Category Archives: Waccabuc NY

U.S. wages rise the most in a decade | Waccabuc Real Estate

  • Wages and salaries rose 3.1 percent in the third quarter, the biggest increase in a decade, according to the Labor Department.
  • Overall compensation costs were up 2.8 percent, ahead of Wall Street expectations.
  • Wages have been the missing piece in the economic recovery, though the Fed has been raising rates to guard against future inflationary pressures.

Higher wages are very good for real estate

Employment costs rose more than expected in the third quarter in a sign that more inflation could be brewing in the U.S. economy.

The Labor Department’s employment cost index rose 0.8 percent for the period, ahead of the estimate of 0.7 percent from economists surveyed by Refinitiv.

Wages and salaries rose 0.9 percent, well ahead of expectations for 0.5 percent. Benefit costs were up 0.4 percent.

On a yearly basis, wages and salaries jumped 3.1 percent, the biggest increase in 10 years.

Wage increases have been the missing link in the economy since the recovery began in mid-2008. Average hourly earnings have been rising steadily but have stayed below the 3 percent level as slack has remained in the labor market.

However the unemployment rate is now at 3.7 percent, the lowest since 1969, and wage pressures have begun to build. The Federal Reserve has been raising interest rates in an effort to stave off future inflationary pressures, though the central bank’s preferred gauge of inflation rose just 2.5 percent in the third quarter, including a 1.9 percent increase for health benefits.

The wage data came the same day that ADP and Moody’s reported private payroll growth of 227,000 in October, easily beating Wall Street expectations. The combination of news sent Treasury yields higher in morning trading.

Overall compensation costs for civilian workers rose 2.8 percent, tamped down in part by the small rise in benefit costs, which rose 1.9 percent for the 12-month period ending in September. Employers have been looking for non-salary measures to retain workers, but may have to start increasing wages to attract and retain talent.

In addition to the tighter job market, various states, communities and private companies have passed minimum wage increases, adding to inflation pressures.

At an occupational level, compensation costs increased 4.8 percent for information technology and 3.5 percent for sales and office and service occupations.

State and local government compensation costs rose just 2.5 percent, just one-tenth of a point more than the increase for the same period a year ago.

read more…

https://www.cnbc.com/2018/10/31/wages-and-salaries-jump-by-3point1percent-highest-level-in-a-decade.html

Southern California suffers its worst housing slump in over a decade | Waccabuc Real Estate

  • The number of new and existing houses and condominiums sold during the month plummeted nearly 18 percent compared with September 2017, according to CoreLogic.
  • That was the slowest September pace since 2007, when the national housing and mortgage crisis was hitting.
  • The median price of Southern California homes sold in September, $505,000, was still 3.6 percent higher than it was a year ago. That was the lowest annual gain for any month in more than three years.
GP: California real estate for sale Pasadena. 

A property for sale in Arcadia, California.Frederic J. Brown | AFP | Getty Images

Higher mortgage rates and overheated home prices hit Southern California home sales hard in September.

The number of new and existing houses and condominiums sold during the month plummeted nearly 18 percent compared with September 2017, according to CoreLogic. That was the slowest September pace since 2007, when the national housing and mortgage crisis was hitting.

Sales have been falling on an annual basis for much of this year, but this was the biggest annual drop for any month in almost eight years. It was also more than twice the annual drop seen in August.

“The double whammy of higher prices and rising mortgage rates has priced out some would-be buyers and prompted others to take a wait-and-see stance,” said Andrew LePage, a CoreLogic analyst, in the release. “There was one caveat to last month’s sharp annual sales decline — this September had one less business day for recording transactions. Adjusting for that, the year-over-year decline would be about 13 percent, still the largest in four years.”

On a monthly basis, sales fell 22 percent in September compared with August. Sales usually fall about 10 percent from August to September.

We cannot afford the monthly payment

Sales of newly built homes are suffering more than sales of existing homes, likely because fewer are being built compared with historical production levels. Newly built homes also come at a price premium. Sales of newly built homes were 47 percent below the September average dating back to 1988, while sales of existing homes were 22 percent below their long-term average.

