Weekly News (November 6, 2019)
This week’s Interest Rate (44th Week)
30 Y Rate: 3.750%/ 15 Year Rate: 3.25%/ 10 Y Treasury: 1.864%/ Prime Rate: 4.75%
Ref IR: 1.50- 1.75%
Edison, NJ introduced the program to convert own house to public rental house
( The Korea Times 11/4)
- Through M2A (Market to Affordable Rental Program), individually owned house can be a public rental house for 30 years. In return, home owner receivers $65,000 – $105,000 as cash. And rent per month which is specified by government, is guaranteed. Once it is converted to public rental house, the deed has to be modified to add the restriction that “the deed restricted affordable rental units”.
- Home owners cannot sell these house for 30 years. They can review tenant’s qualification including credit and background check, etc. The difference is that they must accept a certain people in the list that town designated. These people on the list are passed by a certain criteria that town set up.
- The contact: Dan Lavin 609 664 4857 email@example.com
Luxury high priced houses are slow to move
(The Korea Times 11/6)
- Luxury houses sales was worst this year: the main reasons are 1. SALT tax deduction limit Foreign buyers were out from the market. According to NAR, Mar 2019 shows 36% drop for transaction amount and 31% drop for number of sales, compared to last year same period.
- NYC is not an exception: recently real estate transaction was reduced by 25%. According to Elliman, NYC average condo price was dropped by 14%.
- Over all real estate environment is not desirable for foreigners due to strong dollar value and unstable domestic political situation is also contributing factor.
- European, Canadian, and Latin buyers were taken by 35% in South Florida real estate market, but not any more.
Average moving span becomes 13 years in 2019
(The Korea Time/The Korea Daily 11/6)
- According to Redfin, American household moves in average about 13 years in 2019 while it was 8 years in 2010, which indicates it increase 5 years during 9 year period.
- The biggest factor is baby boomers and they do not move after children get married or they are retired- The reasons are : 1. High priced house Lack of inventory 2. They are healthy and live longer in a house.
Be aware general questions from buyers in Open House
(The Korea Times : Joon Choi 11/2)
- Tips to potential buyers on what to ask in open house: Real Estate professionals should be aware as well.
- How long it was in the market?
- Was it on the market previously?
- Was there any DIY remodeling? Was it permitted? (Any open permits?)
- Is there any Market Analysis? ( CMA?)
- What is included and not included?
- Any critical neighbor information? New development, Crime rates, etc.
- All appliance are included? (Anything seller takes?)
- Was there HOA involved?
- Was any offer yet?
NJ home owner rate is highest in 5 years
(The Korea Times 11/2)
- According to Federal census, home owner rate in NJ is recovered to 66.4%, the same level as 3rd Qt, 2014, which is 29th in US. NY home owner rate is 51.6% which was dropped slightly from a year ago, which is 2nd lowest in US.
- The highest state is West Virginia which is 78.1% and the lowest state is Washington DC which is 40.2%.
- Overall, US home owner rate is growing: 3rd Qt 2019 home owner rate is 64.8% while it was 64.4%. The major contribution factor is low mortgage interest rates.
- The highest peak was 69% on 2004 in US.
Real Estate developers are expanding “Wellness Homes and communities
(The Korea Daily 11/2)
- Wellness homes are adding air cleaners, pollution censors, natural construction Recent high end home’s amenity issue is to live longer: wellness.
- In Coral Gable in Florida, the villa Valencia provides 39 units, starting price at $1.65M, additional amenities such as hospital level air quality by air purifier and monitoring sensors, energy providing illumination, water without pollution, etc. Also they provide roof top garden and Turkish spa sauna.
- Younger generation who own real estate are willing to spend 10 – 25% % more for wellness communities:
- According to global wellness institute report, wellness homes sector is growing every year by 6.4% to $13.4B and it will grow to $18B in 2022.
- Climate change is a contributing factor. Also wellness homes are beneficial to chronicle decease patients such as asthma patients. They also enjoy their lives with neighbor together with caring and sharing: life, work, and play.
- Good example of wellness living is “Heaven Co-Living” in Venice, California: Converting 4 house into living quarter for 96 people. Each pays $995 – $1095 per month. Low cost with wellness amenities attracts more M Gen. Heaven C0-Living will develop 3 more in California and will expand to NY, Seattle, and Washington DC.
Other/Tech News : Google is acquiring Fitbit for $2.1B
by paying $7.35 per share for the wearable’s company in all-cash deal. (Co-founder, James Park immigrated to US when he was 3 years old and a Harvard drop out)