Aspirational Pricing Still Lurks in the Hearts of Sellers
“Everything that has a beginning, must have an end.” The Oracle (The Matrix).
A glitch in the matrix. pic.twitter.com/wAIGsbtTA3— You Had One Job (@_youhadonejob1) April 30, 2018
I’m keeping this week’s Housing Notes short as I stroll around the Matrix and work on a new Boston market report for Douglas Elliman.
But I digress…
Your Local Chase Bank Branch is on Fire
So many analogies to be made.
This Week in Aspirational Pricing
Sales at the development One57 in Manhattan showed a good quarter because the developer finally chose to discount asking prices to meet buyers at current market conditions. This building is the poster-child of Manhattan super new development simply because it has been on the market for so long. In a recent Bloomberg Pursuits piece: NYC Luxury Tower One57 Has Big Quarter Thanks to Condo Discounts
While that’s a good strategy given that the developer is building another tower two blocks away with twice as many units, One57 has been on the market for seven years and still has 27% of its units left to sell.
“The quiet little secret about the super-luxury market is it’s absorbing” inventory, Barnett said.
While it is true that super-luxury sales are being absorbed, they’re not doing that on their own.
Absorption occurred as asking prices were brought down to become more connected with what actual market conditions were.
And I won’t go into details about the 25% list price chop – from $250 million to $188 million. While that’s a significant cut, this is a 38,000 square foot house on an acre.
Since these Housing Notes are a “lite” version this week, make sure you read all the great appraiser-related links down below.
ZILLOW: Entry-Level Homes with ‘Farmhouse Sinks,’ ‘Wainscoting,’ or ‘Exposed Beams’ Sell for Nearly 30 Percent More than Expected
No they don’t. This is what we call “junk statistics.” This press release suggests that when someone installs a “farmhouse sink” in a $400,000 home, the house becomes worth $520,000? Nope.
“Chip and Joanna Gaines’ farmhouse-inspired design trends command highest sale premiums among entry-level homes, according to an analysis from RealEstate.com”
Brilliant Idea #1
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- They’ll make cup cakes like Joanna;
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- And I’ll bring the kitchen sink.
Brilliant Idea #2
You’re obviously full of insights and ideas as a reader of Housing Notes. I appreciate every email I receive and it helps me craft the next week’s Housing Note.
See you next week.
Reads, Listens and Visuals I Enjoyed
- Sunnyside Yard megaproject is no longer just a pipe dream [Curbed NY]
- Judge Sides With Residents Who Want Trump's Name Off Their NYC Building [NPR]
- Airbnb Drives Up Rent Costs in Manhattan and Brooklyn, Report Says [New York Times]
- The Impact of Airbnb on NYC Rents [NYC Bureau of Budget]
- Trump Place Does Not Have to Be a Forever Name, Judge Says [New York Times]
- Samantha Yanks lands chief marketing officer gig at real estate firm [Page Six]
- Residential Brokerage Disruption | NYC Residential Brokerages [The Real Deal NY]
- Can Cosmopolitanism Survive in an Age of Populism and Urbanization? [Pacific Standard]
- America’s Mortgage Market Is Still Broken [Bloomberg]
- A Flatter Yield Curve Is No Reason to Freak [Bloomberg]
- Detroit Was Crumbling. Here’s How It’s Reviving. [New York Times]
- NYC Luxury Tower One57 Has Big Quarter Thanks to Discounts [Bloomberg]
- Anonymous Owner, L.L.C.: Why It Has Become So Easy to Hide in the Housing Market [New York Times]
- Fashion Houses Leave Their Mark On Luxury Real Estate [Mansion Global]
- Why Aren’t More People Selling Their Homes? [DS News]
- All the Buildings in Manhattan [tbaldw]
- Mapping million pound markets [Knight Frank]
My New Content, Research and Mentions
- Trump’s tax reforms shake Brownstone Brooklyn [Financial Times]
- Northeastern Billionaire Scoops up Miami Beach Condo for $13.5M [Mansion Global]
- When luxury leaks [The Real Deal NY]
- Secret listings soar [The Real Deal NY]
- Real estate heads different directions in first quarter [Aspen Daily News]
- Hamptons Cheat Sheet: East Hampton home of late Goldman Sachs partner sells for $40M … & more [The Real Deal NY]
- Business Monday Briefs: Single-family Aspen homes averaged $7.4 million sales price in first quarter 2017 [Aspen Times]
- Three Aspen employee homes sell for $1.3 million each, one to go to lottery [Aspen Times]
- The 8 best NYC neighborhoods for first-time home buyers [Brick Underground]
- Three-Story Penthouse In Peter Marino's New Building Sells For $59M, One Of New York's Priciest Buys [Forbes]
Appraisal Related Reads
- Entry-Level Homes with 'Farmhouse Sinks,' 'Wainscoting,' or 'Exposed Beams' Sell for Nearly 30 Percent More than Expected [Zillow]
- Do I Need a Pre-Purchase Appraisal? [Birmingham Appraisal Blog]
- Helpful Programs for Disabled Senior Homebuyers
- PRESSURE: MY STORY
- Hybrid AMCs & Appraisal Firms: Employees vs Independent Contractors [Appraiser Blogs]
- Fannie and Freddie approve thousands of loans with no formal appraisals [Washington Post]
- The myth of dollar for dollar in real estate [Sacramento Appraisal Blog]
- Appraisal-free home loans save millions for buyers [Chicago Tribune]
- Biggest wave ever surfed by Brazilian Rodrigo Koxa – video [The Guardian]
- Birmingham First Quarter Sales & The Housing Shortage [Birmingham Appraisal Blog]
- Will it be an appraisal issue if there is pot growing at a house? [Sacramento Appraisal Blog]
Extra Curricular Reads
- Ante Up [City Journal]
- Running from a Ghost | By Keyon Dooling [The Players Tribune]
- Bloomberg’s New Paywall Will Charge Users $35 a Month [Wall Street Journal]
- Life, Death, and John Prine | [Pitchfork]
- Psychologists tried to figure out: Is one space or two after a period better? [Quartz]
- Shift list: All the new cars you can buy with a manual transmission [Auto Blog]
- 10 amazing zipper facts you didn't know you wanted to know [Market Place]
- I am a law-abiding citizen — except when it comes to cycling [Financial Times]
- French art museum discovers more than half its collection is fake – [France 24]
- Artist specialized in paintings of Chase bank on fire [Boing Boing]