Thursday, August 20, 2009
South California July Home Prices Fall
Source : The Business Times, August 20, 2009
(SAN FRANCISCO) Southern California house and condominium prices fell 23 per cent last month from a year earlier as foreclosures dominated sales, MDA DataQuick said.
The median price dropped to US$268,000 from US$348,000 a year earlier, the San Diego-based research company said on Tuesday in a statement. The number of homes sold increased almost 19 per cent from a year earlier to 24,104 for Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange counties.
'There's still quite a bit of distress out there,' John Walsh, Dataquick's president, said in a statement. 'Even if we are at or near bottom, history suggests we could bounce along that bottom for quite a while.'
Foreclosures accounted for 43 per cent of sales, down from 45 per cent in June and from a peak of 57 per cent in February, MDA DataQuick said.
Foreclosures as a proportion of all sales hit the lowest since June 2008. Homes priced at US$500,000 and above were 20 per cent of transactions, compared with 15 per cent in March.
The July median price rose one per cent from June, the third consecutive monthly increase, according to MDA DataQuick. That was due in part to a larger share of home purchases financed with loans of more than US$417,000. About 15 per cent of transactions involved such loans, the highest in 11 months.
Values are likely to fall more in expensive coastal areas as employers cut jobs in the recession and homeowners reduce asking prices, said MDA Dataquick analyst Andrew LePage.
'Sellers are getting more realistic,' Mr LePage said in an interview. 'It looks like prices are coming down.'
Investors and absentee buyers, driven by discounts on foreclosed properties, bought 19 per cent of homes in the six-county region last month, up from 16 per cent a year earlier and more than the monthly average of 15 per cent since 2000, MDA DataQuick said.
The company defines absentee buyers as those whose property-tax bills are sent to a different address.
Purchases financed with loans backed by the Federal Housing Administration, often used by first-time buyers, accounted for 37 per cent of July home sales, up from 20 per cent a year earlier, MDA DataQuick said.
Prices fell in all six counties, led by a 39 per cent drop in San Bernardino to a median of US$140,000. The median fell 29 per cent to US$185,000 in Riverside; 20 per cent to US$321,000 in Los Angeles; 12 per cent to US$320,000 in San Diego; 11 per cent to US$375,000 in Ventura; and 9 per cent to US$420,000 in Orange.
The July median was 47 per cent below the market peak of US$505,000 in the spring and summer of 2007, MDA DataQuick said.
Sales increased in five counties, led by San Bernardino's 41 per cent gain. Sales rose 23 per cent in Los Angeles, 14 per cent in Riverside, 12 per cent in Orange and 11 per cent in San Diego. Sales fell 4 per cent in Ventura.
MDA Dataquick is a unit of Richmond, British Columbia-based MacDonald, Dettwiler & Associates Ltd, and compiles data from county property records to sell to public agencies, lenders and title companies. -- Bloomberg
(SAN FRANCISCO) Southern California house and condominium prices fell 23 per cent last month from a year earlier as foreclosures dominated sales, MDA DataQuick said.
The median price dropped to US$268,000 from US$348,000 a year earlier, the San Diego-based research company said on Tuesday in a statement. The number of homes sold increased almost 19 per cent from a year earlier to 24,104 for Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange counties.
'There's still quite a bit of distress out there,' John Walsh, Dataquick's president, said in a statement. 'Even if we are at or near bottom, history suggests we could bounce along that bottom for quite a while.'
Foreclosures accounted for 43 per cent of sales, down from 45 per cent in June and from a peak of 57 per cent in February, MDA DataQuick said.
Foreclosures as a proportion of all sales hit the lowest since June 2008. Homes priced at US$500,000 and above were 20 per cent of transactions, compared with 15 per cent in March.
The July median price rose one per cent from June, the third consecutive monthly increase, according to MDA DataQuick. That was due in part to a larger share of home purchases financed with loans of more than US$417,000. About 15 per cent of transactions involved such loans, the highest in 11 months.
Values are likely to fall more in expensive coastal areas as employers cut jobs in the recession and homeowners reduce asking prices, said MDA Dataquick analyst Andrew LePage.
'Sellers are getting more realistic,' Mr LePage said in an interview. 'It looks like prices are coming down.'
Investors and absentee buyers, driven by discounts on foreclosed properties, bought 19 per cent of homes in the six-county region last month, up from 16 per cent a year earlier and more than the monthly average of 15 per cent since 2000, MDA DataQuick said.
The company defines absentee buyers as those whose property-tax bills are sent to a different address.
Purchases financed with loans backed by the Federal Housing Administration, often used by first-time buyers, accounted for 37 per cent of July home sales, up from 20 per cent a year earlier, MDA DataQuick said.
Prices fell in all six counties, led by a 39 per cent drop in San Bernardino to a median of US$140,000. The median fell 29 per cent to US$185,000 in Riverside; 20 per cent to US$321,000 in Los Angeles; 12 per cent to US$320,000 in San Diego; 11 per cent to US$375,000 in Ventura; and 9 per cent to US$420,000 in Orange.
The July median was 47 per cent below the market peak of US$505,000 in the spring and summer of 2007, MDA DataQuick said.
