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Weekly News (August 15, 2018)

1. School districts joining plan might affect Northern Bergen County schools

  • Tenafly operates elementary, middle, high schools
  • Closter, Demarest, Old Tappan have only elementary and middle schools. High school go to NVRH
  • Stephen Sweeney (President of NJ Senate) proposed the plan that those towns with elementary and middle will be joined/merged→ 600 schools become 278, including Korean populated towns (Possible 10 towns where Korean students are over 10%)
  • Motives: high tax (NJ averag tax: $8670), may small schools less than 250 students→ less teachers, less operating expenses
  • Administrator: average $122,500 / teacher: average $74,000)
  • Possible joining towns: Allendale, Alpine, Closter, Demarest, Edgewater, Englewood Cliffs, Harrington Park, Hillsdale, Norwood, Oradell, River Edge

2. H Mart will open it’s store at NYU Alumni Hall 

  • 39 3rd Ave. (on 3rd Ave. between 9th Ave. and 10th Ave.)
  • Size: 3800sf→ 3rd store in Manhattan
  • 1st store : in K town / 2nd store at 2828 Broadway

3. House price is soaring for consecutive 14 months

  • According to Core Logic, as of June, 6.8% up from last year→ fastest pace since May 2014 considering yearly rate
  • 14 consecutive month raise→ not cooling down, but ever more rising
  • This phenomena might intimidate younger people→ might shrink entire RE market
  • Housing price increasing is more than 2 times faster than income increasing
  • Core Logic forecasted 5.1% increase for next 12 months
  • According to Case-Shiller big 20 city index, 6.6% up in April→ 5% up at the end of May
  • According to Zillow, house of which median price over $1M→ twice for last 5 years (total 197 towns and 33 joined last year)→ Zillow forecasted 23 towns will be added to the list for next 12 months

4. 1 out of 10 houses with mortgage in US are underwater 

  • According to Atom Data Solution, 24.5%(13.6M) of mortgaged houses have fair equity (fair equity means mortgage balance is under 50% of the current market price)
  • 5% (5.5M) of mortgaged house are underwater
  • In California, 43.5% have fair equity. Hawaii:38.3%.  NY:33.2%  OR:32.8%
  • San Jose: 71.9%, San Francisco: 60.8%, LA:47.9%, Seattle:41.1%, San Diego:40%
  • House price increase→ home equity increase→ underwater house decreased→ more houses pay mortgage

5. Household debt is being increased under economic boom

  • Many household are not able to pay credit card debt and increasing debt, or default
  • BOA and Chase’s defaulted credit card balance is up by 10%, 9% respectively from last year (subprime people’s debt increased by 26%)
  • According to Lendingtree.com, revolving debt→ $16.25B in May→ highest since 1995
  • Total debt including home mortgage→ $3.86T → will become $4T this year

6. Town name might reveal that the town is rich town or not

  • Research work done→ ending with “hills” are most rich towns
  • Houses on Mountain hills, top of hills, ocean view, lake view are most expensive
  • Likewise, “island”, “oaks” “acres” “beach” “Harbor” are selected for rich towns
  • Also “highland” “canyon” “forest”  “bay” are rich towns
  • Towns with hills→ income: $89,976
  • The other hand, “Los” at the end→ income: $29,757
  • “University” “Springs” “Las” “White” “Little”→ average income: $42,000
  • “Red” “Vista” “Union” “City”→ $40,000 range
  • May not absolute, but some indication to refer

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Stephen Lee

He has been in Real Estate industry in about 20 years and has been Broker of Record for 9 years. His experience includes residential, commercial, and property management. Prior to involving with Real Estate business, he has been involved in the digital communication equipment industry utilizing his engineering background and education, including running own company. He has established C Land Realty in 2011 which has grown to staffing over 100 Real Estate agents and the annual transaction amount of over $110,000,000 today.

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