Tag Archives: Mount Kisco Real Estate

NAR reports existing sales jump 20.7% in June | Mt Kisco Real Estate

 Existing-home sales rebounded at a record pace in June, showing strong signs of a market turnaround after three straight months of sales declines caused by the ongoing pandemic, according to the National Association of Realtors®. Each of the four major regions achieved month-over-month growth, with the West experiencing the greatest sales recovery.

Total existing-home sales,1 https://www.nar.realtor/existing-home-sales, completed transactions that include single-family homes, townhomes, condominiums and co-ops, jumped 20.7% from May to a seasonally-adjusted annual rate of 4.72 million in June. Sales overall, however, dipped year-over-year, down 11.3% from a year ago (5.32 million in June 2019).

“The sales recovery is strong, as buyers were eager to purchase homes and properties that they had been eyeing during the shutdown,” said Lawrence Yun, NAR’s chief economist. “This revitalization looks to be sustainable for many months ahead as long as mortgage rates remain low and job gains continue.”

The median existing-home price2 for all housing types in June was $295,300, up 3.5% from June 2019 ($285,400), as prices rose in every region. June’s national price increase marks 100 straight months of year-over-year gains.

Total housing inventory3 at the end of June totaled 1.57 million units, up 1.3% from May, but still down 18.2% from one year ago (1.92 million). Unsold inventory sits at a 4.0-month supply at the current sales pace, down from both 4.8 months in May and from the 4.3-month figure recorded in June 2019.

Yun explains that significantly low inventory was a problem even before the pandemic and says such circumstances can lead to inflated costs.

“Home prices rose during the lockdown and could rise even further due to heavy buyer competition and a significant shortage of supply.”

Yun’s concerns are underscored in NAR’s recently released 2020 Member Profile, in which Realtors® point to low inventory as being one of the top hindrances for potential buyers.

Properties typically remained on the market for 24 days in June, seasonally down from 26 days in May, and down from 27 days in June 2019. Sixty-two percent of homes sold in June 2020 were on the market for less than a month.

First-time buyers were responsible for 35% of sales in June, up from 34% in May 2020 and about equal to 35% in June 2019. NAR’s 2019 Profile of Home Buyers and Sellers – released in late 20194 – revealed that the annual share of first-time buyers was 33%.

Individual investors or second-home buyers, who account for many cash sales, purchased 9% of homes in June, down from 14% in May 2020 and 10% in June 2019. All-cash sales accounted for 16% of transactions in June, down from 17% in May 2020 and about equal to 16% in June 2019.

Distressed sales5 – foreclosures and short sales – represented 3% of sales in June, about even with May but up from 2% in June 2019.

“It’s inspiring to see Realtors® absorb the shock and unprecedented challenges of the virus-induced shutdowns and bounce back in this manner,” said NAR President Vince Malta, broker at Malta & Co., Inc., in San Francisco, Calif. “NAR and our 1.4 million members will continue to tirelessly work to facilitate our nation’s economic recovery as we all adjust to this new normal.”

According to Freddie Mac, the average commitment rate(link is external) for a 30-year, conventional, fixed-rate mortgage decreased to 3.16% in June, down from 3.23% in May. The average commitment rate across all of 2019 was 3.94%.

Single-family and Condo/Co-op Sales

Single-family home sales sat at a seasonally-adjusted annual rate of 4.28 million in June, up 19.9% from 3.57 million in May, and down 9.9% from one year ago. The median existing single-family home price was $298,600 in June, up 3.5% from June 2019.

Existing condominium and co-op sales were recorded at a seasonally adjusted annual rate of 440,000 units in June, up 29.4% from May and down 22.8% from a year ago. The median existing condo price was $262,700 in June, an increase of 1.4% from a year ago.

“Homebuyers considering a move to the suburbs is a growing possibility after a decade of urban downtown revival,” Yun said. “Greater work-from-home options and flexibility will likely remain beyond the virus and any forthcoming vaccine.”

Regional Breakdown

In a complete reversal of the month prior, sales for June increased in every region. Median home prices grew in each of the four major regions from one year ago.

June 2020 existing-home sales in the Northeast rose 4.3%, recording an annual rate of 490,000, a 27.9% decrease from a year ago. The median price in the Northeast was $332,900, up 3.6% from June 2019.

