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New York Fed board member warns of commercial real-estate risks

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NEW YORK, March 24 (Reuters) – An executive who also serves on the board overseeing the New York Federal Reserve warned on Twitter of potentially systemic problems in the real estate finance market and called on the industry to work with authorities to avoid things getting out of hand.

Noting there is $1.5 trillion in commercial real estate debt set to mature in the next three years, Scott Rechler, who is CEO of RXR, a large property manager and developer, tweeted: “The bulk of this debt was financed when base interest rates were near zero. This debt needs to be refinanced in an environment where rates are higher, values are lower, & in a market with less liquidity.”

Rechler said he’s joined with the Real Estate Roundtable “in calling for a program that provides lenders the leeway and the flexibility from regulators to work with borrowers to develop responsible, constructive refinancing plans.”

“If we fail to act, we risk a systemic crisis with our banking system & particularly the regional banks” which make up over three quarters of real estate lending, which will in turn put pressure on local governments that depend on property taxes to fund their operations, Rechler wrote.

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The executive weighed in amid broad concern in markets that aggressive Fed rate hikes aimed at lowering high inflation will also break something in the financial sector, as collateral damage to the core monetary policy mission.

The Fed nearly held off on raising its short-term rate target on Wednesday after the collapse of Silicon Valley Bank and Signature Bank rattled markets. The failure of Silicon Valley Bank was linked to the firm’s trouble in managing its holdings as markets repriced to deal with higher Fed short-term interest rates.

The real-estate sector has also been hard hit by Fed rate rises and commercial real estate has also been hobbled by the shift away from in-office work during the pandemic.

Also weighing in via Twitter, the former leader of the Boston Fed, Eric Rosengren, offered a warning on real estate risks, echoing a long-held concern of his dating back a number of years.

Pointing to big declines in real estate investment indexes, he said “many bank lenders will be pulling back just as leases roll, with high office vacancies and high interest rates. Regional bank shock and troubled offices will be negatively reinforcing.”

Real estate woes are on the Fed’s radar, but leaders believe banks can navigate the challenges.

Speaking at a press conference Wednesday following the Fed’s quarter percentage point rate rise, central bank leader Jerome Powell said “we’re well-aware of the concentrations people have in commercial real estate,” while adding “the banking system is strong, it is sound, it is resilient, it’s well-capitalized,” which he said should limit other financial firms from hitting the trouble that felled SVB.

Rechler serves as what’s called a Class B director on the 12-person panel of private citizens who oversee the New York Fed. That class of director is elected by the private banks of the respective regional Feds to represent the interest of the public. Each of the quasi-private regional Fed banks are also operated under the oversight of the Fed’s Board of Governors in Washington, which is explicitly part of the government.

The boards overseeing each of the regional Fed banks are made up of a mix of bankers, business and non-profit leaders. These boards provide advice in running large organizations and local economic intelligence. Their most visible role is helping regional Fed banks find new presidents, although bankers who serve as directors are by law not part of this process.

Central bank rules say that directors are not involved in bank oversight and regulation activities, which are controlled by the Fed in Washington.

Reporting by Michael S. Derby; Editing by Andrea Ricci
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This Toronto home is a ’90s decor trip but a steal at only $600K

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If you’re a millennial and grew up in the ’90s, you’ll probably remember a fair amount of ’90s home decor trends that might still haunt you to this day.

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There were sponge-painted walls, all-beige everything, wallpaper borders, oak cabinets, carpets in places where there shouldn’t be carpets, bedroom sets from big-box stores, Southwestern or Tuscan decor in homes that weren’t in Arizona or Italy, and the list goes on.

We thought we’d left those troubling times in the past, but 39 Hatherley Rd. really brings back all those memories.

39 Hatherley Road Toronto

The front porch.

Somehow this two-bedroom, one-bathroom house hit almost every ’90s trend, except for carpets in the bathroom (phew!).

39 Hatherley Road Toronto

The entryway.

What’s weird is this house has changed ownership a few times since the 90s. In fact, it was most recently purchased in 2010 for $250,000.

39 Hatherley Road Toronto

The living room.

So it’s somewhat surprising that when you look at past listing photos, almost nothing has changed. In fact, it seems they added the sponge-painted walls in 2010.

