immobiliare

Shore Club Stunner: $120M Penthouse Sets Record as Miami’s Priciest Pad

By Columbus International,11 March 2024

An extraordinary ocean-view penthouse in Miami Beach is set to be sold for a staggering amount exceeding $120 million, as reported by the Wall Street Journal. If finalized, the transaction would surpass previous records, making the condominium the most expensive ever sold in the Miami area. Situated within the prestigious Shore Club Private Collection, this lavish unit boasts a living space complete with terraces and a private rooftop pool, offering unparalleled luxury, comfort, and breathtaking ocean views. The identity of the buyer remains a mystery as the developers, the Witkoff Group and Monroe Capital, have chosen not to comment, fueling speculation. Real estate record-breaker and billionaire hedge fund magnate Ken Griffin had previously set a record for Miami condos in 2015 when he acquired two penthouses at Faena House for $60 million. Griffin later sold those units for a lower price: $46.2 million. His passion for high-value real estate transactions continued in 2022 with the purchase of the waterfront property at Adrienne Arsht in Coconut Grove, Miami, for an incredible sum of $106.87 million, marking a historic moment: the first nine-figure residential sale ever in the city. This recent monumental sale underscores an unprecedented surge in Miami’s luxury real estate market, with affluent individuals eagerly vying to secure their piece of paradise.

The Shore Club redevelopment project has been in the works for years, involving the transformation of two iconic hotels – the 1940s-era Shore Club Hotel and the historic Cromwell Hotel, a gem of Art Deco architecture from the 1930s. Designed by esteemed architects Robert A.M. Stern, the development features 49 residences spread across the original Cromwell Hotel and a new imposing structure rising above the beach. Additionally, an ocean-facing standalone villa and a luxurious five-star resort managed by Auberge Resorts Collection are set to enhance the complex. Sales of Shore Club apartments began early last year, with prices ranging from approximately $6 million to $40 million, excluding the jewel penthouse. Excitement is palpable for the project’s completion (expected in 2026). Kobi Karp Architecture & Interior Design, in collaboration with RAMSA, is the firm responsible for the architecture. The interiors, overseen by RAMSA, will embody a yacht-inspired aesthetic, featuring a serene color palette evocative of the surrounding natural elements.

Photo via The Boundary (Rendering)

Record number of cash offers show New York property is only for the rich

By Columbus International,7 March 2024

The latest data reveals a striking trend in Manhattan’s real estate landscape: a surge in cash purchases accounting for over two-thirds of home sales last quarter, marking a record high. The driving force behind this shift is the soaring mortgage rates, which have soared to around 6 per cent, dissuading all but the wealthiest buyers from taking on loans.

Pamela Liebman, CEO of Corcoran, a prominent real estate brokerage, highlighted this phenomenon, stating that nearly 70 per cent of Manhattan properties were acquired without mortgages in the final quarter of 2023, a significant leap from the 55 per cent seen in the same period in 2022. High mortgage rates are creating a significant barrier for potential buyers without substantial financial resources, leading many to opt for renting instead. Corcoran’s report further underscores this trend, indicating a 4 per cent increase in new leases in Manhattan and Brooklyn in January 2024 compared to the previous year, alongside a record median rent of $3,950.

The reluctance to incur mortgage debt has led to a “void in the middle” of the property market, with affluent buyers dominating while those unable to pay cash face challenges amid escalating rents. The median sales price for Manhattan apartments reached $1.15 million in the fourth quarter, up 5 per cent from a year earlier, approaching the record high of $1.25 million set in the second quarter of 2022. However, the pace of buying has slowed, with prime properties lingering on the market for extended periods, contrasting with more affordable markets like Charlotte, North Carolina, where homes sell rapidly.

Despite a slight uptick in transactions in January, Thomas Ryan, a property economist at Capital Economics, notes that the US housing market remains stagnant, with transactions significantly below the 2010s average. Erin Sykes, a real estate agent and economist, attributes the surge in cash purchases to buyers seizing opportunities amid rising mortgage rates, viewing them as an advantageous time to strike deals. The challenges facing buyers in New York are further compounded by a severe housing shortage attributed to regulations limiting rent increases and the expiration of tax incentives for new construction projects. Mayor Eric Adams has proposed converting obsolete office buildings into residential towers as a potential solution, although this presents technical and cost-related hurdles.