Existing-home sales increased 11.1% in the Midwest to an annual rate of 1,100,000 in June, down 13.4% from a year ago. The median price in the Midwest was $236,900, a 3.2% increase from June 2019.

Existing-home sales in the South jumped 26.0% to an annual rate of 2.18 million in June, down 4.0% from the same time one year ago. The median price in the South was $258,500, a 4.4% increase from a year ago.

Existing-home sales in the West ascended 31.9% to an annual rate of 950,000 in June, a 13.6% decline from a year ago. The median price in the West was $432,600, up 5.4% from June 2019.

The National Association of Realtors® is America’s largest trade association, representing more than 1.4 million members involved in all aspects of the residential and commercial real estate industries.

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For local information, please contact the local association of Realtors® for data from local multiple listing services (MLS). Local MLS data is the most accurate source of sales and price information in specific areas, although there may be differences in reporting methodology.

NOTE: NAR’s Pending Home Sales Index for June is scheduled for release on July 29, and Existing-Home Sales for July will be released August 21; release times are 10:00 a.m. ET.


1 Existing-home sales, which include single-family, townhomes, condominiums and co-ops, are based on transaction closings from Multiple Listing Services. Changes in sales trends outside of MLSs are not captured in the monthly series. NAR rebenchmarks home sales periodically using other sources to assess overall home sales trends, including sales not reported by MLSs.

Existing-home sales, based on closings, differ from the U.S. Census Bureau’s series on new single-family home sales, which are based on contracts or the acceptance of a deposit. Because of these differences, it is not uncommon for each series to move in different directions in the same month. In addition, existing-home sales, which account for more than 90% of total home sales, are based on a much larger data sample – about 40% of multiple listing service data each month – and typically are not subject to large prior-month revisions.

The annual rate for a particular month represents what the total number of actual sales for a year would be if the relative pace for that month were maintained for 12 consecutive months. Seasonally adjusted annual rates are used in reporting monthly data to factor out seasonal variations in resale activity. For example, home sales volume is normally higher in the summer than in the winter, primarily because of differences in the weather and family buying patterns. However, seasonal factors cannot compensate for abnormal weather patterns.

Single-family data collection began monthly in 1968, while condo data collection began quarterly in 1981; the series were combined in 1999 when monthly collection of condo data began. Prior to this period, single-family homes accounted for more than nine out of 10 purchases. Historic comparisons for total home sales prior to 1999 are based on monthly single-family sales, combined with the corresponding quarterly sales rate for condos.

2 The median price is where half sold for more and half sold for less; medians are more typical of market conditions than average prices, which are skewed higher by a relatively small share of upper-end transactions. The only valid comparisons for median prices are with the same period a year earlier due to seasonality in buying patterns. Month-to-month comparisons do not compensate for seasonal changes, especially for the timing of family buying patterns. Changes in the composition of sales can distort median price data. Year-ago median and mean prices sometimes are revised in an automated process if additional data is received.

The national median condo/co-op price often is higher than the median single-family home price because condos are concentrated in higher-cost housing markets. However, in a given area, single-family homes typically sell for more than condos as seen in NAR’s quarterly metro area price reports.

3 Total inventory and month’s supply data are available back through 1999, while single-family inventory and month’s supply are available back to 1982 (prior to 1999, single-family sales accounted for more than 90% of transactions and condos were measured only on a quarterly basis).

4 Survey results represent owner-occupants and differ from separately reported monthly findings from NAR’s Realtors® Confidence Index, which include all types of buyers. Investors are under-represented in the annual study because survey questionnaires are mailed to the addresses of the property purchased and generally are not returned by absentee owners. Results include both new and existing homes.

5 Distressed sales (foreclosures and short sales), days on market, first-time buyers, all-cash transactions and investors are from a monthly survey for the NAR’s Realtors® Confidence Index, posted at nar.realtor.

Pending home sales drop 33.8% | Mt Kisco Real Estate

The index of pending home sales dropped 21.8% in April compared to March as the coronavirus pandemic kept prospective home-buyers out of the market, the National Association of Realtors reported Thursday.

Compared with a year ago, pending home sales were down 33.8%. Overall, it was the largest decline since the National Association of Realtors began tracking this data in 2001.

The index measures real-estate transactions where a contract was signed but the sale had not yet closed, benchmarked to contract-signing activity in 2001. It is an indicator of existing-home sales reports in the coming months.

What happened: The Northeast saw the biggest decline in contract signings, with a 48.2% plunge month over month — likely a reflection of the emergence of New York as one of the hot spots for the global coronavirus pandemic. The South saw the next largest decrease, followed by the West and the Midwest.

The rates of declines in April were lower in the Midwest, South and West compared to the declines in March.

Big picture: Stay-at-home orders to prevent the spread of coronavirus put a major dent in the number of contracts that were signed in April, which could preview a significant drop in home sales figures in months to come.

The good news for the market, though, is that sales activity has shown signs of a rebound. “In the coming months, buying activity will rise as states reopen and more consumers feel comfortable about home buying in the midst of the social distancing measures,” said Lawrence Yun, chief economist at the National Association of Realtors.

Mortgage applications for loans used to purchase homes have increased on a weekly basis for six consecutive weeks now, according to the Mortgage Bankers Association. That’s a sign that buyers are lining up financing in order to march into the housing market.

The remaining question is whether sellers will follow. “Home sales could bounce back if sellers also enter the market with similar enthusiasm to buyers,” said Danielle Hale, chief economist at Realtor.com. “Our latest weekly data shows an improvement in new listings declines, but inventory levels still remain well below levels seen this time last year.”

If the number of homes on the market remains constrained, so too will the number of sales, regardless of buyers’ demand.

What they’re saying: “Mortgage applications for purchases have fully unwound their previous plunge, suggesting sales are rebounding in May,” Sal Guatieri, senior economist at BMO Capital Markets, wrote in a research note. “The housing sector seems to be weathering the crisis about as well as could be expected, even if it will take a long time before sales return to pre-virus levels given the massive job losses.”

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marketwatch.com/story/

Spring time in NYC | Mt Kisco Real Estate

Ah, spring. The days get longer, the weather starts to warm up and—in New York City, circa 2020—there are at least these 14 other reasons to get excited.

1.  The spinning wheel has got to go ’round. Coney Island’s amusement parks open on April 4, which will mark an auspicious occasion: 100 years since the Wonder Wheel debuted. Over the past century, millions have sat in one of the Ferris wheel’s enclosed cages and surveyed the rides, boardwalk and ocean from up high. While you’re down in Coney, make sure to enjoy a couple of the Wonder Wheel’s cronies: the wooden Cyclone roller coaster (est. 1927) and hot-dog fave Nathan’s (est. 1916). —Andrew Rosenberg

2.  Hudson Yards is getting an Edge. The City’s latest observation deck, Edge (opening March 11), will also be its highest open-air platform for taking in the vistas.­ Bird’s-eye views of Manhattan’s skyline may be nothing new, but looking down 1,000-plus feet through a glass floor certainly is. Yikes! —Brian Sloan

3.  Our Instagram feeds will be well fed. Yayoi Kusama is coming. In May, the New York Botanical Garden will host Kusama: Cosmic Nature across its 250 acres, sprinkling neon colors, polka-dot sculptures and mirrored installations amidst its already eye-catching spring blooms. —Gillian Osswald

4. The music of the ’90s is having a moment. Two of the decade’s preeminent artists are playing big shows in NYC: Radiohead frontman Thom Yorke brings his solo electronic act to Radio City on March 30 and Hammerstein Ballroom on March 31 and April 1. Also on March 30, Pearl Jam rocks Madison Square Garden. How good will the show be? We have a feeling you’ll give it a 10. —Christina Parrella

5.  We’ve got other decades covered, too. Fans of Carly Simon can anticipate a tribute to her that features Cyndi Lauper, the Indigo Girls, Michael McDonald and many more at Carnegie Hall on March 19. Other big shows include Billie Eilish at Barclays Center (March 20); Blood Orange at Radio City (March 21); Lisa Loeb at Le Poisson Rouge (March 22); Elton John at Madison Square Garden (April 6–7) and Barclays (April 10–11); The Darkness at Webster Hall (May 13); Fetty Wap at Gramercy Theatre (May 18); Madness at Hammerstein Ballroom (May 22); Kesha and Big Freedia at Pier 17 (May 28); and continued residencies from Billy Joel at MSG (March 19, April 10 and May 2) and They Might Be Giants, playing Flood, at Bowery Ballroom (April 11 and May 9). —nycgo.com staff

6.  Plus, it’ll be a vintage season for wine and song. City Winery’s spacious new waterfront venue at Hudson River Park’s Pier 57 promises barrels of fun (and wine and music and views). Who can it be playing the first month? It’s singer-songwriter Colin Hay, the voice behind Men at Work (April 7–8). And nothing compares to the rest of the early lineup, which includes Sinéad O’Connor (April 13, 14 and 16) and Graham Parker (May 19 and 21). —AR

7. There will be bonnets to behold. New Yorkers never pass up an opportunity to dress up, and the Easter Parade and Bonnet Festival (April 12) is no exception. Judging by last year’s looks, we’ll see plenty of floral headpieces, spring-themed ensembles and pastel pageantry on the stroll up Fifth Avenue. —GO

8.  Art is all around. If you’ve ever wondered about Jackson Pollock’s work before he adopted his drip-and-splatter technique, check out Away from the Easel: Jackson Pollock’s Mural at the Guggenheim Museum. The exhibition (opening March 28) displays a giant colorful mural Pollock painted for the entrance of Peggy Guggenheim’s Manhattan townhouse. It’s the piece’s first NYC appearance in more than 20 years. Over at The Met, the Costume Institute presents its spring exhibition, About Time: Fashion and Duration. The exhibition (opening May 7) traces the timeline of fashion from the 1870s to the present. —CP

9.  A Watergate-era thriller will be a topic of conversation. 1974 was a landmark year for film, headlined by Chinatown and Francis Ford Coppola’s The Godfather Part II. But a less showy Coppola release of the time, The Conversation, may be more resonant than either thanks to its handling of queasy topics like surveillance, privacy and paranoiaHead to the Film Forum to catch a screening of a restored 35mm print (March 20–April 2). Gene Hackman and John Cazale star; pre-fame Cindy Williams, Harrison Ford and Teri Garr show up too. —AR

10.  Broadway’s going to have Company. A new production of Stephen Sondheim’s ode to singlehood, which took London by storm, comes to New York. Its twist: the main role of bachelor Bobby becomes single lady Bobbie. Katrina Lenk (The Band’s Visit) takes the lead, with Patti LuPone (War Paint) serving up “The Ladies Who Lunch” as Joanne. —BS

11.  We’ll see every side of comedy. Three funny festivals come to NYC, led by the return of the Brooklyn Comedy Festival (March 30–April 5). Its lineup befits the borough’s alt-comedy sensibilities; highlights include NPR’s Ask Me Another, hosted by Ophira Eisenberg, at the Bell House (April 1), and Jo Firestone hosting Friends of Single People at Littlefield (April 2). Chris Gethard spins his Beautiful/Anonymous podcast into Beautiful Cononymous (May 14–17), which opens with Gethard watching the movie Contact and then discussing it with a podcast caller who told him he should see it. The Satire and Humor Festival (March 27–29), at Caveat and The Magnet, focuses on those who elicit laughter through the written word, featuring favorites from The New Yorker and The Onion. Spring also brings Ali Wong’s run at the Beacon Theatre (March 29–April 4), Demetri Martin at the Bell House (April 7–8), Bill Bellamy at Carolines (April 9) and Jim Gaffigan at Radio City (April 9–11). —nycgo.com staff

12.  A rebel and his bike are back. Pee-Wee’s Big Adventure returns to the big screen for a 35th anniversary celebration at the Beacon Theatre (March 25–26). Pee-Wee himself, Paul Reubens, will be on hand for a live presentation and Q&A if you want to ask him if there’s a basement in the Beacon. —BS

13.  This could be the last season of baseball as we know it. Are we being a tiny bit dramatic? Probably. But the existing structure of the minor leagues is precarious, and this could be the last stand for the Staten Island Yankees. The Brooklyn Cyclones, the Mets’ New York–Penn League affiliates, may change leagues after this season. If some reports are to be believed, this may be your final chance to see pitchers bat in Mets games—the designated hitter could arrive in the National League as soon as 2021. There may be no major changes evident for the Yankees, save for adding Gerrit Cole to their rotation—but that acquisition could help end their 10-season championship drought (normal for most teams, but not the perennial contenders in the Bronx). —nycgo.com staff

14.  There’s a new Strand location on the Upper West Side. It opens in March. And that’s not all the City has to offer bookworms.—nycgo.com staff

New fixer upper loan out | Mt Kisco Real Estate

House under construction

Freddie Mac is launching a new mortgage product that allows borrowers to buy a fixer-upper and finance the renovation all with one loan. Existing homeowners can use it to repair or improve their properties.

The government-sponsored enterprise announced its new CHOICE Renovation loan product on Wednesday, saying it’s available immediately to all approved lenders. Lenders have two paths for delivering the loan to Freddie. They can either wait until the renovations are complete, or, for approved lenders, they can deliver the loan while work is ongoing if they’re providing oversight for the projects.

“We recognized there’s a significant amount of aging housing stock, both in under served areas and in the broader housing market, and there’s also a need for affordable housing,” Kelly Marrocco, director of credit policy at Freddie Mac said in an interview. “This is a new offering that allows people to purchase a home that needs repair, or allows existing homeowners to renovate without having to do a cash-out refinance.”

The new mortgage product has a unique feature to address the danger of natural disasters and flooding. It allows owners to use the funds to renovate or repair a property that has been damaged in a natural disaster or for changes that will help to prevent damage from a future disaster, such as work on storm surge barriers, foundation retrofitting, or retaining walls. A home’s foundation is a concrete base placed below ground, upon which a home rests. A good foundation is critical to a home’s well-being, as it supports the full load of the structure, preventing a variety of potential damages from occurring. Foundation Repair Company are experts at pier and beam foundation repair, basement crack repair, repair of basement vertical cracks, and in fact, repair of virtual all foundation issues. Make sure to check out Foundation Repair San Antonio offers several types of foundation repair solutions. Our highly trained staff will suggest solutions based on your home’s needs.

The funds “can be used to address housing resiliency items that will either repair damage or improve the homes ability to withstand environmental hazards,” Marrocco said.

The renovation market has grown by more than 50% since the Great Recession ended in 2009, Freddie Mac said in its announcement of the new loan product. Nearly 80% of the nation’s 137 million homes are at least 20 years old and 40% are at least 50 years old.

“Given the increasing age of existing housing stock, the growing number of millennials and other first-time home buyers looking for more affordable home buying options, and the increase in retirees opting to age in place, the Freddie Mac CHOICE Renovation mortgage is a flexible solution to finance or refinance these fixer-uppers,” Danny Gardner, a Freddie Mac senior vice president, said in the announcement.

read more…

https://www.housingwire.com/articles/49371-freddie-mac-announces-fixer-upper-mortgage

Pending home sales up 3.8% in March | Mt Kisco Real Estate

Pending home sales rose in March, reversing course from a month prior, according to the National Association of Realtors®. Three of the four major regions saw growth last month, as the Northeast reported a minor slip in contract activity.

The Pending Home Sales Index,* www.nar.realtor/pending-home-sales, a forward-looking indicator based on contract signings, increased 3.8% to 105.8 in March, up from 101.9 in February. Year-over-year contract signings declined 1.2%, making this the 15th straight month of annual decreases.

Lawrence Yun, NAR chief economist, noted that pending home sales data has been exceptionally fluid over the past several months but predicted that numbers will begin to climb more consistently. “We are seeing a positive sentiment from consumers about home buying, as mortgage applications have been steadily increasing and mortgage rates are extremely favorable.”

2019 03 phs housing snapshot infographic 04 30 2019 750w 800h

See and share this infographic.

Yun noted that sales activity in the West had increased at a relatively stable rate for five consecutive months before the region saw a significant spike in activity in March. “Despite some affordability issues in the West, the numbers indicate that there is a reason for optimism. Inventory has increased, too. These are great conditions for the region.”

Pointing to active listings from data at realtor.com®, Yun says the year-over-year increases indicate a potential rise in inventory. Denver-Aurora-Lakewood, Colo., Seattle-Tacoma-Bellevue, Wash., San Francisco-Oakland-Hayward, Calif., Portland-Vancouver-Hillsboro, Ore.-Wash., and Nashville-Davidson-Murfreesboro-Franklin, Tenn., saw the largest increase in active listings in March compared to a year ago.

Although pending contracts appear to be on an overall upswing, Yun says current sales activity is underperforming. “In the year 2000, we had 5 million home sales. Today, we are close to that same number, but there are 50 million more people in the country,” he said. “There is a pent-up demand in the market, and we should see a better performing market in the coming quarters and years.”

March Pending Home Sales Regional Breakdown

The PHSI in the Northeast declined 1.7% to 90.5 in March and is now 0.4% below a year ago. In the Midwest, the index grew 2.3% to 95.3 in March, 5.0% lower than March 2018.

Pending home sales in the South jumped up 4.4% to an index of 127.2 in March, which is 0.7% higher than last March. The index in the West ascended 8.7% in March to 95.1 and fell only 1.6% below a year ago.

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https://www.nar.realtor/newsroom/pending-home-sales-climb-3-8-in-march

Cladding used in many U.K. high-rises ‘combustible’ | Mt Kisco Real Estate

LONDON — Tests on the exterior cladding of tower blocks across Britain that use similar material found outside the building in west London where at least 79 people died in a fire have shown that some of them are “combustible,” British Prime Minister Theresa May said Thursday.

May said the tests were being carried out so that “all possible steps to ensure buildings are safe” were taken. Investigators believe that the type of exterior cladding used on the Grenfell Tower after a refurbishment last year may have caused the fire to spread more rapidly than if a different material was used. It had a plastic core.

The fire’s cause has not been established, although investigators suspect it may have started when a refrigerator exploded on one of the block’s lower floors.

There are thought to be approximately 4,000 tower blocks in Britain similar to the 24-storey residential complex in Kensington that went up in flames last week.

May said in an address to Parliament that authorities have been checking about 100 buildings a day and that the results come back within hours. Her office estimated that there are about 600 buildings in Britain that have the same type or similar cladding to that used in Grenfell Tower. However, May said it was still too early to draw conclusions about what caused the fire or why it appeared to spread so quickly.

“I urge any landlord who owns a building of this kind to send samples for testing as soon as possible. Any results will be communicated immediately to local authorities and local fire services. Landlords have a legal obligation to provide safe buildings and where they cannot do that we expect alternative accommodation to be provided. We cannot and will not ask people to live in unsafe homes,” she said.

May’s address came as the chief administrator of the neighborhood where the fire took place resigned Thursday, effectively marking the disaster’s first formal departure of a high-level official in the wake of Britain’s worst blaze in decades.

Nicholas Holgate, chief executive of the Kensington and Chelsea council, said he was asked to leave by May’s government. The initial days after the June 14 inferno were marked by chaos as authorities struggled to deal with the scope of the aftermath.

Residents who survived the tower blaze lost everything, only to get little help or information on how to secure shelter or vital supplies. Of the 600 people who lived in the tower block, many were low-income workers, recent immigrants and refugees.

Researchers at the Universite Catholique de Louvain in Belgium believe the Grenfell Tower disaster is now the deadliest fire in mainland Britain since they started keeping close records at the start of the 20th century. A fire at Bradford City Stadium in northern England on May 11, 1985, killed 56 people.

read more…

 

https://www.usatoday.com/story/news/world/2017/06/22/london-fire-grenfell-tower/103097418/

Developers are chasing the lower end of the condo market | Mt Kisco Real Estate

New condominiums coming to market are getting cheaper, as developers work to capture buyers in the popular sub-$5 million market.

In Manhattan, the average unit price on condos approved for market by the New York Attorney General’s office has been steadily trending down over the past two years. Back in 2015, developers were shooting for an average unit price of just under $5 million, according to The Real Deal’s analysis of accepted offering plans for the borough. In 2016, that average had dropped 24 percent to just below $3.8 million. And it looks like the trend is here to stay. In the first four months of 2017, the analysis showed, the average accepted unit price in the borough was $3.1 million, down 18 percent from 2016’s average accepted price.

It’s more evidence developers are shifting gears to provide product for the lower end of the market.

“We’re trying to make sure apartments aren’t too big or too expensive, given where the market is,” said Steven Rutter, the director of new development at Stribling Associates. “It’s a larger strategy to design stuff that is more affordable. We know the under $5 million market is stronger.” Stribling is handling sales at Gluck + and Cogswell Lee Development’s 150 Rivington Street, a project that was approved for sale last year with apartments starting at $995,000. Rutter said many developers are now planning buildings with a different mix of unit sizes than two or three years ago. “Buyers are looking for value right now. There’s a lot for them to choose from.”

At Corcoran Sunshine Marketing Group, president Kelly Kennedy Mack said in some cases they are telling their developer clients to adjust their unit mixes to remain below certain prices — although it’s not a blanket approach.

“There’s been an intelligent and necessary response to supply and demand dynamics,” she said. Corcoran tracks when buildings open for sale, which the firm define’s as when a sales office opens, rather than when the AG approves the offering plan. Mack said five of the seven Manhattan developments that have become publicly available this year are targeting a mid-market price of between $1,800 and $2,400 per square foot. It’s now been a year since a development with an average asking price of $4,000 per square foot and above has opened, with Related Companies’ 70 Vestry the most recent last big-ticket item, according to Mack.

The shift towards cheaper new development product has also broadened the buyer pool, developers said. “We’ve introduced the new development market to people who haven’t been able to afford it it before,” said Dan Hollander, managing principal of DHA Capital. Its project at 75 Kenmare Street in Nolita, approved earlier this year, has an average unit price of $3.7 million, according to the AG’s office. The company opted for lower prices following the success of its previous project at 50 Clinton Street, according Hollander, which launched in 2015 offering one-bedrooms for under $1 million and two-bedrooms for under $2 million. All but four of the 37 units are in contract at 50 Clinton, according to StreetEasy data. Hollander said targeting the lower price points and building more efficient-sized apartments was “experimental” at the time, but paid off because there’s so much demand in the sub $5-million market. “A lot of people want to get into a new condo… It’s a very appealing prospect, but there’s been little out there in their price range,” he said.

For other developers, the lower part of the Manhattan market has always been a safe bet. “We’ve been working like this for years,” said Gaia Real Estate’s Danny Fishman. “We always said we don’t care about the top 5 or 10 percent.” The company is joining with Acro Group to develop the Vantage, at 97-unit condo conversion at 308 East 38th Street where 30 percent of the units are priced under $1 million. Fishman said their business plan is to keep the unit cost down, and to design buildings with fewer amenities so there are lower common charges. The Vantage, approved earlier this year, has a gym but no swimming pool. The firm took a similar approach at its Hell’s Kitchen condo conversion at 416 West 52nd Street, where Gaia launched sales last year with the sub-$3 million buyers as the target.  “I’m giving up the market of the billionaire, but how many are there?” said Fishman.

CORE’s Emily Beare agreed that more new development product is becoming available for buyers who would normally only be able to buy resales. “For a few years the new development was geared towards the ultra-luxury, $10 million and above, and much larger units…. I think developers have switched direction a little for people who were priced out,” she said. The strategy shift may benefit buyers seeking new apartments with multiple bedrooms at a lower price point, she added.

 

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https://therealdeal.com/2017/05/25/de-luxed-developers-are-chasing-the-lower-end-of-the-condo-market/?utm_source=The+Real+Deal+E-Lerts&utm_campaign=eb04985cb1-New_York_Weekend_Update_10.18.2015&utm_medium=email&utm_term=0_6e806bb87a-eb04985cb1-385733629

Home Price Gains Continue | Mt Kisco Real Estate

The Case-Shiller (CS) National Home Price Index, released by S&P Dow Jones Indices, continued to rise in October. The CS Home Price Index rose at a seasonally adjusted annual growth rate of 10.7%, up from 10.1% last month. Due to tight inventory and high demand, house prices have accelerated since May and reached the pre-recession peak of 2006.

Along with the increases in national home prices, local home prices also increased in varying degrees in October. Figure 2 shows the annual growth rate of home prices for 20 major U.S. metropolitan areas.

All of the 20 metro areas had positive home price appreciation, ranging from 3.5% to 18.3%. Atlanta had the highest home price appreciation at 18.3%, while Chicago had the lowest but still positive growth at 3.5%. Home price appreciation in seven of the 20 metro areas was higher than the national level of 10.7%. Those markets are Atlanta (18.3%), Cleveland (16.7%), Tampa (15.1%), Dallas (12.6%), San Francisco (12.4%), Washington DC (11.4%) and Boston (11.1%).

