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Weekly News (July 18, 2018)

1. State Government will boost support to local towns

  • River Edge will get 157% increase to $1.93M / Ridgewood will get 41.7% increase
  • Closter→7% / Tenafly→36.6% / Palisades Park will get only 3.1% increase
  • Ridgefield→2% decrease / Leonia→1.2% decrease
  • Overall, State will increase 4.3% support to $8.5B for 577 school districts
  • Intension is to reduce property tax increase, but opinion is that the support level is not enough
  • NJ Avg Property Tax is $8,670→Highest in US ( High education budget was relied on property tax alone)

2. Queens Residential market soars for 9 quarters continuously

  • According to Elliman, 2nd Qt, Queens residential price is up 11.6% to the median price of $558,000 from last year 2nd Qt ($500,000)
  • In Manhattan, 7.5% Down from last year same Qt/ Brooklyn is Down by 1.9%
  • Number of Sales is Down by 6.5% to 3,421 from last year same time ($3,659)- Condo is down by 16.4%, Co-op is down by 13.2%, 1-3 family house is down by 1.3%
  • Except NW area (Astoria, LIC, Sunnyside, Woodside) where many new development happen, next highest area is NE (Flushing, Bayside)→5% Up to the median price of $720,000
  • Number of sales in NE for 2nd Qt is down by 20.8% from the last year same Qt.(Flushing, College Point, White stone, Bayside, Douglaston, Little Neck, Oakland Garden, Beech Hurst)→Last year, price went up by 30% : Chinese funds and population enter into the area→Hottest area in NYC
  • According to Zillow, in May Queens house price hit the peak in history→up by 9.2% from the last year to $633,400

3. Manhattan Korea Town street smells bad

  • K Town Chamber of Commerce(100 members) hires 1 cleaning crew to clean the street
  • For the lack paying membership due (only 30% pays), it stopped for a month and resumed, but the budget is short to do complete job
  • Nine(9) cleaning companies tear garbage bags and squeeze the garbage bags to compress→Waste water coming down to the street→Smells bad→needs steam cleaning/ pressurized water cleaning
  • Restaurant owners are also responsible→When they dump the garbage bags, they are already damaged and leaked
  • It becomes bad image of K town itself

4. “Austin Nichols House Building” forced tenant to move out illegally

  • The building (338 units) in Williamsburg owned by Jared Kushner (Trump’s son in law)
  • A lawsuit alleges that Kushner company harassed tenants, deliberately exposing the hazardous building materials (→Carcinogens)
  • The company purchased the buliding at $275M in 2015 and it was under rent control
  • The company forced out 75% tenant for 3 years illegally in order to renovate and sold at luxury condos→So far, they made $155M profits
  • Governor Andrew Cuomo ordered investigation (will not tolerate any kind of tenant harassment)

5. NJ foreclosure rate is still highest in US

  • According to Attom Data Solutions, during first half of the year, 5700 houses are being foreclosed→0.8% of the State housing
  • 47% of houses under foreclose process are purchased between 2004 – 2008
  • Atlantic City (1.48%) and Trenton(0.96%) are most severe area→highest area in US
  • Time taken to process :1,161 days→3rd in US
  • Delaware (0.57%), Maryland(0.5%), Connecticut (0.4%)→High area in US
  • Total 191,914 house are being foreclosed during the first half of the year→Down by 8%, compared to last year→Down by 82%, compared to the peak time (2009, first half)

6. NYC, Rent security deposit is too high

  • Some area request 2-3 month rent as security deposit→Highest in US
  • Security deposit amount in 2016→$570M
  • NYC comptroller, Scott Stringer announced the plan for a law to reduce security deposit
  • Security deposit will be limited to 1 month rent
  • Option to installment payment
  • About $10/month insurance policy instead of security deposit.
  • Highest security deposit/rent against income→Bronx, Hunter Point : 15.8% of the median income of $23,131/ Brooklyn, Brownville : 15.2% of the median income of $28,315 /Ocean Hill & Manhattan Harlem : 15.2% of the median income of $31,628

7. More Store for medical Cannabis(Marijuana) in Northern NJ

  • 6 store are added→Total 12 stores
  • Secaucus store opened last month (Montclair, Egg Harbor, Woodridge, Bellmar, etc)
  • About 100 medical use patients are added daily basis (Cancer, AIDS, Glaucoma, Arteriosclerosis→Migraine, General pain killer)
  • Governor Phil Murphy is pushing adult use of cannabis for over 21 year old, but facing republican’s objection

8. Trump plans 10% tariff for $200B (6000 items) against China→Triggers criticism

  • Food market (tuna, salmon,etc)→Might use different country :China’s fishing ban period will ends in August→10% going up from September/ Mackerel, Octopus, sea weeds price might go up by 10%
  • Clothing: It was not included in 1st $50B tariff items, but raw clothing material included in additional $200B tariff / tariff on machinery is more concerned
  • Logistics/Distribution: Import will be decreased or importers will change to different countries to import goods
  • Consumer will experience price increase→Feel penalty for average household
  • Tariff becomes tax on consumers (Family, Farmers, Labor workers)
  • Politicians start raising concerns, criticism, warnings

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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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