The median price of Southern California homes sold in September, $505,000, was still 3.6 percent higher than it was a year ago. That was the lowest annual gain for any month in more than three years.

“Price growth is moderating amid slower sales and more listings in many markets,” LePage said. “This is welcome news for potential homebuyers, but many still face a daunting hurdle – the monthly mortgage payment, which has been pushed up sharply by rising mortgage rates.”

LePage noted that while the median sale price was up 3.6 percent year over year in September, the principal and interest mortgage payment on the median-priced home was up 14.2 percent because mortgage rates increased about 0.8 percentage point over that period.

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https://www.cnbc.com/2018/10/30/southern-california-suffers-its-worst-housing-slump-in-over-a-decade.html?__source=newsletter%7Ceveningbrief

  

Lumber, OSB, and Gypsum Prices Fall | Waccabuc Real Estate

Residential construction goods input prices reversed course in September, increasing 0.2% after declining each of the prior two months, according to the latest Producer Price Index (PPI) release by the Bureau of Labor Statistics. The index for inputs to residential construction has risen 5.2% in 2018 and is 10.2% higher than it was in January 2017.


Gypsum prices also reversed trend in September, falling 0.1% (seasonally adjusted) after a combined increase of 6.1% over the prior two months. Since the start of the year, the price index for gypsum products has increased 1.0% per month, on average.


From January to September of 2017, prices paid for gypsum products rose 7.2%. The index has increased 8.1% over the same period in 2018.

The September PPI release continued to capture decreases in prices paid for softwood lumber that began in mid-June. However, even after accounting for the most recent price movements, the average price paid for softwood lumber in 2018 remains the highest on record according to Random Lengths data—18.7% above the prior record set in 1997.


The index for prices paid for OSB (and waferboard) decreased for the second consecutive month (-5.2%, not seasonally adjusted). Prices are down 16.4% since July and have declined in five of the past 12 months.


The index for ready-mix concrete (RMC) prices increased 0.4% (seasonally adjusted), reversing a four-month trend of price declines. After an uncharacteristically large monthly increase in March—when the index rose 3.3%–the PPI for RMC has fallen back in line with its long-run trend.

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Housing starts up 9.4% year over year | Waccabuc Real Estate

United States Housing Starts  1959-2018 

Housing starts in the US jumped 9.2 percent from a month earlier to an annualized rate of 1,282 thousand in August of 2018, recovering  from a 0.3 percent drop in July and beating market expectations of a 5.8 percent rise. Starts increased in the South, the Midwest and the West and were flat in the Northeast. Housing Starts in the United States averaged 1433.04 Thousand units from 1959 until 2018, reaching an all time high of 2494 Thousand units in January of 1972 and a record low of 478 Thousand units in April of 2009.

 

United States Housing Starts

 

US Housing Starts Above Forecasts

Housing starts in the US jumped 9.2 percent from a month earlier to an annualized rate of 1,282 thousand in August of 2018, recovering from a 0.3 percent drop in July and beating market expectations of a 5.8 percent rise. Starts increased in the South, the Midwest and the West and were flat in the Northeast.

Single-family homebuilding, which accounts for the largest share of the housing market, increased 1.9 percent to a rate of 876 thousand units in August; and starts for the volatile multi-family housing segment surged 27.3 percent to a rate of 392 thousand. Starts rose in the Midwest (9.1 percent to 191 thousand), the West (19.1 percent to 318 thousand) and the South (6.5 percent to 674 thousand), but were steady in the Northeast (at 99 thousand). Starts for July were revised to 1,174 thousand from 1,168 thousand.
Building permits dropped 5.7 percent to a seasonally adjusted annual rate of 1,229 thousand, the lowest reading since May of 2017. It compares with market expectations of a 0.1 percent decline to 1,310 thousand and follows a 1.5 percent rise in July. Single-family authorizations fell 6.1 percent to 820 thousand and multi-family permits decreased 4.9 percent to 409 thousand. Declines were seen in all regions: Northeast (-19.2 percent to 101 thousand), the Midwest (-1.7 percent to 178 thousand), the West (-8.4 percent to 304 thousand) and the South (-2.9 percent to 646 thousand).

