Tag Archives: South Salem NY Homes for Sale

NY state awaits word on rent assistance funds | South Salem Real Estate

New York’s $2.4 billion rental assistance fund has nearly run dry, prompting state officials to scramble for more federal funding to cover a backlog of thousands of applicants — and leaving cash-strapped tenants and landlords in limbo.

Earlier this month, the Empire State made the surprise decision to halt new applications for its Emergency Rental Assistance Program (ERAP) program — an outgrowth of the controversial federal eviction moratorium that was ruled unconstitutional by the Supreme Court. 

Designed to help renters and landlords pay expenses amid the fallout from COVID-19, Governor Kathy Hochul announced on Nov. 12 that her administration was asking for an additional $996 million in federal funding from the U.S. Treasury Department to try and keep the program running. 

“While New York accelerated getting rent relief out the door and moved from the back of the pack to the front amongst other states, there are still many individuals in need of assistance,” Hochul said.

The funding crunch comes at a time when the eviction moratorium is set to expire on January 15th, leaving thousands without aid. After a weak start marked by system delays and inefficiencies, the ERAP program finally began to make strides in August in distributing the funds to low-income tenants who were unable to pay rent due to the pandemic.

As of November 9th, nearly 280,000 households have submitted applications to the program, and the state has paid out $1 billion to 81,209 landlords who haven’t been paid rent. Meanwhile, between 70,000 to 80,000 applications remain pending.

However, days prior to Hochul’s announcement, the state posted a warning on its website informing would-be applicants that funds are almost gone — except in a few smaller counties where funds have not yet exhausted their pool of aid. 

That further exasperated building owners — some of whom recently challenged New York’s moratorium in court and haven’t been paid in over a year. Despite the Big Apple’s recovery, which has seen rent prices surge anew, landlords and tenants are still suffering from the overhang of the pandemic’s worst days. 

“I am beyond frustrated,” Jill Berman, a New York landlord who owns an 8- family apartment building in Park Slope Brooklyn, told Yahoo Finance in a recent interview.

“The way the process has been handled is very [anger] making,” she added.

Following the state’s move to stop taking most requests for its pandemic rent relief, it prompted Berman to write a letter to Governor Hochul about her situation, which she shared with Yahoo Finance. According to Berman, both she and her tenant — who owes over $30,000 in unpaid rent dated back to May 2020 — had applied for rental assistance in June when the portal was opened.

“That’s significant money. I am lucky that the other tenants in my building are paying their rent but I know other landlords who are not that lucky and are desperately in need of rental assistance funds or they might go under,” Berman said.

After months being in limbo with the state’s Office of Temporary and Disability Assistance (OTDA) — which initially said her case was under “pending quality control” — Berman’s application was approved, and she’ll be receiving her funds soon. However, she faulted a time consuming and opaque process.

“There seems to be a lack of communication between the people answering the phone and those people involved in the quality review unit and process,” Berman said. “The situation is extremely worrisome because OTDA could say, well, the application has been reviewed and it has not been accepted.

No relief for tenants

NEW YORK, NEW YORK - AUGUST 31: People gather at the New York City office of Gov. Kathy Hochul calling for a stop to evictions on August 31, 2021 in New York City. Housing activists and community members gathered and marched towards the NYC office of Gov. Hochul calling on her, Assembly Speaker Carl Heastie, and Senate Majority Leader Andrea Stewart-Cousins to amend and extend the evictions moratorium, which expires tonight. Rent Stabilization Association, New York's largest landlord group, has threatened to sue the state legislature if lawmakers extend the pandemic-era eviction moratorium. On August 12th, the U.S. Supreme Court ruled against parts of New York's eviction moratorium that allows renters to submit a hardship declaration form stating a loss of income due to the coronavirus (COVID-19) pandemic or that moving would harm their health. (Photo by Michael M. Santiago/Getty Images)
NYC

Meanwhile, several members of New York’s congressional delegation also sent a letter to the Treasury Department emphasizing the need for additional help, explaining the state continues to receive 10,000 new applications per week.

