March 21, 2018

1. Best Seller market in Flushing, NY 

  • According to StreetEasy, Flushing is best Seller market among 10 seller market in NY
  • Flushing → Wood heaven Kew Gardens Prospect Heights Flatbush Glendale…
  • 65 days to close (Flushing area: 52 days to close)
  • Definition of seller market: Sold at full listing price and low inventory
  • Median price went up to $822,500 from 742,000 last year
  • Buyer Market: Manhattan Midtown ( #1), Central Park South, Midtown South, Brooklyn Dumbo, Manhattan Tribeca, SoHo

2. Innovation Hub plan in New Brunswick, NJ                    

  • Governor, Murphy announced the plan on 3/19 for 12 AC innovation technology complex in New Brunswick
  • Focus on Innovation and new start-up companies for synergy between the State’s future growth and employment growth

3. Waldorf Astoria Hotel becomes Condo partially 

  • Among 1413 rooms, 352 room will be converted to condo units (14th FL ~  43rd FL)
  • Development plan and permit submitted to DOB by new owner, AnBang Insurance
  • Established hotel in 1931. Purchased by AnBang at $1.95 Billion two years ago. Closed in 2017, Mar for Re-construction for 3 years

4. Federal Ref Rate might be raised for almost sure  

  • FOMC is being held on 20th and 21st
  • Market foresees 2.5% raise in March as a fact with 99% probability
  • 3 time raise might become 4 time raise this year
  • New Rate 1.5% ~ 1.75% will affect Korean economy (1.5% in Korea ) Funds will move to US, looking for higher IR
  • US Rate is higher than Korea Rate 1st time since 2007

5. Uber’s experimental Driverless test drive killed a pedestrian 

  • On 3/18 in Arizona, Temp 1st victim by driverless car
  • Uber announced immediately they will stop the driverless drive test
  • Uber was testing in Pittsburg, San Francisco, and Canada

6. New Idea: Loan for Apartment security deposit money

  • 'NeighborWorks America' is testing this loan in Montana state
  • Up to $1000 loan for 3 years with 5% Interest rate, with no prepaid penalty 
  • The company hopes they can increase loan amount and loan period
  • Their idea was security deposit is burdensome even though tenant can pay rent
  • Equally or more important than auto loan and mortgage loan

7. House price went over to peak price in 2006 in 172 metropolitan area 

  • In February, US median price: $285,7000 8% Up, compared to last year
  • Biggest jump for last 4 years Continuous increase for 72 months  
  • 6.3% higher than the peak time in July, 2006 (46% Up from Feb, 2012)
  • # of sales is still low  Sold in Feb 166,000: 0.4% Up Still lower than Average
  • Inventory in February: 607,800 4% Down, compared to last year
  • Interest rate increase is not affecting housing transactions yet
  • According to Redfin, median price in San Jose: $1.18 Million → 34.1% Up, compared to last year. Detroit went up by 19.8%
  • In February, Average DOM: 53 and 21.1% of Sold price is higher than listing price

8. 3D Printer built a house in a day in Texas Feasible to solve housing problem?

  • The company “ICON” in Austin, TX built 350 S circular shape model house.
  • 1st legally permitted house in US by 3D printer (Vulcan).
  • Technology to accumulate many 2 dimensional layers
  • Equipped with bed room, living room, bath room, foyer, porch
  • Cost: About $10,000 Possibly can be reduced to $4000 in about 12 HR ~ 24 HR
  • ICON and New Story will build jointly 100 houses in El Salvador next year where there are many homeless people

9. Consumer prices rose 0.2% in Feb in US 

  • Inflation pressures appear still under control (In January, it rose sharp 0.5%)
  • Overall consumer prices rose 2.2% in February, compared to a year ago
  • Core prices rose 1.8% (Core prices excludes volatile food and energy category)
  • Sluggish pay increases have helped keep inflation dormant for most of the past decade.
  • Labor Department reported that inflation is slowly moving toward the Federal Reserve’s 2 percent target As a hedge against deflation, which can bring down wages as well as prices