Year-on-year, housing starts increased 9.4 percent while building permits fell 5.5 percent.

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https://tradingeconomics.com/united-states/housing-starts

Marilyn Monroe got married in Westchester | Waccabuc Real Estate

Marilyn Monroe got married in Waccabuc, Westchester.

The actress married playwright Arthur Miller in a short civil ceremony in the White Plains Courthouse in 1956.

It was her third marriage and Miller’s second. Few knew of the impending ceremony.

But their relationship had caused headlines. Miller had divorced his wife to marry Monroe, who had divorced Joe DiMaggio in 1954.

When the news got out of their impending nuptials, the couple held a press conference at Miller’s house in Connecticut on June 29. The local paper had the headline: “Local Resident Will Marry Miss Monroe of Hollywood’, adding, ‘Roxbury Only Spot in World to Greet News Calmly.”

Marilyn Monroe and Arthur Miller held a wedding reception at this Waccabuc home. Karen Croke, kcroke1@lohud.com

Afterwards, they slipped into Westchester and were married in a quick ceremony at the courthouse, after which, as reported the following day in The New York Times, the Millers  “got into their sports car and disappeared into traffic.”

They weren’t heading far.

On July 1, the couple held a Jewish ceremony and wedding reception for 25 guests in the Westchester County home of Miller’s literary agent, Kay Brown.

The home is for sale, listed for $1,675,000 with Susan Stillman of Houlihan Lawrence.

From the outside, it’s not hard to imagine the party that once took place here.

The French Country-style residence built in 1948 seems untouched from those halcyon days when many stars, including Tallulah Bankhead and Benny Goodman lived nearby and fabulous parties were the norm.

The gated property is set on a quiet road with a wonderful view of the surrounding area, and is just across from the 16th hole of the Waccabuc Country Club.

There are many original details, including parquet and tile floors, French doors, leaded windows, and European-style fireplaces. One of the highlights is the living room with walls of glass and terrace exit, a private master suite, and a first-floor guest suite with its own side entrance.

There are four bedrooms and five bathrooms in the home, which is in the Katonah School district.

Outside, the just over 4 acre property is still private and serene. A crescent-shaped lawn terrace steps down to pool and pool house with summer kitchen and cabana, and all surrounded by light woodlands, specimen landscaping and gardens creating sought-after privacy.

Sadly, the Millers were married for only five years before divorcing in 1961. Monroe tragically died the following the year.

 

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https://www.lohud.com/story/money/real-estate/homes/2018/08/08/marilyn-monroes-westchester-wedding-house-sale-1-69-m/922263002/

Mortgage rates average 4.54% | Waccabuc Real Estate

Mortgage Rates Move Up Again

MCLEAN, Va., Sept. 06, 2018 (GLOBE NEWSWIRE) — Freddie Mac (OTCQB: FMCC) today released the results of its Primary Mortgage Market Survey® (PMMS®), showing that mortgage rates increased marginally over the past week.

Sam Khater, Freddie Mac’s chief economist, says the 30-year fixed-rate mortgage inched higher for the second straight week. “Borrowing costs may be slowly on the rise again in coming weeks, as investors remain optimistic about the underlying strength of the economy,” he said. “It’s important to note that rates are now up three-quarters of a percentage point from last year and home prices – albeit at a slower pace – are still outrunning rising inflation and incomes.”

Added Khater, “This weakening in affordability is hindering many interested buyers this fall, even as the robust economy brings them into the market. The good news is that purchase mortgage applications have recently rebounded to above year ago levels.”

News Facts

  • 30-year fixed-rate mortgage (FRM) averaged 4.54 percent with an average 0.5 point for the week ending September 6, 2018, up from last week when it averaged 4.52 percent. A year ago at this time, the 30-year FRM averaged 3.78 percent.
  • 15-year FRM this week averaged 3.99 percent with an average 0.4 point, up from last week when it averaged 3.97 percent. A year ago at this time, the 15-year FRM averaged 3.08 percent.
  • 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.93 percent with an average 0.3 point, up from last week when it with an average 3.85 percent. A year ago at this time, the 5-year ARM averaged 3.15 percent.

