Latest news with #CompassRealty
Newsweek
10-07-2025
- Business
- Newsweek
California's Housing Market Freezes Up
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. Home sales have plummeted in California over the past few years and are now down 37 percent from their pandemic peak, according to data from real estate analytics platform Reventure App. Real estate analyst Nick Gerli, Reventure's CEO and founder, said that this plunge in sales indicates "a massive homebuyer strike underway in California right now" which is likely the result of how expensive the Golden State market has gotten over the past five years. Falling Sales and Rising Inventory While the California housing market remains competitive—with homes for sale spending an average 31 days on the market before going under contract, less than the nationwide median of 38—and home prices are still rising, buyers in the state are clearly withdrawing. According to the latest Redfin data, home sales in California totaled 24,895 in May, down 7.9 percent from a year earlier. An analysis of historical data by Reventure found that this number was about 25 percent lower than the state's long-term average—the typical or expected number of sales over an extended period of time. It was also significantly lower than the pandemic peak reached in June 2021, when the Golden State closed 43,471 sales. According to the California Association of Realtors, it was actually the biggest yearly decline in sales in 17 months. A Compass Realty sign is posted in front of a home for sale on June 23, 2025, in Greenbrae, California. A Compass Realty sign is posted in front of a home for sale on June 23, 2025, in Greenbrae, drop in sales might have something to do with the fact that the median sale price of a home in California remains much higher than that of a typical home in the U.S. In May, the median sale price of a home in the state was $859,700, up 0.02 percent year-over-year; in the U.S., it was $440,910, up 0.6 percent from a year earlier. Not only are homes expensive, but mortgage rates remain high—as of July 3, the average 30-year fixed-rate mortgage was 6.67 percent—and other costs—including home insurance, homeowners association (HOA) fees and repairs—are also going up, making buyers think twice about whether they can afford owning a home. "Buyers are waiting for the costs of homeownership to come down. That could mean lower mortgage rates or lower home prices," Oscar Wei, deputy chief economist at the California Association of REALTORS® (CAR), told Newsweek. "Buyers could also be waiting for some clarity on the market direction, as consumers remain concerned about how tariffs and the ongoing trade tensions could affect the economy and their personal finances." What Gerli describes as a "homebuyer strike" is starting to push up inventory in the state, where the supply of available homes is low and has been kept down by California's strict red-tape policies. According to Redfin, there were 112,485 homes for sale in the Golden State in May, up 18.7 percent from a year earlier. Of these, 38,160 were newly listed homes. According to data, active listings in the state totaled 76,737 in June. "This is the second-highest inventory level for June going back almost 10 years. So inventory is now rising, which is putting downward pressure on prices," Gerli told Newsweek. "The question is: will inventory continue to rise? If it does, I think the potential is there for California to experience a 15 percent housing correction." On the state level, only 40.4 percent of homes sold above list price in May, 9.53 percentage points less than a year earlier. On the other hand, 28.6 percent of home listings had price drops, up 4.4 percentage points from May 2024. "The increase in supply could alleviate some upward pressure on prices and make homeownership easier for those who are considering buying now," Wei said. A Market To Keep an Eye On While prices are not rising as much as they have in the past few years, they are far from dropping at the state level in California. According to Gerli, the state's housing market "will likely continue to struggle until affordability improves." Currently, he said, the median household in the state needs to spend over 62 percent of their gross income to afford mortgage and tax payments on a home purchase—which is an untenable proposition for many. "That's the most expensive of any conventional U.S. state, and ultimately, a payment ratio that puts owning a home out of reach for the vast majority of California renter households," Gerli said. But the dynamics unfolding in California should be watched closely, Gerli said, as any downturn in the state could have "big implications for the U.S. market more broadly," especially if California's housing market heads toward anything like a recession. The performance of the state's housing market has historically had a direct impact on California's neighbors—including Idaho, Utah, Arizona, Nevada and Washington—where Californians have sought cheaper housing when their own state offered little options. "California's high housing costs result in some would-be buyers electing to move to more affordable nearby states like Arizona, Nevada, and Idaho to buy a house," Gerli told Newsweek. "As a result, if home values were to drop in California, it could mean fewer people electing to leave the state—and less homebuyer demand in the surrounding states."
