Press "Enter" to skip to content

Posts tagged as CNBC

Manhattan real estate sales fall for sixth straight quarter—longest losing streak in 30 years

Manhattan real estate had its worst first quarter since the financial crisis, capping the longest losing streak for sales in over 30 years, Total sales fell 3 percent in the first quarter, and marked the sixth straight quarter of declines.
That is the longest downturn in the 30 years that the real estate appraisal firm has been keeping data.

Total sales fell 3 percent in the first quarter, according to a report from Douglas Elliman and Miller Samuel. That marked the sixth straight quarter of declines, which is the longest downturn in the three decades that the appraisal and research firm has been keeping data.The drop stems from an over-supply of high-end and highly priced apartments, a lack of foreign buyers and the new federal tax law that has hit real estate in high-tax states. A new “mansion tax” approved by New York state legislators over the weekend will layer another tax on the sale of multimillion-dollar homes and add further pressure to a market already under stress, according to real estate experts.
The pain is being felt at all levels. While the entry-level market in New York, below $1 million, had been holding up for most of the past year and a half, it’s started to suffer as the trouble at the top cascades down.”It’s like a layer cake,” said Jonathan Miller, the CEO of Miller Samuel. “When you have softening at the top, it starts to melt into the next layer and the next layer after that.Because those buyers further down have to compete on price.”Prices in Manhattan continue to remain soft.
While the average sale price got a big boost from hedge fun billionaire Ken Griffin’s $238 million condo purchase, hitting $2.1 million, the median sales price in Manhattan declined slightly, to just over $1 million.Griffin’s purchase was part of a more than $700 million spending spree the CEO and founder of Citadel has been on in recent years, as he’s scooped up homes in Chicago, Miami and London. Sellers who still have unrealistic price expectations are the biggest barriers to sales, brokers say.That has led to more listings piling up and sitting on the market for longer periods. There is now a nine-month supply of homes on the market, with inventory up 9 percent.The glut in new development is even worse: the supply of newly built condos jumped 56 percent over last year, to a 19-month supply.Miller says the outlook for the year is unlikely to improve — especially with the new mansion tax.
“The market continues to be vulnerable to challenges,” he said.

Please follow and like us:

Gold near 2-week lows as dollar rebounds over trade caution

Gold prices on Thursday held near two-week lows touched in the previous session, as the dollar recouped losses after cautious comments from U.S.1 percent to $1,318.50, as of 0340 GMT.The dollar index, which measures the greenback against a basket of currencies, bounced back from three-week lows.
U.S.Trade Representative Robert Lighthizer told a Congressional hearing it is too early to predict the outcome of ongoing trade talks with Beijing and America will need to maintain the threat of tariffs on Chinese goods for years even if the two sides strike a deal.ReutersGetty Images Trade Representative Robert Lighthizer dented investors’ hopes for a closure to the tariff war with China.
As of 0340 GMT, spot gold and the U.S.gold futures were down 0.1 percent at $1,318.50 and $1,320.10 per ounce respectively.The safe-haven metal slipped to its lowest since Feb. 15 at $1,316.43 in the previous session and dropped for the first time in five months. Lighthizer told a Congressional hearing it is too early to predict the outcome of ongoing trade talks with Beijing and the United States will need to maintain the threat of tariffs on Chinese goods for years even if the two sides strike a deal.
“There is some uncertainty about the trade deal and some of the safe-haven (demand) has gone to the U.S.
dollar. That has taken a bit of a bid from gold,” said John Sharma, economist, National Australian Bank.
The dollar index, which measures the greenback against a basket of currencies, bounced back from three-week lows.”Overall, gold is expected to go up with some corrections and prices will move around the $1,310-$1,330 levels depending on the dollar,” Sharma said, adding, “main support comes from Federal Reserve’s dovish stance and a lot of central banks are keen on accumulating gold.” The U.S.Central Bank will stop shrinking its $4 trillion balance sheet later this year, Fed Chairman Jerome Powell said on Wednesday, ending a process that investors say works at cross-purposes with the Fed’s current pause on interest-rate hikes. During his testimony to the Senate Banking Committee on Tuesday, Powell reiterated that the Fed will be patient in hiking interest rates.
“The precious metal’s recent consolidation is supported by the indecision the financial markets have in pricing in what will be the Fed’s next move,” OANDA senior market analyst Edward Moya said in a note. “Gold may struggle climbing higher until we see further deterioration in U.S. data, that would seal the market expectation for the next move to be a rate cut.
” Investors are also monitoring the tensions between India and Pakistan, with the two countries engaged in retaliatory attacks, analysts said. Meanwhile, spot palladium further backed away from its all-time peak of 1,565.09 per ounce, scaled earlier in the week, and was down 0.1 percent at $1,527.50 on Thursday. The autocatalyst surged 21 percent so far this year on widening supply tightness in the market.Spot silver dipped 0.1 percent to $15.72 per ounce, while platinum was down 0.4 percent at $861.50, off its more than three-month highs of $871.94 hit in the previous session.

Please follow and like us: