After years of blockbuster growth, home prices have reversed course and are expected to drop further over the next year. The number of sales has dropped, and more homeowners are pulling properties off the market.
The dour outlook comes courtesy of the Royal Institution of Chartered Surveyors (RICS), which warned in a report on Thursday that weakness in London had caused its UK house price indicator to hit a five-year low.
A number of factors have hobbled London’s market.
The government has in recent years hiked taxes on property purchases, making it more expensive to buy luxury housing, second homes and investment properties. Doing so has scared off some wealthy investors and caused prices to slump in central London.
Britain’s decision to leave the European Union has also hurt the market, with potential buyers putting their plans on hold because of the economic uncertainty.
One property professional surveyed by RICS said that Brexit and the tax changes had “killed the liquidity of the London market.”
Related: Renting vs. Buying: What can you afford?
The Bank of England is also expected to keep slowly raising interest rates as the economy grinds forward, making mortgages even less affordable for Londoners.
The average house price in London is £486,000 ($690,000), according to the UK Land Registry.
That’s too high for many first-time buyers, whose finances have been hit by high inflation and small salary rises. But sellers would rather pull properties off the market than accept lower bids.
“Buyers and sellers are currently locked in a stand-off,” said Hansen Lu of Capital Economics.
RICS’ chief economist Simon Rubinsohn said that the slowdown in London “has the potential to impact the wider economy, contributing to a softer trend in household spending.”
He said the dynamic could ultimately impact the Bank of England’s thinking about future interest rate rises.
Still, analysts don’t expect house prices to collapse in London. Inflation has moderated in recent months, employment remains strong and the British economy is growing.
Lu said this should be considered “good news” for the stagnant market.
CNNMoney (London) First published April 12, 2018: 8:11 AM ET
Aston Martin is getting into the real estate business.
The British luxury automaker, which is closely associated with the James Bond movie franchise, announced it’s partnering with a property developer to build a new 66-story residential tower in Miami, Florida.
The companies broke ground on the new Aston Martin Residences on Wednesday, and expect the building will be finished in 2021.
A move into luxury real estate may seem unusual for an automaker that’s built a global brand based on its high performance cars. But Aston Martin is trying to branch into new sectors outside its traditional niche.
Just weeks ago it announced it was collaborating with Triton Submarines to build a handful of luxury submarines with a price tag around $4 million each. Last year, it unveiled a powerboat. It has even collaborated on high-end baby strollers.
Aston Martin says it is being very picky about the projects it collaborates on to avoid diluting its brand.
“Partnerships only happen if it’s the right partner,” said Marek Reichman, Aston Martin’s chief creative officer.
The new curved luxury building, which is shaped like a sail, will feature 391 condos, pools, a virtual golf room and two cinemas. The residences, which range from 700 to 19,000 square feet, are priced from $600,000 to upwards of $50 million.
Aston Martin is contributing to the design of this new building, the Aston Martin Residences.
Related: China shuts down billionaire’s golf courses
The project is being led by property developer G&G Business Developments.
G&G CEO German Coto said partnering with Aston Martin would help elevate the status and design of the building.
“We realized we needed a brand that would take the whole project to a new [level],” he said.
The Aston Martin Residences are set to be complete in Miami in 2021.
Aston Martin will design the common areas shared by residents, which will feature “grey and black carbon fiber furniture.” It will also work on some exterior elements.
The automaker is licensing its name for use on the building.
G&G, which has already received $150 million in deposits, expects it will make about $1 billion from the condo sales.
The Aston Martin Residences will have a prime spot by the water in Miami.
It’s not the first automaker to get into Miami real estate. Another 60-floor tower in the area carries the name of Porsche Design.
CNNMoney (London) First published October 19, 2017: 12:19 PM ET
Buying a home is a major financial undertaking, so much so that a growing number of Americans are struggling to meet that milestone. For one thing, the homeownership rate among Millennials has dropped in recent years, due in part to a limited inventory of starter homes, and also to student debt payments monopolizing so much of younger workers’ income.
Gen Xers are having a hard time buying homes as well. Between credit card debt and child care expenses, many workers in their 30s and 40s don’t have the funds on hand to take that leap.
The problem, of course, is that those who put off homeownership lose out on key tax breaks for as long as they continue to rent.
