Daily Archives: May 4, 2013

Terminal City: ‘Grand’ old rail station once ruled NYC real estate market | Chappaqua Real Estate

Who hasn’t heard someone walk into a crowded room and ask, “What is this, Grand Central Station?” The reference is incorrect, as Sam Roberts notes in his book, “Grand Central,’’ a history of the “palace” that is marking its 100th anniversary.

The correct term is Grand Central Terminal: Rail traffic originates and ends there; it is not just a stop on the way. The present terminal is the second rail facility built more or less on that spot. The first, known as Grand Central Depot, opened in 1871.

That facility was inadequate from the get-go, and it was substantially altered by 1900. It was expanded from three stories to six, the tracks were modified to improve the movement of trains, and it became Grand Central Station. But, as Roberts explains, a tragic event in January 1902 inspired the development of what is now Grand Central Terminal and altered the history of what is now mid-town Manhattan.

A local train from White Plains, with a substitute engineer, slammed into a commuter train at 56th Street, killing 15 passengers. It appeared that the engineer had been speeding to make up lost time, but it was never determined why he did not stop his train in time to avoid the crash.

Railroad officials, who were not prosecuted in connection with the deaths, reacted immediately with a decision to raze the outdated station, electrify the rails and build the colossal and elegant structure that now stands at East 42nd Street and Park Avenue. The demolition alone was one of the biggest undertakings of its kind in New York City history:

“On 17 acres purchased by the railroad, 120 houses, three churches, two hospitals and an orphan asylum would have to be obliterated, as would stables, warehouses, and other ancillary structures.”

Together with the excavation of dirt and rock to a depth of 90 feet, building the new structure took 10 years and cost the equivalent of about $2 billion in 2013 terms. The result was a palace that, as one of the many photographs in this elegant book shows clearly, looked like a forlorn giant on an otherwise empty landscape

 

 

http://www.mycentraljersey.com/article

The Chinese Are Freaking Out About A Sudden Drop In Housing Prices | Bedford Corners Homes

ASK ordinary people about their own Chinese dream, and you find owning a home is high on the list.

 

But years of rising house prices have put that dream out of reach of many. A slowing economy appeared to take some of the heat out.

Now, alas, the residential property market is soaring again (see chart). A new survey of developers and property firms on May 2nd showed average house prices up more than 5% in April on a year earlier.

Taking the long view, rising property values seem defensible. The country is undergoing the largest wave of urbanisation in human history and homes must be built for all of those new city dwellers.

The existing housing stock is poor, so people upgrade to modern homes as soon as they can afford them. Local governments earn a lot of money from land sales to developers and investors have few other places to park their money. All that suggests upward pressure on prices is not going away.

But even if you accept those long-term arguments, says Alistair Thornton of IHS, a consultancy, the market right now looks increasingly as if it is becoming detached from the fundamentals, as speculators looking for an investment swamp buyers looking for somewhere to live. Many flats sit vacant despite legions of prospective buyers desperately seeking affordable housing. Capital Economics, a research firm, estimates that investment in residential property accounted for 8.8% of China’s GDP in 2012.

 

the economist

The Economist

The alarm bells are being rung in unexpected quarters. Wang Shi, the charismatic boss of Vanke, China’s biggest property developer, would seem to have more to gain than most from further price rises, yet he too warns of a looming “disaster.” The plunge in prices that would result from a pricking of this bubble, he declared on “60 Minutes”, an American television programme, could lead to popular protests on the scale of the recent Arab uprisings.

 

China’s new leaders are keenly attuned to such concerns and are trying hard to head off the danger. The ruling State Council and the country’s central bank have issued numerous decrees in recent weeks designed to dampen the market and to crack down on speculation. Among these are larger down-payments and higher mortgage rates for people buying second homes and a reminder to local governments that a 20% capital-gains tax on second-home sales must be enforced.

But plenty of central-government edicts are ignored. The capital-gains tax on resales, for example, was only rarely levied in the past. Ren Zhiqiang, boss of Hua Yuan Real Estate Group, another property giant, recently denounced the country’s policies. The central government’s message to local officials, he claimed, could be described as: “We hope prices won’t continue rising; you go and fix them; and if you don’t fix them, we will punish you.”

