, according to Abodo.

And those monthly bills are continuing to fall in such pricey metros as Silicon Valley’s San Jose and San Francisco, and New York City, even if it’s just a fraction of a percentage point. Hey, every little bit helps those cash-strapped tenants gleaning change from their couch cushions.

Why rents are flat—and going down in some cities

“There’s a large number of new apartment buildings and units which are now available,” says Abodo spokesman Sam Radbil. And with all those available units vying to lure residents, “that means prices are going to come down.”

Prices in the most expensive cities already began coming down in the second half of 2016, he says. That’s because there were about 285,000 more rental units available in 2016 than 2015. And now lower rents are spreading to cheaper areas in the Midwest and the Rust Belt, including Des Moines, IA; Cleveland; and Kansas City, KS.

“Oftentimes, trends like rent price decreases start on the coast or in the large markets, and those tend to trickle down,” he says.

Meanwhile, the cities seeing some of the largest bumps are located right outside even more expensive metros, according to Apartment List.

Many Silicon Valley renters are getting so sick of the sky-high costs of leasing an apartment that they’re becoming buyers, says Silicon Valley–area Realtor® Shahida Mehjabeen of Keller Williams Bay Area Estates in Los Gatos, CA. Or they’re moving farther away from the more expensive hubs.

“Two or three years ago, people were willing to pay anything to get into an apartment because there were a limited number,” she says. But “we already hit the threshold of what people are willing to pay for rents.”

The new hot spots for rising rents

Renters are now likely being priced out of places like San Francisco and are turning to places like Stockton, CA, about 80 miles away. Median prices have shot up in Stockton about 12.5% over the past year on two-bedroom apartments in the city, according to Apartment List. That might sound like a lot, but at a median $1,000 for a two-bedroom apartment, tenants are still paying less than a quarter of what they would in San Francisco.

Renters are also moving from Seattle to Tacoma, WA, about an hour away, where prices rose 10.2%, and from Dallas to Arlington, TX, just 30 minutes away, where prices went up 9.5%. Median rents are about $1,000 higher in Seattle than Tacoma and about $750 higher in Dallas than Arlington, according to Apartment List.

“The fact that people are having to move farther out and have longer commutes points to the issue of a lack of affordability in some of these bigger cities,” says Apartment List data analyst Chris Salviati. And unfortunately for renters who tend not to be bringing home a huge paycheck, “it seems likely that it’s a trend that will continue going forward.”

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Supermodel Tyra Banks Lists Manhattan Penthouse for $17.5M

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Supermodel Tyra Banks has just listed her plush Manhattan penthouse for $17.5 million.

The “America’s Next Top Model” creator and host has also listed it for rent for $50,000 per month, but told The New York Times that she would prefer to sell rather than continue renting it out.

The new co-host of “America’s Got Talent” paid just over $10 million for the 7,000-square-foot Battery Park City spread in 2010 through her Mi Casa Trust, property records showed.

The 43-year-old mother of one used it as a primary residence for about four years, but she’s spent most of her time lately on the West Coast, and so she’s been renting it out since 2015, for $50,000 a month fully furnished, according to the Times.

Tyra Banks’ apartment is being offered fully furnished.

Evan Joseph

The five-bedroom, eight-bathroom duplex penthouse is located on River Terrace, next to Rockefeller Park and the Hudson River.

The building’s amenities include 24-hour concierge, an on-site valet parking garage, a pool, a fitness center, a yoga studio, a landscaped outdoor terrace, and a private pet grooming area.

The penthouse that’s being sold has a library, a corner living room,  a chef’s kitchen with a massive center island, a gym, office, as well as a salon/barber shop with 360-degree mirrored dressing/fitting room, according to the listing. There are also full staff quarters and a staff kitchen.

Chef’s kitchen in Tyra Banks’ penthouse. There is also a staff kitchen.
Evan Joseph

All rooms showcase floor-to-ceiling wrap-around windows with direct south, west and north exposures and views of the Statue of Liberty and Hudson River.

