A quarter of US homes have lost value
While the housing market may be generally recovering a new report reveals that more than a quarter of homes have lost value in the last year. Zillow reports that although nationally prices have increased by 3.3 per cent to $180,800 on its home value index and data shows that the market is returning to normal, 27.9 per cent of homes are now worth less than a year ago.
Markets on the East Coast and in the Midwest had the highest share of homes that lost value with 48.1 percent of homes in Baltimore decreasing in price. Philadelphia (43.4 per cent) and Washington, DC (41.2 per cent) also had large shares of homes losing value.
Conversely, few homes lost value in hot markets like Denver, Dallas, San Jose, and San Francisco, which all saw double-digit home value growth over the past year. Less than five percent of homes in Denver (1.5 per cent) and Dallas (4 per cent) were worth less in August 2015 than they were a year ago.
Multifamily mortgage debt hits $1 trillion
There is now $1 trillion of outstanding multifamily mortgage debt in the US following a $23.6 billion rise in the second quarter. The Mortgage Bankers’ Association says that total commercial/multifamily debt rose $38.5 billion to $2.72 trillion.
"Rising property values are supporting increased levels of commercial and multifamily mortgage debt," said Jamie Woodwell, MBA's Vice President for Commercial Real Estate Research. "The total amount of commercial and multifamily mortgage debt outstanding continues to grow at a strong pace, particularly on the multifamily side. For the first time ever, multifamily mortgage debt outstanding now exceeds $1 trillion and is growing at almost 10 per cent per year."
Commercial banks continue to hold the largest share of commercial/multifamily mortgages, $1.0 trillion, or 37 per cent of the total.
Bella Vista compound listed at $42.5 million
The iconic Bella Vista compound in Hollywood is on the market for a staggering $42.5 million according to Variety. It reports that owner Donna Scott, widow of directing legend Tony Scott, had previously tried to sell off-market through a number of real estate agents for $25 million. The complex at 1500 Seabright Place, Beverly Hills was built in the 1920’s and was owned by Drew Barrymore’s late grandfather John Barrymore. The home is steeped in Hollywood history having also been rented by Marlon Brando, Katherine Hepburn and Candice Bergen. Set in 7 acres with 16 structures including the main house and two guest cottages.