Average commitment rates should be reported along with average fees and points to reflect the total upfront cost of obtaining the mortgage. Visit the following link for the Definitions. Borrowers may still pay closing costs which are not included in the survey.

NYS median sales price rises 11.5% | Waccabuc Real Estate

Homebuyer activity remained strong in May, driving the New York State housing market to the second-highest sales total for the month with 10,348 closings, according to the housing market report released today by the New York State Association of REALTORS. May 2018 closed sales were 8.6 percent lower than the record of 11,322 set in May 2017. The median sales price growth trend continued, increasing by 11.5 percent compared to last May, ending the month at $262,000.

“Robust buyer demand continues to keep homes across the Empire State selling at a brisk pace, despite the lower number of homes listed for sale,” said Duncan R. MacKenzie, CEO of the New York State Association of REALTORS. “Newly listed homes are selling more quickly than a year ago as buyers faced with fewer options are eager to get to the closing table. We believe that without the headwind of lower inventory sales would be near the record-setting levels of a year ago.”

“While growing sales prices may entice current owners to bring greatly needed inventory to the market, the combination of higher prices and growing mortgage rates will begin to erode affordability, potentially dampening buyer enthusiasm,” said MacKenzie.

The May 2018 sales total of 10,348 represents a decrease of 8.6 percent from the May 2017 total of 11,322. Year-to-date (Jan. 1 – May 31) sales were 45,005, a decrease of 3 percent from the same period in 2017.

The May 2018 statewide median sales price was $262,000, an increase of 11.5 percent from the May 2017 median of $235,000. The year-to-date (Jan. 1 – May 31) median sales price was $259,000, an increase of 8.6 percent from the same period in 2017.

Pending sales decreased 4.3 percent in May compared to a year ago to reach 13,633.

The average days on market for home sales closed during May 2018 was 80, a decrease from 87 in May 2017. Year-to-date (Jan. 1 – May 31) days on market for closed sales was 85, down from 93 during the same period in 2017.

The months supply of homes for sale dropped 7.8 percent at the end of May to 5.9 months supply. It was at 6.4 months at the end of May 2017. A 6 month to 6.5 month supply is considered to be a balanced market. Inventory stood at 66,682, a decrease of 6.7 percent compared to May 2017.

Additional data is available at http://www.nysar.com/industry-resources/market-dataOpens a New Window.

Editor’s Note: All data is compiled from multiple listing services in the state of New York and the data include townhomes, condominiums and existing single-family homes.

Condemned Silicon Valley home sells for $1.23 million | Waccabuc Real Estate

A condemned home in Northern California — with holes in the roof and mildew inside — recently sold for $1.23 million, becoming the latest example of the Bay Area’s tight housing market.

The home in Fremont was originally listed for $1 million but ended up closing at $230,000 over its asking price, listing agent Larry Gallegos told KTVU.

“We had a couple of offers that were very close. Actually, my client, when I first met them, wanted a little bit more than that with the price they had in their mind. But they ended up being happy with this one,” he said.

A condemned home is seen Wednesday, April 18, 2018, in Fremont, Calif. The condemned Northern California house with holes in the roof and mildew in the pipes sold last month for $1.23 million. (AP Photo/Ben Margot)

The condemned Northern California house with holes in the roof and mildew in the pipes sold last month for $1.23 million.  (AP Photo/Ben Margot)

The home, located about 35 miles southeast of San Francisco, has three bedrooms, two bathrooms, and was condemned in 2013. The two investors who bought the property design green homes, according to Gallegos, and plan to put a 4,000 square-foot “masterpiece” on the lot in Fremont.

Gallegos told the Associated Press the buyers didn’t even enter the house because they had no interest in the actual building but on its location, which could offer a view of the bay from a second story.

Online property records show its assessment is years out of date — its taxable value is listed as $90,000.

David Stark of the Bay East Association of Realtors told KTVU there was “nothing surprising” about the sale.

“It’s a great example of location, location, location,” he said.

Stark told the television station that buying a tear-down to build a dream home reflects a 10-year trend, and that unlike in 2008, current home prices show no indication a crash is coming.

