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Weekly News (September 19, 2018)

1. River Edge, NJ → popular to younger family

  • No real down town established (property tax is rather high)
  • Great School district – River Dell High
  • Train station to go to Manhattan
  • “Van Saun Park” with Zoo attracts more parent with children
  • Most houses built in1950 → ranch
  • Sold houses till 8/31 → 80 houses (Median price: $512,500) → 8% up from last year
  • Elementary schools: Roosevelt school, Cherry Hill school till 6th grade
  • River Dell Middle school (7-8 grade), RiverDell High (9-12 grade)
  • SAT score: 596 (reading, writing), 605 (math) (NJ avgage: 551, 552)
  • Train to Manhattan : River Edge station to Pen Station→50 minutes (monthly pass: $227) / New Bridge Landing Station to Manhattan→ 45 minuetes
  • Bus to Manhattan: Kinderkamack Road to Port Authority→40 minutes (monthly pass: $167)

2. Palisades Park, NJ troubled with armed public school security guards

  • Hiring process was not clear → recently it was found a criminal was in the hiring list
  • 2 of security guards was pending from their duty by Board of Education (one of them is a brother of Councilman Henry Ruh who was a head of hiring committee)
  • Some parents requested investigation by NJ State Prosecutor’s office and Education Dept

3. New hotel/condo mixed use building will be next to Queens town hall building

  • 137-16 Northern Blvd.(former GW supermarket) / total 13 stories
  • Hotel: 244 rooms (100,880 sf)/ 38 luxury condo units/ 64 parking/ community space: 2270 sf → total 228,000 sf
  • Developer: Century development (Chinese heritage)

4. House price in New York went over the peak before financial crises

  • Access to street easily, price went over by 2 % from November 2006 (peak), increased by 28.5% from November 2011 (bottom)
  • NYC 5 Borough house price increased by Avgerage 3.8% annually since 2011 (total 30%)
  • Avgerage price in November 2006 → $510,679/ Januarly 2018 → $649,638 / July 2018 → $654,358
  • During this 10 year recovery period, total $217B worth increased in NYC
  • Warning→ price might be going down due to cyclic phenomena

5. Trump tax reform is not affecting much RE market

  • Beginning of the year : Tax reform was biggest concern to RE Market (NAR warned congress that tax reform will affect to house price down by 10% will affect more luxury houses)
  • In September, hardly can see tax reform affecting RE Market
  • Tax reform: (1) SALT (property tax, etc) deduction only up to $10,000

(2) Loan amount ($750,000) limit : interests deduction

(3) Standard deduction amount doubled

  • Most areas, house price keeps going uo → due to high demand
  • Accordding to Zillow study, (2), (3) are not affecting house price (1) is affecting top 10% house price down by 0.6%

6. Price for water front houses might be affected negatively due the climate change

  • Water level increase might be a concern for water from houses
  • According to CBS news, in general 7% lower than similar houses located in inland
  • Ex: $400,000 house in 2007 → currently it might sold $28,000 lower
  • In addition, frequent hurricanes (ex: Sandy) might drop the house price significantly
  • According to Core Logic, about 7M houses might be in danger to submerge → $1T  reconstruction cost expected (Zillow calculated similar expectation)
  • Research reveals that water level will increase 1 feet in 78 years / 2-3 feet in 80 years/ 4-5 feet in 101 years / 6 feet I 122 years
  • Not all of buyers will believe this phenomena → will have to watch money flow → price for investor owned house or non-primary house near water dropped between 2014 – 2016 noticeably

7. Trade war against China continues

  • Trump will impose 10% on $200B worth on “made in China” (next year → 25%) from 9/24/2018 → 3rd (1st: $34B / 2nd: $16B) → Tariff on about a half of “Made in China”
  • 3rd time tariff includes electronics, office supplies, bicycles, furniture, bags, wigs, etc. → consumer will feel it
  • China will impose on $60B worth → 2nd time (1st time: $50B) → no more trade card they can play → China’s dilemma
  • China might BAN to export some critical parts to US → US might need 3 -5 years to replace those parts from alternative sources

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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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