If you’re looking to become a homeowner, but you’re finding it difficult to meet that goal, here are a few tips to make the prospect of buying more affordable.
1. Rework your budget
You might think you don’t have much leeway when it comes to saving money each month, but if you’re willing to take a long, hard look at your budget, you’ll probably come to find that there are some expenses you can manage to cut, whether it’s the cable plan you can afford to downgrade or those daily lunches you know you can prepare yourself. Reworking your budget is apt to get you closer to your goal of buying a home, so comb through your expenses line by line and figure out which are less important to you. Then, pledge to reduce or eliminate those spending categories and bank the difference.
2. Get a side hustle
Many people think of side hustles as a way to drum up a little extra spending money. But if you’re willing to put in the time, that second gig could help you save some serious cash. Among the estimated 44 million U.S. adults who currently have a side hustle, 36% earn over $500 a month from that extra work. And that could help you reach your homeownership goal way faster than by just cutting corners here and there.
3. Consider the suburbs
It’s often the case that you’ll get more for your money in the suburbs than in a city. If you’re struggling to come up with a down payment that’ll buy you more than a shoebox in your local metro area, consider expanding your search perimeter to its surrounding towns. Many suburbs offer convenient public transportation options that allow you to commute to work while enjoying the benefits of cheaper housing and bigger living spaces than what you’d find in a city.
4. Boost your credit score
Though having a strong credit score won’t help you come up with a down payment, it will help you qualify for the best possible mortgage rate available, thus making the prospect of homeownership more affordable on the whole. Therefore, if your score isn’t stellar, it pays to take steps to raise it as quickly as possible.
You can accomplish this in a number of ways. First, make a point to pay all of your bills on time. Secondly, aim to pay down a chunk of whatever outstanding balances you’re carrying. This will alter your credit utilization ratio, which is a major component of determining your score. Finally, review your credit report thoroughly for errors. One in five credit reports contains a mistake; correcting yours could send your score into more favorable territory.
5. Tap your IRA
Though this should only be used as a last resort, if you’re really having a hard time saving for a home but are tired of throwing out money on rent, you have the option to remove up to $10,000 from an existing IRA in order to purchase your first home. Normally, withdrawing funds prior to age 59 and 1/2 would subject you to a 10% penalty, but the IRS allows this exception for first-time homebuyers.
But again, this option is far from ideal, because any time you remove money from an IRA, that’s less income you’ll have available in retirement. Furthermore, it’s not just that principal amount you’re losing out on during your golden years, but the growth it could’ve achieved over time.
Still, if you’re desperate, you might choose to take an early withdrawal and make that homeownership dream come true. As a compromise, you might decide that whatever tax savings you glean from owning will go directly into your retirement plan to compensate for the sum you withdrew.
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Homeownership doesn’t tend to come easy, but it can be rewarding on many levels. Follow these tips, and with any luck, you’ll soon be on your way to having a place to call your own.
CNNMoney (New York) First published April 19, 2018: 9:43 AM ET
Leaked documents published on Sunday suggest that the private estate of Queen Elizabeth II invested in offshore funds.
Revelations from the leak, which has been dubbed the Paradise Papers, were reported by the International Consortium of Investigative Journalists (ICIJ) and outlets including The New York Times.
In Britain, the BBC said it had seen documents that show the Duchy of Lancaster, which provides the Queen with an income, had invested £10 million ($13.1 million) into funds in the Cayman Islands and Bermuda.
The documents have not been reviewed by CNN.
The Queen has not been accused of any wrongdoing. But the investments are potentially embarrassing for a royal family that closely guards its reputation.
“We operate a number of investments and a few of these are with overseas funds. All of our investments are fully audited and legitimate,” the Duchy of Lancaster said in a statement.
The Duchy added that the Queen, who is officially exempt from U.K. tax laws, “voluntarily pays tax” on income she receives from the estate.
The £519 million ($680 million) Duchy, which provides the Queen with an income to cover official expenses, says it invests primarily in commercial, agricultural and residential properties.
In the most recent fiscal year, the Duchy generated £19.2 million ($25 million) in net income according to its website.
Related: What you need to know about the Paradise Papers
One of the Duchy’s offshore investments has generated some controversy.
The BBC reported that the Duchy invested $7.5 million in Dover Street VI Cayman Fund LP in 2005. The fund, which invested in medical and tech companies, later put money into U.K. retailer BrightHouse.
The Duchy said its investment in the company is worth £3,208 ($4,200).
BrightHouse, which gave customers credit so they could buy its home furniture and appliances, was later forced to compensate consumers after the U.K.’s Financial Conduct Authority found it was not a responsible lender.
“We sincerely apologize to those customers who were affected,” the company said in October. “We’re absolutely determined that this doesn’t happen again and have made significant improvements over the last 18 months.”
The Duchy said in a statement that the investment in BrightHouse was made “through a third party,” and equates to just 0.0006% of the Duchy’s value.
The ICIJ noted in its report that “there are legitimate uses for offshore companies and trusts,” and it was not suggesting that any people or companies it named either broke the law or acted improperly.
David Pitt Watson, an executive fellow at the London Business School who focuses on responsible investments, said he “very much” doubts that the Queen knew where her money was invested.
Instead, she’s like “so many others who have a pension, or an investment account,” he said. “We just don’t know what is being done with it.”
The Paradise Papers reporting is similar to the Panama Papers, which in 2016 exposed cases involving celebrities and business executives who reportedly moved large chunks of their wealth into offshore tax havens.
The new project, which is based on more than 13.4 million documents dated from 1950 to 2016, covers a large number of global corporations and prominent people and their use of offshore accounts.
— Max Foster contributed reporting.
CNNMoney (London) First published November 6, 2017: 11:08 AM ET
After Hurricane Harvey soaked Houston with 51 inches of rain last August, Amir Befroui, a foreclosure defense specialist at Lone Star Legal Aid, started planning for a very busy spring.
That’s when the 90- and 180-day break on payments that mortgage companies typically give homeowners who have been hit by unexpected events like natural disasters would start to run out.
But so far, few hurricane-related foreclosure cases have been coming across his desk.
“We are starting to see a trickle,” Befroui says. “I suspect it’s going to be a gradual increase. I don’t think it’s going to be a tidal wave like the one that happened after Ike.”
According to real estate analytics firmAttom Data Solutions, foreclosure starts in hurricane-affected areas of Texas and Floridarose in the first quarter of 2018, but still remained below pre-hurricane levels.
In Houston, for example, foreclosure starts had been slightly elevated due to the oil price crash of 2015 and 2016. Not counting a dip at the end of 2017, the first quarter was as low as it’s been in more than 12 years, with 1,184 foreclosure starts. That’s a big difference from Hurricane Ike in late 2008, where the storm exacerbated a mounting economic crisis that spurred 7,280 foreclosure starts in just one quarter.
Related: Devastating hurricanes dealt corporate America a major blow
Even more encouraging, the number of people seriously delinquent on their loans in hurricane–affected areas of Texas and Florida continued to sink after spiking over the winter. Thousands of people were able to bring their mortgages current again after taking advantage of post-storm forbearances from their lenders.
Given how damaging foreclosures can be for property values, credit scores and community stability, it appears the Gulf Coast has managed to dodge apotential hurricane housingdisaster. At least, so far.
Part of that is due to coordinated efforts by industry groups and consumer advocates who helped create better options for homeowners to modify their loans afterthe break on mortgage payments ends. But more importantly, reforms to mortgage policies following the financial crisis had already fostered a healthier housing market to begin with.
Homeowners went into last year’s disasters in a better place financially than they were during Hurricanes Ike, which hit in 2008, Sandy in 2012, and even Katrina in 2005.The irresponsible lending practices of the late 1990s and 2000s had largely been ended by the Dodd-Frank Act and the Consumer Financial Protection Bureau, which raised standards for mortgage underwriting and implemented protections for borrowers facing foreclosure.
“People who’ve gotten mortgages post-CFPB, they don’t have loans for the most part that economically they could never have afforded,” says Ira Rheingold, executive director of the National Association of Consumer Advocates.
Related: Disaster costs jumped over 60% this year to $306 billion
Across the United States, the number of properties in active foreclosure fell in March to the lowest level since late 2006, according to the real estate data firm Black Knight.
But in the case of natural disasters,programs aimed at helping distressed homeownersaren’t alwayshelpfulenough. Mortgage modification programs administered by Fannie Mae, Freddie Mac, Ginnie Mae, the Veterans Administration, and the Federal Housing Administration — which now back about 70% of the U.S. housing market — require lots of documentation that’s hard to pull together if your home is literally underwater.
