1
00:00:03,160 --> 00:00:06,519
Speaker 1: Global business news twenty four hours a day at Bloomberg

2
00:00:06,600 --> 00:00:09,640
Speaker 1: dot Com, the Radio plus Mobile Lab and on your radio.

3
00:00:09,960 --> 00:00:13,960
Speaker 1: This is a Bloomberg Business Flight from Bloomberg World Headquarters.

4
00:00:14,000 --> 00:00:17,119
Speaker 1: I'm Charlie Pellett, the DAL, the SMP, NZ DAK all

5
00:00:17,200 --> 00:00:20,439
Speaker 1: advancing on this Friday, and this update is brought to

6
00:00:20,440 --> 00:00:24,560
Speaker 1: you today by Bentley University. What do rebooting America's oldest

7
00:00:24,600 --> 00:00:27,360
Speaker 1: ski shop and crunching numbers at Vista Print have in common?

8
00:00:27,640 --> 00:00:31,400
Speaker 1: An MBA from Bentley University that prepares graduates to innovate

9
00:00:31,440 --> 00:00:36,320
Speaker 1: and lead because business is everywhere. Prepare here. The SMP

10
00:00:36,479 --> 00:00:39,239
Speaker 1: five hundred index up twelve to two thousand and fifty two,

11
00:00:39,280 --> 00:00:42,000
Speaker 1: a gain of six tenths of one percent. Naz Stack

12
00:00:42,080 --> 00:00:44,560
Speaker 1: up fifty seven, a gain of one point two percent.

13
00:00:44,920 --> 00:00:48,000
Speaker 1: Down Industrial is up sixty five, a gain of four

14
00:00:48,040 --> 00:00:50,599
Speaker 1: tenths of one percent. The yield on the ten year

15
00:00:50,680 --> 00:00:53,440
Speaker 1: one point eight four percent. Gold down a dollar forty

16
00:00:53,479 --> 00:00:56,560
Speaker 1: leounced to twelve fifty three, a drop of point one percent.

17
00:00:57,080 --> 00:00:59,920
Speaker 1: The latest stowned the situation at the White House today,

18
00:01:00,440 --> 00:01:03,880
Speaker 1: NBC reporting on Twitter that the lockdown has been lifted

19
00:01:04,000 --> 00:01:07,280
Speaker 1: following a shooting incident. A man shot near the White

20
00:01:07,280 --> 00:01:09,520
Speaker 1: House had a gun and one shot by officers. That's

21
00:01:09,520 --> 00:01:14,199
Speaker 1: according to a witness who told that to NBC News. Again,

22
00:01:14,280 --> 00:01:17,560
Speaker 1: recapping an advance for stocks today, SMP up twelve, a

23
00:01:17,640 --> 00:01:20,680
Speaker 1: gain of points six percent. I'm Charlie Padlock. That's a

24
00:01:20,680 --> 00:01:27,200
Speaker 1: Bloomberg Business flash. This is taking stock with Kathleen Hayes

25
00:01:27,280 --> 00:01:30,840
Speaker 1: and Pim Fox on Bloomberg Radio. In the world of

26
00:01:30,880 --> 00:01:35,520
Speaker 1: residential real estate, when you use the phrase million dollar listing,

27
00:01:35,880 --> 00:01:41,160
Speaker 1: it conjures up images of ultra wealthy house hunters looking

28
00:01:41,200 --> 00:01:44,200
Speaker 1: for those mansions. Well, that may not be the case

29
00:01:44,280 --> 00:01:48,600
Speaker 1: any longer today, truly. The real estate site released a

30
00:01:48,720 --> 00:01:51,920
Speaker 1: report ranking the metro areas in the United States that

31
00:01:52,000 --> 00:01:55,720
Speaker 1: have had the largest increases in the share of million

32
00:01:55,800 --> 00:01:59,440
Speaker 1: dollar homes since twenty twelve. Here to tell us more

33
00:01:59,520 --> 00:02:02,680
Speaker 1: is Ralph McLaughlin. He is the chief economist for Trulia

34
00:02:03,200 --> 00:02:07,080
Speaker 1: dot com. Ralph tell us the results of this study

35
00:02:07,240 --> 00:02:11,600
Speaker 1: and why it may surprise just about everyone. Well, we

