Posts Tagged ‘forecast’
While September was characterized by fear over the economic fluctuations, brokers said, buyers in the last few weeks have started to make decisions faster (although foreign buyers reeling from the debt crisis continue to wait on the sidelines). Brokers also noted that lowball offers gained little traction and bidding wars started anew at some properties. — “Volatile, shmolatile: Serious buyers not deterred by market’s ups and downs,” The Real Deal, Nov. 1, 2011
NEW YORK — First of all, many of us are still dealing with the remains of the Nor’easter that hit the East Coast this Halloween weekend, and I wish you all the best and hope you are warm and safe.
As we all know, the real estate market is a moving target reacting to the perception that buyers and sellers have of the economy. When the evening news talks about the S&P downgrade and the jobless reports shows little growth, there is a sense on the street that now is not the time to buy. When sales get slow, rentals get busy.
So, in August and September, this negative news meant that the rental market sizzled.
Since then, the news from Wall Street has been positive, the markets are up, October was a strong month for stocks, interest rates are still at historic lows and the perception on the street is that now is a good time to buy.
For us at Bond New York, October was a strong month for our sales division, and we remain highly optimistic of continued growth in November.
Below is an interesting article speaking more about the perception of buyers and sellers. I hope you enjoy it as much as I did.
And, as always, if you or anyone you know is thinking about buying, selling or renting property in New York, please let me know.
NEW YORK — If you think rental apartments are becoming scarce and more expensive, you’re right.
Nationwide, apartment vacancies dropped to a 5-year low last quarter to 5.6 percent, according to research firm Reis.
In Manhattan, it’s less than 1 percent.
Research also showed a corresponding rise in effective rents, or what tenants pay after landlord concessions are included, year over year in 81 out of the 82 metropolitan areas.
Bloomberg reported: “San Jose, California, led with 5.5 percent growth in effective rents from a year earlier, followed by San Francisco at 4.5 percent and New York at 3.7 percent, Reis said. Only Las Vegas experienced a decline in rents.”
Of course, that figure represents all five boroughs: Manhattan, Brooklyn, Queens, Staten Island and the Bronx.
Forecasts of record-high rents earlier this year have largely been realized.
“There’s also concern more consumers will take on roommates to cut costs, something last seen following the financial crisis. Should that increase the vacancy rate, landlords could be forced to bring back profit-eroding freebies such as a month or two of free rent,” wrote The Wall Street Journal.
Those “freebies” include no-fee apartments, which means the landlord pays the 15 percent broker’s fee.
Such concessions are becoming increasingly rare since apartment vacancy rates hit a 22-year high — back in July 2009.
NEW YORK — Manhattan rents, as predicted, have experienced a 10 percent increase from a year ago — with inventory tightening, as well.
One-bedroom apartments averaged $2,672 and two-bedroom units were $3,757 per month, according to The Real Deal. Those dollar figures represent a rise of 9.2 percent and 10.8 percent, respectively compared to the second quarter of last year. The article also finds:
The most expensive area was the West Village where one-bedroom rents reached $3,457, followed by Soho and Tribeca where one-bedrooms netted $3,454 on average. The least expensive areas were Upper Manhattan and the Upper East Side, where rents averaged $2,621 for a one-bedroom apartment.
Meanwhile, the borough’s vacancy rate was 0.72 percent for the quarter, the lowest rate since the firm began tracking the statistic in 2002. Last quarter’s vacancy rate was 1.08 percent, and the rate stood at 0.97 during the same period a year ago.
Mortgage rates, which fell to 4.55% for the week ending June 2, according to Freddie Mac, are near 50-year lows. Homes have become more affordable than they have been in years: According to Moody’s Analytics, the ratio of home prices to income is now 20.9% lower than the 15-year average through 2010, and 12.5% lower than the 1989-2004 average. A historic glut of homes, meanwhile, has created a buyer’s market: There were about 15 million vacant homes in the U.S. last year, according to John Burns Real Estate Consulting, Inc. — some 3.1 million more than normal. — “Why It’s Time To Buy,” The Wall Street Journal, June 4, 2011.
NEW YORK — To buy or not to buy.
That is the often the question, perhaps more so in a market characterized by soft demand and oversupply.
One figure stands out in the April 2011 price index accompanying the Wall Street Journal article cited above:
While overall home prices fell 7.5 percent in April from a year ago, just five states (and the District of Columbia) actually saw prices marginal gains up to 4.5 percent: Alaska, New York, North Dakota, Vermont and Mississippi.
As always, if you or someone you know is thinking of buying, selling or renting in New York City, please let me know.
The upward pricing pressures come as companies add workers to their payrolls at the highest rate in a decade, according to the report released today by Marcus & Millichap.
On another note, the New York State Assembly advanced a bill to extend current rent regulations through 2016. They had been set to expire June 15.