“We haven’t seen a slow down of applicants,” Ellen Davidson, staff attorney at the Legal Aid Society, told Yahoo Finance in an interview.

“It would seem to us that if you want to make a strong case to Treasury, that we need the additional money, closing down the application portal makes the need seem artificially low,” the attorney added.

The nonprofit tried to help people with the application but couldn’t because the portal was “closed down.” The hiccups were due to “ technological problems,” according to Davidson.

“There’s no paper application so in order to apply, you really have to be comfortable with technology,” Davidson said. “Many of the people who’ve been left out are people who don’t have email addresses, or don’t have email addresses that work and find technology challenging.”

While thousands of applicants remain in limbo, the OTDA continues to work to ensure all applications are completed in their entirety.

“In six short months, New York’s rental assistance program has provided more than $1 billion in direct payments to landlords and protected roughly 168,000 households from eviction,” a spokesperson told Yahoo Finance in a statement. 

The spokesperson added that the Empire State was “in a good position” to get more funding to clear its backlog, “and to continue helping struggling renters and landlords alike.”

Without additional federal funding, OTDA doesn’t expect to be able to pay all of the applications already received due to the high demand in ERAP payments.

For applicants who were hoping to apply, but no longer can’t. There is a form available on the ERAP web page so that individuals can provide their email address in order to receive notification if the application portal reopens to all areas of the state.

read more…

finance.yahoo.com/news/

CPI soars 6.2%. Fuel oil prices up 59% | South Salem Real Estate

Inflation across a broad swath of products that consumers buy every day was even worse than expected in October, hitting its highest point in more than 30 years, the Labor Department reported Wednesday.

The consumer price index, which is a basket of products ranging from gasoline and health care to groceries and rents, rose 6.2% from a year ago. That compared to the 5.9% Dow Jones estimate.

On a monthly basis, the CPI increased 0.9% against the 0.6% estimate.

Stripping out volatile food and energy prices, so-called core CPI was up 0.6% against the estimate of 0.4%. Annual core inflation ran at a 6.2% pace, compared to the 4% expectation and the highest since November 1990.

Fuel oil prices soared 12.3% for the month, part of a 59.1% increase over the past year. Energy prices overall rose 4.8% in October and are up 30% for the 12-month period.

Used vehicle prices again were a big contributor, rising 2.5% on the month and 26.4% for the year. New vehicle prices were up 1.4% and 9.8% respectively.

Food prices also showed a sizeable bounce, up 0.9% and 5.4% respectively.

The price increases meant that workers fell further behind.

In a separate report, the Labor Department said real wages after inflation fell 0.5% from September to October, the product of a 0.4% increase in average hourly earnings that was more than offset by the CPI surge.

Shelter costs, which make up one-third of the CPI computation, increased 0.5% for the month and are now up 3.5% on a year-over-year basis, pointing to more reasons for concern that inflation could be more persistent than policymakers anticipate. The annual pace is the highest since September 2019.

The data comes as policymakers such as Fed Chairman Jerome Powell and Treasury Secretary Janet Yellen maintain that the current price pressures are temporary and related to pandemic-specific issues. While they have conceded that inflation has been more persistent than they expected, they see conditions returning to normal over the next year or so.

read more…

cnbc.com/2021/11/10/consumer-price

Mortgage rates average 2.99% | South Salem Real Estate

 Freddie Mac today released the results of its Primary Mortgage Market Survey® (PMMS®), showing that the 30-year fixed-rate mortgage (FRM) averaged 2.99 percent.

“Mortgage rates continue to hover at around three percent again this week due to rising economic and financial market uncertainties,” said Sam Khater, Freddie Mac’s Chief Economist. “Unfortunately, with the expectation that both mortgage rates and home prices will continue to rise, competition remains high and housing affordability is declining.”