The supply crunch has significantly reduced vacancy rates, plummeting from nearly 4.5 per cent in 2021 to 1.4 per cent, exacerbating affordability concerns and pricing many out of the market. As Liebman aptly summarizes, New York’s housing market is currently facing rough terrain, posing significant challenges for aspiring buyers.

Ken Griffin’s Plan for a Miami Headquarters Finally Begins to Take Shape

By Columbus International,5 March 20249 November 2024

Ken Griffin, the billionaire founder of Citadel, caused quite a stir when he announced the relocation of his hedge-fund giant from Chicago to Miami. This move marked the most significant shift of any financial institution to the Miami scene. However, nearly two years down the line, the waterfront property Griffin secured for his planned $1 billion headquarters remains barren.

Citadel’s employees continue to toil away in temporary offices in the financial district, awaiting the fruition of their grand relocation plans. Nevertheless, the vision for Griffin’s Miami headquarters is gradually taking shape. Foster + Partners have been entrusted with the design, aiming to erect one of the city’s tallest skyscrapers. Renderings seen by The Wall Street Journal reveal plans for a luxury hotel atop the building, reflecting Griffin’s ambition to leave an indelible mark on Miami’s skyline. Gerald Beeson, Citadel’s chief operating officer, sees this as a pivotal opportunity to craft an iconic edifice befitting Citadel’s future.

Miami, often touted by Griffin as “Wall Street South,” is slated to be the firm’s primary hub, with expansions planned for New York City and London. Griffin’s conspicuous presence in Miami has drawn parallels to the impact LeBron James had on the city, attracting both businesses and wealth, and igniting pockets of growth in the real estate market. Born in Daytona Beach, Florida, Griffin founded Citadel in 1990, propelling himself into the upper echelons of the financial world. With approximately $58 billion in assets under management, Citadel stands as one of the globe’s foremost hedge-fund managers. Griffin’s high-profile acquisitions in Miami, including a record-breaking purchase of a sprawling estate in Coconut Grove, further underscore his commitment to the city. Before publicly announcing his relocation plans in 2022, Griffin quietly acquired a prime waterfront parcel on Brickell Bay, setting the stage for his envisioned headquarters. However, his collaboration with Sterling Bay, the initial developer, came to an abrupt end amid concerns about their ability to see the project through. Citadel’s subsequent search for an experienced developer with a solid track record in South Florida ensued.

Amidst uncertainties surrounding the fate of Citadel’s future headquarters, the company appointed Paul Darrah, formerly of Alphabet’s Google, as its chief workplace officer. Darrah, renowned for his role in developing Google’s corporate campus in Manhattan, aims to establish a temporary space within the 830 Brickell building. This interim solution will provide Citadel with a platform to experiment and refine its vision for the ultimate headquarters, a decision facilitated by the flexibility of the lease agreement. Griffin’s real estate endeavors, however, face challenges, with several acquisitions made but development hindered by existing structures, notably a condo building. Despite these hurdles, Griffin’s determination to establish Citadel’s presence in Miami remains unwavering, signaling a continued evolution of the city’s financial landscape under his stewardship.

La Lombardia è la regione con più transazioni in Italia

A million-dollar deal: Campari purchases headquarters in Milan from Bnp. All the latest information here (source: Sole24Ore)

By Columbus International,4 March 202411 March 2024

An operation that reinvigorates Milan’s real estate market, which has been declining since the beginning of the year. The transaction in question sees Campari as the buyer and Bnp Paribas Reim, an investment management company specializing in real estate and part of the Bnp Paribas Group, as the seller.

The real estate company has sold, on behalf of a managed real estate fund, an office building located at Corso Europa 2, a stone’s throw from Milan’s Duomo. Here, Campari will establish its headquarters. The transaction was completed for a sum of approximately 110 million euros, to which renovation costs are added. The building covers a total area of approximately 10,000 square meters, spread over nine above-ground floors and four underground floors. The building faces both Corso Europa and Via Larga. After the sale, the building will undergo renovation and modernization by the buyer, as it is currently divided into spaces previously rented to various Italian and international tenants.

Many of them have already left the building, including the Bpm branch, and soon Commerzbank and the Molteni store will follow suit. This will give rise to the new headquarters where Campari Group will move in 2027, as stated by the company. Currently, Campari’s headquarters is located in Sesto San Giovanni, in a complex designed by architect Mario Botta and inaugurated in 2009. Returning to the building on Corso Europa, it was purchased in 2016 by the real estate company of the banking group through the Fundamenta fund, paid 91 million euros at the time. The asset was sold by the Borromeo family, assisted in the operation by JLL Italia.