New York Post
26-05-2025
- Business
- New York Post
Hamptons home buyers are skipping oceanfronts and searching for serenity north
In March, a 7-acre estate at 372 and 370 Further Lane in East Hampton kicked off the season with a $70 million sale. It was the kind of deal you've come to expect from the massive estates that line the sea. But as prices push ever higher south of the highway, many Hamptons home hunters are eschewing ocean bragging rights for the quiet, tranquil landscapes that drew society here in the first place. 5 The Great Hill spread sports 4,200 square feet of lusciousness. Courtesy of Bespoke Real Estate 'Oceanfront has become a very limited asset class,' notes Michael Cantwell of Bespoke Real Estate. 'There are only a handful of trades a year, so the barrier for entry is extremely high.' That's why he's seeing values rise north of the highway in once off-the-radar communities. 'People like to have these big, reserve-adjacent farm properties in Watermill North, Bridgehampton North,' he says. 'They want these tremendous waterfront properties in North Sea, North Haven and Noyack.' He's currently selling a 6.2-acre 'cabin in the woods' at 137 Great Hill Road in North Sea for $8.5 million. It has five bedrooms and four full bathrooms spread over 4,200 square feet. Built in 2013, it was designed by architect Jasmit Singh Rangr with wood-cladding that mirrors the landscape and oodles of boxy, cantilevered daring. It comes with an 80-foot heated gunite infinity pool, an outdoor dining as well as a kitchen area and tennis court. 'These areas are getting big numbers,' Cantwell says. 'Everything rises with the tide.' 5 In North Haven, 24 On the Bluff — designed by architect William Reese — comes with three stories, a boat mooring and a $19.99 million price tag. Courtesy of Saunders Realty 5 One of 24 On the Bluff's five bedrooms. Courtesy of Saunders Realty Over on the Long Island Sound, a one-of-a-kind estate is on the market at 24 On the Bluff in North Haven, a blob of land that juts out into Noyack Bay (where you catch the ferry to Shelter Island). Built in 2002, it's a rare architectural masterpiece by William Reese, inspired by modernist design masters such as Tadao Ando and Rudolf Schindler (naturally it was featured in Elle Decor). Geometric, clean and composed simply from four materials — concrete, steel, glass and mahogany — this three-story home has 5,800 square feet, five beds and five full baths. It also comes tricked out with all the toys: a gym, heated pool, sauna, tennis and a boat mooring. It's on the market with Saunders' Laura White for $19.99 million. 'People love North Haven because it's quieter,' says White. 'They can shop without issues. They can ride their bikes. There is a beautiful bay-front beach and boating. The area is really spectacular.' 5 In Landfall, on the northern tip of Northwest Harbor, the two-bedroom, midcentury Butterfly House at 6 Masthead Lane is on the market for $2.75 million. Courtesy of Compass Realty 5 Despite being filled with 1970s flair, the Butterfly House has newly renovated wings. Courtesy of Compass Realty Further east, at the northernmost point of Northwest Harbor in the hidden waterfront enclave of Landfall is another architectural stunner, known as Butterfly House, at 6 Masthead Lane. It's a midcentury masterpiece modeled on Le Corbusier's famed roof design (also seen at Marcel Breuer's Geller house in Lawrence; razed in 2022). Full of 1970s flair but recently renovated, the house has 2,400 square feet, two bedrooms, three bathrooms, a pool and access to a private beach on Gardiners Bay. This north star is on the market for $2.75 million with Jack Pearson of Compass.