“The Wolf of Wall Street” actor Leonardo DiCaprio also has a home in the building, but Ms. Banks said the two never ran into each other.

“He was always that elusive spirit that so many people talked about,” she told the Times. “Farewell, Leo. I’ll miss my houseguests trying to spot you in our building.”

A spokesperson for Ms. Banks did not immediately respond to a request for comment. Listing agent Adam Modlin of Modlin Group declined to comment.

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2 Architects Make Magic With This Mid-Century Modern Classic

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Sitting amid a grove of mature oak trees, a classic Mid-Century Modern property is back on the market for $2.25 million. Built in 1973, this secluded home has gone through two architects and two renovations.

You’ll find this real estate gem in the woodsy enclave of Monte Nido in Malibu Canyon, 10 minutes from the beach in Malibu.

“It’s understated and low-key,” listing agent Brian Linder says of the design. “And yet it’s gorgeous, classical Mid-Century Modern architecture.”

Local architect Doug Rucker was commissioned to build the original home, which was completed in 1973. In 1990, the home’s second owners brought Rucker back to expand the space, adding a bedroom wing, living room extension, and an outdoor lounge with fireplace.

This pristine remodel weathered the decades and renovations with grace, which isn’t always the case when a classic is updated.

“When someone does not hire the original architect, particularly in a Mid-Century house with a working philosophy, the mistake will usually be profound,” says Rucker.

House sits amid a grove of mature oak trees.

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Outdoor fireplace and lounge

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“Since I did all the remodeling, I like what I’ve done,” Rucker adds. “The original philosophy of ease and freedom has been maintained.” He notes that his favorite part of the home is the “sense of freedom, safety, and closeness to nature. Good homes respond to love of being there.”

Back patio and floor-to-ceiling windows

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The home was purchased two years ago by Dan Meis, architect of the Staples Center in Los Angeles, and his wife, Brandie Meis, who also has a background in architecture.

The two updated the interior to meld a bit of a contemporary vibe to the original design.

Custom bookshelves

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The update included replacing carpet with hardwood floors, renovating the guest bathroom, and adding custom shelving in the library. The lighting was also updated inside and out.

Open kitchen

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Describing the home as “magical,” Meis says, “The house was in great shape … so [it] didn’t need much renovation or change.”

According to Linder, Meis “respectfully renovated the home, preserving the original design and introducing new materials and finishes in keeping with a modern lifestyle.”

We can definitely get behind this California-modern lifestyle. The home exudes casual cool with its open floor plan and “seamless connection to the outdoors” thanks to floor-to-ceiling windows.

The focus on entertaining is evident with a space that spills outside and features a fireplace, decks, and built-in barbecue. Multiple living areas inside include two fireplaces, an office, living area, four bedrooms, and three baths. The 2,986-square-foot house sits on just over an acre.

With all the time he spends in New York and Europe, Meis concluded that keeping a home in L.A. didn’t make sense. He put the masterpiece back on the market with the intention of relocating to the East Coast, leaving behind a home that has withstood the test of architectural design.

“There’s a timelessness to it that still resonates,” Linder says.

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Country Star Ronnie Dunn Buys Horse Property From Tennessee’s Richest Resident

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Country singer-songwriter and record executive Ronnie Dunn, formerly of the chart-topping duo Brooks & Dunn, recently bought 6 acres of prime Nashville horse property from Thomas F. Frist Jr., the richest man in Tennessee.

Dunn paid $2.25 million for the completely fenced parcel of land that contains grassy meadows, mature trees and foliage, a stream, and a barn, all conveniently located within chipping distance of the Harpeth Hills Golf Course.

It’s likely Dunn will start construction on his next dream home on the property as soon as he sells his own lavish Nashville estate, which is currently priced at $9 million and has been on the market since 2014.