The Borromeo family remains active in the real estate sector also through Merope Asset Management, an investment and real estate development company founded and led by Pietro Croce, of which they hold 10%. “The sale of the asset on Corso Europa to an international and prestigious company like Campari demonstrates how Bnp Paribas Reim is able to offer high-level solutions in the active management of real estate investments,” commented Vincenzo Nocerino, CEO of Bnp Paribas Reim Italy at Sole24Ore. “It shows interest in a building with solid fundamentals and located in a strategic position in the center of Milan, the beating heart of a metropolis increasingly oriented towards Europe, essential characteristics for a property destined to host the headquarters of a large group.”

Rents Yield Like Never Before. Since 1998, Real Estate in Milan Appreciated by +130% (source: Tecnocasa Group)

By Columbus International,27 February 2024

Real estate investments are experiencing a steady increase, driven by stable returns that demonstrate gradual yet consistent growth over the years. The appreciation of property values has become a widespread trend, with double and triple-digit increases occurring in almost all regions over the past 25 years.

According to an analysis conducted by the Research Office of the Tecnocasa Group, in the first half of 2023, 19.6% of real estate transactions were made for investment purposes. This figure represents a slight increase compared to the same period the previous year, when the percentage was around 16.8%. Rising inflation is prompting more and more people to invest in bricks and mortar, traditionally considered an excellent form of investment.

The return of tourists has also contributed to revitalizing the real estate market, with an increase in purchases of properties intended for accommodation in both popular cities and tourist destinations. The analysis primarily focuses on the long-term rental market rather than seasonal rentals. The prospect of earning steady rental income induces greater caution among property owners, especially considering the current economic uncertainty and rising energy costs. However, annual rental yields remain attractive, with an average rate of around 5.2% for two-bedroom apartments of 65 square meters in major Italian cities. Among the metropolises, Genoa, Palermo, and Verona stand out for the highest yields, at 6.6%, 6.4%, and 6.3%, respectively.

Real estate investors are not only aiming for rental income but also for the growth in property value over time. In recent years, there has been a recovery in property prices, with a preference for areas characterized by the presence of universities, services, and urban redevelopment projects. Fabiana Megliola, head of the Research Office at Tecnocasa, emphasized that real estate investors are interested not only in rental returns but also and above all in the appreciation of the property value over time. Between 1998 and 2023, major Italian cities saw an average price increase of 46%. Milan recorded the highest appreciation, with an increase of 132.1%, followed by Naples with 72.1% and Florence with 71.2%.

Source: Sole24Ore

Miami’s Short-Term Rental Condo Boom: A Paradigm Shift in Urban Living

By Columbus International,12 February 20249 November 2024

Miami’s real estate landscape is undergoing a profound transformation, driven by a surge in short-term rental condos that are reshaping the dynamics of urban living across Downtown Miami, Brickell, Edgewater, and beyond. According to a report by the South Florida real estate firm ISG World, a staggering 8,467 short-term rental condos are planned across 26 projects in these areas, constituting a significant portion of the region’s development pipeline.

The rapid growth of short-term rental projects can be attributed to various factors, including economic and political uncertainty in Latin America. Craig Studnicky, CEO of ISG World, notes that developers are capitalizing on the influx of foreign buyers seeking to invest capital outside their borders, particularly amid volatile conditions in their home countries. With international buyers accounting for nearly half of home purchases in South Florida, these projects serve as attractive investment opportunities for individuals looking to diversify their portfolios. Studnicky highlights the exponential growth of short-term rental units in Miami-Dade and Broward counties, with developers seizing the opportunity to cater to the rising demand for flexible accommodation options. This surge in development underscores a “carpe diem” moment for developers, who have capitalized on the convergence of favorable market conditions to meet the evolving needs of residents and investors alike. Alicia Cervera, Chairman of Cervera Real Estate, emphasizes the increasing interest from American buyers in these projects, citing the affordability and flexibility offered by short-term rental condos compared to traditional housing options. With Miami’s population and property prices on the rise, there is a growing demand for smaller, more affordable housing solutions, making short-term rentals an attractive proposition for urban dwellers. Indeed, short-term rental condos are filling a void in the market by providing transitional homes for new arrivals to Miami, as well as serving as investment vehicles for those seeking to monetize their properties. With a wide range of amenities catering to both residents and travelers, these units offer a blend of convenience and luxury in prime urban locations.

