Weekly News (January 16, 2019)

Metropolitan Property Group conducted Airbnb biz with 34 buildings in Kips bay Manhattan, etc.
They used 18 different names to Airbnb, and used 130 apartment as hotel room
According to NYC summon, the company rented 13,691 illegally /received 75,000 guests between 2015 and 2018, and gained $21M income
Some guests were instructed that they do not disclose their use of Airbnb services

1st factory is in LA
The cost for 2nd factory will be about $100M
The company forecasted that LA factory cannot meet increasing US demand in Canada and Central America market
Sale in 2015 was $105.6M and it grew to $225M by 44.2% for last 3 years
In US, Nong Shim takes 15% market share of Ramyun market which is 3rd

4th Qt price in NE Queens (Flushing, College Point, Whitestone, Bayside, Douglaston, Little Neck, etc) are down by 10% from a year ago (median price to $688,000)
Price in dense Korean population area dropped to $724,153 by 4.2% from a year ago, dropped by 2.9% from the last Qt
Condo median price is $605,000, dropped by 11%/ sales volume dropped to 373 units by 26.6% from a year ago
4th Qt Manhattan, median price is $999,00, dropped by 5.8% from a year ago/ sales volume dropped by 3.3% to 2,432
4th Qt Brooklyn, median price is $785,000, increased by 1.9% from a year ago/ Sales volume dropped by 5.8% to 2,474

Those loans approved before 12/22 will get funding, but application submitted after 12/22 stopped for further process
Even after shut down stopped and government service resumed, still so many applications backed up might create big delay
Many Korean Banks also are damaged due to stopped SBA loans because the fees were big portion of their profits
In Southern California, 11 banks processed 1,469 SBA loans, worth of $1.3B
No salary for 800,000 Federal employees due to this longest shut down. Many people are looking for part time temporary job

It went down to below 4.5%
Freddie Mac announced nationwide average rate reached to 4.45% for 30 year which is 0.06% down from last week’s rate (4.51%) – was 4.99% a year ago
15 year rate is 3.89% which is 0.4% down from last week’s rate (3.99%) – was 3.44% a year ago
According to Freddie Mac’s chief economist Sam Carter, mortgage application went up by 20%
Lower rate combining with income increase and low energy cost will lead RE market positively

Median income is $61,372 which is increased by 1.8% from last year – highest increase ever
Age between 22-37(M Gen)’s median income is $69,000 – highest income for last 50 year
Age between 54-72(Baby Boomer generation)’s median income is $77,600/ $75,800 in 2000
Age between 38-53(X generation)’s median income is $85,800/ $86,200 in 2000
Buying power is not increased as income increased because school expenses, medical expenses, and child care are increased with much higher rates

Apple’s iPhone sales in China lowered its forecast this year
According to Goldman Sachs, next one would be Starbucks in China, and they suggested “modest adjustment” for Starbucks stock rather than “buying”
Starbucks currently is operating 3600 stores and plan to double the numbers in 4 year
Volkswagen, Ford, GM are experiencing slow sales

Julong, China, 45 min driving distance away from Nanjing has developed 120 buildings in the International district, but sales dropped dramatically recently
In China urban area, 1 out of 5 apartments are vacant
In Julong, China, developer lowered the pre-sale price and purchaser’s value dropped already, which is creating angry buyerà 6 times demonstration to complain about price down after purchasing apartment (Julong’s population is about 600,000)
RE market is critical component which takes 20-30% of China’s economic growth
RE assets is most important asset in a family which takes 85% of family assets
RE sales dropped significantly since September 2018, especially after trade ware against US

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