Top of the Tweets: Pending sales and the coffee in Paris
The good news/ bad news real estate saga continues. This week, pending sales, a forward-looking indicator based on contracts signed in February, rose 8.2 percent and remains 17.3 percent above February 2009, according to the National Association of Realtors (NAR). Lawrence Yun, NAR’s chief economist, says, “The rise in buyer contract activity may signal the early stages of a second surge in home sales this spring,” noting a surge is needed to draw down inventory and stabilize values. But it’s safe to assume a good portion of contracts are resulting from the tax credit, which is due to expire at the end of April. Also, interest rates began to creep up this week, leading to speculation about a potential double dip in housing.
Meanwhile, Canadian real estate continues to bounce back. Vancouver has the steepest price increases of any Canadian city, with the average price of an east-side condo gaining 29 percent in the first quarter of this year compared to 2009. And detached bungalows on the city’s less pricey east side jumped 25 percent while those on the west side average $1.15 million — a 21-percent gain in the first quarter. Nationally the average price of a detached bungalow rose 11 percent in the first quarter compared to 2009.
Which came first: the availability of money or more home sales? The chicken-or-the-egg scenario seems to be at work with the availability of mortgage funds varying by metro. This week Forbes came out with a ranking of the top cities for borrowers. Among the top 10 are Denver and Boston. Both are cities where a housing recovery may be gaining traction and one has to wonder how much interest rates are affecting sales or how much sales and the low rate of foreclosures is easing borrowing. Boston has the best mortgage rates of any metro in the country. Also in the top 10: Seattle, Portland, Pittsburgh, Kansas City, St. Antonio, Houston and Virginia Beach. http://www.forbes.com/2010/03/22/best-cities-borrowers-lifestyle-real-estate-home-loans_slide.html
Luxury on the upswing? Tweets from the Wall Street Journal’s Wealth Report (@WSJWealthReport) show spending on private jet usage was up 9 percent in fiscal 2008/2009.
Much tweeted too was a luxury home foreclosure tour in Las Vegas by private jet. The tour, which is a partnership between Ken Lowman of Luxury Homes Las Vegas and JetSuite Air, leaves Los Angeles on April 17 in a four-passenger Embracer Phenom 100 (pictured) and returns that evening. If the idea flies, Mr. Lowman plans trips to other markets, including San Diego, Phoenix, San Francisco and Salt Lake City.
Thanks to @KCMcrew for a Tweet linking to another Wall Street Journal article that hits home for many upscale consumers for whom, until recently, paying a college tuition often meant just writing a check. Layoffs and downsizing are definitely closing “the bank of Mom and Dad.”
If you’ve ever wondered why the coffee in Paris leaves a lot to be desired, check out this New York Times blog. http://tmagazine.blogs.nytimes.com/2010/04/08/ristretto-why-is-coffee-in-paris-so-bad/
