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Real Estate newsletter: Home prices hit an all-time high

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Welcome back to the real estate newsletter where I have to re-let you know that the market is hot – really hot.

In fact, according to apartment data from April, it is record-breaking hot. Last month, property prices in Southern California soared to an all-time high, with the median hitting $ 655,000. That is an increase of 20.2% compared to the previous year. You would have to go back to the Obama presidency to find the latest over 20% increase.

Fear not: LA still has (relatively) affordable homes. You just need to know where to look. The median home price in LA County was $ 750,000 in April, so The Times looked at seven homes in seven LA communities in the market for a little less: $ 700,000.

Some Celebrities in the San Fernando Valley: Dwyane Wade and Gabrielle Union sold their romantic hillside villa for $ 5.5 million. That’s half a million less than what they paid for, but something tells me they can afford to take the loss.

Good news and bad news in the commercial real estate sector (depending on how you see it). The good news: The Lakers stay seated. Rather than possibly following the lead of Clippers and moving to another part of town, they extended their lease at the Staples Center for another two decades.

The bad news: Skyslide has been marked for death. The glass attraction atop the US Bank Tower is closing as part of a $ 60 million upgrade that is designed to attract businesses rather than tourists. You need to find another place to spend your money on a four second trip.

Visit our Facebook page for property stories and updates all week while you keep up to date with the latest developments.

April record

April home sales rose 86.2% year-over-year to a total of 25,857 transactions, up from 13,889 in April 2020.

(San Diego Union-Tribune)

Southern California property prices hit an all-time high in April as the housing market got even hotter.

According to real estate company DQNews, the average home price in the region with six counties rose by 20.2% year-on-year to a record $ 655,000. That’s $ 25,000 more than the previous average record in March. The jump of 20.2% is the first year-on-year increase of more than 20% since December 2013.

April home sales rose 86.2% year-over-year to a total of 25,857 transactions, compared to 13,889 in April 2020. This reflects both the pandemic-triggered housing boom and a market that was cooled by the coronavirus last spring than the Sales died in escrow and potential sellers decided not to move.

It’s the ninth straight month of double-digit price hikes, and experts attribute a mix of factors including extremely low mortgage rates, rising demand for space, and an emerging demographic for home buying: millennials.

Seven districts, seven houses

This City Terrace home features a recently remodeled main house and bonus room.

(Ace missions)

It’s no secret: LA’s historically hot real estate market is brutal for buyers. As a result of the pandemic-sparked real estate boom, the average home price in LA County rose to $ 750,000 in April, up 19% year over year.

Bid wars and a lack of sellers make it difficult to get good deals, but there are still plenty of great options out there if you look in the right neighborhoods. The Times looked at what currently costs around $ 700,000 in seven LA communities.

Power couple completes a sale

A big white house with a red tile roof

The 8,650 square meter villa extends over three floors and is led through the heart of the house by a sculptural staircase.

(PostRAIN Productions)

Dwyane Wade and Gabrielle Union made a sale but not a profit at Sherman Oaks. They just unloaded their Mediterranean-style mansion for $ 5.5 million or half a million less than in 2018.

You probably don’t miss the money too much. The energetic couple dropped $ 17.9 million on a 17,000-square-foot venue in Hidden Hills last year, and Wade, a three-time NBA champion, acquired a stake in Utah Jazz last month.

The Sherman Oaks home is 8,650 square feet on a private promontory with breathtaking views of the San Fernando Valley. A private road approaches the house, which leads up an architectural staircase that winds through the heart of the three-story floor plan.

Lakers stay seated

Two people walk towards the Staples Center Arena with a welcome sign in the foreground

A slow gathering of fans makes their way to the entrance of the Staples Center for the Lakers-Celtics game on April 15th.

(Myung Chun / Los Angeles Times)

With the expiry of their lease at the Staples Center in a few years, the Lakers could have followed the Clippers’ plan and moved to another part of town, built their own arena and kept all the revenue, writes sports journalist David Wharton.

Instead, the defending NBA champions have chosen to stay on the field.

The franchise company will extend its lease with the owner AEG for another two decades until 2041. The agreement calls for a commitment to spend “nine-digit amounts” on capital improvements and upgrades in the 22-year-old arena.

A team official said renovations were key to expanding, as was a desire to stay downtown.

Goodbye, Skyslide

A man slides down a glass slide high above downtown Los Angeles

Media members travel 1,000 feet above downtown Los Angeles from the 70th floor to the 69th floor of the US Bank Tower for four seconds.

(Brian van der Brug / Los Angeles Times)

The owner of the US Bank Tower in downtown Los Angeles will spend $ 60 million to modernize and reposition the 73-story skyscraper, which has been a prominent feature of the city’s skyline since its completion in 1989, but has become a part of the world Has sought tenants for commercial purposes in recent years, writes real estate reporter Roger Vincent.

Part of the redesign calls for an end to the quest to become a tourist spot by adding the long enclosed public viewing platform and a sky-high outdoor slide called the Skyslide between two of the top floors, which was previously owned in 2016.

Four seconds of hair-raising sliding down a glass attraction high above the city were apparently not popular with visitors or tenants of the building.

New York developer Silverstein Properties, who bought the building last year for $ 430 million, hopes to make the imposing tower more attractive to creative businesses that have often turned their backs on high-rises to newer campus-style properties with outdoor space maintain and leisure-oriented amenities.

What we read

In its recent dive into the intersection of real estate and NFTs, the New York Times spoke to the co-founder of SuperWorld, a virtual reality space with 64 billion equal-sized lots covering the earth. Users can hypothetically buy virtual land that the Eiffel Tower or Coliseum is on and the company has already sold thousands of lots with the average person spending $ 2,000.

In the “Clever” section of Architectural Digest, AirBnbs’ dream list has been worked through. The eye-catching group of rental properties include a glamping dome in North Carolina, a UFO-inspired structure in Joshua Tree, and the Bloomhouse: a curving, whimsical space dubbed “Part Willy” Wonka, Part “Big Lebowski”. “

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Housing crisis becomes an emergency as Salt Lake County home prices spike 31% in a year

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Average price climbed to $ 535,000 in May, $ 128,000 more than twelve months ago as severe supply shortages and declining sales take their toll on would-be buyers in Utah.

(Francisco Kjolseth | The Salt Lake Tribune) A home for sale in Salt Lake City on Tuesday, April 27, 2021. Despite Utah housing demand at historic highs, home sales along the Wasatch Front declined earlier this year due to a lack of supply. Single-family home prices, meanwhile, continue to rise as wafer-thin deals dampen sales and buyers seek cheaper alternatives like condos and townhouses.

As the latest sign of the Utah real estate crisis, Wasatch Front real estate agents lamented the catastrophic shortage of homes in the market on Thursday as prices soar to shocking new records and sales continue to decline.

The average price of a single-family home in Salt Lake County surged the noticeable $ 500,000 mark sometime in March, then hit $ 535,000 last month, new data shows – a staggering $ 128,000 year-over-year increase of 31%.

This major damper on the price spiral pushed the volume of home sales in the five-county region in May well below the level of the same month last year, when home shopping was temporarily wiped out by COVID-19.

With the average new home supply now spanning 30 to 40 and selling in five days, real estate agents in Utah’s main metropolitan area issued a rare emergency statement saying the region was “severely undeveloped” and facing severe declines through decades of underinvestment be in terms of affordability.

“It will take more construction of all types of homes so more people can realize the American dream of their own home,” said Matt Ulrich, president of the Salt Lake Board of Realtors, which covers Salt Lake, Utah, Weber, Davis and Tooele counties.

“It’s just too tough out there,” said Ulrich in an interview. “There is simply not enough stock because the demand is so great.”

That cry for help sparked a new report released on Wednesday that estimates the country’s housing deficit at around 5.5 million units. The industry study calls for residential construction in the US to increase by 2 million homes annually over the next decade, compared to 1.3 million units built last year.

America’s housing stock has been largely neglected for nearly two decades, the National Association of Realtors report said, with a severe shortage of new buildings leading to an acute shortage, an “increasingly worsening” affordability crisis and an inventory of existing homes it is getting old and in need of repair.

Calling the magnitude of the construction delay and the resulting gap between demand and supply “enormous”, the report said the crisis will require “a major national commitment to building more homes of all kinds”.

In Utah, the housing gap is estimated at 45,000 to 50,000 single-family homes, apartments, and other forms of housing, with a particularly acute need for more affordable housing for residents with average wages.

