Daily Archives: February 4, 2016

Will New York’s White Hot Real Estate Market Fizzle this year? | Bedford Hills Real Estate

New York City’s real estate market has reached blistering temperatures, with record sale prices reported at the end of 2015. In the fourth quarter alone, the average sale price for a Manhattan apartment hit a lofty $1.95 million, representing a 12% jump year-over-year, according to the latest Elliman Report.

Over the same period, the median sale price topped $1.15 million while the price per square foot climbed to a jaw-dropping $1,645. In the rental market, Manhattan rental prices have increased by 3.9% over the last year, with the average rental price hitting $4,071 as of November 2015.

Demand from global buyers who are looking to escape the fallout from the market slowdown in China is what’s leading the push in the condo market, where new construction sale prices are averaging just shy of $3.3 million. Newly developed properties represented an 18.6% share of the overall sales market through the fourth quarter.

On the co-op side, pricing is still moving up but it’s been slower to peak, with the average sale price hovering around $1.28 million. The number of active listings declined by 6.2% from the fourth quarter of 2014, while sales are down 4% over the same time frame. Despite these dips, 2015 was still a record-setting year and the big question is, what’s next for the New York real estate market?
China’s slide will help to maintain the momentum

From an investor standpoint, real estate remains a hot ticket for 2016 and New York is set to remain on solid ground, despite foreign market upsets. China’s shaky economic outlook has triggered a fight-or-flight response among foreign investors and the result is a substantial shift in assets to less volatile U.S. holdings, including real estate.

According to Collier’s 2016 Global Investor Outlook, New York continues to be a prime destination for wealthy investors in need of a safe haven. Manhattan took the lead in terms of global capital in the third quarter of 2015, raking in more than $4 billion. That trend looks set to continue, with 24% of overseas investors planning to invest in New York real estate over the next 12 months.

 

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http://www.forbes.com/sites/navathwal/2016/01/19/will-new-yorks-white-hot-real-estate-market-fizzle-in-2016/#2715e4857a0b1a3e37435661

30 Yr Mortgage rates average 3.72% | Bedford Realtor

Freddie Mac (OTCQB: FMCC) today released the results of its Primary Mortgage Market Survey® (PMMS®), showing mortgage rates moving lower for the fifth consecutive week amid ongoing market volatility. The average 30-year fixed is at its lowest point since the week of April 30, 2015 when it averaged 3.68 percent.

News Facts

  • 30-year fixed-rate mortgage (FRM) averaged 3.72 percent with an average 0.6 point for the week ending February 4, 2016, down from last week when it averaged 3.79 percent. A year ago at this time, the 30-year FRM averaged 3.59 percent.
  • 15-year FRM this week averaged 3.01 percent with an average 0.5 point, down from 3.07 percent last week. A year ago at this time, the 15-year FRM averaged 2.92 percent.
  • 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.85 percent this week with an average 0.4 point, down from last week when it averaged 2.90 percent. A year ago, the 5-year ARM averaged 2.82 percent.

Average commitment rates should be reported along with average fees and points to reflect the total upfront cost of obtaining the mortgage. Visit the following link for theDefinitions. Borrowers may still pay closing costs which are not included in the survey.

Quote
Attributed to Sean Becketti, chief economist, Freddie Mac.

“Market volatility — and the associated flight to quality — continued unabated this week. The yield on the 10-year Treasury dropped another 15 basis points, and the 30-year mortgage rate fell 7 basis points as well, to 3.72 percent. Both the Treasury yield and the mortgage rate now are in the neighborhood of early-2015 lows. These declines are not what the market anticipated when the Fed raised the Federal funds rate in December. For now, though, sub-4-percent mortgage rates are providing a longer-than-expected opportunity for mortgage borrowers to refinance.”