Weekly News (September 19, 2018)
1.ย River Edge, NJ โย popular to younger family
- No real down town established (property tax is rather high)
- Great School district โ River Dell High
- Train station to go to Manhattan
- โVan Saun Parkโ with Zoo attracts more parent with children
- Most houses built in1950ย โ ranch
- Sold houses till 8/31 โ 80 houses (Median price: $512,500) โ 8% up from last year
- Elementary schools: Roosevelt school, Cherry Hill school till 6thย 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 Stationโ50 minutes (monthly pass: $227) / New Bridge Landing Station to Manhattanโ 45 minuetes
- Bus to Manhattan: Kinderkamack Road to Port Authorityโ40 minutes (monthly pass: $167)
2.ย Palisades Park, NJ troubled with armed public school security guards
- Hiring process was not clear โ 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 Prosecutorโs 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 sfย โ 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 โ $510,679/ Januarly 2018 โ $649,638 / July 2018 โ $654,358
- During this 10 year recovery period, total $217B worth increased in NYC
- Warningโ 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 โ 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 2007ย โ 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 โ $1Tย 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 โ will have to watch money flowย โ price for investor owned house or non-primary house near water dropped between 2014 โ 2016 noticeably
7. Trade war against China continues
- Trump will impose 10% on $200B worth on โmade in Chinaโ (next yearย โ 25%) from 9/24/2018ย โ 3rdย (1st: $34B / 2nd: $16B)ย โ Tariff on about a half of โMade in Chinaโ
- 3rdย time tariff includes electronics, office supplies, bicycles, furniture, bags, wigs, etc.ย โ consumer will feel it
- China will impose on $60B worthย โ 2ndย time (1stย time: $50B)ย โ no more trade card they can playย โ Chinaโs dilemma
- China might BAN to export some critical parts to US โ US might need 3 -5 years to replace those parts from alternative sources
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