 

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Holiday Credit Tips from North Shore Advisory | Mt Kisco Real Estate

 
 The Christmas & Holiday season is a time full of joy, laughter, and time spent with loved ones.

But, if you have ever stepped into a department store this time of year, you know that it’s also a hectic and stressful time. It’s easy to get caught up in all the parties and shopping, the last thing on your mind are account due dates and closing dates.

Here are a few tips:

  1. Double-check that credit card bill/payment alerts are activated.
  2. Auto-pay – a great way to make sure bills are paid on time. (Get a confirmation number!)
  3. Avoid paying late, it had the power to drop FICO score’s 100’s of points depending on your scores prior to the delinquency.
  • For instance, if John has a 780 FICO score he is a very low risk borrower. Let’s say he forgets to pay his bill on time this month, his score can drop down to 650, which is far from excellent. If John had delinquencies already appearing with a score of 660 prior to a new late payment he may experience a drop of 30-50 points. Since he is already a higher risk borrower his score does not have to drop much to show his new risk level.

Safeguard your credit score this Holiday season, especially if you are planning to go for a mortgage or loan within the next year or two – with the new trending credit data, lenders are looking at your revolving payment history dating back two year in order to assess the borrowers risk level.

If you have any questions or would like us to review reports, reach out to our Expert Credit Team!

Happy Holidays!

 
 
 
Tracy A. Becker, President

FICO Certified Professional

Expert Credit Witness Certified

Author “Credit Score Power”

 
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North Shore Advisory, Inc.
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Rates Steady as Increases Expected | Mt Kisco Real Estate

Nationally, the contract interest rate on conventional mortgages for home purchase held steady in October 2016. Over the month, the rate on conventional mortgages for home purchase was unchanged at 3.60%, according to data released by the Federal Housing Finance Agency (FHFA). Rates on the purchase of previously occupied homes ticked up 1 basis point to 3.62% while rates on new homes fell 2 basis points to 3.54%.

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The lack of change in mortgage rates overall reported by the FHFA does contrast with the increase in mortgage rates over the month of October in the Mortgage Bankers’ Association’s Mortgage Applications Survey (MAS). This Survey indicates that the contract rate on conventional mortgages rose 5 basis points to 3.72% over the month*. However, the FHFA release more closely parallels results from Freddie Mac’s Primary Mortgage Market Survey (PMMS). The commitment rate on conventional mortgages ticked up 1 basis point to 3.47% over the month of October*.

Despite some divergence, over the longer term, these 3 series track each other fairly closely. Between 1990 and 2000, the trend in the 3 series matched, although the rates reported by MBA’s MAS and Freddie Mac’s PMMS were more similar while FHFA’s MIRS was often a bit lower. Since 2000, the three series have been in near unison both in its point estimate and the overall trend.

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The monthly data covers the month of October, but the weekly mortgage rate data for November indicates that rates have clearly begun to rise. As shown by the figure below, between October 28th and November 25th, the contract mortgage rate calculated by the PMMS rose from 3.47% to 4.03%. Over the same period, the MAS increased from 3.75% to 4.23%. Further, mortgage rates are expected to continue climbing in the near term. In its most recent forecast, dated October 28th, NAHB expects the rate on a 30 year fixed rate mortgage to climb in each of 2017 and 2018.

The increase in mortgage rates follows the increase in the 10-year Treasury note. A rising rate on the 10-year partly reflects the desire to make progress on monetary policy normalization, which has been impeded by a series of unrelated surprises over the course of the year. However, momentum has been building and expectations of an impending increase in the federal funds rate has pushed interest rates modestly higher in the second half of the year.

A more seismic impact from a different set of rate expectations has been set in motion by the surprise outcome of the November election. Proposals for fiscal stimulus via tax cuts, government spending and regulatory reform have led to expectations of stronger economic growth, higher inflation and higher interest rates. The yield on 10-year Treasury securities has moved up over 50 basis points since November 8.

 

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http://eyeonhousing.org/2016/12/rates-steady-in-october-as-increases-expected/