Home builders in Utah have record numbers of units under construction but say they are not catching up given the heavily pent-up demand, lack of supply and rising prices for land, building materials and builders.

According to economists, rising prices along the Wasatch front have temporarily slowed sales since 2019, but the pandemic-induced demand for houses with more rooms and larger backyards has pushed the supply of apartments to new lows.

The resulting drop in sales worsened in May, with double-digit price gains making it more of a creep and increasing stress on the part of buyers.

Home sales in May fell to 2,396, a 7% decrease from the same month last year, which was itself a historically bleak sales month, down 19% from 2019 due to pandemic lockdowns. The average single-family home price in five counties is now $ 485,000, up $ 109,640 from the same point last year.

While these declining sales are apparently a bread-and-butter problem for the area’s 10,000 or so real estate agents working on commission, a spokesman for the Salt Lake Board of Realtors said its members are speaking on behalf of budding homebuyers.

“We are heading for California prices if we stay on this path,” warned spokesman Dave Anderton. “And that is a really difficult situation, especially for first-time buyers.”

The National Association of Realtors report blamed the crisis on “persistent underinvestment” in all major regions of the country as a result of economic conditions following the 2009 Great Recession. This downturn resulted in severe job losses in the construction sector and tightened lending standards for builders and buyers, both severe setbacks to housing construction that persisted for years.

While the report describes this as a crisis of national proportions, Ulrich noted that Utah, Nevada, and Idaho – some of the fastest growing states in the country since 2010 – had also seen the worst declines in affordability.

The Cottonwood Heights-based broker and home builder reiterated the demands of the broader Utah real estate sector, urging cities to remove “onerous” building requirements and streamline building permits to reduce construction costs. Ulrich also called for increased incentives to attract more workers to builders – such as frame builders, electricians, plumbers and roofers – who are now scarce.

The national report also pointed to potential benefits of increased housing construction for the U.S. economy, including relief for costly tenants and nearly $ 400 billion in additional economic activity.

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Loyalsock taxpayers to see real estate tax increase for school district | News, Sports, Jobs

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For the first time in three years, residents of Loyalsock Township School District will pay more property taxes next year after the school board recently increased the rate by $ 0.43 million.

This means that for every $ 100,000 of the estimated value of a property, an additional $ 43 is added to the tax bill. According to M. Dan Egly, general manager and board secretary, the new tariff will generate $ 300,000 in additional revenue for the district that would have run a $ 640,000 deficit without the additional millage. The remaining deficit will be covered by fund balances to present a balanced budget for 2021-22 with revenues and expenditures of $ 25,084,743.

“We didn’t leave a stone unturned. We are looking for all possibilities to avoid the effects of these budgets on taxpayers. said Egge.

He said the district had renegotiated contracts, installed solar panels on buildings, and recently approved the construction of a cell phone boom on district property in an attempt to find ways to reduce costs.

“The district is looking for ways to avoid tax increases in the future, but unfortunately we have to make these decisions at some point.” said Egge.

The other tax rates remain the same for the next year.

The Loyalsock Township Recreation Board budget of $ 23,994 for programs available to children in the district for the period 2021-22 was awarded to the OK.

The board also approved that

Resolution to Foreclose Homestead / Farmstead, which will allow primary residents of qualifying properties to obtain a $ 130.75 reduction in their property taxes. There are 3,020 homesteads and nine homesteads in the district that are eligible for exclusion.

In Human Resources, the Board approved the following positions at the stated salary rates: Marc Walter, Assistant Principal, $ 86,000 for the 2021-22 school year; Maria Debrody, Temporary Specialist, Elementary School Teacher, effective October 18, prorated salary of $ 49,059; Laura Kriger, part-time high school secretary, $ 13 an hour; Connie Clapper, part-time hospitality worker, $ 10 an hour; and Erika Maurer, voluntary rail trainer.

The following resignations were noted: Julia Muse, data coordinator; Eric Gerber, social studies teacher; Brandon Schrimp, school policeman; and Kimberly Bigelow, hospitality worker.

The board agreed to accept a $ 4,700 offer made by James McDermott for a 2004 bus with 72 passengers. The bus had previously been sold but the sale was not completed so the bus was offered again.

The purchase of a Cub Cadet mower from Lawn & Golf Supply Co., Inc. for $ 18,824 has been approved.

