Warning to the Real-Estate Cartel

The Justice Department backed out last week of a proposed settlement with the National Association of Realtors to take a fresh look at the notoriously high commissions consumers pay real-estate agents. The move sent shock waves through the housing industry. The government occasionally brings an antitrust case and later decides to dismiss it. But never have federal antitrust authorities agreed to a proposed settlement only to back out after receiving public comment.

The real-estate lobby called the move “an unprecedented breach.” But there’s a much larger concern for legacy brokers than the novelty of the about-face. The signal from Washington is that antitrust enforcers are prepared to dismantle the collusive practices that burden U.S. homeowners with brokerage costs two to three times as high as in the rest of the developed world.

As authorities prepare a fresh inquiry, they should give close scrutiny to the bizarre way Americans pay real-estate

Read the rest

Read More »

Surfside collapse could turn real estate market into feeding frenzy for coastal developers

SURFSIDE, Fla. — The deadly collapse of the condo building in Surfside, Florida, has spurred many in the region to ensure that their buildings are structurally sound. In the long term, those assessments — as well as buyers’ fears and rising costs — could lead to a reshaping of South Florida’s real estate market as a whole.

Market observers said they have already begun to see diminishing demand for units in older buildings in the area that are typically occupied by lower-income tenants and retirees, similar to the fallen condo, Champlain Towers South in Surfside. And those built since 2000, typically inhabited by wealthier Floridians, are getting greater attention from buyers.

“That’s going to be more common, at least for a while,” said Sepehr Niakan, a real estate broker for Condo Black Book in Miami. “The fear of going into an older building is going to be greater,

Read the rest

Read More »

House Prices Will Even Out in 2022, Economists Say

  • Prospective homebuyers will face low supply and high prices for at least another year.
  • The US doesn’t have enough homes to meet demand, and builders are struggling to keep up.
  • Economists see price growth cooling in 2022, but only if construction picks up and demand holds steady.

America is still in a seller’s market when it comes to housing, and could stay there until next year.

Prices are climbing at the fastest pace in more than three decades, and homes are frequently selling above their list price, according to the National Association of Realtors. In May, the average listing was only on the market for 17 days, said Logan Mohtashami, lead analyst at Housing Wire. For it to become a buyer’s market, “For Sale” signs need to stay up for at least 30 days, Mohtashami said.

Unless construction picks up, the near-term outlook for prices isn’t

Read the rest

Read More »

The Family That Buys Together Stays Together

“You hear stories about kids fleeing the pandemic to be with their parents, and the opposite happened to me,” said Jose Madrigal Jr. “And, honestly, it feels great.” To wit: His parents are less inclined than past tenants to complain about his stereo sound system.

“I don’t think he ever thought he’d live with his partying college kid,” Bianca Colasuonno, an agent with Compass who has known the family for years, said about the senior Mr. Madrigal, but they were faced with a complicated decision.

After losing their Astoria tenants, the couple tried for a few months to sell the property, but were not satisfied with the offers. Moving into the Astoria home meant forgoing additional rental income, and the couple is unlikely to sell their Manhattan apartment anytime soon, because the market there has been slower to recover and less robust than in other parts of the city.

But

Read the rest

Read More »

Warehouse demand offsets vacant office space

ShipBob fulfillment center in Moreno Valley, California

ShipBob

After ShipBob decided last July to let staffers work from anywhere, the logistics start-up had its landlord erect a wall in the middle of its Chicago headquarters so half the space could be rented out to another company.

On March 1, the office reopened at reduced capacity for socially distanced meetings.

But while it’s using less office space, ShipBob’s real estate needs have been expanding at a breakneck pace. The company, which provides fulfillment services to online retailers, has more than doubled its warehouse count since mid-2020 to 24 locations today, including four outside the U.S., with plans to reach 35 by the end of 2021.