Developers are responding to this demand by proposing a diverse array of projects with varying degrees of rental restrictions, catering to different preferences and investment strategies. From fully furnished turn-key residences to condo-hotels with limited occupancy rules, these developments offer options tailored to the needs of various buyers. One notable project, 600 Miami Worldcenter, has sold out its fully furnished units ahead of groundbreaking, underscoring the heightened demand for such offerings in prime locations like Downtown Miami. Similarly, the expansion of the Natiivo concept to Broward County reflects the broader trend of extending the reach of short-term rental condos beyond Miami’s borders.

While there may be some fluctuations in market demand, Studnicky remains optimistic about the future of these projects, citing the resilience of Latin American buyers and the allure of pre-construction investments. With interest rates becoming more favorable and construction financing more accessible, developers are poised to break ground on numerous projects, further reshaping Miami’s skyline and urban landscape. In conclusion, the proliferation of short-term rental condos represents a paradigm shift in Miami’s real estate market, offering investors, residents, and travelers alike a new way to experience urban living in one of the nation’s most dynamic cities. As these projects continue to evolve and expand, they are not only reshaping the physical landscape but also redefining the very essence of urban life in Miami.

Source: Bisnow

Barbie Cafe Buzz to Booming Developments: Wynwood’s Real Estate Rise

By Columbus International,8 February 2024

California-Miami Real Estate, a golden ticket!

Introducing the new Malibu Barbie Cafe, a lively pop-up restaurant in Wynwood, Miami, celebrating the spirit of 1970s Malibu Barbie. You can immerse yourself in a nostalgic culinary adventure, carefully crafted to honor the legacy and influence of the iconic Mattel doll.

Conceived through a partnership between Bucket Listers and Mattel, the giant behind Barbie, this collaboration is led by Derek Berry, a Miami native and president of Bucket Listers experiences. Following the success of previous pop-ups like Saved by the Max and the Peach Pit, this collaboration promises a unique culinary experience, following in the footsteps of previous Malibu Barbie initiatives in New York, Chicago, and the Mall of America.

You can then be transported to the sun-drenched beaches of 1970s Malibu, where every detail reflects the glamorous era of the doll. Designed by Master Chef semi-finalist Becky Brown, the menu boasts a fusion of flavors from Southern California, with delights such as rainbow pancakes, avocado toast, and cauliflower bowls, ensuring an enticing experience for all palates, including children with a dedicated menu.

The atmosphere is Instagram-worthy, complete with giant Barbie boxes, retro furnishings, and the signature pink shades synonymous with the brand. Interactive experiences await, from skating to disco-themed evenings, for guests of all ages.

Meanwhile, if after enjoying your Mattel-branded coffee you decide to buy a house in Miami, developers seem to all agree: Wynwood is a winning bet. Similarly to other areas of Miami, developers are descending on the neighborhood and have over a dozen projects in various stages of development. An analysis by The Real Deal has found that over 2,200 apartments and condominiums are coming to Wynwood. A number destined to increase.

Developers have spent just under $300 million solely on land acquisitions between March 2021 and May 2022. By comparison, approximately $366 million was spent on land in Brickell and $555 million in Edgewater.

Here are the planned projects in Wynwood:

Ironstate Development and Brookfield Properties, 26 Northeast 27th Street

Ironstate Development, based in Hoboken, New Jersey, led by brothers David and Michael Barry, along with Brookfield Properties, have proposed a complex of 289 apartments on the former Art by God site. Last year, they paid $15.6 million for the entire assemblage at 26 and 60 Northeast 27th Street, and 25 and 61 Northeast 26th Street.

Gamma Real Estate, 2825 Northwest Second Avenue

Gamma Real Estate from New York took control of the site from The Collective, after making a credit bid. Current plans for the property include 180 units, ranging from studios to six-bedroom apartments.

Clearline Real Estate, 2000 and 2021 North Miami Avenue

Clearline, led by Jenny Bernell, envisions a mixed-use project, likely including rentals. The undeveloped property is zoned for over 300 units.

Fifield Companies, 37 Northeast 27th Street

Fifield plans an eight-story residential building with 210 units and approximately 10,000 square feet of commercial space and a pedestrian walkway. The Chicago-based developer paid $19.5 million for the property in January. Construction is expected to be completed in 2024.

L&L Holding Company and Carpe Real Estate Partners, 31 Northwest 29th Plaza

New York developers L&L Holding Company and Carpe Real Estate Partners plan a mixed-use project that would span over 1 million square feet and include 509 units.