36
00:02:11,720 --> 00:02:14,840
Speaker 1: found that the metro's that had the biggest increase in

37
00:02:14,880 --> 00:02:17,079
Speaker 1: the share a million dollar homes were right here in

38
00:02:17,120 --> 00:02:19,640
Speaker 1: the Bay Area, in my own own backyard. In fact,

39
00:02:19,720 --> 00:02:25,320
Speaker 1: the top three or here San Francisco, San Jose in Oakland. Uh,

40
00:02:25,360 --> 00:02:29,000
Speaker 1: San Francisco has just game busters. Um. Four years ago

41
00:02:29,080 --> 00:02:31,960
Speaker 1: only about homes were at the million dollar mark, and

42
00:02:32,000 --> 00:02:35,000
Speaker 1: now it's close to sixties. So it's so it's tripled down.

43
00:02:35,080 --> 00:02:38,760
Speaker 1: In Silicon Valley and Sutose a similar story from about

44
00:02:38,800 --> 00:02:44,520
Speaker 1: six percent, so really big increases. Most of the metros

45
00:02:44,520 --> 00:02:46,520
Speaker 1: that have seen the biggest increase in million dollar homes

46
00:02:46,560 --> 00:02:50,120
Speaker 1: from the West, but New York makes a list at

47
00:02:50,200 --> 00:02:55,840
Speaker 1: number eight, growing very modestly from about seven. So that's

48
00:02:56,120 --> 00:02:58,440
Speaker 1: that was kind of surprised to see how many were

49
00:02:58,880 --> 00:03:02,400
Speaker 1: out here in the West as opposed to in the northeast.

50
00:03:02,520 --> 00:03:05,240
Speaker 1: Chris Ralph, what's interesting about these million dollar homes is

51
00:03:05,280 --> 00:03:06,960
Speaker 1: that it's a It may be a big part of

52
00:03:06,960 --> 00:03:09,160
Speaker 1: what's in San Francisco now, but it's a very small

53
00:03:09,240 --> 00:03:14,160
Speaker 1: portion of California overall, or even the country overall. However,

54
00:03:14,280 --> 00:03:17,240
Speaker 1: I think that's one of the issues in other experts

55
00:03:17,280 --> 00:03:19,640
Speaker 1: we've talked to is the issue for California is so

56
00:03:19,680 --> 00:03:22,720
Speaker 1: many Californians are being priced out of the housing market

57
00:03:22,760 --> 00:03:25,840
Speaker 1: because prices have risen so much. Maybe not to a

58
00:03:25,880 --> 00:03:27,480
Speaker 1: million dollars, but a home that used to be to

59
00:03:27,639 --> 00:03:31,040
Speaker 1: fifty might be five thousand, etcetera. We got the existing

60
00:03:31,040 --> 00:03:33,400
Speaker 1: home sales report today in April they were up one

61
00:03:33,400 --> 00:03:36,600
Speaker 1: point seven about five and a half million units at

62
00:03:36,600 --> 00:03:39,560
Speaker 1: an annual rate. Our rising home price is going to

63
00:03:39,600 --> 00:03:42,640
Speaker 1: slow that down. What do you see broadly? Yeah, well,

64
00:03:42,640 --> 00:03:45,280
Speaker 1: we think low inventory is really you know, slowly slowing

65
00:03:45,280 --> 00:03:47,600
Speaker 1: me down the sales. And part of that liw inmentary

66
00:03:47,640 --> 00:03:51,280
Speaker 1: is because in many markets prices are growing growing out

67
00:03:51,280 --> 00:03:53,520
Speaker 1: of reach, especially growing out of reach of a middle

68
00:03:53,520 --> 00:03:56,320
Speaker 1: class buyers. So you know, for example, you know, in

69
00:03:56,360 --> 00:03:59,440
Speaker 1: the in the northeast New York, Boston, you know, um,

70
00:04:00,400 --> 00:04:02,160
Speaker 1: a middle class buyer would have to spend you know,

71
00:04:02,200 --> 00:04:05,880
Speaker 1: about the income on a home out here, it's as

72
00:04:05,960 --> 00:04:08,960
Speaker 1: high as fifty to six. So we think that that's