News Facts

  • 30-year fixed-rate mortgage averaged 2.99 percent with an average 0.7 point for the week ending October 7, 2021, down slightly from last week when it averaged 3.01 percent. A year ago at this time, the 30-year FRM averaged 2.87 percent.
  • 15-year fixed-rate mortgage averaged 2.23 percent with an average 0.7 point, down from last week when it averaged 2.28 percent. A year ago at this time, the 15-year FRM averaged 2.37 percent.
  • 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.52 percent with an average 0.3 point, up from last week when it averaged 2.48 percent. A year ago at this time, the 5-year ARM averaged 2.89 percent.

The PMMS is focused on conventional, conforming, fully amortizing home purchase loans for borrowers who put 20 percent down and have excellent credit. 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 the Definitions. Borrowers may still pay closing costs which are not included in the survey.

Freddie Mac makes home possible for millions of families and individuals by providing mortgage capital to lenders. Since our creation by Congress in 1970, we’ve made housing more accessible and affordable for homebuyers and renters in communities nationwide. We are building a better housing finance system for homebuyers, renters, lenders, investors and taxpayers. Learn more at FreddieMac.com, Twitter @FreddieMac and Freddie Mac’s blog FreddieMac.com/blog.

Existing home sales rise 44% | South Salem Real Estate

Median sales price of all existing homes was $350,300, up 23.6% from a year ago.

As low inventory continues to push home prices higher and squeeze out some buyers, existing home sales dropped to a eleven-month low in May, according to the National Association of Realtors (NAR). The median existing home price in May surged to an all-time high; the largest annual pace on record.

Total existing home sales, including single-family homes, townhomes, condominiums and co-ops, fell 0.9% to a seasonally adjusted annual rate of 5.80 million in May, the lowest level since July 2020. However, on a year-over-year basis, sales were still 44.6% higher than a year ago.

The first-time buyer share remained at 31% in May, even with April but down from 34% a year ago. The May inventory level increased from 1.15 to 1.23 million units but is still down from 1.55 million units a year ago.

At the current sales rate, the May unsold inventory sit at a 2.5-month supply, slightly up from April’s 2.4-month but still down from 4.6-month a year ago. This low level supply of resale homes is good news for home construction.

Homes stayed on the market for an average of just 17 days in May, an all-time low, unchanged from April and down from 26 days a year ago. In May, 89% of homes sold were on the market for less than a month.

The May all-cash sales share was 23% of transactions, down from 25% last month and 17% a year ago.

Tight supply continues to push up home prices. The May median sales price of all existing homes was $350,300, up 23.6% from a year ago, representing the 111st consecutive month of year-over-year increases. The median existing condominium/co-op price of $306,000 in May was up 21.5% from a year ago.

Geographically, three of four regions saw a decline in existing home sales in May, ranging from 0.4% in the South to 4.1% in the West. Sales in the Midwest rose 1.6% in May. On a year-over-year basis, however, sales continued to grow by double-digits in all four regions, ranging from 27.2% in the Midwest to 61.6% in the West.

Meanwhile, the Pending Home Sales Index (PHSI), also reported by the NAR, is a forward-looking indicator based on signed contracts. The PHSI declined 4.4% from 111.1 to 106.2 in April. On a year-over-year basis, sales were 51.7% higher than a year ago.

Though consumers are facing higher home prices and declining housing affordability, housing demand is expected to remain solid due to historically favorable mortgage rates and a promising economic outlook. Meanwhile, rising material prices and supply chain shortage are limiting builders’ abilities to meet the increased level of demand. The imbalance between housing supply and demand could hamper future sales by driving up house prices and eroding affordability.

read more…

eyeonhousing.org

Case-Shiller prices up 13.2% | South Salem Real Estate

  • Home prices in March were 13.2% higher in March, compared with March 2020, according to the S&P CoreLogic Case-Shiller National Home Price Index.
  • The 10-City Composite rose 12.8% year over year, up from 11.7% in the previous month. The 20-City Composite increased 13.3%, up from 12.0% in February.
A real estate broker, right, gives a tour for potential home buyers during an open house in Manhattan Beach, California.

Home prices in March were 13.2% higher in March, compared with March 2020, according to the S&P CoreLogic Case-Shiller National Home Price Index.