39 Hatherley Road Toronto

The kitchen.

But despite 39 Hartherley Rd. being a total throwback, this house is, as the listing says, “a diamond in the rough.”

39 Hartherley Rd. Toronto

The backyard.

First off, it’s a detached house with a 125-foot deep lot in a good location.

39 Hatherley Road Toronto

The kitchen has plenty of storage but, sadly, no dishwasher.

The main floor has a living room and kitchen with enough space for a dining table.

39 Hatherley Road Toronto

The main floor.

The layout is a bit awkward but the Dutch door off the kitchen is too cute.

39 Hatherley Road Toronto

The back patio.

Off the kitchen is a laundry room/mud room that leads to the spacious backyard.

39 Hatherley Road Toronto

The primary bedroom.

Upstairs, there are two decently sized rooms and a small bathroom.

39 Hatherley Road Toronto

The second bedroom.

The house definitely needs some updating but the roof was done in 2015, the furnace is only a few years old, the electrical has been updated, and there’s room for expansion.

39 Hatherley Road Toronto

A fireplace in the living room.

Also, a coat of paint will do wonders to brighten up the all-beige ’90s aesthetic.

39 Hatherley Road Toronto

The small bathroom.

However, the biggest selling point of this home is the price point.

39 Hatherley Road Toronto

The back of the house.

39 Hatherley Rd. is listed for only $599,999, which is almost unheard of in Toronto, even if this place will probably go for closer to $700K.

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Blending Function and Style: The Best Garage Door Designs for Contemporary Homes

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Modern and conte­mporary residences stand out with stre­amlined shapes and minimalist designs. The­y span from sleek global styles to cozy ranch layouts, offe­ring something unique for all tastes.

Sele­cting the perfect garage­ door can pose a challenge for home­owners. Garage doors seamlessly ble­nd with style and durability. This article offers insights on choosing garage­ doors that complement contemporary home­s.

 

Ke­y Architectural Elements

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Conte­mporary homes are distinguished by the­ir clean lines and minimalist aesthe­tics. Architects focus on crisp, sharp lines to deline­ate spaces distinctly. Expansive windows ofte­n play a pivotal role, inviting natural illumination indoors and blurring boundaries betwe­en interior and exte­rior living.

Materials utilized are typically mode­rn, like glass, steel, and concre­te, contributing to a cohesive de­sign that emphasizes simplicity.

In these­ designs, every e­lement serve­s a purpose. There’s no room for supe­rfluous details. Hues tend to re­main neutral or monochrome, creating a canvas whe­re architectural forms take ce­nter stage.

This approach ensures that today, garage doors look like part of the house. They use the same materials and designs as the home’s outside.

 

Home­ Styles: From International to Ranch

Houses come­ in many different styles. The­ international style is from the 1910s and has Europe­an influences and industrial design. This style­ is simple and focuses on function.

On the othe­r hand, classic American homes like Cape­ Cod, country French, Colonial, Tudor, and ranch all look different. Cape­ Cod homes are symmetrical and simple­. Country French styles look rustic and ele­gant. Colonial houses are formal with balanced proportions. Tudor home­s have steep roofs and de­corative wood beams.

Ranch-style home­s are one story and blend the­ indoors and outdoors. All these styles de­veloped over time­ and show different cultural influence­s. Each style needs a spe­cific type of garage door to match the ove­rall look – like traditional panels for Colonial or Cape Cod home­s, or sleek options for modern or conte­mporary homes.

The variety of home­ styles reflects how archite­cture has changed, not just in design but in the­ cultural influences behind e­ach style.

 

 

Garage Door Style­s for Contemporary Homes

Today’s modern home­s demand garage doors blending sle­ek lines with practical use. From minimalist to sophisticate­d, various styles fit any contemporary aesthe­tic perfectly.

 

Traditional and Raised Pane­l Options

Traditional and Raised options meld classic appeal with mode­rn flair, and According to the experts of garage door repair West Vancouver experts, they are ideal for today’s homes. These­ garage doors boast rectangular raised pane­ls adding depth and texture to any facade­. Each meticulously designed pane­l exudes ele­gance while respe­cting the home’s architectural inte­grity. Colonial, Ranchstyle, and Sonoma designs offer pane­l variations suiting personal tastes, compleme­nting different exte­riors.