73
00:04:09,000 --> 00:04:11,480
Speaker 1: going down. But but I think the uh, you know,

74
00:04:11,520 --> 00:04:14,720
Speaker 1: the the other issue is, um, you know, with with

75
00:04:14,840 --> 00:04:17,480
Speaker 1: inventory being so low, it kind of creates a grim

76
00:04:17,520 --> 00:04:20,600
Speaker 1: block effect that if it's difficult for someone to move

77
00:04:20,600 --> 00:04:23,240
Speaker 1: into a different house because it's too expensive, they're not

78
00:04:23,240 --> 00:04:25,200
Speaker 1: going to sell their own house, and so it creates

79
00:04:25,240 --> 00:04:27,880
Speaker 1: this traffic jam so to speak, in the market where

80
00:04:27,880 --> 00:04:30,320
Speaker 1: it's difficult for people to trade. And the fact that

81
00:04:30,560 --> 00:04:33,279
Speaker 1: at this stage in the economic cycle. You know, you

82
00:04:33,279 --> 00:04:35,640
Speaker 1: would expect home sales to be you know, a little

83
00:04:35,680 --> 00:04:38,920
Speaker 1: little bit higher, probably over the you know, the six

84
00:04:39,040 --> 00:04:43,240
Speaker 1: million mark Ralph You're in San Francisco, so that's home

85
00:04:43,279 --> 00:04:47,080
Speaker 1: to Bloomberg and nine sixty am. You mentioned Boston home

86
00:04:47,160 --> 00:04:53,120
Speaker 1: to a m New York. You looked at the concentration

87
00:04:53,160 --> 00:04:58,720
Speaker 1: to five neighborhoods that witnessed a great increase tell us where. Yeah,

88
00:04:58,800 --> 00:05:02,320
Speaker 1: so Brooklyn is the place to be if you're looking

89
00:05:02,400 --> 00:05:07,000
Speaker 1: for recent million dollar homes. I was very surprised how

90
00:05:07,040 --> 00:05:10,440
Speaker 1: concentrated it was in the New York metropolitan area, and

91
00:05:10,520 --> 00:05:13,200
Speaker 1: many of the other markets we looked at neighborhoods were

92
00:05:13,240 --> 00:05:15,600
Speaker 1: quite spread out. As far as those that had the

93
00:05:15,600 --> 00:05:17,919
Speaker 1: biggest increase in million dollar homes in New York, it

94
00:05:18,080 --> 00:05:21,919
Speaker 1: was exclusively in Brooklyn. In fact, if we look, you know,

95
00:05:21,960 --> 00:05:25,719
Speaker 1: look at the top top five neighborhoods, Bedsty, Greenwood, Crown Heights,

96
00:05:25,800 --> 00:05:29,480
Speaker 1: green Point, Burropark All Brooklyn all increased pretty pretty quickly.

97
00:05:29,800 --> 00:05:32,320
Speaker 1: You know, for example, Crown Heights went from about three

98
00:05:33,279 --> 00:05:37,480
Speaker 1: of homes at the million dollar market tow over half today.

99
00:05:37,560 --> 00:05:39,880
Speaker 1: So that that is a remarkable increase in more than

100
00:05:40,240 --> 00:05:43,200
Speaker 1: you know, just just what general health of the economy

101
00:05:43,240 --> 00:05:45,440
Speaker 1: would would would suggest. But you know, for people who

102
00:05:45,440 --> 00:05:47,000
Speaker 1: can afford to buy a million dollars homes, if you

103
00:05:47,040 --> 00:05:49,120
Speaker 1: look at San Francisco, Santa Say, you've got people who

104
00:05:49,160 --> 00:05:52,080
Speaker 1: work in the in the tech industry, right. Uh, if

105
00:05:52,120 --> 00:05:54,640
Speaker 1: you can have afford to buy a million dollar plus home,

106
00:05:54,800 --> 00:05:56,800
Speaker 1: how much does it matter to you what the prices?