Ronnie Dunn’s new 6-acre horse property

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Aerial view of Dunn’s $9 million estate, which is currently for sale.

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Apparently Frist was in no rush to sell the bucolic 6 acres—records indicate that it’s been on the market since 2008, when it was listed for $2.9 million. Because the 78-year-old heir, businessman, and philanthropist who’s the co-founder of the Hospital Corporation of America was … busy.

Besides his professional duties in health care and aviation, Frist is heavily involved with health-oriented charities, as well as the United Way. He and his wife, Patricia, live on an $18 million estate in nearby Belle Meade, TN. Frist is reported to be worth upward of $8.1 billion.

Grammy winner Dunn is also keeping busy, as a solo artist. His latest single, “Damn Drunk,” is a fan favorite. But the video for the song was obviously not shot on his new, lush property.

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Why Lower House Prices Lead to Higher Student Loan Default Rates

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Add this to the list of potential consequences of the housing bust: Rising student loan defaults.

Drops in housing prices during the Great Recession account for between 24% and 32% of the rise in student loan defaults during the same period, according to a working paper distributed this week by the National Bureau of Economic Research, a nonprofit economic research organization. The study — which is based on administrative student loan data, de-identified tax data and zip code home price data for roughly 300,000 student loan borrowers in repayment during the recession — shows that borrowers living in zip codes where home prices fell more dramatically were more likely to default.

The study doesn’t indicate that the risk of a student loan default is directly connected to the value of a borrower’s home. Instead, the findings show that the effect of declining home prices on a region’s labor market contributes to rising student loan defaults. Earlier research cited in the paper indicates that when the value of homes in an area fall, households spend less and therefore local businesses are often forced to keep workers’ pay stagnant or, ultimately, lay them off.

“The huge rise in student loan defaults is on everybody’s minds and the question is what’s the cause of this rise?” said Holger Mueller, a professor of finance at New York University’s Stern School of Business and one of the authors of the paper. “What we want to do is point to another very important source of default risk and that’s just the labor market.”

The study adds a new element to prior research, which has pointed largely to one explanation for the rise in student loan defaults: An uptick in riskier borrowers attending college. So-called nontraditional students, who tend to be older and attend community or for-profit colleges, have accounted for a growing share of student loan borrowers. Because this group is at higher risk of defaulting on their loans, the growth in their ranks has pushed up the overall default rate, previous research by Mueller’s co-author, Constantine Yannelis, has indicated.

More than 1 million federal student loan borrowers defaulted on their debt last year. Defaulting on student debt, particularly a federal loan, can be devastating for a borrower; it’s typically a credit-ruining event and the government has the power to garnish your Social Security check, tax refund and wages over a defaulted student loan.

Mueller and Yannelis’ research indicates that the policies the government offers to help borrowers avoid this outcome are somewhat effective. Federal student loan borrowers have the ability to pay back their loans according to their income. These plans also offer borrowers the opportunity to discharge their loans after at least 20 years of repayment. Mueller and Yannelis’ research indicates that these plans are at least partially successful at protecting borrowers from the income and employment shocks that can come from falling home prices — as long as borrowers sign up for them.

The Obama administration expanded these plans, but struggled to publicize them. What’s more, regulators and others have accused student loan servicers of making it more difficult than necessary for borrowers to enroll in the plans. But congressional Republicans have questioned the plans, as the potential cost of forgiveness appears larger than estimated.

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Atlanta mansion sells for $6.4 million (SLIDESHOW)

An Atlanta mansion in Buckhead's Tuxedo Park recently sold for $6.4 million. The home at 435 King Road sits on nearly 1.4 acres and was built in 2009, according to the property's FMLS listing. It was was originally listed for $6.85 million. Linda Williams of Beacham & Company, Realtors represented the buyer, whom she would not disclose, and Beacham & Co. founder Glennis Beacham represented the seller, whom she would not disclose. However, the home was last owned by Karl F. Meyer, according to…

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