The seven-year-old company is a microcosm of the U.S. commercial real estate market. While office vacancies have soared as employers prepare for a post-Covid future of distributed work, the industrial market is hotter than ever because

Read the rest

Read More »

Spokane tops the nation in real estate bidding wars

Spokane resident Kelli Saunders found the home of her dreams in two months, but it wasn’t easy.

Saunders sold her previous home in February and began looking for a new property.

She encountered eight bidding wars and lost against four cash offers for homes, some of which sold for thousands of dollars over asking price.

Saunders – with some persistence – found a home north of the Garland District.

“I decided I just loved this house and said, ‘Let’s go with everything we have on this one,’ ” she said.

She wrote a letter to the seller describing why she loved the house and ended up paying $70,000 over the asking price of $300,000, beating out another buyer with a cash offer.

“I had a low down payment, but had a lot of cash behind it,” she said.

“I came right in at $370,000. I’m one of the very few

Read the rest

Read More »

20 Best Countries to Invest in Real Estate in 2021

In this article we will take a look at the 20 best countries to invest in real estate in 2021. You can skip our detailed analysis of the real estate industry’s outlook for 2021, and go directly to 5 Best Countries to Invest in Real Estate in 2021.

Real estate business happens to be one of the oldest and most lucrative businesses in the world. Prior to globalization, people invested in real estate in their own localities but as the world has become more globalized and connected, real estate investors effectively have access to nearly the entire world for investment.

The United States claims the number 3 spot for most received Foreign Direct Investment (FDI) with the share of real estate investment being 10% of total foreign investment in the US back in 2019 according to the latest report released by US Bureau of Economic Analysis with most properties

Read the rest

Read More »

Warehouse demand at unprecedented levels in cities like Savannah: JLL

Robotic arm taking a cardboard box in a warehouse

onurdongel | E+ | Getty Images

As retailers’ beef up e-commerce operations and invest in faster delivery for customers, the appetite for warehouse space is rocketing higher, according to a new report.

This year, demand among mass merchandisers for logistics facilities to store inventory and pack and ship online orders will be the highest it has ever been, said commercial real estate services firm JLL.

JLL has been tracking pent-up demand among big-box and value retailers including Walmart, Target, Big Lots, TJX and Costco, all of which are vying for warehouse space. Some of these companies are playing catch up to Amazon, which for years has been gobbling up warehouses — big and small — in central locations across the country. More recently, that buying and leasing activity has spread into more densely populated areas including New York City.

“We’ve been

Read the rest

Read More »

Epic housing shortage may finally be starting to lift

A for sale sign is seen near a house for sale in South Pasadena, California.

Frederic J. Brown | AFP | Getty Images

The epic housing shortage that began before the pandemic and then was exacerbated by it may finally be starting to ease up.

More supply is suddenly coming on the market, which will certainly help frustrated buyers and could, in the longer term, take some of the heat out of home prices.

In June, new listings increased 5.5% year over year and 10.9% compared with May, according to Realtor.com. Among the nation’s larger cities, the 10 markets with the highest new listings increases posted gains of 20% or more from a year ago.

“Although there’s still a significant shortage of homes for sale and home prices just hit a new high, our June data report shows good news on the horizon for buyers,” said Realtor.com senior economist George

Read the rest

Read More »

Gordon Biersch brews big property deal, cements San Jose presence

SAN JOSE — Gordon Biersch has cemented its long-term presence in San Jose with a deal to buy its brewery property near the city’s Japantown district.

A real estate affiliate of the high-profile brewing company has bought the site where Gordon Biersch maintains its primary operations.

“Gordon Biersch has been in San Jose for 30 years and we are now firmly planted here with this deal,” said Dan Gordon, the principal executive of the brewery company. “We wanted to control our own destiny. We wanted to be here forever.”

The affiliate, Gordon Biersch Real Estate Holdings, paid $11.8 million for a 3.1-acre site at 357 E. Taylor St. in San Jose that includes the brewery complex, according to documents filed on June 30.

“It’s a thrill for me to complete this purchase,” Gordon said. “We saw how real estate is getting more expensive in the South Bay. This ensures our

Read the rest

Read More »