107
00:05:57,400 --> 00:06:00,120
Speaker 1: Does it? Even does financing? Does a mortgage rate ed

108
00:06:00,240 --> 00:06:03,760
Speaker 1: to you at all? Because at that level, you've got

109
00:06:03,760 --> 00:06:05,280
Speaker 1: a lot of means. If you can afford to buy

110
00:06:05,279 --> 00:06:08,000
Speaker 1: a home at that price or higher, yeah, well you're

111
00:06:08,160 --> 00:06:11,159
Speaker 1: you're certainly certainly right. So for most persons who have

112
00:06:11,200 --> 00:06:13,880
Speaker 1: a healthy salary in the tech industry, it's not really

113
00:06:13,920 --> 00:06:16,280
Speaker 1: that much of a problem. But you know, only seven

114
00:06:17,279 --> 00:06:20,039
Speaker 1: of our workforces in the tech economy, so there are

115
00:06:20,080 --> 00:06:22,599
Speaker 1: a lot of others that that don't work and many

116
00:06:22,640 --> 00:06:25,320
Speaker 1: of them and we think are being impacted by by

117
00:06:25,480 --> 00:06:28,160
Speaker 1: rising rising prices, And it wasn't making it difficult for

118
00:06:28,200 --> 00:06:30,760
Speaker 1: them to get into homes, especially first time home buyers

119
00:06:31,200 --> 00:06:34,839
Speaker 1: because oftentimes that that first time HomeBuyer price point means

120
00:06:34,880 --> 00:06:36,679
Speaker 1: that in order to save up for that down payment,

121
00:06:36,720 --> 00:06:39,080
Speaker 1: which could be you know, a hundred thousand dollars or so,

122
00:06:39,560 --> 00:06:43,760
Speaker 1: um you know, could could take ten, twelve, fifteen years, Robod,

123
00:06:43,800 --> 00:06:45,159
Speaker 1: if you could just tell us a little bit quickly

124
00:06:45,200 --> 00:06:48,880
Speaker 1: about Miami. Yeah, so, so Miami actually didn't make the

125
00:06:48,920 --> 00:06:51,560
Speaker 1: top ten. It was it was close. Uh, you know,

126
00:06:51,600 --> 00:06:55,279
Speaker 1: Miami saw many many neighborhoods um you know, increasing pretty quickly,

127
00:06:55,360 --> 00:07:00,040
Speaker 1: especially in the Fort Wauterdale area, navarea Isle. Uh. You know,

128
00:07:00,360 --> 00:07:04,360
Speaker 1: nearly all homes now are about a million dollar mark,

129
00:07:04,400 --> 00:07:07,160
Speaker 1: whereas four years ago only about half. But we also

130
00:07:07,160 --> 00:07:10,800
Speaker 1: see pretty high concentrations in the downtown Miami and just

131
00:07:10,920 --> 00:07:13,720
Speaker 1: outside downtown. We think some of that is actually driven

132
00:07:13,760 --> 00:07:18,160
Speaker 1: by recent luxury condo development, um you know, of which

133
00:07:18,240 --> 00:07:21,640
Speaker 1: is you know, attracting a noticeable share of actually foreign investors.

134
00:07:22,080 --> 00:07:23,880
Speaker 1: How don't you want to hear about Seattle? Depressed me

135
00:07:23,920 --> 00:07:26,400
Speaker 1: too much? Ralph McLaughlin, thank you for joining us chief

136
00:07:26,400 --> 00:07:30,600
Speaker 1: economist at Trullia dot com. Million dollar homes becoming a

137
00:07:30,640 --> 00:07:33,640
Speaker 1: lot more commonplace across the country. I'm Cathleen's along with

138
00:07:33,680 --> 00:07:35,880
Speaker 1: Pim Fox, thank you for joining us today. Let's thank

139
00:07:35,960 --> 00:07:40,040
Speaker 1: Reggie Basil, our technical director, and our producer Samara Linga.

140
00:07:40,400 --> 00:07:48,240
Speaker 1: This is Bloomberg Radio coming up? Bloomberg Law. It's brought

141
00:07:48,280 --> 00:07:50,600
Speaker 1: to you by Deutschatkins PC. If you feel you've been

142
00:07:50,640 --> 00:07:53,200
Speaker 1: unlawfully terminated, you all it's yourself to call the law

143
00:07:53,240 --> 00:07:55,800
Speaker 1: firm of Deutsch Atkins Now. For a free phone consultation,

144
00:07:55,880 --> 00:07:56,760
Speaker 1: call eight hundred