Weekly News (December 9, 2020)
This week’s Interest Rate (50th Week)
(By Fairway Asset )
|30 yr fx(%)||15 yr fx(%)||FHA(%)||10 yr Tr Y (%)|
|A year ago||3.750||3.25||1.917|
|A month ago||2.875||2.490||2.625||0.797|
(The rate based on 25% down payment with 740 above credit score)
Prime Rate:3.0% / Ref IR: 0.00- 0.25% .
NJ Transit parking Terminal will be located in Ridgefield, NJ
(Korea Times 12/3)
- NJ Transit purchased the former “Skymark” complex lot(56 Ac) at $44.6M and plans to develop the terminal as a storage and repair facility. The state court approved the Eminent Domain for the lot on 11/16/2020.
- Ridgefield town government is complaining this approval because it will lose the tax income which can be $1.3M annually.
Indoor restaurants in NJ still will keep open
(Korea Times 12/9)
- The Governor Murphy announced that indoor restaurants still will be allowed for a while.
- Currently the transmission rate is 1.08. The hospitalized are 3,481 as of 12/8.
- In NJ, only 25% occupancy is allowed for indoor restaurants currently and can open till 10:00pm.
- Without new help package for next 6 months, 37% of restaurants will be closed, said the restaurants association.
FTC objected the merger of Hackensack Medical Center and Englewood hospital
(Korea Times 12/7)
- FTC(Federal Trade Commission) filed the suit with Federal Court against the merger plan between two hospitals in Northern NJ, claiming that the merger will increase patients’ medical bill because of no competition. Two hospitals announced the merger in Oct. With this merger, Hackensack Medical Center will pay off Englewood hospital’s debt of $82M and put new investment of $400M.
- The trial will be held on 6/15/2021.
170,000 doses of Pfizer Vaccine will arrive in NY by 12/15
(Korea Daily 12/3)
- From 12/15, New York State will start providing Pfizer vaccine to medical staffs as a priority. Also they will receive 40,000 doses of Mordona vaccine by end the of Dec.
- The Governor Cuomo said that the economy will be recovered when 75 – 85% of residents got vaccine. Assuming 300,000 residents will be vaccinated by the end of this month, still that would be only 1.5% of the NY population.
- As of 12/1, nationwide hospitalized patients are 98,691. New York state’s daily positives are 8,973 and hospitalized patients are 3,924 in New York.
FDA paves way for Pfizer Vaccine’s release
(WSJ 12/9 )
- The Federal Dug Administration said the first COVID-19 vaccine being considered for U.S. distribution “met the prescribed success criteria: in a clinical study, paving the way for the agency to green-light distribution as early as this weekend.
- In its report Tuesday, the FDA noted that the two-dose vaccine provided benefits even after the first injection – cutting the risk of getting COVID-19 by about half. The vaccine was found to be 95% effective after the second dose, three weeks later.
- Side effect is common, however, especially younger people, the analysis found. The most common complaints was fatigue, followed by muscle pain and joint pain.
- Meanwhile, less than a week after Britain granted emergency-use authorization for the two-dose vaccine developed by Pfizer Inc and Germany’s BioNtech SE, the first people began to receive it cross the U.K. on Tuesday.
Korea National Pension Services(NPS) purchased 23 warehouses at $2B
(Korea Daily 12/5 )
- Korean funds moving into US for commercial investment is growing after the pandemic. NPS purchased the $2B worth of the partial shares for a total of 14.3M sf storages by joint venture with Stockbridge Capital Group, which is the biggest deal after the pandemic.
- These warehouses are mostly near completion or completing this year and they have leased out to e-commerce businesses.
- The price of Industrial properties rose 8% after the pandemic.
- NPS purchased also 8.7M sf industrial properties along with Stockbridge Capital Group Nov last year. In September, they purchased 49.5% share for 1.4M sf SL Green office buildings at $492M.
- NPS is managing over $600B which is the 3rd place worldwide.
U.S. looks to limit expansion of Costar
- US Government is trying for a second time to limit the steady expansion of real estate data giant Costar Group Inc., by moving to block its latest proposed acquisition in the rental apartment listing business: RentPath Holdings Inc at $587.5M which is a big participant in the online market for apartment listings and now under the Chapter 11.
- Costar already owns Apartments.com which is also a big player in the online apartment listings, and Costar acquired at 585M I 2014.
- The FTC’s action also comes as Washington DC based Costar is making its first move in massive residential sales market, aiming to take on the bigger players like Zilloow.com and Realtor.com
Two pandemic housing trends with staying power
- Home becomes more than a living space. Certain housing trends emerging from the pandemic likely will outlast the virus, real estate professionals predict.
- 1) The Great escape: The suburbs have become hot places to be in the pandemic. Particularly millennials were already leaving crowded cities for suburbs in five year prior to the pandemic. The trend has accelerated now. The great American move, which was ignited by pandemic, creating a growth desire to live in lower-density areas and propelling suburban growth.
- 2) The Zoom room: As remote work grows, being prepared for video conferences with proper background wall is growing in importance and home buyers need a formal home office. Designated home offices were the top feature in demand among home shoppers, followed by a home in a less dense location, single-family living, a private and spacious outdoor area, and a well-appointed kitchen, the survey shows according to realtor.com.
US employment market cool down rapidly
(Korea Times 12/7 )
- Due to the 2nd wave of COVID-19, US labor market is cooling down rapidly. Department of Labor announced non-agriculture jobs are increased by 245,000 in Nov. Even though 7 consecutive months’ increase continued, Nov new job addition to the market was way below the forecast by experts, which was 460,000.
- Along with Black Friday, technology advancement and online shopping trends created 145,000 new jobs in this field. But retail industry lost 35,000 jobs, and job creation in hospitality industry was only 31,000. The temp workers for the census 2020, which were 93,000, were terminated.
- The labor market situation will give pressure to Biden Admin and economy-stimulus package by the Congress.
White House makes new Relief Offer: Economy Stimulus package
( WSJ / Korea Times 12/9 )
- The Trump Admin made $916B coronavirus relief offer to the Democrat, opening yet another front in the multitrack effort to reach an agreement in talks. It looks feasible to pass the package on 12/18.
- The package includes $300 additional UI for 3 -4 months, the 2nd PPP, rent payment delay, and mortgage forbearance programs, etc. UI for Self-employees and gig employees might be included, but it is not clear. $1200 direct payment is not clear.