With the district’s summer programs beginning and CDC policy changes, Superintendent Gerald McLaughlin asked the board if they had any objection to making mask wear optional during the summer months. The board agreed, but stressed that it is up to everyone whether they want to wear masks or not.

Prior to the business portion of the meeting, Denise Holmes was announced as the winner of the Lauretta Woodson Support Staff Award, and Alicia Carner, a special education teacher at the high school, received an Instructor Award Acknowledgment from the group.

The next board meeting will be on July 14 at 7:00 p.m. in the boardroom at 1605 Four Mile Drive.

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Former SEC chief accountant joins real estate investment platform as CFO

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Diving letter:

  • Fundrise, a direct-to-investor real estate investment platform, has been selected as new CFO Alison Staloch, former chief accountant for the investment management division of the Securities and Exchange Commission.

  • Fundrise, headquartered in Washington, DC, manages $ 1.5 billion in equity for more than 150,000 investors. The company has invested more than $ 5.7 billion in real estate since its inception in 2012.

  • Former Fundrise CFO Michael McCord was Fired for attempted blackmail In 2016, he denied a charge.

Dive Insight:

Staloch’s attitude follows news from earlier this month that Fundrise is a Goldman Sachs’ $ 300 million loan facility to finance the construction of new single-family houses in the Sun Belt region.

At the SEC, Staloch developed policy recommendations for regulating investment companies and advisors with regard to their disclosure and financial reporting requirements. Before that, she worked in the auditing practice at KPMG for a decade.

“Having spent my entire career in investor protection roles in our capital markets, I am inspired by Fundrise’s investor-centric mission to use technology to build a better financial system for retail investors,” Staloch said in a statement. “I am excited to work with the Fundrise team to further amplify the impact of its uniquely powerful technology to streamline conventional capital raising and capital financing on behalf of its customers.”

“Alison’s background in advocating at the highest level for the individual investor was a perfect fit for our mission at Fundrise,” said Co-Founder and CEO Ben Miller.

Alison Staloch

Courtesy Fundrise

Staloch was drawn to Fundrise to “do something more entrepreneurial,” she told CFO Dive. “I’ve spent my entire career in gatekeeping and regulation, so it was tempting to be part of building something.”

Staloch, who took up her position in late April, is the company’s first full-time CFO and characterizes her workload as typical of a late-stage company. She focuses on accounting and reporting, alongside more strategic work such as improving earnings models and managing diversity, equity and inclusion goals.

“The most important thing I’m focusing on right now is structuring the finance function to leverage the technology to automate controls and processes so the company can focus more strategically,” she said.

Fundrise is very complex and heavily regulated, but “incredibly innovative in terms of compliance”.

“That impressed me as a former regulator,” she said, adding that she supported the company’s mission to democratize access to alternative assets for retail investors.

In competition with Public Real Estate Investment Trusts (REITs) and with regard to access to a broad investor base, the company offers its products and services directly. “There really is no middleman,” she said.

Fundrise’s assets are managed externally; To achieve efficiency gains in operating costs, the company is focusing on building its technical efficiency to better scale.

“Our technology enables us to raise investor money through an online platform that enables incredible investments,” she said. “Our operations are all done in-house, and our technology gives us real-time data and insights to help us execute an investment strategy more effectively.”

While rising interest rates could affect the value of real estate, it doesn’t determine how Staloch approaches the strategy, she said. “We’re looking for assets that we believe can create value and that we also see an opportunity to transform a current approach to create even more value for our investors,” she said.

Amid the well-documented uncertainty over commercial real estate following the pandemic, Fundrise is not changing its plans.

“We are currently investing primarily in rental properties for multi-family and single-family houses: asset classes that are not confronted with the same uncertainty as commercial real estate,” said Staloch. “One of the benefits of investing is that our real estate assets are diversified; We are not restricted by any asset class or geography. Single family home rental is something of a new industry that we are targeting and we are constantly reviewing which asset classes have value and opportunities for disruption. “

Since McCord’s layoff in 2016, Fundrise has been a Regulation A applicant and filing regulation letters for all funds and measures, Staloch said, which is “truly unique for a company at our stage”. Her own due diligence process has shown her the company has strong controls and, as a former regulator, Fundrise has been impressed by its adherence to strict regulations.

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