That is up from the 12% annual gain in February, and it marks the 10th straight month of accelerating home prices.

The March gain is the largest since December 2005 and is also one of the largest in the index’s 30-year history. Prices are being pushed higher by incredibly strong competition in the market. High demand is butting up against near record-low supply, resulting in bidding wars for the vast majority of listings.

The 10-City Composite rose 12.8% year over year, up from 11.7% in the previous month. The 20-City Composite increased 13.3%, up from 12.0% in February.

Cities with the strongest price gains continue to be Phoenix, San Diego and Seattle. Phoenix sits at the top with 20% year-over-year price increase, followed by San Diego with a 19.1% increase and Seattle prices rising 18.3%. All 20 cities reported higher price increases in the year ending March 2021 versus the year ending February 2021.

“These data are consistent with the hypothesis that COVID has encouraged potential buyers to move from urban apartments to suburban homes,” said Craig Lazzara, managing director and global head of index investment strategy at S&P DJI.

“This demand may represent buyers who accelerated purchases that would have happened anyway over the next several years. Alternatively, there may have been a secular change in preferences, leading to a permanent shift in the demand curve for housing,” he added.

Mortgage rates began rising during this period, with the average rate on the 30-year fixed just below 3% in February and then ending March at around 3.4%, according to Mortgage News Daily. Higher mortgage rates cut into purchasing power, and usually put a chill on home prices, but clearly unusual competition in the market is overwhelming the usual mechanics of the market.

There were just 1.16 million homes on the market in April, a 20% drop year over year, according to the National Association of Realtors. The continued shortage of homes, especially at the lower end of the market, forecasts that home prices will not cool off any time soon.

Sales are beginning to weaken, and prices usually follow, but again, the usual trends are not dependable in this very unusual housing market.

read more…

cnbc.com/2021/5/25

Existing home sales up 22% | South Salem Real Estate

U.S. home sellers received more than asking price on 24.1 percent of 2017 sales, netting an additional $7,000 on average.
Courtesy Adobe Stock

Total existing home sales—including single-family homes, townhomes, condominiums, and co-ops—rose by 0.7% month over month and 22.2% year over year in December, up to a seasonally adjusted annual rate of 6.76 million, according to the National Association of Realtors. At the same time, year-end existing home sales volume totaled 5.64 million in 2020—up 5.6% from 2019, and the highest number recorded since 2006.

“Home sales rose in December, and, for 2020 as a whole, we saw sales perform at their highest levels since 2006, despite the pandemic,” says Lawrence Yun, NAR’s chief economist. “What’s even better is that this momentum is likely to carry into the new year, with more buyers expected to enter the market. … Although mortgage rates are projected to increase, they will continue to hover near record lows at around 3%. Moreover, expect economic conditions to improve with additional stimulus forthcoming and vaccine distribution already underway.”

The median existing home price for all housing prices was $309,800 in December, up 12.9% from $274,500 in December 2019. This marks 106 straight months of year-over-year price increases for existing homes. Total housing inventory totaled 1.07 million units, down 16.4% from November and down 23% from December 2019. Unsold inventory sits at an all-time low 1.9-month supply at the current sales pace.

“To their credit, home builders and construction companies have increased efforts to build, with housing starts hitting an annual rate of near 1.7 million in December, with more focus on single-family homes,” Yun says. “However, it will take vigorous new-home construction in 2021 and in 2022 to adequately furnish the market to properly meet the demand.”

Properties typically remained on the market for 21 days in December, down from 41 days in December 2019. Seventy percent of homes sold in December were on the market for less than a month. First-time buyers accounted for 31% of existing home sales, while individual investors or second home buyers accounted for 14% of transactions. Distressed sales represented less than 1%.

Alone, single-family home sales rose to a seasonally adjusted annual rate of 6.03 million in December, up 0.7% from 5.99 million in November and 22.8% from one year ago. Please visit website for more details.

