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Weekly News (November 29, 2017)

1. New Rental Complex in Cliffside Park, NJ starts moving-in 

  • ‘The Centre Luxury Living’ at 705 Anderson Ave, Cliffside Park
  • Lobby height → 3 story. Manhattan sky line view
  • Studio (564~600 SF): starts from $2,025 / 1BR (834~875 SF) starts from $2,800 / 2BR (1194~1338 SF): starts from $3,200
  • Remote temperature control (Heating & Cooling) / Caesar Stone Counter top / Laundry units and Drying Rack / Cleaning service with fee / Shuttle to Edgewater
  • www.rentthecentre.com

2. Korean owned New Development on Northern Blvd, Flushing, NY

  • ‘KNY 154 Property’ purchased the lot at 154-19 Northern Blvd at $6.2 Million
  • Lot: 10,600 SF / Demolish the current 1 floor building → Develop 2 story commercial building
  • 1 floor: retail / 2nd floor: offices

3. NVRH (Northern Valley Regional High) school teachers get highest salary

  • 9th~12th Grade teachers → $105,650 ($40,000 higher than Average)
  • Hackensack district (Kinder~12th) teachers → $89,603
  • Pascack Valley Regional (9th~12th) teachers → $89,000
  • NJ Average teachers → $66,117 ($1,567 increased from last year)

4. October, New Construction sale moved up 

  • Total sales went up by 6.2% to 685,000 (Yearly Rate), compared to last month
  • Increased for 3 recent consecutive months / Highest since October 2007
  • Low inventory of existing houses is a contributing factor → Many buyers are looking into new construction
  • New house price went up by 13.6% during one year period

5. US house hold is getting more debt 

  • $605 Billion debt increased → Total debt: $1.296 Trillion → historically highest
  • According to FR, $137,063 debt per household (Household median income: $59,030)
  • Mainly Mortgage, Student loan, Credit card debt, Auto-mobile loan, etc.
  • Mortgage loan: $182,421 / Student loan: $50,625 / Auto-loan: $29,539 / Credit card debt: $16,883
  • Contributing factors: Medical expenses, rent, living cost increase, etc.

6. 10 year Real Estate market Cycle?

  • Financial crises in 2007. For 5 year down and recover for next 5 years
  • Recovery for last 5 years → different form other recovery period → Healthy recovery
  • Before 2007: Price hike due to sub-prime mortgage → Too many short term investors → Huge sales → Price bubble
  • Last 5 years: No sub-prime mortgage → Stable employment market / House hold increased → Healthy demands
  • Nation wide, price is recovered / 2016 Median Price:$236,000 → higher than in 2006
  • Among 50 big cities, 31 cities is higher than price before crises
  • Big changes for last 10 years → Mortgage loan standard reinforced
  • Flipping increased: Same as 10 years ago / 8.6% flipping in 2006 (DC area → 20%) 5% flipping in 2016 → Mortgage standard strong → Default rate is slim
  • Before crises, false demand was created → High price / last 5 years, Low inventory → Higher price
  • Economy recovery / Low unemployment → Healthy demand created
  • Overall Unemployment rate → 1% (Lowest in 17 years)
  • New Millennium Generation (25~34) employment → 79% (5% higher than 2010) At the end of 2020 → Millennium Generation becomes 30’s → Increase housing demand. Beginning of this year, Millennium Generation is almost half of whole buyers
  • First Home Buyer increased → Virtuous Circle starts

7. US & World Economy looks promising next year 

  • According to KOCHAM seminar, US growth rate: 2.2% in 2018 / Worldwide: 3.7%
  • US Corporation will achieve 11% profit due to low priced energy supply and US dollar strength
  • If Tax reform is passed, reference interest rate will be bit lowered → Reduce economic set back
  • Oil price will be stable ($51.15 / Barrel in 2018, $56.88 / Barrel in 2019) due to shale gas development
  • US dollar will be stronger, compare to Euro (1.12 Euro in 2018, 0.99 Euro in 2020)
  • Korean Won will be stronger, compared to dollar (1098 Won in 2018, 972 Won in 2020)

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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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