Are rents finally coming back down to earth in New York City?The Cubs won the World Series, Donald Trump is the president-elect, and the rent in New York appears to be falling. In October, the share of New York City rentals that took a price cut, according to the listing tracker Streeteasy, topped 42 percent—the highest level since December 2010. The real estate firm Citi Habitats, which draws data from its own listings, reports that the vacancy rate in Manhattan has climbed to 2.1 percent, its highest level since 2009. Both of those indicators, in other words, are back in Great Recession territory. "It's a renter's market right now," says Chris Lee, the director of sales at Triplemint, a real estate startup.
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The majority of households believes now is a good time to buy a home but confidence has retreated by a considerable amount amongst renters, according to the latest survey from the National Association of Realtors.
Some suburbs around New York City are becoming decidedly less suburban, as new apartment buildings and condominium communities close to mass transit help expand the downtowns of these villages and towns. Multifamily housing is also popping up near highways and main thoroughfares.
Young professionals seeking more space than they can afford in Manhattan or Brooklyn, empty nesters looking to downsize and leave the snow shoveling to others and, to a lesser extent, millennials moving out of their parents’ basements are leading the charge to a more urbanized suburbia. A $59 million penthouse, a $48,000 fine for Mayor de Blasio and $72.9 million spent on hotel rooms for the homeless. In real estate, it's all about the numbers. Source: The Real Deal Magazine
Interest rates rose following a recent Federal Reserve announcement, and could continue higher as the new year kicks off. On December 14, 2016, the Fed raised a key overnight bank-to-bank lending rate by .25 percent. Even though this is a short-term rate, it also impacts longer-term home loan rates.
Rates on 30-year fixed mortgages rose about .5 percent between the election and this Fed meeting — causing monthly payments on a $300,000 loan to rise $85 per month and payments on a $600,000 loan to rise $172 per month. The Fed cited inflationary concerns, and rising inflation causes rising mortgage rates. Accordingly, rates rose following the Fed decision and could continue higher to start 2017, albeit at a slower pace than from the election to present. It's becoming harder to get started on the American Dream of homeownership. Some eight years after its worst collapse since the Great Depression, the housing market has recovered in much of the country, with prices approaching peak levels set a decade ago. But the supply of affordable houses available for first-time buyers remains tight, leaving many on the sidelines. That shortage is worsening, according to real estate site Trulia. A refi could cut your monthly mortgage payment, but that doesn't necessarily mean it's the right move. Even though rates spiked after the election and may rise further after the Fed meets December 14, there are about four million borrowers who will still benefit from refinancing, and of that, two million borrowers could save $200 or more per month by refinancing.
There are many reasons to refinance, but here’s what you should know before you act. The inventory of homes for sale continues to shrink. There were 2.02 million homes listed for sale at the end of October, representing only 4.3 months’ supply. A balanced market would be closer to 6-to-7 months’ supply. From a year ago, the raw inventory count was down 4%, which marked nearly two straight years of decline.
It’s been a great year for real estate. Spurred by the Federal Reserve’s mixed reports and low inflation, mortgage rates continually slid through October to historic lows near 3.5 percent. Compared to 2015, the U.S. Census Bureau reports new home sales are up over 12 percent and the National Association of Realtors reports existing home sales are up almost 6 percent.
Since Election Day pegged Donald Trump as the new president elect – a man notorious for making billions in real estate – mortgage rates shot up over a half percent, creating wariness for homebuyers and sellers alike on the short and long-term effects of the new administration on the real estate market. While the economy is sure to experience some turbulence through the transition into the new administration, the 2017 real estate market should be spurred by loosening of lending practices, increasing equity for homeowners and growth in new home construction. Mortgage rates are now sitting solidly at the highest level in two years and could move even higher in the coming weeks.
Granted, December is not exactly the hottest season for the housing market — homes don't top the holiday gift list — but in January, all eyes move to the all-important spring season. This, coming after the Federal Reserve's expected rate increase on Wednesday. Even before a Fed move, the average rate on the popular 30-year fixed mortgage shot up from record lows immediately after the presidential election, as investors piled into the stock market and sold out of the bond market [mortgage rates loosely follow the yield of the U.S. 10-year Treasury]. A nostalgic look back at many places and businesses that have disappeared over the years from New Jersey.
What's on the runway for home-building fashions? Experts predict 5 big "ins."
In the world of apparel fashion, trends go in and out in a matter of months. For interior design, trends may change year to year. But home construction changes much more slowly — on the scale of decades. Home fashions take a while to build momentum, but they are happening. Here’s a look at five trends in the world of home construction and beyond. Yale University professor of economics Robert Shiller and Brian Sullivan discuss the state of the markets. The housing marketing is heating up with mortgage rates recently breaking through the 4 percent threshold, and very likely staying above that level next year, all while home prices are also increasing. To make the best homeownership choice in 2017 in the midst of these higher cost factors, a consumer should take action in four areas: strengthen credit, shop smart for a mortgage, choose the house carefully and wisely negotiate price.
In the wake of the presidential election, and with condo prices slipping at the top end of the market, the New York real estate community is facing uncertainty on many different fronts. With REITs being hit the hard recently, are there still options to invest here? Jim Cramer spoke with the CEO of one real estate play that could be worth banking on. |
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