A Houston home flooded after Hurricane Harvey hit.
Homeowners were snarled in endless paperwork after Hurricane Sandy hit in 2012, with each government housing agency requiring different policies and homeowners owing balloon payments that came due immediately once the forbearance period ended.
So as the 2017 hurricane season got started in earnest, D.C.’s housing finance wonks came to government agencies with one fundamental ask: Design a uniform option that can give homeowners a break on their mortgages without getting them in trouble when the bills come due.
“We were unsuccessful during Sandy,” says Meg Burns, a former Department of Housing and Urban Developmentofficial who now heads housing policy at the Financial Services Roundtable, which represents lenders and servicers. “That’s what informed our thinking to get all of the government entities around the table to make some consistent policy.”
Along with automatic forbearances for homeowners in hurricane-affected areas, Fannie, Freddie and the FHA came up with an option that allows borrowers to make the payments they skipped during the months after the disaster at the very end of the loan — without going through a modification that could force them to take on a higher interest rate.
Related: Hurricane-struck businesses face rebuilding again
“It’s a different world now,” says Sara Singhas, associate regulatory counsel at the Mortgage Bankers Association, referring to the recent departure from rock-bottom interest rates. “Especiallyfor people who are performing on their loans, we wanted to make sure we don’t put them into a worse financial position than they were prior to the disaster.”
These provisions, however, are only temporary and will sunset if they aren’t renewed. “I would feel a lot better if they codified what we did,” says Peter Muriungi, head of mortgage servicing for Chase Bank, which had 450,000 customers affected by the 2017 storms.
On the ground, housing counselors say that lenders have been more willing to work with people who can prove they have been a victim of a hurricane. That kind of patience is not typically afforded to people facing foreclosure for economic reasons, such as spiking property taxes, which have become more of a problem in the Houston area in recent years.
“The large national servicers, once they get it into their head that this is a Harvey case, then it gets moved over to the disaster recovery center rather than the traditional foreclosure side,” says Sherrie Young, executive director of the Credit Coalition in Houston.
Maurine Howard has struggled to keep her mortgage payments from ballooning after her home was damaged during Harvey.
But not everybody takes action in time to receive that kind of assistance, and not everybody qualifies when they do. For those who lost jobs as a consequence of the hurricanes or were already behind on their payments before disaster struck, options start to narrow.
That’s why thousands of people are still facing the prospect of losing their homes, and many more could run into that situation as banks lose patience in the coming months. Aid groups worry about the people who haven’t yet asked for help.
“I think the biggest problem lies with the folks who don’t reach out,” says Glenda Kizzee, a housing counselor at the Houston Area Urban League. “They’re going to utilize whatever resources they have to rebuild the home, and sometimes miss the payment on the home, which is just going to make it worse. By that time, our resources are limited in what we can do.”
The biggest headaches, counselors say, arisewith smaller servicers that have fewer resources to work with homeowners in trouble.
Take Maurine Howard, whose stately home near Addicks and Barker reservoirs in Houston was inundated when the Army Corps of Engineers released the floodgates in order to avoid a breach. She paid off the three months of mortgage payments after her forbearance ended, but the mortgage company still bumped up her monthly payment from about $1,350 to $1,700.
Months of phone calls, she says, still haven’t managed to fix the problem, while she racks up credit card debt to make fixes on the house.
“Through the process of Harvey, dealing with the mortgage company has been a nightmare,” Howard says, amid stacks of paper laid out on a bed in one of the few undamaged rooms of the house. “It’s never ending. You take two steps forward and five steps back.”
CNNMoney (New York) First published April 22, 2018: 10:09 AM ET
Burberry is hoping to reinvent itself as a super luxury brand. But investors aren’t so sure.
Shares in the British fashion label dropped by as much as 12% on Thursday after the company said it planned to shift upmarket and offer more “compelling” leather goods.
Burberry, which is known for its trench coats and checked patterns, also said it would refurbish its shops and stop selling its products in “non-luxury” stores.
The moves are designed to help the company compete against the likes of Louis Vuitton and Gucci, which have built their reputations on pricey leather handbags.
“By re-energizing our product and customer experience to establish our position firmly in luxury, we will play in the most rewarding, enduring segment of the market,” CEO Marco Gobbetti said in a statement.
