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Weekly News (August 16, 2017)

1. Palisades Park, NJ Town Hall will move to new location

  • At 27 Fairview Street by Eminent Domain (Proposal made on 7/25)
  • Eminent Domain decision will be made on 8/22
  • 2.43 Acre Lot owned by 2 Korean → Purchased at auction at $3.94 Million in 2008 → valued at $6.5 Million 10 years ago → Town is in the process of appraisal
  • New town hall → Admin, Police station, Fire Department, Gym, etc. (Parking lot construction is under consideration)
  • Looking into synergy effect with new Hudson Bergen Light Rail station at Ruby Street

2. Commercial deals decreased in NYC?

  • According to REBNY, Commercial transaction: $18 Billion during 1st Half of 2017 → 39% Down CMT last year same period ($29.5 Billion) (Highest peak: $37 Billion in 2015)
  • In Manhattan, 46% Down
    Office building: Down by 40% ($7.3 Billion) – Though 245 Park Ave office building sold at $2.2 Billion) Multi-Family (Rental) Complex: Down by 51% ($1.9 Billion)
  • Reasons: 1) Interest rate moves up, 2) Investor’s assets reduced, 3) Market is unclear

3. New York Metro housing owing rate → 50.7% (1 renter among 2 people)

  • 2QT, Big city house owning rate is 49.8%
  • NYC Metro → 3rd from the bottom
  • White: 72% > Asian: 56.5% > Hispanic : 45.5% > Black: 42.3%
  • US Average rate: 63.7% in 2QT (0.1% Up CMT last QT, 0.8% Up CMT last year)
  • Lowest rate area is Washington DC (39.2%)
  • Highest time: 2004, 2QT and 4QT → 2%
  • Lowest time: 2016 2QT, 1964 3QT → 9%

4. Brooklyn house price is so high → no ceiling

  • 2QT residential price is up by 51% CMT last year 2 QT (In Manhattan, 15% Up)
  • Inventory lowered by 15%, but sale transaction increased
  • 23% of listings closed higher than listing price
  • Especially, new construction condo was hot → Doubled CMT to last year

5. New Jersey is #1 for foreclosure in US

  • According to Atom Day Solution, 424,800 foreclosure during the 1st Half of 2017 in US
  • Down by 20% CMT to 1st Half of 2016
  • New Jersey → 0.99% house foreclosed (US Average rate: 0.32%)
  • Delaware (0.73%) → Maryland (0.62%) → Illinois (0.55%) → Connecticut (0.50%)
  • Among big cities (Population over 200,000): Atlantic City, NJ → #1 (1.71%), Trenton, NJ → #2 (1.02%) in US.
  • Average foreclosure processing period: NJ (3.7 Year) → Indiana (3.5 Year) → New York (3.4 year) → Florida (3.3 Year)

6. Consumer price went up by 0.1% in July 

  • Market expectation was 0.2%
  • UE rate: 4.3% → lowest in 16 years
  • Federal Reserve Bank will be in dilemma (Promised to raise IR one more time this year)
  • So far, consume price went up by 1,7% for one year (July, 2016 ~ July, 2017)

7. Homes for Sale at 20 year low 

  • According to ‘Realtor.com’ survey, 59% of 1054 home owners answered they will not sell their houses next year
  • Housing shortage forced many FHB to consider smaller homes or condo as a way literally get their foot in the door
  • Nationally, there was a 4.3-month supply of homes on the market in June → down form 4.6-month a year ago (Average supply is 6 month)
  • 85% of baby boomers answered have no plan to move next year (Home owners are 78% among baby boomers: 33 Million properties)

8. Homebuilder sentiment index rose in August

  • Homebuilder are feeling more confident
  • NAHB/Wells Fargo builder sentiment index rose to 68 (64 in July)
  • In general, above 50 is good rather than poor
  • Index has been over 60 since Sep 2016

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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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