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A Record Day for New Home Sales
By Jonathan Haeber
CMR Columnist
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New home sales have slumped, but not enough to cause widespread panic. Home loan and mortgage rates are dropping back down, and the Fed has held their short-term rates steady. Amid this cooling market is a hot piece of news: a Trump development in Hawaii has broken an all-time home sales record.
In one day, the Trump Tower Waikiki sold over $700 million in condominium properties. By the end of the day, all 464 residencies and hotel suites were sold. Donald Trump himself didn't seem surprised: "I predicted that Trump Tower Waikiki would be the most luxurious development in Hawaii, and buyers responded," said Trump.
Many New Home Buyers from Japan
The Trump development held the unprecedented sale online. Using S&P's proprietary online sales selection tools, an astonishing 40 percent of sales came from Japan, while other buyers were located in California, Canada, Mexico, the UK, and China.
If you're still planning on taking out a home mortgage to buy a new home, the Trump example could serve as an early sign of resurgence in the market. For California home loans, the bond proposition to repair the state's infrastructure should serve as a boon to business and real estate. A growing economy and relatively low interest rates could contribute to another seller's market.
Only time will tell, but if Trump's Waikiki example serves as any indication, real estate still has plenty of vitality in certain locales.
Source
Trump Waikiki
About the Author
Jonathan Haeber is a marketing writer for Discovery Channel Stores. He recently purchased his first home and took a self-taught crash course in home mortgages.
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