But there are major concerns about how much the reinvention will cost. Burberry said the strategy shift would prevent sales from growing until 2021.
Luca Solca, head luxury analyst at Exane BNP Paribas, said the “metamorphosis isn’t necessarily straight forward” because Burberry doesn’t have a reputation for high-end leather goods.
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Patient investors, however, could be rewarded if the company can elevate its brand and convince discerning shoppers to splash out on more expensive items.
Louis Vuitton, for example, commands vastly higher prices for similar products.
Many of the chain wallets sold by the French brand in the U.K. retail for around £1,200 ($1,575), or twice the price of a comparable Burberry product.
“By selling more expensive bags, [Burberry] would be able to increase margins,” said Rogerio Fujimori, a luxury goods analyst at RBC Capital Markets “Everybody is trying to do the same.”
Related: You’ll soon be able to eat breakfast at Tiffany’s first-ever cafe
Burberry is also in the process of changing key personnel. In October, the company announced that designer Christopher Bailey, who is credited with reviving the brand, would be leaving after 17 years.
Solca said that Gobbetti needs to quickly find a worthy successor, preferably someone with a deep knowledge of handbag designs.
“Any news on the new creative director — as well as more clarity on the transition period — should be a key share price driver today and in the near future,” Solca said.
Burberry stock had been enjoying a very nice 2017, with shares rallying 35% before Thursday.
The firm’s biggest markets are the U.S. and China, followed by the U.K., Japan and Germany, according to market data provider, FactSet.
CNNMoney (London) First published November 9, 2017: 5:06 AM ET
Real estate prices posted an annual gain of 6.3% in February, according to the latest S&P CoreLogic Case-Shiller Indices.
On a national level, home prices are up 6.7% from their peak in July 2006, and have been rising continuously for the past 70 months.
“It’s getting increasingly difficult to be a buyer,” said Keith Gumbinger, vice president of HSH.com.
Home buyers in Seattle, Las Vegas and San Francisco are facing the biggest gains. Seattle prices rose the most with a 12.7% year-over-year price increase, while Las Vegas prices jumped 11.6%.
But so far exploding price increases haven’t stopped home buyers. Homes are still flying off the shelves.
For instance, the typical property in Seattle spent 29 days on the market in February, according to Realtor.com. In Vegas, time spent on the market was 42 days, and homes in San Francisco sell in just 21 days.
Related: Looking to buy your first home? Good luck with that
With a flourishing labor market, steady economic growth and wages finally starting to rise, home prices aren’t expected to slow down anytime soon.
Low housing supply has been pushing up prices as demand surges. Competition is stiff, with above-asking price offers and bidding wars being common occurrences in the country’s hottest markets.
Mortgage rates have also started to creep up, which adds even more pressure to the affordability problem that many homeowners face.
“There is no let-up to rising home prices,” said Lawrence Yun, chief economist at the National Associate of Realtors, in a statement Tuesday morning. “Even as the tightening job market is starting to boost incomes, those looking to buy are facing a double whammy of fast rising home prices and higher mortgage rates.”
Related: Renting vs buying: What can you afford?
The 30-year mortgage rate has climbed a half a percentage point in the last year, according to Freddie Mac, but at 4.47%, rates are still below historical averages.The only thing that might slow demand is if rates on a 30-year fixed mortgage climb above 5%, Gumbinger said.
“There is an important psychological point when you cross 5%,” he said. “That’s when people will really start to pay attention and rethink buying over affordability. You may find some borrowers who step to the sidelines.”
CNNMoney (New York) First published April 24, 2018: 12:37 PM ET
Lincoln unveiled a new crossover SUV at the Los Angeles Auto Show. It’s not a completely new vehicle. It’s really an improved version of the Lincoln MKX. It has new engine options, a new grill and lots of new technology, including a system that helps drivers steer out of a potential crash.
But the most revolutionary thing it has is a name.
Instead of the being called the Lincoln MKX, it will be called the Lincoln Nautilus. That’s a startling departure from every other luxury automaker out there.
You can buy a Mercedes-Benz S550 or you might get a Lexus LS 460 L. You could get the Genesis G80 from Hyundai’s new luxury brand or an Infiniti QX80 from Nissan’s. If you want a plug-in hybrid SUV you could get a BMW X5 xDrive40e iPerformance.