Rilea Group and Promanas Group, 94 Northeast 29th Street

Rilea Group and Promanas Group plan to build 127 rentals at 94 and 100 Northeast 29th street. Plans call for a 12-story project with a rooftop restaurant and a pool bar. The developers bought the properties for $12.2 million last year.

TriStar Capital, Related Group, Lndmrk Development, Tricera Capital, 2700 Northwest Second Avenue

TriStar Capital, Related Group, Lndmrk Development, and Tricera Capital plan to build more than 300 units. The developers paid $26.5 million for the 1.3-acre development site last year. Construction could begin in August.

PMG and Greybrook Realty Partners, 2431 Northwest Second Avenue

PMG and Greybrook Realty Partners secured a $142.3 million construction loan last year for their planned 318-unit, 10-story mixed-use project.

Related Group, 2130 North Miami Avenue, 38 Northwest 22nd Street

Related Group plans to build a pair of 12-story buildings with 317 apartments and 534 parking spaces.

Kushner Companies, Block Capital Group, 127 Northwest 27th Street

Kushner Companies and Block Capital Group are building a project that will have 152 apartments and 232 parking spaces, an outdoor pool deck, and a lounge. It’s expected to be delivered in the third quarter of this year.

Sources and Photos: Eater, The Real Deal, Instagram

Luxury Brands Spark Renaissance on New York’s Fifth Avenue

By Columbus International,7 February 2024

In the summer of 2020, a headline boldly proclaimed, “New York City is dead forever,” echoing the grim reality of a pandemic-stricken world. However, Jerry Seinfeld’s dismissive response of “Oh, shut up,” has proven prescient more than three years later. Nowhere is this more evident than in a pivotal two-block stretch of Fifth Avenue in New York City. This iconic Manhattan shopping corridor has become a battleground for the world’s leading luxury brands, each vying for prime real estate. Recent months have seen a flurry of activity, with entities affiliated with Gucci, Prada, and Louis Vuitton parent companies shelling out nearly $2 billion combined to secure coveted spots from 58th to 56th street. Additionally, Louis Vuitton’s parent company is eyeing 745 Fifth Avenue, further emphasizing the area’s allure, nestled near the Plaza Hotel and Central Park. While commercial property markets elsewhere struggle, these blockbuster deals shine as beacons of hope. Despite challenges like soaring borrowing costs and economic uncertainty, luxury brands are betting big on New York City’s enduring appeal. Their resurgence signals a rapid recovery, particularly in Manhattan’s upscale retail sector, with billionaire-backed conglomerates seizing the moment to solidify their presence both locally and globally. Michael Marks of Cushman & Wakefield notes the significance of these tenants’ long-term commitment to iconic New York locales, emphasizing their strategic move to control their destiny amidst market fluctuations.

Madelyn Wils, chief adviser for the Fifth Avenue Association, underscores the pivotal role of these investments in revitalizing tourism and cementing New York’s status as a premier luxury destination. Behind these landmark transactions stand titans of industry such as Bernard Arnault, Miuccia Prada Bianchi, and François Pinault, whose vast fortunes empower them to leave an indelible mark on Fifth Avenue. The rapid pace of these acquisitions, completed within weeks, underscores the urgency and confidence driving these deals. While challenges persist, including ongoing disputes and financial complexities, these transactions herald a new chapter for high-street retail in New York City. Marc Holliday of SL Green Realty Corp. heralds this resurgence as “very, very exciting for the city,” signaling a promising future for Fifth Avenue and beyond. With traditional real estate investors sidelined by market volatility, luxury conglomerates wield significant influence, leveraging their deep pockets and global vision to reshape urban landscapes. For brands like LVMH and Kering, owning prime real estate is integral to their global strategy, mirroring their successful endeavors in other cosmopolitan hubs like Paris and Tokyo. Indeed, as LVMH’s Chief Financial Officer Jean-Jacques Guiony affirms, being a landlord affords these luxury giants a unique opportunity to reimagine and elevate the retail experience, a sentiment echoed by their ambitious projects around the world. As they continue to invest in iconic addresses like Fifth Avenue, luxury brands are not just shaping skylines but also transforming the very essence of luxury retailing.