At the regional level, existing home sales rose 4.5% month over month to an annual rate of 930,000 in the Northeast, or 27.4% from one year ago. Existing home sales were unchanged month over month in the Midwest at an annual rate of 1,590,000, up 26.2% from one year ago. Sales rose 1.1% month over month in the South to an annual rate of 2,860,000, up 20.7% from one year ago, and existing sales in the West fell 1.4% to an annual rate of 1,380,000, up 17.9% from one year ago.

read more…

builderonline.com/data-analysis/

Case-Shiller home prices up 7% | South Salem Real Estate

In September, national home price appreciation accelerated, while all 19 major markets reported home price gains.

The S&P CoreLogic Case-Shiller U.S. National Home Price Index, reported by S&P Dow Jones Indices, rose at a seasonally adjusted annual growth rate of 18.3% in September, faster than a 17.0% increase in August. It marks the highest annual growth rate since March 2013. On a year-over-year basis, the S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index posted a 7.0% annual gain in September, up from 5.8% in August. It is the fastest pace of home price appreciation since May 2014. Home price appreciation continued with strong demand, low interest rates and tight inventory. In September, existing home sales surged to the highest level since May 2006, while the inventory decreased to a 2.7-month supply.

Meanwhile, the Home Price Index, released by the Federal Housing Finance Agency (FHFA), rose at a seasonally adjusted annual rate of 22.7% in September, following a 20.1% increase in August. On a year-over-year basis, the FHFA Home Price NSA Index rose by 9.1% in September, after an increase of 8.1% in August. It confirmed the acceleration in home price appreciation for this month.

In addition to tracking national home price changes, S&P reported home price indexes across 19 metro areas in September (Detroit metro area data was missing in September 2020 because there are not a sufficient number of records for the month of September for Detroit).

In September, all 19 metro areas reported positive home price appreciation and their annual growth rates ranged from 10.1% to 31.2%. Among all the 19 metro areas, seven metro areas exceeded the national average of 18.3%. Seattle, San Diego and Phoenix had the highest home price appreciation. Seattle led the way with a 31.2% increase, followed by San Diego with a 29.8% increase and Phoenix with a 26.4% increase.

read more…

eyeonhousing.org

New home sales up 32% | South Salem Real Estate

New home sales declined in September for the first time since April. The U.S. Census Bureau and the Department of Housing and Urban Development said sales of newly constructed homes were sold at a seasonally adjusted annual rate of 959,000 units, a 3.4 percent decline from the prior month. Further, the 1,011,000 sales reported in August were revised down to 994,000. Nonetheless, sales are still up 32.1 percent from one year ago.

Sales were below all the predictions from the Econoday panel of analysts. Those ranged from1.0 million to 1.05 million.  Their consensus was 1.016 million units. Econoday said its consensus forecast had fallen short of actual sales in each of the previous five months.

On a non-adjusted basis there were 75,000 new homes sold during the month compared to 82,000 in August and 56,000 in September 2019. Slightly less than one-third of the homes sold (24,000) were ready for occupancy while the remainder were almost equally divided between homes under construction and homes for which construction had not been initiated.

For the year-to-date 618,000 homes have sold. This represents a 16.9 percent increase over the 529,000 homes sold in the first nine months of last year.

The median price of a home sold during the month was $326,800 and the average price was $405,400. The respective sales prices in September of last year were $315,700 and $372,100.

At the end of the reporting period there were an estimated 284,000 new homes available for sale, a 3.6-month supply at the current sales pace. A year earlier the 321,000 available homes were projected to be a 5.3-month supply.

