Coronavirus killed the new New York City neighborhood’s momentum, but its potential for rebound could be a bellwether for the city’s overall economic health and the future of the largest mixed use development in the USA.
The pandemic has changed what home buyers want. The Mortgage Bankers Association Purchase Index for the week ending on June 5 was up 13% from the same week a year ago. Taylor Morrison Home (ticker: TMHC), the No. 5 U.S. home builder, whose sales declined 30% in April versus a year earlier, reported a 17% increase in May. “We’ve seen that momentum continue,” CEO Sheryl Palmer says. “How we can go from peak to trough back to peak again, all in about 10, 12 weeks, is unlike anything I’ve seen.”
An important part of any appraisal assignment is an analysis of market conditions. The coronavirus threat may be impacting market conditions. However, in most markets, it is not yet clear to what extent, if any, market conditions are affected. Related, complicating factors include fluctuations in the stock market and changes in mortgage interest rates.
Market analysis includes observing market reactions. This analysis becomes more complicated when market participants themselves are facing uncertainty. Appraisal reports should include a discussion of market conditions and should mention the coronavirus outbreak and its possible impact. However, it is not appropriate to include a disclaimer or extraordinary assumption that suggests the appraiser is not taking responsibility for the analysis of market conditions.
Global health and wellness company GNC Holdings Inc. (NYSE: GNC) has filed for Chapter 11 bankruptcy. Over the past year, the company has executed a strategy to close underperforming stores, while investing further in alternatives to in-store sales, such as e-commerce. With the Chapter 11 filing, GNC expects to accelerate the closure of 800 to 1,200 stores.
s the largest source of revenue raised by local governments, a well-functioning property tax system is critical for promoting municipal fiscal health. This report documents the wide range of property tax rates in 2019 for more than 100 U.S. cities and helps explain why they vary so widely. This context is important because high property tax rates usually reflect some combination of heavy property tax reliance with low sales and income taxes, low home values that drive up the tax rate needed to raise enough revenue, or higher local government spending and better public services. In addition, some cities use property tax classification, which can result in considerably higher tax rates on business and apartment properties than on homesteads.
Four years ago, Weyerhaeuser moved from Federal Way to a gleaming new building in Pioneer Square. That same year, it sold its iconic, custom-built 1971 headquarters to Industrial Realty Group for over $70 million. Is that trend about to reverse itself? It already was, pre-COVID-19, according to John Chang of Marcus & Millichap. That firm organized a web panel this week titled “The Shape of Things to Come: Will the Pandemic Accelerate a Suburban Revival?”
For the first time, the high-income West is not represented in the 10 largest urban areas. In 1950, four such cities — New York, London, Paris and Chicago — were on the United Nations list. New York, which had been the largest built-up urban area from the 1920s to 1950, fell to 11th place, while the others had long ago fallen out (Figure 3 copied below.) Chicago has suffered the largest drop, from 8th to 41st. That is despite a near doubling of its population from 1950 to 2020. The Los Angeles built-up urban area, which ranked 12th in 1950, nearly quadrupled its population, but fell to 20th, after having reached 6th largest from 1965 to 1975.
Racial discrimination shaped the map of Minneapolis. Then city zoning locked many of those patterns into place. Maddie talks with NPR climate reporter Lauren Sommer about Minneapolis’ bold plan to tackle housing disparities — and climate change. The new rules went into effect earlier this year. Community groups are calling on the city to follow through.