NSDCC May Sales

Last month we had sales and pricing move higher again – the resilience of our market is incredible!

Year
# of Sales
Median SP
Avg. $$-per-sf
Median DOM
2012
289
$821,000
$380/sf
36
2013
362
$943,500
$416/sf
16
2014
269
$950,000
$465/sf
20
2015
298
$1,122,500
$491/sf
22
2016
334
$1,216,250
$498/sf
24
2017
346
$1,222,500
$515/sf
17
2018
274
$1,325,000
$591/sf
18
2019
295
$1,365,000
$594/sf
19

The velocity has slowed though – maybe the pricing plateau has finally arrived?

More Impact from Tax Reform

This is an additional breakdown of the TCJA showing how the married buyers of SD homes priced between $1,000,000 and $1,600,000 are losing a few hundred dollars.  It’s those above that who are taking a real hit.

There have been 253 NSDCC detached-home sales in the first five months of 2019, which is 6% more than the 238 between January and May of last year.

I did ask the authors if they included the AMT – no response yet.

Link to article:

Link to JBREC Article

Graduation Season

The market usually feels some impact this time of year from the graduation season, and it’s understandable. People who have kids, or anybody who is related to people with kids in eighth grade, twelfth grade or seniors in college will be distracted for a few days.  And if you count those graduating from pre-school too, then about 24% of the population (4/17) will have a graduation ceremony get in the way of homes selling.

Realtors are in that group too, so there are fewer agents on the ground working those sales.

But it should also mean the next few weeks will be fruitful with rates back in the 3s, and if the Fed lowers next week (unlikely but possible), we could have one heck of a summer!

Dr. John, RIP

I wanted to clear out those last two videos to make room for Dr. John, who passed away on June 6th at age 77. From wiki:

As a young man Rebennack was interested in New Orleans voodoo, and in Los Angeles he developed the idea of the Dr. John persona for his old friend Ronnie Barron, based on the life of Dr. John, a Senegalese prince, a medicinal and spiritual healer who came to New Orleans from Haiti. This free man of color lived on Bayou Road and claimed to have 15 wives and over 50 children. He kept an assortment of snakes and lizards, along with embalmed scorpions and animal and human skulls, and sold gris-gris, voodoo amulets that protected the wearer from harm.

Rebennack decided to produce a record and a stage show based on this concept, with Dr. John serving as an emblem of New Orleans heritage. Although initially the plan was for Barron to front the act assuming the identity of “Dr. John”, while Rebbenack worked behind the scenes as Dr. John’s writer/musician/arranger/producer, this didn’t come to pass. Barron dropped out of the project, and Rebennack took over the role (and identity) of Dr. John. Gris-Gris became the name of Dr. John’s debut album, released in January 1968, representing his own form of “voodoo medicine”.

Equity Sharing

If you are short on dough and wouldn’t mind sharing your equity with a stranger, this might be an interesting option.

We first came across this company back in 2017.

Officially they are co-investors, not lenders, and the money they contribute is secured with an option contract and lien on the property – but no monthly payments:

https://www.unison.com/read_more/1U8IgX7as5VFPbNLtvehNd

As expected, they charge upfront fees too:

HomeBuyer: There is a one-time transaction fee equaling 2.5% of the cash proceeds from Unison at your closing. When closing on your new home, you will pay all transaction costs, including third party fees (such as credit and appraisal reports, and title and escrow fees), any lender origination fees, in addition to the Unison transaction fee. This will increase the amount of cash you need to contribute to the purchase transaction at closing.

HomeOwner: There is a one-time transaction fee equaling 3.9% of the cash proceeds received from Unison at your HomeOwner Agreement closing. This fee covers all procesing and third-party costs from appraisal and home inspection to titles, state taxes, and settlement costs. For example, if your home’s value is $500,000 and Unison is making a $50,000 investment in exchange for a 40% Investor Percentage, the transaction fee would be $1,950 and you would net $48,050 at closing.

But under the right circumstances, it might be a good way to go.

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