But good luck finding a luxury vehicle with a name that seems to have been created by a person rather than by a cat stepping on a keyboard.
The Lincoln Nautilus shares its grill design with the Navigator, Continental and MKZ.
Among luxury carmakers, the rationale has always been the same. They want keep the focus on the brand name, not on the individual model name. That’s why Cadillac no longer sells cars named Seville or DeVille but instead sells the CT6 and XT5. It’s also why Lincoln, over a decade ago, changed the name of the Lincoln Zephyr to the MKZ and why the Lincoln Aviator was replaced by the MKX.
But Lincoln has kept, or brought back, a couple of model names in its line-up because the particular names carried so much weight. The Lincoln Navigator, a full-sized SUV, has always kept its name. The name Continental, once a separate ultra-luxury car brand of its own, was brought back in 2015 to go on Lincoln’s new full-size luxury sedan.
The Lincoln Nautilus has a system that uses sensors to help a driver steer out of a potential crash.
Experience with these two names taught Lincoln executives a lesson, said John Emmert, Lincoln’s marketing manager. People actually remembered the Lincoln name better when it was attached to Continental or Navigator than by itself. Instead of acting as a distraction, the model names brought attention and distinction to the overall brand.
Also, Lincoln has been trying to set itself apart among luxury brands by trying not to seem unapproachable and haughty. The phrase Lincoln executives use is “Warm, human and personally crafted.” The cars are understated in design with features that focus on relaxation rather than performance or technological dazzle. Letters and numbers, he said, don’t convey the desired warmth and humanity.
As for the name Nautilus, you probably thought this SUV was named after a shell. Actually, the name is ultimately derived from the ancient Greek word nautes, meaning “sailor,” as in nautical or astronaut. Like Navigator and Continental, it brings to mind a great journey, Emmert said. That is what Lincoln is trying to convey with this name and with those it will give its other models.
Besides a new look, with a grill that resembles those on the Continental and Navigator, the Nautilus will have two engine options, a V6 and a four-cylinder, both turbocharged. Its technology features include an “evasive steer assist” which, in the event you can’t brake in time to avoid rear-ending someone, will help you guide the car around the other vehicle.
The Nautilus will be available in the spring at prices expected to be close to that of the MKX, which starts at around $38,000.
CNNMoney (New York) First published November 28, 2017: 10:02 PM ET
Homebuyers are proving to have some pretty thick skin.
Home prices are still rising, supply is getting leaner, mortgage rates are going up and competition is intense.
Yet despite all the headwinds, buyers seem to be largely resolute.
“Buyer demand is still there and strong,” said Nela Richardson, chief economist at Redfin. “The only thing slowing demand is the lack of things to buy.”
Homes sold 7% faster in March compared to a year ago, according to realtor.com, while prices were 8% higher. At the same time, housing supply was down 8%.
Related: Renting vs. Buying: What can you afford?
And it doesn’t look like the search will be getting easier anytime soon.
“Very strong home prices are due to a real lack of supply … and prices are likely to continue to run well above inflation and income growth all over the country,” said Leonard Kiefer, deputy chief economist at Freddie Mac.
The rate on a 30-year fixed mortgage climbed to 4.47% last week, the highest level since 2014.
“The same $250,000 budget won’t buy what it would have bought you last year,” said Danielle Hale, chief economist for realtor.com. “But people are still finding ways to make that $250,000 work.”
Experts predict rates will climb to around 5% by the end of the year. That could be the thing that finally cools off the market and pushes some buyers onto the sidelines, according to Keith Gumbinger, vice president of HSH.com.
“There is an important psychological point when you cross 5%,” he said.
But buyers aren’t giving up yet.
Related: Looking to buy your first home? Good luck with that
Chris Gaudreau and his fiancé, moved up their plans to buy a home as they watched prices and interest rates move higher.
“We figured we had to pull the trigger before we get priced out of the market,” Gaudreau, 39, said.
They were looking in the Denver area and set a budget of $400,000, but were really hoping to stay around the $380,000 mark. They started their house hunt in February, and the search was intense.
Their mornings started with reviewing new inventory that hit the market overnight. On good days, there would be 20 new listings. But on other mornings there were no new homes available.
“That was frustrating,” he recalled. He estimated that they looked at more than 70 homes over five weeks. Once they saw nine in a single day.
Their list of “must haves” evolved over their search as they came face-to-face with the reality of what was available.
“It was insane and so much pressure. And if you liked something, you couldn’t go home and sleep on it — you had to put an offer in right away,” he said.
Related: Home sellers are making huge profits. So why aren’t more selling?
The lack of homes on the market is constraining sales as sellers are hesitant to list.
Supply at the starter home level is particularly weak in markets across the country.
“Entry-level buyers are going to have the biggest challenge because that is where inventory declines have continued to decline the most, and that is where the market is most competitive,” said Hale.
Selling the home will likely be easy, but finding a place to move into is another story.
Plus, many current homeowners have likely refinanced to lock in rock-bottom rates, and taking out a new mortgage could mean higher borrowing terms.
Home buyers need to act fast when they find a home. Last year, almost a quarter of all homes sold for more than the asking price, according to a recent report from Zillow.
That’s one reason experts recommend knowing exactly how much you can afford and are comfortable spending on a home. It’s also a good idea to get pre-approved for a loan to make your offer stronger andbe ready to move right away.
Gaudreau and his fiancé ended up bidding on eight houses. Their winning offer was for a three-bedroom, two-and-a-half home in Aurora. The home was listed at $360,000 and they offered $370,000. They are set to close this week.
Are you currently looking to buy a house or recently become a homeowner? We want to hear from you. Tell us about your experience and you could be included in a future story
CNNMoney (New York) First published April 25, 2018: 10:13 AM ET
One of the world’s largest diamonds has been sold for $6.5 million.
The stone has been dubbed the “peace diamond” because much of the proceeds will go to help the village in Sierra Leone where it was found. In past decades, the illegal trade in “blood diamonds” was used to help fund the country’s devastating civil war and other African conflicts.
Rather than sell the peace diamond to smugglers, the villagers brought it to the attention of the national government, which arranged for it to be auctioned.
One of the world’s biggest luxury jewelers, Laurence Graff, won the bidding in New York on Monday.
The “peace diamond” was discovered in the village of Koryardu in eastern Sierra Leone.
The final price is hardly a paltry sum, but it falls short of what the Sierra Leonean government hoped the 709-carat gem might raise.
In May, the government turned down a bid of $7.8 million at an auction in Sierra Leone, saying it could get “fair market value for Sierra Leone’s diamonds” elsewhere.
The stone is the third largest diamond in the country’s history and the 14th biggest ever discovered worldwide, according to the Rapaport Group, the jewelry organization that helped bring the stone to auction.
In the past, similar sized rough diamonds have sold for almost 10 times as much, said Tobias Kormind, managing director of 77Diamonds.com, an online diamond jeweler. The 813-carat “Constellation” diamond, for instance, fetched $63 million last year.
Related: World’s second biggest diamond sells for $53 million
So why didn’t the peace diamond go for a higher price?
“The top end of the diamond market is not at its height,” Kormind told CNNMoney by email, and the gem may not be as attractive as its sheer size suggests.
“The peace diamond is known to be a very complicated stone,” he said. “Larger rough diamonds don’t necessarily translate into large diamonds when they are cut and polished. It’s all a question of the largest cleanest stone that can be gleaned from the rough. If you can’t yield a single large diamond of very high quality, and instead have to make several stones out of the large stone, that decreases the value enormously.”
Despite the disappointing sum it fetched, the peace diamond is being held up as an example of what can happen if people digging for precious stones sell them through official channels.
Earlier this year, Sierra Leonean President Ernest Koroma said he wanted to “thank the local chief and his people for not smuggling the diamond out of the country.”
Related: Most diamonds in the world are cut here
The diamond,which was discovered in the village of Koryardu in eastern Sierra Leone, represents “our hope for a better future as the resources of Sierra Leone fund growth, development and jobs,” said Pastor Emmanuel Momoh, one of the diggers who discovered the diamond.
More than half the proceeds will go to government funding, including “vital life-saving infrastructure to the diggers and their communities who currently have no clean water, electricity, medical facilities, schools and roads,” Rapaport Group said.
About a quarter of the money will go to the diggers who found the stone, and the remainder will be used for a government program called the Diamond Area Community Development Fund.
CNNMoney (Hong Kong) First published December 5, 2017: 6:13 AM ET