Real Estate Tech News



New Joint Center housing report foresees steady rental demand over the next decade

New Joint Center housing report foresees steady rental demand over the next decade

As the nation’s economy continues to improve, the number of Americans forming households in the U.S. has recovered to a more normal pace. Ironically, the multifamily engine that helped sustain the housing market under bleaker economic conditions has been sputtering a bit as things have gotten better. That assessment comes from The State of the Nation’s Housing 2019, the annual tracking of the nation’s housing pulse conducted by the Harvard Joint Center for Housing Studies. As has been the case in past reports, this year’s survey found persistent disparities in supply and demand, especially in affordable housing stock. Home values varied widely, too: they were more than five times greater than incomes in roughly one in seven metro areas (primarily on the West Coast), compared with less than three times in about one in three metros (primarily in the Midwest and South).
Home prices flatlined in April, Case-Shiller says

Home prices flatlined in April, Case-Shiller says

The numbers: The S&P CoreLogic Case-Shiller 20-city index was unchanged in April compared to March on a seasonally adjusted basis, and was 2.5% higher compared to a year ago. That was the 13th straight month in which annual growth slowed, and the lowest pace of annual price gains since August 2012. What happened: Home prices continue to rise, but at a much slower pace. The cities with the strongest annual gains are still those in warm climates which were among the areas hardest-hit by the housing crisis: Las Vegas, Tampa, and Phoenix. But their rates of price growth are hardly the double-digit gains enjoyed by Seattle, San Francisco, and others not that long ago.
Eldorado Resorts to buy Caesars Entertainment for about $8.5 billion

Eldorado Resorts to buy Caesars Entertainment for about $8.5 billion

Eldorado Resorts has agreed to buy Caesars Entertainment for about $8.5 billion in cash and stock, as it looks to build scale to take on competition from larger companies such as Las Vegas Sands and Wynn Resorts. The deal comes more than three months after Caesars agreed to give billionaire investor Carl Icahn three board seats to his representatives and a say on the selection of its next chief executive officer. Icahn, who has been pressing for a sale of Caesars, held a 14.75% stake in the company as of March 31, according to data from Refinitiv Eikon. Reuters, citing people familiar with the matter, reported on Sunday that Eldorado had clinched a deal with Caesars. Eldorado’s offer of $13.01 per share represents a premium of about 30% to Caesar’s closing price on Friday. Shares of Caesars were up about 15% before the opening bell, while Eldorado was down about 5%. Caesars, which emerged from bankruptcy in 2017, operates casinos with the Harrah’s and Horseshoe brands.
Existing-home sales rebound in May, as housing market green shoots appear

Existing-home sales rebound in May, as housing market green shoots appear

The numbers: Existing-home sales were at a 5.34 million seasonally adjusted annual pace in May, the National Association of Realtors said Friday. Sales of previously-owned homes were 2.5% higher than in April, but 1.1% lower than the selling pace a year ago. The MarketWatch consensus forecast was for a 5.28 million annual rate. What happened: The median selling price in May was $277,700, a 4.8% annual increase and the 87th straight month of annual price increases. The Northeast, where sales have been socked by high prices and the loss of the ability to deduct property taxes from federal returns, saw a 4.7% jump in sales in May. In the Midwest, sales were up 3.4%. In both the South and the West, sales ticked up 1.8%.
US housing starts fall in May, but starts for the prior two months were revised higher

US housing starts fall in May, but starts for the prior two months were revised higher

U.S. homebuilding unexpectedly fell in May, but data for the prior two months was revised higher and building permits increased, suggesting that the housing market was drawing some support from a sharp decline in mortgage rates. Housing starts dropped 0.9% to a seasonally adjusted annual rate of 1.269 million units last month amid a drop in the construction of single-family housing units, the Commerce Department said on Tuesday.
ZeroDown is constructing a new path to home ownership

ZeroDown is constructing a new path to home ownership

ven rich San Francisco residents can’t buy a home. Sure, if your startup just went public, you might be amongst a small class of people able to put in all-cash offers over the asking price. But most people living in the Bay Area, even those with six-figure salaries, only aspire to become homeowners. “Owning things is a pretty central idea to the American enterprise,” said Abhijeet Dwivedi, the co-founder and chief executive officer of ZeroDown, a new startup hoping to make home ownership in the Bay Area a reality for more people by combining the security of ownership with the flexibility of renting. “Anyone who has gotten rich in the last 240 years has done so by owning things.”
Quicken Loans to pay $32.5 million to settle FHA lending case

Quicken Loans to pay $32.5 million to settle FHA lending case

Detroit-based Quicken Loans Inc. will pay $32.5 million to settle a federal lawsuit tied to Federal Housing Administration lending standards, according to a statement released Friday by the mediator in the case. The settlement comes with no admission of wrongdoing. The statement says the settlement consists of $25.5 million to make the government whole for losses and $7 million in interest, according to the statement from the mediator, former federal Judge Gerald Rosen. "We have always been proud of our growing participation in the FHA program. Every day teachers, police officers, factory workers and so many others who are the backbone of our communities, utilize Quicken Loans for this very important loan program," Quicken Loans CEO Jay Farner said in a written statement. "Now that this dispute is behind us, we look forward to cultivating and expanding our relationship with both FHA and HUD so we can increase Americans' access to home financing and homeownership."
Seattle will become Salesforce HQ2 via $15.7B Tableau deal, as Benioff gushes about talent pool

Seattle will become Salesforce HQ2 via $15.7B Tableau deal, as Benioff gushes about talent pool

With its $15.7 billion acquisition of Tableau Software, announced Monday morning, Salesforce isn’t just making a bet on a single company, or on the business intelligence and data visualization market. It’s betting on Seattle as a source of future hiring and growth, escalating the competition for tech talent in the region. “Seattle will become our second headquarters of Salesforce,” said Marc Benioff, the company’s co-founder and co-CEO, in his prepared remarks on a conference call discussing the deal. “It’s going to be our HQ2, if you will.” That was a thinly veiled reference to Amazon, one of the tech companies that Salesforce will be competing against as it looks to expand its operations. Salesforce already has a sizable presence in the Seattle area, employing more than 1,000 people in the area as one of more than 100 tech companies from the Bay Area and other regions that have established engineering centers in the region.
Flooding situation dire at Dardanelle

Flooding situation dire at Dardanelle

Crews were making a “last ditch effort” on Saturday to save low-lying parts of a small Arkansas city from floodwaters pouring through a breached levee, and authorities downstream were warning people to leave a neighborhood that sits across the swollen river from the state capital. Further north in Iowa, a flood barrier along the swollen Mississippi River failed Saturday, flooding four to six blocks of downtown Burlington, a city of about 25,000 people that is 170 miles southeast of Des Moines.
WeWork Is in Talks for $2.75 Billion Credit Line

WeWork Is in Talks for $2.75 Billion Credit Line

WeWork Cos. is in talks with banks about arranging a $2.75 billion credit line ahead of a planned initial public offering, according to people with knowledge of the matter. JPMorgan Chase & Co. is leading the potential financing, said the people, who asked not to be identified because the plans aren’t public. Representatives for the bank and WeWork declined to comment. WeWork, which rents office space and desks to workers around the world, said in April it had filed paperwork confidentially with the U.S. Securities and Exchange Commission for an IPO. It could be the year’s biggest offering after Uber Technologies Inc.\ WeWork’s largest backers include SoftBank Group Corp., which earlier this year decided against taking a controlling stake.
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