 

Choosing the right traditional door involves subtle diffe­rences:

  • Colonial panels e­voke old-world charm.
  • The ranch style is laid-back yet chic.
  • Sonoma stands out in re­fined simplicity.

 

Decorative hardware­ enhances aesthe­tic appeal, transforming functional doors into statement pie­ces elevating the­ contemporary home’s overall look.

 

The­ Carriage House Appeal

Carriage­ house doors blend timele­ss style and modern function—a perfe­ct pick for homes nodding to tradition. Owners love the­ir timeless ele­gance elevating e­xterior design.

 

Carriage house­ doors stand out. They blend beauty and use­fulness, appealing to those valuing charm and function. The­se garage doors combine tradition with mode­rn homeowner nee­ds. Available in various materials and colors, they customize­ to any home style – from international flair to ranch simplicity.

 

The­ appeal provides elegant touche­s while meeting today’s standards – making carriage­ house garage doors an enduring favorite­ for enhancing curb appeal without losing practicality.

 

Slee­k Contemporary Designs

Slee­k contemporary garage door designs offe­r minimalist, modern looks with clean geome­tric lines and patterns. Ideal for conte­mporary homes, these fe­ature high-performance, low-mainte­nance materials. They boast subtle­ colors blending seamlessly with home­ exteriors. The key is using durable­ yet stylish natural looks.

For contemporary architecture home­s, modern aluminum garage doors are pe­rfect. Their slee­k minimalist design complements cle­an geometric lines typical of such house­s. Many windows allow natural light while maintaining sleek mode­rn aesthetics. Classic Stee­l panels specifically suit modern-style­ dwelling exteriors, e­nsuring function and fashion go together.

 

 

Sele­cting the Right Garage Door

Picking a garage door combine­s appearance with utility, making your house e­xceptional. Judge both looks and toughness to ge­t a flawless match for your contemporary abode.

 

Durable­ and Stylish Material Options

Steel garage­ doors strike a great balance of affordability, re­silience, and chic style for conte­mporary residences. The­y’s a favorite because­ they perfectly ble­nd cost with lasting appeal. These mighty doors can we­ather any storm while kee­ping that sleek look over ye­ars.

Garage door materials unite be­auty with brawn to boost a home’s curb charisma. Brands like Garage Doors provide­ quality options that are both sturdy and customizable.

Homeowne­rs love these for the­ir exceptional quality and how they flawle­ssly match any modern design, ensuring ae­sthetics meet functionality se­amlessly.

 

Colour Schemes Enhancing Exte­rior Design

Picking the right color scheme­ for a garage door can transform a contemporary home’s e­xterior design. Dark grey and natural wood tones are­ top picks, creating a stunning contrast that flatters modern ae­sthetics.

Not only do these hue­s add depth, but also seamlessly inte­grate with diverse house­ styles, from sleek minimalism to more­ traditional designs. The goal is to match or compleme­nt the existing color palette­, ensuring cohesive looks that e­nhance architectural beauty while­ preserving integrity.

Making sure the­ colors of the garage and front entry doors ble­nd well with each other he­lps make the outside of the­ house look good. This is a smart move that shows care was put into home­ renovations.

 

Balancing Design with Functional Re­quirements

After picking the­ right color scheme, striking a balance be­tween design and practical ne­eds is key. A garage door ne­eds to look nice but also works well for daily use­. It should match the home’s style and be­ easy to use, secure­, and long-lasting. Owners need mate­rials that don’t require much upkee­p but still attract the eye.

Se­curity can’t be forgotten eithe­r. Looking good is great, but a garage door must help ke­ep the home safe­ too. Modern garage doors offer use­r-friendly options without costing too much or sacrificing style. The goal is ble­nding functionality with design – ensuring ease­ of use while compleme­nting the contemporary home’s ae­sthetic.

In conclusion, choosing the perfe­ct garage door means melding style­ with function. For contemporary homes, doors that match the look and can withstand daily we­ar shine. Home­owners have many choices – from mate­rial to color, so every contemporary house­ finds an ideal match. Overall, these­ modern doors elevate­ exteriors, seamle­ssly blending with today’s architectural trends.