Sales increased in five counties, led by San Bernardino's 41 per cent gain. Sales rose 23 per cent in Los Angeles, 14 per cent in Riverside, 12 per cent in Orange and 11 per cent in San Diego. Sales fell 4 per cent in Ventura.
MDA Dataquick is a unit of Richmond, British Columbia-based MacDonald, Dettwiler & Associates Ltd, and compiles data from county property records to sell to public agencies, lenders and title companies. -- Bloomberg
Biggest Drop In Aussie Property In 18 Yrs
Source : The Business Times, August 20, 2009
(SYDNEY) Capital values in the Australian property market plumbed 18-year lows in the year to end-June 2009, as increasing numbers of fund managers bit the bullet and marked down assets, property research firm IPD said.
The IPD and the Australian Property Council index showed capital values for all property sectors fell 13.3 per cent in the period.
This was the largest fall in asset values since the trough of the property crash in 1991, property research firm IPD said.
'There is a clear move by the industry towards stronger governance and reporting, with many more organisations now valuing all of their assets each quarter,' Adrian Harrington, non-executive chairman of IPD Australia's Board, said in a statement on Tuesday.
About 80 per cent of the 1,100 assets in the IPD database were revalued in June, up from about 60 per cent in June 2007 and June 2008. - Reuters
(SYDNEY) Capital values in the Australian property market plumbed 18-year lows in the year to end-June 2009, as increasing numbers of fund managers bit the bullet and marked down assets, property research firm IPD said.
The IPD and the Australian Property Council index showed capital values for all property sectors fell 13.3 per cent in the period.
This was the largest fall in asset values since the trough of the property crash in 1991, property research firm IPD said.
'There is a clear move by the industry towards stronger governance and reporting, with many more organisations now valuing all of their assets each quarter,' Adrian Harrington, non-executive chairman of IPD Australia's Board, said in a statement on Tuesday.
About 80 per cent of the 1,100 assets in the IPD database were revalued in June, up from about 60 per cent in June 2007 and June 2008. - Reuters
Over 75% Of Shops At Marina Bay Sands Let
Source : The Business Times, August 20, 2009
Chanel - the first tenant announced - will open two-floor, 7,600-sq-ft boutique
MORE than three quarters of the shops at the Marina Bay Sands (MBS) integrated resort have been let, the resort's management said yesterday.
Large-scale retail: The Marina Bay Sands integrated resort has about 300 shops and 800,000-plus square feet of retail and restaurant space. Its tenants will include international designer brands and emerging labels
The US$4.5 billion resort, set to open next year, has about 300 shops and 800,000-plus square feet of retail and restaurant space. About 50 per cent of retail space will be up and running when the first phase of the project opens in early 2010, and 80 per cent of the retail space that will be open in this phase has already been let, MBS said yesterday.
It also said French fashion house Chanel will open a 7,600-sq-ft boutique in the Marina Bay Sands Shoppes - the first tenant announced.
'We have secured commercial terms for over 75 per cent of Marina Bay Sands Shoppes,' said David Sylvester, vice-president of retail for Asia at US-based Las Vegas Sands, which is developing the resort. 'We have enjoyed enthusiastic responses from retail tenants all over the world. Part of our attraction is our prime location - Marina Bay Sands Shoppes will bring large-scale retail to Singapore's central business district for the first time.'
Tenants will include a mix of international designer brands and emerging labels, Mr Sylvester said.
Chanel is excited to be part of the Marina Bay Sands concept, said Vincent Shaw, president of Chanel Asia-Pacific: 'It is a great opportunity to join the ultimate house of luxury with a truly innovative and creative retail environment. Singapore has a young, progressive and energetic retail scene.'
The concept boutique, which will be spread over two floors, will be designed by New York-based architect Peter Marino, the man behind the black-and-white signature design of Chanel's boutiques worldwide.
The MBS boutique will showcase Chanel's ready-to-wear women's clothing and footwear, and accessories such as bags, eyewear, costume jewellery and fragrance and beauty products.
Chanel - the first tenant announced - will open two-floor, 7,600-sq-ft boutique
MORE than three quarters of the shops at the Marina Bay Sands (MBS) integrated resort have been let, the resort's management said yesterday.
Large-scale retail: The Marina Bay Sands integrated resort has about 300 shops and 800,000-plus square feet of retail and restaurant space. Its tenants will include international designer brands and emerging labelsThe US$4.5 billion resort, set to open next year, has about 300 shops and 800,000-plus square feet of retail and restaurant space. About 50 per cent of retail space will be up and running when the first phase of the project opens in early 2010, and 80 per cent of the retail space that will be open in this phase has already been let, MBS said yesterday.
It also said French fashion house Chanel will open a 7,600-sq-ft boutique in the Marina Bay Sands Shoppes - the first tenant announced.
'We have secured commercial terms for over 75 per cent of Marina Bay Sands Shoppes,' said David Sylvester, vice-president of retail for Asia at US-based Las Vegas Sands, which is developing the resort. 'We have enjoyed enthusiastic responses from retail tenants all over the world. Part of our attraction is our prime location - Marina Bay Sands Shoppes will bring large-scale retail to Singapore's central business district for the first time.'
