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Weekly News (July 12, 2017)

1. Palisades Park, NJ issued more ticket for BYOB violation 

  • BYOB allows between noon and midnight → Not realistic for business
  • Police checks around 3:00am and issues tickets ($1000 first offense → doubles for 2nd offense)
  • Extension law was proposed, but it was not implemented by the influence of the late Michael Pollotta

2. New Luxury Condo will come to Korea town in Manhattan

  • At the Corner of 5th Ave and 32th St (316 5th Ave)
  • 40 stories/ 539 FT high/ 1st ~ 3rd FL →Retail space / from 8th FL → Condo
  • Amenity: Bicycle storage, Gyms, Library, etc.

3. ‘The Woo’ luxury Korean restaurant will come back in Manhattan SOHO 

  • ‘WooRaeOk’ was closed since 2011
  • Will open this Fall as The Woo at 206 Spring St (used to be Italian restaurant)
  • 7500 SF / 1, 2 & 3 floor and basement / 250 seats
  • ‘WooRaeOk’ opened in Midtown from 1974 → moved to SOHO in1999

4. Traffic Infrastructure will bring many of new buyers/renters in North New Jersey

  • Governor Christie’s cardinal sin → Cancellation of ARC project (Access to the Region’s Core)1) ARC was an $8.7 Billion project: Gateway project’s predecessor → new tracks (x2) under the Hudson River and new station to the ailing Penn Station
    2) Pen Station repairs: The way we manage all of this will play a major role in whether you can sustain real estate values in and around New York City
    3) Port Authority Bus Terminal: Terminal expansion will ease the growing congestion (Creation of a new station could cost $10 Billion)
    4) Hudson-Bergen Light Rail expansion ($1 Billion): Most immediate Impact on real estate market – Existing H-B line increased housing values in Hudson Co → Staggering development in Hoboken, Jersey City, Weehawken, etc.
    5) PATH train expansion: The bistate commission authorized $57 Million in spending on extension of PATH train to Newark International Airport ($1.7 Billion)
    6) 7 line extension into Secaucus: can reduce significant long-term bus terminal demand → would accommodate daily

5. AMAZON will open a warehouse in Edison this winter

  • Between Route 27 and Vineyard Rd  (Former Frigidaire factory) → 900,000 SF
  • This site was vacant for last 10 years
  • More than 1000 jobs will be created  (So far, more than 13,000 job in NJ)
  • Also warehouse is planned in Logan(1 Million SF) and Cranberry (90,000 sf)
  • AMAZON donated 300 e-books to libraries in Edison, Carteret, Woodbridge, Florence
  • AMAZON announced new service to install smart home appliances → Competing ‘Geek Squad’ by BestBuy → BestBuy stock dropped 6.3% (Lost $1 Billion)

6. San Francisco is most difficult to buy a house in US

  • According to NAR, To buy a house → Over $161,110 income → #1 in 27 big cities in US
  • San Diego: #2, Over $111,666
  • Los Angeles: #3, Over $98,542
  • New York: #4, Over $95,729
  • Pittsburg: Lowest, Over $31,508
  • US in general (1 QT 2017), Need $52,969 income for medina house price: $232,100

7. US Economy is doing better than forecast

  • 1 QT GDP → 4% Growth (Forecast 1.2%): 4 QT in 2016 → 2.1%
  • 70% (Consumer spending / Export) of GDP → doing better.
  • Consumer spending → 1% Growth (Forecast: 0.6%)
  • Export → 7% Growth (Forecast: 5.8%)
  • Federal Reserve Bank (Atlanta) forecasted 2.9% Growth for 2 QT

8. US Dollars becomes weakest in last 6 years

  • First half in 2017, US $ value dropped 5.6%, according to WSJ → Biggest drop since 2011
  • Right after election, US$ value soared → Now it becomes very weak
  • Reasons: 1) US economy growth will be slower than Europe and other nations
    2) More investment to Euro $ / Canadian dollars (ECB and Canadian Central Bank announced they will reduce Quantitative Easing policy)
    3)Weak action for Trump’s infra-investment plan

9. Not any more ‘20% down’ requirement for buying homes

  • According to NAR, Only 54% of buyers for last 5 years out down 20%
  • For FHB, Over 70% paid less than 20% (Over 60% paid less than 6%)
  • Still many buyers think they have to do down 20% → 13% of under 34 years old know about 5% down required
  • Many banks changed their position (CEO of BOA announced 10% down program at CNBC interview recently)

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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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