May 2, 2018

1. Palisades Park Public High School Security Guard project might be halt

  • Town selected 9 guards by Henry Lou’s (Council member) personal contact, but no objective data to prove their fitness and qualification
  • Among 9 guards selected, Mayor Rotundo’s cousin and Henry Lou’s brother included
  • 'Nepotism' should not be allowed, according to Mr. Woo (Education Committee member)
  • Tow general Admin and Education Admin should be separated

2. Queens, NY, house price continues to be strong 

  • In February, price index is $516,693 → Up by 6.5% from last year ($484,611)
  • Up by 0.5%, compared to January ($491,244)
  • Brookline, NY ($753,211) is Up by 3% from last year ($731,379)
  • Manhattan, NY ($1,164,224) is Up by 1.6% from last year

3. Alpine, NJ, Property Tax is 3rd place in the State 

  • Average tax in Alpine: $21,933 3rd highest in NJ
  • 1st highest in NJ Tavistock, Camden County: $31,415 (Population : 5 ← Reduced form 24 in 2000). Originally town was established for to play golf on Sunday in Tavistock country club
  • 2nd highest in NJ Millburn, Essex Co: $23,733
  • Tenafly ($20,434: 4th), Demarest ($19,137: 9th) were included in top 10
  • NJ Average Tax: $8,690

4. Pending home sales index decreased in March 

  • According to NAR, March pending homes sales dropped by 0.4%
  • Reason: low inventory
  • 3.0% dropped, compared to last year During last 3 months, it dropped continuously, compared to a year ago

5. Consumer expenditure increased by 0.4% in March 

  • In the beginning in 2018, PCE (Personal Consumption Expenditure) was not so good
  • January: 0.2% Up / February: 0.0%
  • Personal Income (After tax) is Up by 0.3% in March (Forecast was 0.4%)

6. 2 New Condos will be on West Side in Manhattan, NY

  • The XI (the Eleventh) between 17th St ~ 18th St on 11th Ave
  • Twine style : West Building: 36 stories / East Building: 26 stories
  • West Building 149 Condo units / East Building 87 Condo units & Hotel, 'Six Senses'
  • Amenity: 4000 SF fitness center, 75 FT swimming pool, Wine testing place, etc.
  • Pre-sale starts in May / 1BR: $2.8 Million, 2BR: $3.9 Million, 3BR: $6.5 Million / 4BR : $9 Million / Penthouse: $25 Million
  • Completion date: 4th QT in 2019

7. Korean Foreign Student decreased to lowest level for 15 years

  • F Visa / M Visa Total 67,326 First time under 70,000
  • 72,814 in 2016 5% Down
  • Highest point: 110,083 in 2008 (73,272 in 2004)
  • Order: China India  Korea: Difference from top 2 countries becomes bigger
  • Korean student STEM field Only 25%
  • New York: 10,080 / California: 14,226
  • Highest number of Foreign Students New York University: 16,960 / North Western: 14,248 / Columbia: 12,785

8. Trend: Rich people Exit from New York and California 

  • Cause: Tax deduction limit to SALT $10,000
  • Conservative Economist Arthur Laffer forecasts 800,000 rich people will move out of New York and California for next 3 years
  • Also 500,000 people will move out of New Jersey, Connecticut, Minnesota because of high income tax
  • They forecast SALT of high income earner will be increased by 8.5% 13% (Tax for higher than $10 Million income earner will increased by 50%)
  • Opposite opinion: Still rich people like New York, New Jersey, California They will not change their life style that easily
  • High tax states attract more millionaires: 119,000 millionaires moved to New Jersey after 2010 / 305,000 millionaires moved to New York / 730,000 millionaires moved to California

9. Mortgage Interest rates move Up 

  • Freddie Mac announced the rates of 4.58% for 30 year-fixed  Up by 0.11% from last week
  • Highest rates since August, 2013
  • 15 year-fixed rates (Popular for Re-Fi) : 4.02% → 0.08% Up from last week
  • 5/1 ARM rates: 3.74% → 0.07% Up from last week

10. Oil Prices move Up to close to $70.00

  • WTI price moves Up to $68.50/barrel becomes burden to US economy
  • In 2016, $26/barrel Pain in oil industry
  • US economy can bear with current price Does not hurt demand, recovery of oil industry Helps US economy
  • Gasoline price and other petroleum related product price Functions as tax
  • High oil prices Consumer prices Up Becomes pressure for Fed to move Up interests rates
  • Worry on high prices Highest level of US 10 year treasury bond yield since 2014 / Lowering stock indexes
  • Reason to high oil prices: Consumed surplus of oil supply/ increased demand steadily (Current oil price is way below than $4/Gallon in 2008)

In the near future, US becomes biggest oil producing country over Russiaà Helps US economy