Sales of newly constructed homes declined by 28.9 percent in the Northeast compared to August and were 5.9 percent lower on an annual basis. In the Midwest sales were down 4.1 percent for the month but rose 34.8 percent year-over-year. There was a 4.7 percent decline in the South although the annual increase was 27.4 percent. The West posted the only monthly gain, 3.8 percent, and sales were 49.7 percent higher than in the prior September.

read more…

http://www.mortgagenewsdaily.com/10262020_new_home_sales.asp

NYC property sales down 33% Y-o-Y | South Salem Real Estate

Key Takeaways:

  • Sales activity continued to strengthen in NYC, with July 2020 up 40% M-o-M and down only 33% Y-o-Y
  • Weekly sales surpassed 500 transactions for first time in 15 weeks, monthly sales top 2,000 for first time in four months
  • Queens median sale price markfirst Y-o-Y drop, down 10% in July
  • At $1.065 million, Manhattan YTD median slides 15% below 2019 figures
  • The Bronx has highest price growth with July median up 7% Y-o-Y
  • Brooklyn median drops 9% Y-o-Y, virtually erasing year-to-date gains

After a tumultuous first half of the year, all of the state of New York is now in Phase Four of reopening, which means the performance of the residential market performance is of heightened interest. The year actually started off well, promising increased sales activity — until projections and expectations were shattered by the uncertainty and upheaval of March. It was followed by an April marked by historical lows in sales activity and the strongest pricing trends of 2020 up to that point. 

However, as the curve flattened and the general public started readjusting to the new normal, the state’s gradual reopening brought a tentative return of transactional activity in May. Then, June  presented a whole new picture with strengthening sales trends and the first significant year-over-year (Y-o-Y) price drop, despite recording the highest median sale price this year at $717,733.

July, however, posted the sharpest decrease of the four boroughs’ median sale price, and also marked the strongest month of sales since March.

Transactional activity, of course, has trended negative since the beginning of the crisis. March kicked off with sales activity 15% higher than the same period last year, only to see it drop 36% Y-o-Y by month’s end. Later, sales activity bottomed out in April — its 1,549 deals equated to a 61% Y-o-Y drop. And, while May’s 1,337 recorded sales were certainly a drop in sheer numbers compared to April, they also represented a decrease of only 52% Y-o-Y, promising a tentative return of transactional activity.

In June, sales trends strengthened even further and, at this point, the monthly sales activity was the highest since the beginning of the crisis in March. Specifically, there were 1,670 residential sales for the month, coming in just 41% lower Y-o-Y. However, it must be noted that June 2020 figures were skewed beyond just the pandemic’s effects – sales activity and the median sale price surged artificially in June 2019 as buyers and sellers rushed to close deals before the new mansion tax went into effect in July 2019.

Similarly, July marked only one week with fewer than 400 sales. What’s more, two weeks of the month surpassed 500 transactions — a level of transactional activity not seen since late March. In fact, the second week of the month totaled 562 sales, just four deals shy of equaling the last week of March.

What’s more, the third week of July recorded a 23% Y-o-Y drop — the smallest rate of contraction in sales activity since the third week of March. All in all, July’s sales activity was the most dynamic in the last four months, closing a total of 2,343 deals across the four boroughs for a drop of just 33% Y-o-Y. Moreover, compared to June, sales activity experienced a month-over-month surge of 40%.

While pricing trends remained firmly positive at the beginning of the crisis and the NYC median sale price remained steadily above the same period last year, that trend started shifting in June and reversed completely in July.

Specifically, both March and April boasted a 5% Y-o-Y price expansion. Moreover, each week in March also posted a median sale price higher than the same period in 2019 — a trend that remained steady throughout April. Overall, May kept up with that trend, as well, and closed with a median sale price of $705,000 for a 4% gain over May 2019.

Along the same lines, June 2020 kicked off with the strongest pricing trends so far this year. The NYC the median sale price was $743,000 in its first week, which pushed the month’s overall median to $717,700. This also made June 2020 the most expensive month YTD, even as it closed with a 2% Y-o-Y drop in its median, which was influenced, once again, by the artificially inflated pricing in June 2019.

July, however, presented a whole new picture. While the $780,000 median of July 2019 also reflected the pre-mansion tax sales frenzy that had occurred in the upper end of the market, this was not the sole cause of the 13% Y-o-Y drop that was recorded in July 2020. Rather, at $680,000, July 2020 featured the lowest median sale price since March, bringing down the YTD median for the four boroughs.