Most local officials do not want to implement such curbs with any rigour. On the contrary, encouraging a property boom keeps much-needed tax revenues flowing and puffs up the local economic growth figures on which their chances of promotion hang. This misalignment of incentives, argues Mr Thornton, explains why “it’s always a cat-and-mouse game between local and central authorities”.

Read more: http://www.businessinsider.com/china-home-prices-threaten-stability-2013-5#ixzz2SNYkrhYH

Home prices near new peaks in many markets | Armonk NY Real Estate

Home prices in 10% of the nation’s top 200 housing markets have recently hit new peaks or are only a hair away, new data show.

Another 24 of the top markets are within 5% of their previous peaks, according to data provided to USA TODAY by real estate tracker Lender Processing Services.

Many of those cities are likely to hit new peaks this year, economists say, given projections for continued price increases.

The data show how far prices in many cities have rebounded since the historic housing bust after mid-2006 — and how far they still have to go in most cities. The figures also underscore the uneven impact of the housing bubble, and then bust, in different regions.

Dozens of markets where prices peaked in 2006 or earlier are still 25% to 58% below those plateaus, LPS says.

Many cities now at or close to previous highs never saw the price run-ups leading up to the bust that others did. They didn’t drop as far, so they have less of a climb back.

Of the cities within 5% of their previous peaks, none saw more than an 11% decline in home values from mid-2006 to the market’s bottom in early 2012, LPS data shows. Nationally, prices fell almost 28% during that time.

 

 

http://www.usatoday.com/story

Revisiting the history of the 30-year mortgage | Bedford Hills Real Estate

The fate of the 30-year mortgage has been questioned in recent years, but an article in Bloomberg takes a look back at how the product saved the housing market.

Before the 30-year emerged, banks mostly gave balloon loans with terms of just three to five years. However, after the stock-market crash of 1929, investors stopped buying mortgage bonds, the article says.

In order to get the economy to start flowing again, former president Franklin D. Roosevelt pushed for a national mortgage market.

Mortgage amortization, as such a plan was called, eradicated the need for refinancing, which made the balloon mortgages so precarious. A long period made the mortgages independent of short-term fluctuations in the economy. Borrowers wouldn’t have to weather both unemployment and refinancing at the same time.

 

 

http://www.housingwire.com

Bill designed to speed up Florida foreclosures reaches governor | Bedford Real Estate

A bill designed to speed up the foreclosure process in Florida passed the state Senate Friday and is now heading off to the governor for final approval, Naples Daily News reported.

The publication explained how the bill is designed to expedite the default process in a state that continues to deal with foreclosure backlogs and issues stemming from the housing meltdown.

The legislation expedites the process by requiring a judge to immediately review any foreclosure filings in chambers without a hearing, before asking the parties to show cause why a final judgment should be entered.

That process allows the judge to enter a final judgment quickly if the lender feels the borrower has no defense. But if a homeowner believes he or she has a case, a judge will be required to hear the homeowner’s case.

 

 

http://www.housingwire.com/ticker

More move-up buyers are ‘going to Miami’ | Pound Ridge Real Estate

Home sales in Miami rose year-over-year for the 11thconsecutive month in March. The March report fromDataQuick also revealed sizeable increases in mid- to high-end activity and a record level of sales to investors and other absentee buyers.

Miami’s median price paid for a home rose 14.1% year-over-year, marking the 15th consecutive month that the city saw a gain.

In March, there were 10,215 new and resale houses and condos closed in the metro area that encompasses Miami-Dade, Palm Beach and Broward counties. Sales in March rose 18.8% from February and 7.1% from one-year prior, according to DataQuick.

However, while a sharp gain between February and March is normal, the change between those two months has averaged 26.7% since 1997.

During the first quarter of 2013 — January through March — a total of 28,294 homes sold in the region, a 14.2% increase from the first-quarter of 2012.

Sales of homes that were priced below $100,000 dipped 11.2% year-over-year, while sub-$200,000 homes dropped 3.3%.

In Miami and other markets slammed by foreclosures in recent years, you tend to have the greatest inventory restraints in the most affordable areas — the bottom third or so of the market, says Andrew LePage, a spokesperson for DataQuick.

 

 

http://www.housingwire.com

New Jersey home affordability drops in 1Q | Bedford Corners Real Estate

 

New Jersey home prices are on the rise for the second consecutive quarter as a result of purchase demand and tight inventory levels.

These two factors tend to make homes less affordable.

Median home prices jumped 2.07% in the first quarter to $262,661, compared to $257,331 a year earlier, according to data from Otteau Valuation Group.

Rising home prices stem from increased demand, tighter inventory levels and continued economic recovery. The for-sale inventory in New Jersey is currently at an eight-year low, while the pace of sales is the highest it’s been in six years.

The number of New Jersey homes considered affordable dropped in the first quarter due to higher home prices coupled with rising mortgage rates. In fact, the state’s affordability index declined for the first time in two years to 130%, an indicator that the median income of today’s homebuyers can afford a home that is priced 30% higher than the state’s median home value.

Despite the drop in affordability, desperate homebuyers are still rushing to take advantage of lower-than-normal prices and record-low rates.

Moving forward, the combined effect of price increases and mortgage rates will continue to erode homebuyer purchasing power in the market.

 

http://www.housingwire.com

20 Things Savvy Facebookers Should Know (By Now) | Chappaqua Realtor

I’m sure you’ve heard of Facebook. It doesn’t matter if you are on it or not, active or not, or hate it or not; if you are on the Internet, you know what Facebook is. Safe to say that after nearly a decade, Facebook is still going strong and affecting the lives of millions every day. And if you have been on it for years, you would have known about some of the things Facebook users do that just makes no sense.

(Image Source: Fotolia)

But I guess this is just the new wave coming (or is it here already?). It’s quite common to see Facebookers post photos of their meals, self-portraits of them sleeping (don’t ask me why) or secret tips about how to stay healthy without exercising (hm…). If you find this silly, remember back to the time when we were sending chain mails because we don’t want to die in 7 days.

Here are 20 other things Facebookers should know by now (but still has to be said).

Recommended Reading: Facebook Etiquette: 10 Do’s and Don’ts

1. Facebook is free

… and it is going to stay that way. To be fair, you don’t have to pay with money to stay on Facebook. You may however need to pay with other things, like your data, or being subjected to ads, products and messages from advertisers.

2. Sick Babies and Charities

Do sick babies need your ‘Likes’ and ‘Shares’ to get Facebook to donate money to them? Nope. What they need is treatment for their illness, and for people to respect their privacy and not take advantage of their photos. Your clicks do help make money, for the pages that are sharing these messages.

‘Likes’ increase the fan base, ‘Shares’ give them exposure. Everything makes sense now, doesn’t it?

 

 

http://www.hongkiat.com/blog

The Role of Color in Marketing | Armonk NY Realtor

Use the right colors to increase brand recognition and drive purchasing.

role of color in social med The Role of Color in Marketing [Infographics]It’s more important than ever for brands to project their value. Marketers in general understand the need for consistency in color and design. But it’s also vital to move beyond the standard logo and tagline and take a holistic approach to evoking emotions among potential customers across all of your marketing channels — including social media sites. You can use color to your advantage.

 

Color is a form of non-verbal communication and an important part of our daily lives. The underlying emotions that colors evoke have been cultivated since birth and vary depending on age, geographic location, and gender (e.g. blue for boys, pink for girls). Color affects our moods and feelings, and research suggests that it has a physical effect as well, influencing the hormones that control our emotions. Applying color theory is one of the most powerful methods of creating customer appeal.

Why do you feel like clicking and browsing on some websites and not others? What makes you feel like purchasing from one online merchant vs. another? Could it be because of your emotional responses to their color palettes? Choosing the right color scheme is crucial to how your brand is viewed.

Studies have shown that color:

  • Increases brand recognition by up to 80%
  • Improves readership as much as 40%
  • Increases comprehension by 73%
  • Can be up to 85% of the reason people decide to buy

Some brands become so closely associated with their color schemes that we recognize them even when their company names aren’t visible. Use the two infographics below as guides to creating your online identity.

 

 

http://www.pamorama.net/2013/04/21