California Home 1

The home in Fremont was condemned in 2013, and has three-bedrooms, and two-bathrooms.  (KTVU)

“People are purchasing homes. They’re purchasing vacant properties like this. The demand is there. The supply isn’t. These prices are sustainable,” he told KTVU.

The median home price in Fremont, which connects to Silicon Valley through several highways and with easy access to San Francisco and Oakland by train, is $1 million as of late February, according to Zillow.com, compared to $1.3 million in San Francisco and $1.28 million in Berkeley.

For residents that have been in the neighborhood for years, the spike in home prices leaves them in a difficult situation.

 

read more…

 

http://www.foxnews.com/real-estate/2018/04/19/condemned-california-home-with-holes-in-roof-mildew-sells-for-1-23-million.html

New home sales fall again | Waccabuc Real Estate

Sales of new single-family houses in the United States shrank 0.6 percent month-over-month to a seasonally adjusted annual rate of 618 thousand in February of 2018 from an upwardly revised 622 thousand in January. It is the lowest reading in four months and compares with market forecasts of a 4.4 percent rise to 623 thousand. Sales fell in the West and the Midwest. New Home Sales in the United States averaged 650.65 Thousand from 1963 until 2018, reaching an all time high of 1389 Thousand in July of 2005 and a record low of 270 Thousand in February of 2011.

 

US New Home Sales Fall for 3rd Month

Sales of new single-family houses in the United States shrank 0.6 percent month-over-month to a seasonally adjusted annual rate of 618 thousand in February of 2018 from an upwardly revised 622 thousand in January. It is the lowest reading in four months and compares with market forecasts of a 4.4 percent rise to 623 thousand. Sales fell in the West and the Midwest.

Sales fell in the West (-17.6 percent to 164 thousand) and the Midwest (-3.7 percent to 79 thousand) but rose in the South (9 percent to 338 thousand) and the Northeast (19.4 percent to 37 thousand).
The median sales price of new houses sold was $326,800, above $298,000 a year earlier. The average sales price was $376,700, also higher than $370,500 in February of 2017.
The stock of new houses for sale went up 2 percent from the previous month to 305 thousand, the highest level since March of 2009. This represents a supply of 5.9 months at the current sales rate.
Year-on-year, new home sales edged up 0.5 percent.
read more…
https://tradingeconomics.com/united-states/new-home-sales

London prices falling | Waccabuc Real Estate

House prices in some of London’s wealthiest boroughs plummeted as much as 14.9% in the year to January, dragging down the average price in the capital—and in England—according to a report Monday by real estate consultants Acadata.

Prices in the capital fell 0.8% in January from December, to £593,396 (US$825,318). That’s down 2.6% annually, the report said, the biggest fall since August 2009, when the recession was still in full swing.

Price growth across the U.K. has likely been weighed down by uncertainties surrounding Brexit, along with 2016’s 3% surcharge on second homes and buy-to-let properties. “Subsequent to the introduction of this tax, the rates of price growth have been falling, and at an accelerated rate since September 2017,” the report said.

No doubt the fall is more acutely felt in London, a hotspot for international investors.

The biggest drops were logged in the priciest boroughs.

Wandsworth saw the largest dip, with the average price declining 14.9% in the year to January, to £685,567 (US$953,514) from £805,460 (US$1.12 million) the prior year. The City of London followed, where prices are now £844,768 (US$1.17 million), down 10.8% from last January and in Islington, prices are down 8.8% to £684,869 (US$952,543).

But in the city’s most expensive borough, Kensington and Chelsea, prices rose 4.6% up to £2.16 million (US$3 million).

Combined, the most expensive 11 boroughs fell by 3.8%, while mid-priced boroughs are down an average 2.7%, according to the report.

The less expensive boroughs fared better. More than half logged price rises over the last year, led by Bexley, which saw its average price rise 4.5% to £363,082 (US$504,988). In Barking and Dagenham, which has the lowest priced property in the capital, according to the report, prices inched up 0.1% to £300,627 (US$418,124).

Brent, in northwest London and home to Wembley Stadium, logged the largest price increases, up 8.5% to £587,372 (US$816,940).

 

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