So, while the elevated pricing trends of Q2 resulted in a H1 median sale price of $690,000 and a 3% gain over H1 2019, the contrary pricing trends of July almost completely erased that. In particular, July 2019’s artificially inflated median — paired with a July 2020 that was more in line with pre-pandemic figures — brought the YTD median sale price in NYC to $687,419, representing a negligible .35% Y-o-Y gain. 

At the same time, year-to-date sales activity stood at 16,559 transactions, down 26% compared to the same timeframe last year. As a result, July’s recovering sales activity also decreased the YTD sales activity by only 1% Y-o-Y.

Manhattan was the hardest hit residential market in the city in the first half of the year. Here, sales activity was down 31% Y-o-Y and the median sale price dropped 13%. Specifically, the first half of 2019 totaled 5,487 residential sales for a median sale price of $1.2 million, while H1 2020 recorded 3,775 sales for a $1.05 million median. While pricing trends remained firmly positive in the other three boroughs throughout Q2, for Manhattan, that was the exception rather than the rule.

In fact, only April saw prices increase Y-o-Y reaching a YTD high of $1.34 million — while both March and June slipped under the $1 million mark, reaching $950,000 and $966,000, respectively. June’s median also resulted in a Y-o-Y price contraction of 37% — due, in part, to the rush to close high-end deals prior to the mansion tax during the year prior. From a sales activity perspective, July’s 633 sales made for Manhattan’s strongest month since the beginning of the crisis. That figure represented a 36% Y-o-Y drop in sales — the least-drastic decrease since March.

At the same time, the median sale price for NYC’s most expensive borough came in at $1.15 million, down 26% Y-o-Y. But, it must be noted that of all the boroughs, Manhattan’s year-ago metrics were the most influenced by the spike in sales of higher-priced assets prior to the mansion tax,  pushing July 2019’s median to $1.56 million. Additionally, Manhattan was the only borough to record M-o-M price growth in July, gaining 19% for a $1.15 million median in July.

On the other hand, Queens seemed to navigate the crisis in the calmest manner, all things considered. Its sales activity was down 22% Y-o-Y in the first half 2020, but its median sale price went up 10%, for the highest price increase across the four boroughs. In fact, although sales activity growth in the borough bottomed out at a negative 58% in April, the median sale price jumped 19% to reach a YTD high of $630,000, followed closely by June’s $619,000.

July, however, reversed the upward trend in price growth observed in the first half of the year, becoming the first month  in 2020 so far with negative price growth Y-o-Y. More precisely, at $576,500, Queens’ July median sale price was 10% below July 2019 — which, at $640,000, was 2019’s most expensive month up until that point. As a result, July 2020’s median was more in line with early 2020 pricing trends as opposed to the elevated medians recorded in Q2 and brought the borough’s YTD median to $584,500

Sales activity, however, strengthened in July, reaching 855 transactions and making this Queens’ most active month since March. In particular, July sales were down 28% Y-o-Y, resulting in the lowest rate of contraction in four months. Meanwhile, sales were up 55% compared to June — a promising sign in what is usually the most active borough for residential sales. Overall, that brought Queens’ YTD sales activity to 5,992 deals — 23% lower than the same period last year.

In the meantime, Bronx sales activity remained in negative growth territory Y-o-Y, coming in 22% below July 2019 for the lowest Y-o-Y decrease in sales activity across the four boroughs. But, the Bronx’s 260 sales recorded in July also represented a 60% increase M-o-M. That brought the borough’s number of sales to 1,679 YTD, for a 24% decrease compared to the first seven months of 2019.

Although the Bronx closed the first half of 2020 with the lowest median sale price of the four boroughs as usual, it actually recorded the second-highest price increase. Specifically, its 8% Y-o-Y gain took its H1 median sale price from $420,000 in 2019 to $455,000 in 2020. In fact, May brought a 33% price surge to the Bronx and lifted the median sale price to a YTD high of $531,000. Likewise, although July’s median was a more modest $493,500, it was still up 7% Y-o-Y – a notable achievement considering that July was 2019’s priciest month by that point.  

