Smashing Estate

The Columbus Board of Realtors (CBR) reported yesterday (23 March) that or the second consecutive month, the sale of on hand single-family homes dived by over 20%. According to CBR report sales of single-family homes and condominiums in the central Ohio fell 23% in February to 1,123 units, vs. 1,459 one year ago. The decline follows a 22% go down in home sales in January.

The board said home sales contracts (an indication of future sales activity) dropped 37% in February 2009 to 1,064 from 1,689 in February 2008. Simultaneously, the average sale price of an existing home in the area went down 15% to $133,604 from $156,497. And it is three times as much as the 5% sale price drop seen during 2008. CBR President Gary Parsons said that the group is hoping for boost sales activity as mortgage rates hover close to 40-year lows. As a result, for the first time homebuyers get benefits from a new tax credit.

Home sales in January and February 2009 were dropped 23% at 2,082 units, vs. 2,712 during February 2008. The average sale price is declined around 13% at $135,373, vs. $154,921 previous year. Franklin, Delaware, Fayette, Madison, Morrow and Union counties, and portions of Licking, Pickaway, Clark, Knox, Champaign, Logan, Fairfield and Marion counties sales are also monitored by CBR.

According to an industry trade group on Wednesday, the maximum 30-year mortgage rates in a year worn demand for U.S. house refinancing and purchase loans.

With interest rates declining, the amount of mortgage applications as tracked by the Mortgage Bankers Association’s (MBA) seasonally adjusted application index dropped 6.2 percent in the week ending July 18 to 489.6, with a 6.59 percent 30-year mortgage rate depressing applications for purchases and refinancing.

The trade group said average 30-year house loan rates rose 0.37 percentage point in the week, exceeding the 6.57 percent rate in mid-June to match the rate placement in the July 20 week of 2007. In that week last year, the MBA’s total applications index was 609.0, having dropped from just over 1,000 as in recent times as early February.

U.S. President Obama last month declared the Homeowner Affordability and Stability Plan, which is intended to provide much-needed support to the housing market. The objectives of the housing plan are to support refinancing for quality borrowers. IT will help upset borrowers keep away from foreclosure and inspire new housing demand through the growth of Fannie Mae and Freddie Mac, the top two U.S. home funding companies.

Another massive project is going to victim of the global recession very soon. It was the half-billion-dollar Ritz-Carlton hotel-condo project in downtown Vancouver. A 127-room lavishness Ritz-Carlton hotel was supposed to occupy the first 20 floors of the building, with condos taking up the top 40 floors. But now the project is officially dead. Purchasers who brought the luxury condos in the proposed 60-storey tower are getting letters informing them of the project’s cancellation recent week

Actually, the letter from attorneys representing developer Holborn Group states that “worldwide economic turmoil” has got a significant negative impact on the sale of units in the project, because it has with most other Metro Vancouver developments. The letter states “As a result, sales have not met the developer’s expectations,” “We hereby give you notice that the vendor cancels and terminates the contract due to the fact that the vendor has not entered into binding contracts of purchase and sale for at least 75 strata lots in the development.” “As a result of this termination, the contract is now at an end.”

Holborn had already sold around 62 of the 123 condos in the twisting tower designed by Vancouver architect Arthur Erickson. Officials said condo prices in the project (called The Residences at the Ritz-Carlton) ranged from $1.4-million to $28-million. On the other hand,Vancouver realtor Bob Rennie said the developer had the total right to cancel the project if fewer than 75 units were sold by the end of this month. Rennie marketed the project. He said “It was a tough decision for them because there were sales in place, but the 75-sale threshold was out there and they had to decide,” he said. “They’d need to see a lot of strength in the luxury market to proceed with a project like that now.”

The dean of Raleigh’s real estate industry Peter Pescud Williams dies on Friday. He was 94. Peter Williams was a retired former partner of Williams & Haywood Real Estate Co. He spent his most of his life in the city and helped start the careers of many of the city’s real estate leaders, including John Morisey and Lanse Houston.

Joe Kalkhurst trained under Williams in the 1960’s and he is now a senior vice president at York Properties said “We all called him ‘Father,” and also added “He was a great leader.”

Williams was also answerable for the formation of Williams Memorial Park on Lynn and Lead Mine roads. He donated the land to the city for a park in memory of his son, Peter P. Williams Jr., a young real estate agent who was murdered in 1972 along with Raleigh Times woman’s editor Patricia Grimes.

Former Raleigh Mayor Smedes York and also one of Williams’ friends and chairman of the York family of real estate companies said “He was one of the leaders of the real estate industry,” and added “He was a well respected gentleman.”

A memorial service will be held at 11 a.m. Monday at Christ Episcopal Church in Raleigh, where Williams had been a lifelong member.

Recently US-based 84 Lumber company said in a report the national housing market is close to its bottom as in a survey reports they get a decline in sales of $1 billion for 2008. The company is one of the country’s largest home building materials retailers. The company’s overall sales for the year reached $2.1 billion. It is a 50% swing from just a few years ago. That time 84 Lumber’s sales peaked at $4.2 billion in 2004 and 2005. It was the period just before the sub prime mortgage crisis and the major housing crash that followed started to take its toll. 84 spokesman Jeff Nobers said “For our industry, if we’re not at the bottom, the bottom isn’t much below where we’re at.”

In instant reaction to 84 sales went down, the company has closed 85 stores in the last year. It also reduced its human resources by 1500 employees. Company spokesman said the company now operates 319 stores in 35 states, employing only 4500. He added that 84 has been able to boost its market share in the markets.  Doing that, it can continue to operate, as well as is positioning itself to grow once. He hoped the gluts of properties still unsold are bought and homebuilders start to consider extension again. However, amid the economic crises how the homebuilders react to know it we have to wait.