Tenants will include a mix of international designer brands and emerging labels, Mr Sylvester said.
Chanel is excited to be part of the Marina Bay Sands concept, said Vincent Shaw, president of Chanel Asia-Pacific: 'It is a great opportunity to join the ultimate house of luxury with a truly innovative and creative retail environment. Singapore has a young, progressive and energetic retail scene.'
The concept boutique, which will be spread over two floors, will be designed by New York-based architect Peter Marino, the man behind the black-and-white signature design of Chanel's boutiques worldwide.
The MBS boutique will showcase Chanel's ready-to-wear women's clothing and footwear, and accessories such as bags, eyewear, costume jewellery and fragrance and beauty products.
New Home Construction Down 1% In July
Source : The Business Times, August 19, 2009
LATEST US DATA
(WASHINGTON) Construction of new US homes dipped slightly last month, missing expectations, in a sign that the building industry's recovery from the housing bust is likely to be bumpy and gradual.
The Commerce Department said yesterday that construction started on homes and apartments fell one per cent last month to a seasonally adjusted annual rate of 581,000 units, from an upwardly revised rate of 587,000 in June. Economists polled by Thomson Reuters expected a pace of 600,000 units.
Builders slammed the brakes on construction after the housing bubble burst, and in April, housing starts plunged to the lowest point in a half-century. Then construction began a recovery, rising to the highest level in seven months in June before slipping again last month.
But the industry is still a long way from a return to normal. Last month's housing starts were still nearly 38 per cent below last year's levels.
The decline in construction was led by a drop of more than 13 per cent in multi-family properties. Construction of single-family homes rose one per cent last month.
Applications for building permits, an indicator of future activity, fell 1.8 per cent to an annual rate of 560,000 units.
Economists expected an annual rate of 580,000 units.
The industry is seeing increased demand from consumers who want to take advantage of a new federal tax credit for first-time homebuyers. It covers 10 per cent of a home price up to US$8,000. It is set to expire at the end of November.
While numerous signs have emerged that the US housing market has stabilised after the worst housing recession since the Great Depression, there are several threats to any recovery.
The unemployment rate, now 9.4 per cent, is expected to surpass 10 per cent, leaving even more homeowners unable to pay their mortgages.
Mortgage rates are still at attractive levels, but they could rise, making buying a home less affordable.
Nevertheless, builders have been growing more confident. The National Association of Home Builders said on Monday that its housing market index rose to the highest point in more than a year in August. The trade association's index rose one point to 18, a level not seen since June 2008.
Meanwhile, wholesale prices dropped sharply last month, and over the past 12 months fell by the largest amount in more than six decades of record-keeping.
The Labor Department said yesterday that wholesale prices dropped 0.9 per cent last month. That's triple the decline economists had expected and was driven by big decreases in both energy and food costs. Over the past 12 months, the prices of goods before they reach store shelves fell 6.8 per cent. - AP
LATEST US DATA
(WASHINGTON) Construction of new US homes dipped slightly last month, missing expectations, in a sign that the building industry's recovery from the housing bust is likely to be bumpy and gradual.
The Commerce Department said yesterday that construction started on homes and apartments fell one per cent last month to a seasonally adjusted annual rate of 581,000 units, from an upwardly revised rate of 587,000 in June. Economists polled by Thomson Reuters expected a pace of 600,000 units.
Builders slammed the brakes on construction after the housing bubble burst, and in April, housing starts plunged to the lowest point in a half-century. Then construction began a recovery, rising to the highest level in seven months in June before slipping again last month.
But the industry is still a long way from a return to normal. Last month's housing starts were still nearly 38 per cent below last year's levels.
The decline in construction was led by a drop of more than 13 per cent in multi-family properties. Construction of single-family homes rose one per cent last month.
Applications for building permits, an indicator of future activity, fell 1.8 per cent to an annual rate of 560,000 units.
Economists expected an annual rate of 580,000 units.
The industry is seeing increased demand from consumers who want to take advantage of a new federal tax credit for first-time homebuyers. It covers 10 per cent of a home price up to US$8,000. It is set to expire at the end of November.
While numerous signs have emerged that the US housing market has stabilised after the worst housing recession since the Great Depression, there are several threats to any recovery.
The unemployment rate, now 9.4 per cent, is expected to surpass 10 per cent, leaving even more homeowners unable to pay their mortgages.
Mortgage rates are still at attractive levels, but they could rise, making buying a home less affordable.
Nevertheless, builders have been growing more confident. The National Association of Home Builders said on Monday that its housing market index rose to the highest point in more than a year in August. The trade association's index rose one point to 18, a level not seen since June 2008.
Meanwhile, wholesale prices dropped sharply last month, and over the past 12 months fell by the largest amount in more than six decades of record-keeping.
The Labor Department said yesterday that wholesale prices dropped 0.9 per cent last month. That's triple the decline economists had expected and was driven by big decreases in both energy and food costs. Over the past 12 months, the prices of goods before they reach store shelves fell 6.8 per cent. - AP
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