Happy Friday, friends! This past week Scott and I ‘snuck’ away to Hawai’i to cash in on the honeymoon we never got after our December 2020 wedding. We left the kids behind, so needless to say there’s been a lot of quiet moments where we look at each other and wonder what to do next. It hasn’t been difficult to fill our time as there’s a lot to do and there’s an active volcano erupting, with incredible viewing of the lava just 45 minutes from our hotel! We also swam with huge manta rays, which was incredible—she even gave Scott a high five! And what would a trip away from home be without business picking up; we have a couple of new listings coming soon that we’re excited to share with you, stay tuned.
Nearly every day, Compass’s Leonard Steinberg puts together a handful of real estate news bits that are always so interesting I have to share some of my favorites of the week. To receive these every day from Leonard, please click [_here](mailto:ls@compass.com “”) and include your full name and email address to get on his mailing list.
“There is no income tax on debt!” Many very wealthy people borrow against assets to finance their lives, thereby avoiding income taxes. Things can take a turn if borrowing on margin hits a wall when those assets you are borrowing against decline and the banks come a-knocking on the door…..
* Are recessions always ‘six months away’? If we are anxiously awaiting a recession – two quarters of negative GDP growth – why did we not call the first two quarters in 2022 a recession when both experienced negative GDP growth?
* Several areas of the US are suffering from a lack of inventory….an almost certainty to drive competitive bidding and steer prices ….UP (the opposite of the FED’s mission?). Bill Andruss sent me Greenwich CT stats:
–There were just 15 single-family closings in February – a record low – compared to 38 in 2022, and 63 in 2021.
–There are only 145 single-family homes currently on the market. Two years ago, there were 273, close to double.
* The price of a home in Canada’s largest city Toronto rose 1.1% to $803,000 in February on a non-seasonally adjusted basis. After being off 19% off its highs, indicating a recovery? The number of sales rose too, although still half compared to February 2022. (Bloomberg)
* Between February 2020 and now, home prices escalated 62% in Tampa, 60% in Miami, 54% in Phoenix and 47% in Dallas.. New York and Boston saw 33% gains. San Francisoc saw 23% escalation. (S&P Case Shiller)
* Existing homes account for roughly 90% of the estimated $44 trillion U.S. housing market. (Marketwatch)
* The rate of seriously past due mortgage debt was 0.6% as of the 4th quarter of 2022, according to the Federal Reserve Bank of New York. It was 12.2% for subprime car loans!
* Homes in Alaska had the biggest decline in month-over-month prices with prices falling by 4.9% in January. New Mexico and Wyoming followed, with a 3.8% decline. Mississippi took the next spot with home prices dropping 3.7% in January as compared to the month before. Home purchase applications have dropped to the lowest level in 28 years, the Mortgage Bankers Association said this past week. (Marketwatch)
* While some may balk at the price tag of Jeff Bezos’ latest acquisition – a $500 million yacht – here is some perspective: The renovation of his New York apartment is rumored to cost over $90 million too…..even though it was gut renovated, brand new. All this spending will generate tons of VAT and sales taxes, not to mention keep dozens/hundreds employed, so…..the yacht alone creates 40 full time staffing jobs AFTER delivery. And the yacht – unlike most – is fueled by…..wind power.
* These four things are really, really bad for relationships…..ALL relationships:
–Contempt: Expressing a lack of respect for our partners (e.g., name-calling, eye-rolling, ridiculing).
–Criticism: Attacking a partner’s character.
–Defensiveness: Protecting from criticism by using excuses or shifting blame.
–Stonewalling: Withdrawing from communication by ignoring, zoning out or acting busy.