From a pricing perspective, Brooklyn performed somewhat weaker in the first six months of the year. Its $750,000 median sale price was just 3% higher than it was in the first half of 2019. And, while 2020 transactional activity bottomed out at only 395 sales in May, Brooklyn’s median sale price surged to a YTD high of $820,000, followed closely by June’s $799,000 median sale price.

July’s median came in at $742,500, down 9% compared to the July 2019 median of $815,000. As a result, the borough’s YTD median of $750,000 also represented a 1% increase over the same period last year.

However, Brooklyn’s YTD sales activity was down 24% compared to the same period last year, with a total of 4,480 sales recorded in the first seven months of the year. Sales activity here contracted at the least sharpest rate in H1, coming in 21% below the first half of 2019.

July sales activity, however, did not experience the same influential increase in Brooklyn as the other three boroughs. It came in 41% lower than July 2019. But, compared to June 2020, sales were up, with its 595 sales representing a 19% gain M-o-M.

Methodology

For this snapshot of the COVID-19 pandemic’s influence on the NYC residential market, we considered all sales of condo, co-op, single- and two-family homes registered between January 1, 2019, and August 2, 2019, as well as January 1, 2020, and July 31, 2020. We excluded all sales below $10,000, as well as all package deals. We defined NYC as the four boroughs of Manhattan, Brooklyn, the Bronx and Queens.

read more…

https://www.propertyshark.com/Real-Estate-Reports/nyc-real-estate-covid19/

NYC apartment sales drop 57% | South Salem Real Estate

a garden in front of a house: Photo of home for sale in Huntington, New York on August 5, 2020. New York City suburbs are seeing a huge increase in real estate demand amid the pandemic. Thomas A. Ferrara/Newsday RM via Getty ImagesNewsday RM via Getty Images Photo of home for sale in Huntington, New York on August 5, 2020. New York City suburbs are seeing a huge increase in real estate demand amid the pandemic.

  • New York City apartment sales plunged in July, according to a report from the real-estate firm Douglas Elliman.
  • But in neighboring suburbs, home sales are surging as wealthy New Yorkers seek greener pastures. 
  • For Connecticut — which has struggled to rebound even from the last recession — the migration could be a boon for its struggling finances. 

Only one Manhattan condo sold for more than $10 million in July, according to a new report, as many wealthy New Yorkers continue to flee the city for greener pastures.

Overall apartment sales fell 57% in July compared to the same month in 2019 as for-sale listing soar, real estate firm Douglas Elliman said in its monthly report, a highly-watched data source for the nation’s largest housing market.

As the US largely fails to stop the spread of the coronavirus, short-term escapes appear to be turning in to long-term moves, potentially fueling a rebirth for struggling suburbs. In Westchester County, directly north of the five boroughs, overall single-family sales were up 112% over last year, with those over $2 million more than quadrupling.

And in Connecticut, the areas closest to New York City saw a similar uptick in-step with Westchester. The state was hit hard by the housing crisis more than a decade ago, and has struggled to recover in the years since. Connecticut is one of just two states in the country where gross domestic product has yet to recover from the previous recession and its employment numbers have lagged neighboring states, according to data from the Bureau of Economic Analysis and the Federal Reserve Bank of St. Louis.

“We are going to market ourselves more to those individuals as opposed to marketing ourselves to the company,” a state economic-development official told The Wall Street Journal, assuming that the days of commuting to an office in Manhattan’s core or corporate parks are on the skids for now. People working from home in Connecticut could be a much-needed boost to the state’s income tax base — and its lawn-laden towns and countryside feel all the more attractive in the middle of a pandemic.

But while the shift in high-end housing is shaping up to be a boon for some towns and brokers, investors are circling distressed assets at depressed prices as unemployment remains above 10% and out-of-work Americans struggle to pay rent.

“Real-estate investors — when you take the emotion out of it — many of them have been waiting for this for a decade,” David Schechtman, a broker with Meridian Capital Group, told The Wall Street Journal in April. The economy has seen little improvement in the months since.

read more…

https://www.msn.com/en-us/money/realestate/