A record number of New Yorkers are dishing out cash to nab a home in Manhattan, where the average digs run for $2 million.
Cash sales in the Big Apple made up a staggering 67.9% of transactions in the fourth quarter of 2023, according to the latest quarterly survey of Manhattan sales from appraisers Miller Samuel and brokerage giant Douglas Elliman.
The figure, which usually hovers around 50%, “exceeds two-thirds of all sales to reach a record-high market share,” according to the report.
It also represents a stark increase from the 55% of wealthy homebuyers who paid for their pad in cash in December 2022.
Tim Malone, a luxury real estate advisor on the Steven Cohen Team and Douglas Elliman, told The Post that he’s seen this cash trend “all year long.”
“The sky-high mortgage rates have had a direct impact on buying trends, especially in the luxury market,” added Malone, whose current listings go for between $650,000 and $20 million.
“More than half of my buy side deals were all cash last year,” he said.
As of Thursday, the average 30-year fixed home loan is 6.62%, according to mortgage buyer Freddie Mac — double what it was in January 2022, when rates started surging as the Federal Reserve began its aggressive tightening regime, which has lifted the benchmark federal funds rate to a 22-year high.
By paying cash, deep-pocketed homebuyers with ample liquid assets are skirting interest rates altogether.
The housing market has threatened to price out middle- and lower-class buyers over the past year as monthly mortgage rates have risen to cost more than monthly rent payments — so much so that the commercial real estate firm CBRE found that in October, the average monthly mortgage payment was a whopping 52% higher than the average monthly rent on a house or apartment.
Traditionally, monthly mortgage rates cost the same or less than monthly rent payments on an apartment which had been the case from 1996 to mid-2003 since owners tend to put more cash into their homes than tenants because of expenses like repairs and renovations.
In the lead up to the 08 market crash, the mortgage premiums peaked at 33% in the second quarter of 2006.
However, the script was flipped due to the increased cost of debt, high rates on a benchmark 30-year home loan — which peaked at 8% late last year — coupled with low housing supply.
These same factors give homeowners an incentive to stay put, as even downsizing to take advantage of lower sticker prices doesnt make sense given higher mortgage rates.
The higher rates also discourage homeowners who locked in low rates two years ago from selling.
In a bid to combat low housing stock, Wall Street firms are working to create so-called “build-to-rent communities.”
The new homes come equipped with modern flooring and furnishings that are designed to withstand years of wear and tear, thus saving the companies a hefty sum on maintenance costs while also being attractive to tenants.
There are some 900 neighborhoods nationwide with this build-to-rent model in mind, according to the National Association of Home Builders, each boasting an average of between 135 and 150 homes designed for institutional investors to own them and rent them out to single families.
Like most businesses, Wall Street real estate investors are looking at the economies of scale, Ted Jenkin, the founder and CEO of Atlanta-based oXYGen Financial, told The Post earlier this week.
If you can buy one plot of land, build a similar style house with similar materials it becomes much cheaper and cost efficient for your outcomes.
The boss of Primark has resigned after admitting an “error of judgement” in his behaviour towards a woman in a social environment.
Paul Marchant stepped down as chief executive of the high-street fashion brand with immediate effect following an investigation.
Primark‘s parent firm, Associated British Foods (ABF), said he had co-operated with the investigation, and “acknowledged his error of judgment and accepts that his actions fell below the standards expected by ABF”.
“He has made an apology to the individual concerned, the ABF board and also to his Primark colleagues and others connected to the business,” the firm added.
The group’s overall chief executive George Weston said he is “immensely disappointed”.
“At ABF, we believe that high standards of integrity are essential,” he said in a statement.
“Acting responsibly is the only way to build and manage a business over the long term.
“Colleagues and others must be treated with respect and dignity.
“Our culture has to be, and is, bigger than any one individual.”
ABF’s finance director Eoin Tonge will take over as chief executive on an “interim basis” – and his role will be taken up by Joana Edwards, the group’s financial controller.
The group’s statement added it “seeks to provide a safe, respectful, and inclusive work environment where all employees and third parties are treated with dignity and respect”.
“Primark is committed to doing business the right way at all levels of the company,” it said.
ABF promised to continue supporting the woman who made the complaint.
Primark results due soon
The group will still publish its interim results for the financial year as planned on 29 April, according to its statement.
Sales at the store fell by 6% – with Primark saying it expects “low single-digit” sales growth for 2025 as a result – down from mid single-digit levels in November 2024.
Speaking at the time, Russ Mould, investment director at AJ Bell, said: “If Primark is struggling, you know the UK retail sector is in trouble.”
Japan’s finance regulator is planning to change the country’s laws to classify cryptocurrencies as financial products as early as 2026, according to the local outlet Nikkei.
The Financial Services Agency (FSA) plans to submit a bill to parliament to revise the Financial Instruments and Exchange Act as early as next year after having considered the changes through internal study groups, Nikkei reported on March 30 without citing a source.
The outlet reported that the details are still being finalized, but the change would see cryptocurrencies likely put under insider trading laws that currently apply to other financial products, such as stocks, which outlaw trades based on insider information.
However, cryptocurrencies are likely to be put in a separate category from securities such as stocks and bonds.
If the changes go through and crypto is regulated under the country’s finance laws, companies offering crypto would have to register with the FSA.
Nikkei reported that the regulator plans to enforce the new rules regardless of whether a company operates in Japan, but it was unclear how the laws would be enforced against overseas entities.
Also unclear was what cryptocurrencies would be regulated and how distinctions would be made between widely traded assets such as Bitcoin (BTC) and Ether (ETH) compared to speculative and high-risk tokens such as memecoins.