New York Post
22-05-2025
- Business
- New York Post
You can still rent a Hamptons home for summer 2025 — if you think outside the box
In spring, the poolside conversation at the Setai in Miami Beach turns to the Hamptons: 'Who is paying these prices?' someone asks. 'Where are they coming from?' 'Should we go to St. Tropez instead?' This season, the search for the perfect summer rental is leaving these masters of the universe at an unfamiliar loss. Brokers say their frustration is understandable. Each year, the same Hamptons houses come up for rent again and again. And each year they depreciate — their furnishings wear, along with their novelty. Yet demand and asking prices are going up, not down. And while new rentals do hit the market, the inventory of deluxe summer palaces that tick the vast checklists top renters demand remains miniscule. Advertisement 5 On the waterfront in Sag Harbor, the four-bedroom 54 Bay View Drive will set you back $360,000 from July through Labor Day. Courtesy of Compass Realty 5 One of the quirky Sag Harbor rental's four bedrooms. Courtesy of Compass Realty 'March was insane,' says Compass broker Yorgos Tsibiridis, who is currently listing a quirky-cool four-bedroom waterfront home at 54 Bay View Drive in Sag Harbor for $360,000 from July through Labor Day. 'And the money people are spending! It's the strongest rental season I have seen. I have a couple houses in Amagansett and honestly I could have rented them over and over, like 10 times.' Advertisement That's a sour pickle for the Setai set to swallow. They're happy plunking down $1 million for the season, but they expect quality in return: homes built within the last five years, fresh interiors, a beautiful yard, a large pool with a hot tub, proximity to the ocean or a village and a minimum of six or seven bedrooms. Good luck with that this season, says Tsibiridis, with as few as 30 to 50 new homes meeting that criteria on the market from East Hampton to Montauk, and many times that number of interested parties. 'The more expensive houses are the ones that are in most demand right now,' he says. So what gives? 'This year we had a flood of people from LA [due to the January wildfires]. They moved to New York and now they want a house in the Hamptons. I'm also noticing more people this year from Miami and Palm Beach.' 5 While 10 & 12 Fair Lea Road may be historic, is has a very modern pool to enjoy. Courtesy of Douglas Elliman Real Estate So what's a choosy renter to do? Try something new. Consider something with historic charm, like 10 & 12 Fair Lea Road in Southampton. It's one of the village's 19th-century originals, with a conspicuous octagonal turret reminiscent of a lighthouse. Advertisement This 13-bed classic is asking $1.35 million for Memorial to Labor Day with Erica Grossman of Douglas Elliman. Or if you've never strayed from the beach, explore the eight-bed estate at 10 Morgan Hill Way in Bridgehampton. 5 You can rent the eight-bedroom estate at 10 Morgan Hill Way in Bridgehampton — complete with a sprawling lawn and pool — for $950,000 for the entire season. Courtesy of Compass Realty 5 Be a good sport and hit the Bridgehampton property's tennis court. Courtesy of Compass Realty Advertisement Yes, it's an impatient six-minute drive to the sand, but what you get in return is 1.4 acres of lawn-pool-and-tennis, surrounded by hectares of protected farmland. It's asking $950,000 for the season with Compass' Breitenbach Advisory Team. Whichever high-impact home you choose, you won't have to sacrifice splendor.
Yahoo
27-02-2025
- Business
- Yahoo
First-time homebuyers struggle with absurd ultimatums from insurance companies: 'It's across the board everywhere right now'
First-time homebuyers are facing an ultimatum from insurance companies, making the already expensive process of purchasing a home an even bigger headache. In the Pittsburgh area, insurance companies are denying coverage to homes with aging roofs, insisting they be replaced before issuing a policy, per the Pittsburgh Post-Gazette. Sellers are also running into issues. Kay Barchetti, a Compass Realty agent, told the outlet, "There's a lot of people if they don't put a new roof on, they can't sell their house." Another real estate agent, Laurie Kiss, noted that 15-year-old roofs are where insurers start putting pressure on homeowners, despite advancements in materials. "Most roofs now are made with 30-year shingles," she said. "But here we are at 15 years having issues." Insurance companies have been denying coverage across the country as the number of extreme weather events has increased. In Pittsburgh, hail and winter weather are the big culprits. In Florida and California, they're hurricane damage and fire damage, respectively. For example, in late December, Liberty Mutual announced plans to roll back and eventually eliminate coverage for California condo and apartment renters, prompting backlash. "It's across the board everywhere right now," Etti Baranoff, a professor of insurance and finance at Virginia Commonwealth University, told the Pittsburgh Post-Gazette. "They are not just jacking up prices. You're talking about reduction in availability and affordability. It's both. It's not just the premiums. It's also the availability of it." Unfortunately, the leading cause of extreme weather events is human activity. Dirty energy leads to excess pollution pumping greenhouse gases into the atmosphere, creating a vicious cycle of extremes damaging the environment and humans' way of life. And while people need to make changes, being unable to protect one's home and assets makes other positive changes harder to achieve. Kiss now has a contingency clause in her contracts that allows buyers to back out of a deal if they can't secure insurance coverage or the quoted premium is higher than expected. Do you think America is in a housing crisis? Definitely Not sure No way Only in some cities Click your choice to see results and speak your mind. Some states have laws and policies to protect homeowners. For example, Idaho recently proposed the Idaho Wildfire Risk Mitigation and Stabilization Pool Act, meant to assist homeowners in securing funds to protect their homes and hopefully encourage insurers to continue coverage or lower premiums. Join our free newsletter for good news and useful tips, and don't miss this cool list of easy ways to help yourself while helping the planet.
