D.C. Metro & National Real Estate News

Sept. 19, 2019

9/19/19

 

 

 

 

DID YOU KNOW?

The global economy is set to grow at the slowest pace since the financial crisis, with business investment and trade hampered by an escalating dispute between the U.S. and China that could inflict even more damage over coming years, the Organization for Economic Cooperation and Development said Thursday. The Paris-based research body said it now expects world output of goods and services to increase by 2.9% this year, the smallest annual rise since 2009. (WSJ)

 

DID YOU KNOW?

Have I mentioned once or twice that real estate loves low interest rates? Well, rates were lowered further by the Fed yesterday as expected (cut interest rates by a quarter-point to a target range of 1.75% to 2%, along with a 30-basis-point cut to the interest paid on so-called excess reserves), but as importantly, home building in the U.S. increased in August to the highest level since June 2007, according to Commerce Department. The report cues a positive note for the American housing industry in what has been a year marked by lagging home sales and sluggish single-family construction. Housing starts, a measure of new-home construction, climbed 12.3% in August from the prior month to a seasonally adjusted annual rate of 1.364 million. (WSJ)

 

 

 

 

 

 

 

 

 

 

 

 

 

Have a Great Day!

Posted in Market Updates
Sept. 18, 2019

9/18/19

 

 

DID YOU KNOW?

65% of CFOs say the U.S. economy will not experience a recession in 2020, and they hold this belief even though they do not support the view that more interest-rate cuts are needed from the Federal Reserve to keep the economic expansion going. The majority of CFOs say that the current level of interest rates are “appropriate.” (CNBC)

 

DID YOU KNOW?

Millennials, those born from 1978 to 1992, will be responsible for 50% of spending in the personal luxury market by 2025. 73% of consumers under age 34 reported being more willing to spend extra on a brand they consider to be environmentally and socially sustainable, according to Nielsen’s research. 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Have a Great Day!

Posted in Community News
Sept. 17, 2019

9/17/19

 

DID YOU KNOW?

The Solar Energy Industries Association forecast 17% growth this year to 12.6 gigawatts in its quarterly joint report with consultants Wood Mackenzie Power & Renewables. That’s down from a forecast of 25% growth earlier this year. However, the report raised the 5-year growth forecast by 6.7 gigawatts, citing strong solar commitment from utilities. The pipeline of contracted large-scale installations for utilities stands at a record 37.9 gigawatts or roughly half the level of solar currently installed in the USA. Compared with 2018, residential system prices this year are 6.8% lower while utility systems are between 10 - 11.4% cheaper. If utility companies see value in solar, homeowners should too? (Reuters)

 

DID YOU KNOW?

As of yesterday afternoon, there is a 65.8% chance that the Federal Reserve will cut its benchmark overnight lending rate by a quarter of a percentage point to a range of 1.75% to 2% tomorrow.

 

 

 

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Have a Great Day!

Posted in Community News
Sept. 16, 2019

9/16/19

 

DID YOU KNOW? 

Oil prices surged close to 10% after a major attack on Saudi Arabian refineries over the weekend.  Why does this matter?  The USA is still highly reliant oil. The average American spends about $2,000 per year on gas. A surge in oil and gas prices is the equivalent of a tax on the US consumer.

 

DID YOU KNOW?

Citigroup, Goldman Sachs, Wells Fargo and JPMorgan Chase over the past year have restarted or expanded the business of spinning fresh pools of mortgages into securities. They are adding a jolt of energy to efforts to revive the so-called private-label market for mortgage bonds, which virtually disappeared after it blew up during the financial crisis of 2008. Smaller operators have long tried, but mostly failed, to rebuild what was once among the most significant businesses on Wall Street. In 2018 around $70 billion of mortgages ended up in private-label mortgage bonds, according to the Urban Institute. Though that is far below a peak of more than $1 trillion in pre-crisis years, it is the most since 2007. (WSJ)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Have a Great Day!

Posted in Market Updates
Sept. 13, 2019

9/13/19

 

 

 

DID YOU KNOW?

 

The U.S. government’s red ink for fiscal 2019 swelled past the $1 trillion mark in August, the first time that level has been eclipsed in 7 years, according to the Treasury Department. The total shortfall rose to nearly $1.07 trillion - up from $584.6 billion in 2016 before the new 2017 tax plan took effect - thanks to a difference between revenue and expenses of more than $214.1 billion in August. The government last saw that large of a fiscal deficit in 2012 at the tail end of the GREAT RECESSION, when the gap was nearly $1.1 trillion. The national debt, which is now at $22.5 trillion, is up 13% since 2016. However, the deficit as a percentage of GDP has contracted significantly over the past several years, from a peak of 9.8% in 2009 to about 5% today. (CNBC)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Have a Great Day!

Posted in Real Estate News
Sept. 12, 2019

9/12/19

 

 

DID YOU KNOW?

There is presently $1.5 trillion in outstanding student loans and around 11% of them are more than 90 days delinquent. In the second quarter of 2019, student loans comprised of 35% of those in the severely derogatory balance.

 

 

DID YOU KNOW?
According to the Bureau of Labor Statistics, the average real estate agent income in NYC metro-area was $104,180 in 2018.  By contrast, Glassdoor pegs the New York City average base real estate agent income at $86,401. The national average is $51,842, according to Glassdoor.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Have a Great Day!

Posted in Community News
Sept. 11, 2019

9/11/19

 

 

 

 

DID YOU KNOW?

Amazon is taking space in a first-of-its-kind 3-story warehouse, a new type of distribution center that could reduce delivery times in congested cities to hours rather than days. While common in densely-populated Asian and European cities, modern warehouses with multiple floors have been absent until recently in the U.S., where higher land and construction costs deterred developers. Is the next possible ground floor/basement use of a big city building a distribution warehouse instead of retail shops? (WSJ)

 

DID YOU KNOW?

Jamie Dimon said that while he doubts the wave of negative interest rates in countries around the world will reach the U.S., he’s preparing J.P. Morgan Chase for the possibility anyway. (CNBC)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Have a Great Day!

Posted in Community News
Sept. 10, 2019

9/10/19

 

 

DID YOU KNOW?

 

Now there is the Compass Concierge Approval Guarantee with simpler approval guidelines that give you the clarity you need about what is guaranteed to be approved before your next pitch.
Here are the Concierge Approval Guidelines for Residential Resales:
For new residential resale listings under $3 million, Concierge requests up to $150K are guaranteed to be approved if:
(a) the request is 5% or less of the list price (up from the previous 3%);
(b) the equity in the home is at least 2x the budgeted Concierge amount; and
(c) the home will be ready to list within 3 months of when Concierge starts paying vendors.
To approve any requests for homes listed over $3 million, or with projects over $150K or 5% of list price, we will require (a) proof of 4x equity in the home and (b) proof of three comparable homes (similar price, same neighborhood) that have listed and sold in the last 6 months.
Please do not expect requests above $300K or where the Concierge funded work will take more than 3 months to be completed to be approved at this time.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Have a Great Day!

Posted in Community News
Sept. 9, 2019

9/9/19

 

 

 

DID YOU KNOW?

More than 2,270 new hotels, motels, inns and bed-and-breakfasts were added over the past 3 years, bringing the number of properties in the USA to nearly 55,900, according to a report on the industry’s economic impact that was conducted by Oxford Economics. Although the number of guest rooms rose to 5.3 million (not counting Airbnb, VRBO and other short-term rentals), there was a 66% occupancy rate — the highest since at least 2005, as far back as the survey looked. (NY TIMES)

 

DID YOU KNOW?

Consumers around the world already spend $3.7 trillion (or 5 percent of global GDP in 2015) on various forms of wellness, from yoga, meditation apps, spin classes, and sleep monitors to juicers, vitamins, organic food, athletic wear, and more. Wellness real estate is valued globally at around $134 billion. (DEPARTURES)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Have a Great Day!

Posted in Market Updates
Sept. 6, 2019

9/6/19

 

DID YOU KNOW?

The U.S. Treasury said the government should draw up a plan to begin recapitalizing mortgage giants Fannie Mae and Freddie Mac, while calling on Congress to pen comprehensive housing reform that would allow them to be safely freed from government control. The report calls for recuperating Fannie and Freddie and removing them from their government lifeline, but it strikes a cautious tone by failing to commit to concrete timelines or a specific recapitalization plan. It commits to preserving the 30-year fixed-rate mortgage and leans on Congress to implement the creation of an explicit guarantee for Fannie and Freddie’s mortgage-backed securities. Could this make mortgages more expensive and harder to get? Housing finance reform failed to gain traction in an attempt in 2012. (Reuters)

 

DID YOU KNOW?

Most of us underestimate how much people enjoy our company. In 2018, Erica J. Boothby and colleagues published a paper about the “liking gap”—the difference between how much we think other people like us and how much they actually like us. In one of their studies, they asked first-year college students to rate how much they liked a given roommate and how much they believed their roommates liked them, starting in September and continuing throughout the school year. They found that participants systematically underestimated how much they were liked. In fact, it wasn’t until May, after living together for eight months, that people accurately perceived how much they were liked. Assume the best! (WSJ)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Have a Great Day!

Posted in Community News