Source: Bloomberg

Milan Luxury Property Market: Resilient Growth Despite Global Economic Uncertainty

By Columbus International,6 February 2024

The luxury residential market in Milan is experiencing a period of changing dynamics, according to the recent Savills World Cities Prime Residential Index report. In 2024, forecasts indicate an average growth of 0.6% in luxury property prices, marking a moderate decrease compared to the +2.2% recorded in 2023. Milan emerges in the ranking, placing 13th among the top 30 global luxury residential markets. Regarding the European ranking, it rises to 4th place, a sign of the growing demand and international appeal of the Italian metropolis. “Despite concerns about rising interest rates and the consequent increased price sensitivity,” said Danilo Orlando, Head of Residential at Savills in Italy, “buyers with greater financial availability continue to purchase prime properties in Milan. There has been a surge in the luxury rental market as well. The city continues to attract global capital, thanks to its livability, lifestyle, and lower acquisition costs compared to major world capitals.”

Milan has recorded rising values over the past year, and the trend is expected to continue in 2024. The discrepancy between demand and supply of prime products and new developments continues to support more moderate price growth. On the international scene, Sydney and Dubai have the best forecasts for 2024. Both are expected to benefit from the increasing population of high-net-worth individuals (HNWIs). Sydney, with demand for luxury residences exceeding supply, could see a significant price increase of 8%-9.9%. In the case of Dubai, which already experienced a 17.4% increase in 2023, growth is expected to slow slightly in 2024. “Faced with ongoing economic uncertainty,” said Kelcie Sellers, associate at Savills World Research, “prime residential markets saw subdued changes in 2023, after two years of significant growth. It is expected that the increase will further slow down in 2024 as markets return to more normal conditions, but will remain positive.”

Despite the overall price growth, some major global cities such as Los Angeles, New York, San Francisco, Seoul, London, Singapore, and Hong Kong are projected to experience a decline in 2024. This is attributed to weakened confidence, rising interest rates, and challenging economic conditions. The uncertain macroeconomic context and prospects for higher interest rates could influence buyer and seller sentiment in the luxury residential sector in Milan. However, the prime market appears to be less susceptible to credit access difficulties compared to the overall residential market. “We expect 2024 to be an interesting year in the Milan residential market,” concludes Sellers. “The potential cut in interest rates by central banks, in mid or late 2024, could further support the market.”

Source: Il Sole 24 Ore

Challenges and Hope: The Roller Coaster Ride of US Home Sales in 2023

By Columbus International,23 January 2024

In 2023, the US housing market faced significant headwinds, resulting in a nearly 30-year low in previously occupied home sales. Rising mortgage rates, soaring prices, and limited inventory created a challenging landscape for prospective homeowners. According to the National Association of Realtors (NAR), existing home sales plummeted to 4.09 million last year, marking an 18.7% decline from 2022. This represents the weakest year for home sales since 1995 and the most substantial annual drop since the housing slump of 2007. The median national home price reached a record high of $389,800, experiencing a modest uptick of just under 1% for the entire year, as reported by the NAR. The surge in mortgage rates in 2023, reaching a two-decade high of 7.08% in late October, added to the challenges.

The Federal Reserve’s efforts to cool the economy and control inflation contributed to this increase. High borrowing costs, coupled with already soaring home prices, constrained the purchasing power of potential homebuyers. However, there’s a glimmer of hope on the horizon. Mortgage rates have been easing since November, aligning with a decrease in the 10-year Treasury yield. The optimism stems from the belief that inflation has subsided enough for the Federal Reserve to consider cutting interest rates this year. As of this week, the average rate on a 30-year home loan stands at 6.6%, according to Freddie Mac. Economists anticipate further rate easing, which could boost demand as the spring homebuying season approaches in late February. Despite the positive outlook, the current average rate remains significantly higher than two years ago when it stood at 3.56%. This substantial gap has contributed to a limited supply of previously occupied homes on the market, as homeowners with rock-bottom rates hesitate to sell. In December, existing home sales declined by 1% from the previous month, reaching a seasonally adjusted annual rate of 3.78 million—the slowest pace since August 2010, according to the NAR. December’s sales fell by 6.2% from a year earlier, missing economists’ expectations. Lawrence Yun, the NAR’s chief economist, remains cautiously optimistic, stating, “The latest month’s sales look to be the bottom before inevitably turning higher in the new year. Mortgage rates are meaningfully lower compared to just two months ago, and more inventory is expected to appear on the market in upcoming months.” While challenges persist, there is anticipation for a positive shift in the housing market as we step into the new year.

Source: New York Post