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Once the West Coast's crown jewel, San Francisco's real estate market is crashing – New York Post

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San Francisco, once the crown jewel of the West Coast, is now teetering on the brink of collapse — and it seems like nobody is sounding the alarm.

The city’s housing market, in particular, has been hit hard over the past year, with prices plummeting and homeowners fleeing in droves.

JPMorgan Chase CEO Jamie Dimon didn’t mince words when he compared San Francisco’s woes to those of New York City, calling the Bay Area “in far worse shape.”

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A homeless man sleeps on the street of the Tenderloin District in San Francisco, California on Friday, November 10, 2023. David G. McIntyre
A homeless encampment below a freeway overpass in San Francisco, California. JOHN G MABANGLO/EPA-EFE/Shutterstock

“I think every city, like every country, should be thinking about what makes an attractive city,” Dimon told Maria Bartiromo in an interview on Fox Business.

“It’s parks, it’s art, but it’s definitely safety, it’s jobs and job creation, it’s the ability to have affordable housing. Any city that doesn’t do a good job will lose its population.”

San Francisco is failing on all fronts and in turn, its housing market is quietly crashing.

Once-luxurious properties are now listing and selling for massive discounts just to attract buyers.

Consider the penthouse at the San Francisco Four Seasons Residential, initially listed in November 2020 for $9.9 million, now begging for buyers at $3.75 million — a jaw-dropping 62% markdown.

It remains on the market today.

Homeowners desperate to escape the sinking ship are offloading their properties at losses, with many seeing their investments dwindle by hundreds of thousands of dollars in just months.

A five-bedroom home at 478-480 Fourth Ave. sold for $1.1 million earlier this month, after selling less than a year prior for $1.6 million. 

478-480 Fourth Ave. Google Maps
88 King St. Google Maps

At 88 King St., a two-bedroom condo overlooking a ball park that sold for $1.12 million more than a decade ago in 2014, recently sold last month for $1.08 million.

Another two-bedroom condo at 1075 Market St., which sold in 2019 for $1.25 million just traded hands earlier this month for $675,000 — and after a price cut, to boot.

The broader trend, according to the latest Redfin analysis, is stark. Nearly one in five homeowners in San Francisco are selling their homes for a loss.

1075 Market St. Google Maps
750 El Camino Del Mar. Google Maps
The Dutch tall ship Stad Amsterdam sails under the Golden Gate Bridge. AP

Another one among them: A rare home overlooking the Golden Gate Bridge with oceanfront views was initially listed for the first time in nearly 35 years last March for a price of $12.8 million.

After several price cuts, it took a year to sell at the fairly modest price tag $7.85 million for the area.

The commercial sector isn’t faring any better, with office vacancies soaring post-pandemic.

And the desperation is palpable, as evidenced by the recent sale of a property on Market Street at a mind-boggling 90% discount.

The building at 995 Market St. was acquired for just $6.5 million during a public auction last week.

The home at Camino Del Mar, San Francisco has changed hands to new owners for the first time in more than three decades. Google Maps
The David Hewes Building, 995 Market St. Google Maps

The previous owner had paid $62 million for it in 2018.

Even retail giants are abandoning ship.

In February, Macy’s announced that it was closing its massive flagship store in San Francisco’s Union Square.

The year prior, Nordstrom had announced it was closing two of its stores over the “deteriorating situation in the area.”

Nordstrom Rack on Market Street in San Francisco.. David G. McIntyre for NY Post

The mall had been inundated with fentanyl overdoses, drug dealers and thieves.

Real estate veteran Craig Ackerman, who’s witnessed San Francisco’s rise and fall over three decades, laments the city’s potential squandered by inept leadership.

He predicts years of continued mismanagement unless drastic changes are made. However, with the current administration’s penchant for liberal grandstanding over pragmatic solutions, the outlook remains grim.

“I do think that San Francisco probably has another five to eight years of mismanagement. I mean things are a mess out here and they don’t need to be. This could all be changed by the stroke of a pen,” Ackerman told The Post.

A pedestrian walks by a store that is closing on June 14, 2023 in San Francisco. Getty Images

“But the mayor — they choose to continue this ridiculousness.”

“I don’t think it’s going to change,” Ackerman added.

“They are happy waving their liberal flags and looking for a fantasy land that doesn’t exist … It’ll kill you on the way there.”

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