March 28, 2018

1. Jaguar HQ will stay in Mahwah, NJ 

  • Jaguar Land Rover North America celebrated new HQ in Mahwah off RT 17 - 144,000 SF (Former Sharp location)
  • $30 Million investment: Show room plus 30,000 SF for research center, training and development center – 360 employees
  • One time, moving out considered → decided to stay with offer for 10 year, $28 Million tax break in 2015
  • They were located in MacArthur Boulevard, 5 miles away
  • Mercedes-Benz moved to Atlanta along with about 1000 jobs recently
  • Jaguar has a total of 232 facilities in North America

2. NJ Towns (Heavily Korean populated) Property tax increased 

  • Palisades Park: 2.5% , Ridgefield: 3.3%, Fort Lee: 1.5% increase
  • Palisades Park $29.78 town education budget introduced
  • Murphy Governor announced $9.6 Billion budget ($283 Million increased) for shortage of education budget for each town Still each town needs more budget for teacher’s salary
  • Ridgefield will receive $2.73 Million from the State Still Tax increase is unavoidable

3. New York City, 1 out of 10 Apartments Vacant 

  • According to 2017 Census, 11% (237,977 units) of total apartment units Vacant
  • 35% Up, compared to 2014
  • Among vacant units, 28,000 units No tenant yet / 8000 units Under development / 9,600 units → Under litigation / 12,700 units Tenant (Senior) went Nursing homes / About 100,000 units Pieds-a-terre (Visitor use) / 27,009 units Without specific reason ( Possibly Airbnb, etc.: hard to get statistics)   

4. This Year, First Home Buyer? 

  • 2018 for FHB is not so bright ← Tax reform, Interest rate increase, Low inventory
  • Low inventory/High demand Pushing house price upward
  • January inventory increase to 1.52 Million 4.1% Up, compare to last month (Lower than last year by 9.5%)
  • According to NAR chief economist Lawrence Yun, Wall street investors buy low / middle priced houses and converted to rental properties Partial reason for low inventory
  • Also seller does not lower house price Low/middle price houses: 5-6% higher than expectation
  • SALT deduction limit to $10,000 Not so good effect to NY / NJ high taxed houses

5. Home prices post 6.2% gain 

  • Case-Shiller index climbed to 6.2% in Jan from a year ago (December, 6.3%)
  • Main reason: Low inventory and price surge will continue and tough competition
  • Strong economy boost influx of younger millennials to shop for home anyway
  • Price rose 12.9% in Seattle. 11.1% in Las Vegas, 10.2% in San Francisco
  • Chicago, Washington DC posted 2.4%
  • Average consumption rate of inventory shortened to 3.4 Months from 6 month since 2000

6. Mortgage program with no income verification become popular 

  • 'Stated Income Mortgage'
  • Interest rate difference becomes minimum (About 0.25% higher) and Credit Score condition is less important (640 or higher)
  • Last year: 1 out of 10 applicants This year: 3 out of 10 applicants
  • Self-employee More than 2 years business (2 year financial statement instead of income doc)
  • Mortgage industry foresees bright future in Real Estate market

7. 1st Year of Trump era Korean immigrants reduced under 20,000 

  • 19,284 New Green card issued in2017 5 Down, compared to last year
  • 2000 15,107 / 2004 19,441 / 2005 26,562 / 2006 24,386 / 2008 26,666 (Peak)
  • 2015 17,138 / 2016 21,801
  • In 2017, 14,356 Green card while they are in US / 4,298 Applied in Korea
  • 32 got Green card, escaped from North Korea / 12 got Green card as refugee
  • Total 1,128,194 Green card 4.7% Down, compared to last year

8. Tesla Model X got accident on California Highway and killed the driver 

  • On 3/27, Model X hit the divider and collided with 2 cars The driver was killed
  • Authority said it is not sure the car was with driverless mode or not at this moment

9. G2(US and China) Trade War affects US Stock market last week 

  • Worry about beginning of G2 War Dow Index dropped by 424.69 (1.77%) to 23,533.20 (Total 1,150 dropped including 724 points drop at the Trump’s signing executive order: Tariff Package)
  • S &P 500 index dropped 55.43 (2.10%) to 2,588.26
  • Nasdaq index dropped by 174.01(2.43%) to 6,992.67
  • On 3/26, Worry on G2 War is being easy due to G2 Negotiation
  • Dow index finished to 24,202.60 / S&P 500 finished to 2,658.55
  • Nasdaq finished to 7,220.54

10. New York City, lowest unemployment rate ever 

  • Last month, UE rate to 4.2% (NY State: 4.6%) Lowest since July 2007 (6 month before financial crises)
  • Jan 2018 3% ( NY State: 4.7%)
  • NYC increased 28,700 jobs in civilian sector in February  Total employment: 8,151,000
  • US nationwide UE rate → 4.1%