The FSA’s headquarters is in central Tokyo, just across the street from the Ministry of Finance. Source: Wikimedia
The reported upcoming change comes amid a wave of pro-crypto moves made by Japan’s regulators and government.
Earlier this month, the country issued its first license allowing a company to deal with stablecoins to SBI VC Trade, a subsidiary of the local financial conglomerate SBI, which said it was preparing to support Circle’s USDC (USDC).
The country’s ruling Liberal Democracy Party also moved ahead with reforms to slash the capital gains tax on crypto from 55% to 20% and categorize digital assets as a distinct asset class.
In February, local reports said the FSA was looking to lift a ban on crypto-based exchange-traded funds (ETFs) to align with the policy position of Hong Kong, which approved crypto ETFs for trading in April 2024.
An armed resistance group in Myanmar has accused the ruling military government of continuing to carry out airstrikes on “civilian areas” in the wake of the huge earthquake in the country.
The 7.7 magnitude quake struck near the city of Mandalay at around 12.50m local time (6.20am UK time) on Friday while Myanmar is in the grips of a bloody civil war.
The number of people confirmed dead after the quake stands at more than 1,700, with 3,400 others injured and 300 missing, according to pro-military government Telegram channels, citing the country’s rulers.
Image: Chinese rescuers prepare to carry out a search and rescue operation in Mandalay. Pic: Myo Kyaw Soe/Xinhua via AP)
But the US Geological Survey’s (USGS) predictive modelling estimates that the number of dead will increase into the thousands, and could reach 10,000.
It comes as rescue and relief efforts in the country have been hampered by the ongoing civil war, which has raged since 2021.
Image: Buddhist monks walk past a collapsed building in Naypyitaw, Myanmar. Pic: AP Photo/Aung Shine Oo
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Monks film as building collapses
The Karen National Union (KNU), one of Myanmar’s oldest ethnic armies, has said in a statement that the military government, known as a junta, is continuing to “carry out airstrikes targeting civilian areas”.
It said the strikes come “even as the population suffers tremendously from the earthquake”.
The KNU said that under normal circumstances, the military would be prioritising relief efforts after an earthquake, but instead it is focused on “deploying forces to attack its people”.
The Free Burma Rangers, a relief organisation, said military jets launched airstrikes and drone attacks in Karen state, near the KNU headquarters, in the south of the country, shortly after the quake on Friday.
It came before there were reports of mortar and drone attacks on Saturday.
Image: A Karen National Union soldier in 2024. Pic: Reuters
The junta has not confirmed whether or not it has been carrying out strikes since the disaster.
The epicentre of the quake was in an area held by junta forces, but the devastation is widespread and also affected some territory held by armed resistance movements.
On Sunday, the opposition National Unity Government, which includes remnants of the government ousted in a 2021 coup, said anti-junta militias under its command would pause all offensive military action for two weeks.
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Rescuers look for survivors of Myanmar earthquake
Image: A Buddhist monk walks near a pagoda in Mandalay after the earthquake. Pic: AP
Richard Horsey, the senior Myanmar adviser at Crisis Group, which works to resolve armed conflicts, said some anti-junta forces have halted their offensives, but fighting continues elsewhere.
“The regime also continues to launch airstrikes, including in affected areas. That needs to stop,” he said.
He claimed that the junta was not providing much visible support in quake-hit areas.
“Local fire brigades, ambulance crews, and community organisations have mobilised, but the military – who would normally be mobilised to support in such a crisis – are nowhere to be seen,” Mr Horsey said.
Image: Rescuers work at the site of a collapsed building in Mandalay, Myanmar. Pic: Reuters
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Building in Thailand collapses after earthquake
The junta has said the earthquake is one of Myanmar’s strongest in a century – while the USGS suggests financial losses due to the disaster could exceed the country’s annual economic output.
While emergency rescue teams have started trickling into the area hardest hit by the quake, efforts have been hindered by damaged roads, downed bridges, poor communications and the challenges of operating in a country in the middle of a civil war.
Many areas still have not been reached.
Image: Rescuers workers at the site of a collapsed building in Mandalay: Pic: Myo Kyaw Soe/Xinhua via AP
Image: A building tilts precariously in Mandalay, Myanmar. Pic: Reuters
Most rescues occur within the first 24 hours after a disaster, with the chances of survival diminishing as each day passes.
Neighbouring Thailand was also shaken, such as in the capital, Bangkok, where 18 people were killed, including 11 who died when an under-construction skyscraper collapsed. At least 76 people are missing and believed to be trapped under the debris.
Twelve Chinese nationals are among the injured, according to Chinese state media.
Image: The earthquake struck Myanmar and Thailand, and tremors also affected Laos, Vietnam, and Bangladesh
Image: Debris of a damaged building in Mandalay. Pic: AP
An initial report on earthquake relief efforts issued on Saturday by the UN Office for the Coordination of Humanitarian Affairs noted the severe damage or destruction of many health facilities in Myanmar.
And it warned that a “severe shortage of medical supplies is hampering response efforts, including trauma kits, blood bags, anaesthetics, assistive devices, essential medicines, and tents for health workers”.
India, China and Thailand are among the neighbours that have sent relief materials and teams, along with aid and personnel.
The UK government has announced a package of £10m to support the people of Myanmar in the aftermath of the quake.
Four years of civil war
Myanmar has been locked in a conflict involving multiple armed opposition groups since a 2021 coup, when the military seized power from the elected government of Nobel Peace Prize laureate Aung San Suu Kyi.
Many places are now dangerous or impossible for aid groups to reach.
More than three million people have been displaced by the fighting and nearly 20 million are in need, according to the United Nations.