Weekly News (April 11, 2018)

1. Palisades Park started fixing/repairing town’s infrastructure

From April, 2018, Palisades Park starts renovating town’s gas piping, water and sewer systems, and electric wires
Every week Monday through Friday between 7:00am ~ 5:00pm → Will take a whole year

2. NJ EPA initiated investigation for bad smell in Edgewater

Edgewater Residents filed a complaint about bad odor → Investigation from 3/29/2018
Residents claim bad odor is coming out of vacant lot at the south of City Place
According to EPA, Naphthalene is high since May last year
Mar, 2018, Naphthalene level is 4.62 micrograms per cubic meter → Over the permitted level → In danger

3. Manhattan Commercial rent is going down

According to C & W, Rent went down by 20% on 5^th Ave in 1^st QT this year
Highest rent in US → 49^th St and 60^th St on 5^th Ave: $2,592/SF → Dropped by 18.7% (Last year 1QT: $3,188/SF)
Other 11 area in Manhattan shopping district rent dropped (SOHO: $426/SF → 7% Down)
Only Meatpacking district went Up by 5.1% to $371/SF

4. Gateway project might be delayed ( Between Manhattan and Weehawken)

Not Fed funding issue, but Environment issue due to delayed Fed review
Trump admin is blamed for slow review process
Obama Admin promised to support $11 Billion among total cost of $30 Billion, but Trump admin is reluctant to support
Congress decided to include $541 Million in Fed 2018 budget → Green light
NY and NJ will support $5.5 Billion → Construction will start Fall 2019

5. Commercial RE’s Appraisal requirement limit to $500,000

It was required to get mandatory appraisal for more than $250,000 worth commercial RE
The limit is increased to $500,000 → Below this limit, no appraisal required → Bank can use market price for their loan, not the appraised price
Financial Authority tries to catch up fast increase of commercial RE property

6. Subprime mortgage is coming back again??

Mr. Kim (50) purchased a condo using subprime mortgage after bankruptcy → Interest rate: 10.9%
According to FT, subprime mortgage in 1QT, 2018 totaled to $1.3 Billion (Last year same period $666 Million)
Last year, subprime mortgage totaled to $4.1 Billion → This year it will reach to $10 Billion
In general, 3 types: 1.Prime, 2. Alt-A (Alternative A), 3. Subprime

7. Amazon begins Cleaning Service Business in Seattle, WA

‘Amazon Home Assistant’ initiated à hiring cleaning crews
For 1,500 SF house: 1 cleaning per week → $156
Amazon has to take care of minimum salary / Worker’s compensation / Over-time pay, but they can increase productivity by using education, scheduling, selecting cleaning materials
Last year, consumer spent $16 Billion for cleaning

8. Hot Residential Market in Spring,2018

Tough road for buyer in April → Many buyers, less inventory
According to Lawrence Yun at NAR, Spring season will be hot for residential market
Many multiple offer situation → Sold above listing prices.(For the range of $200,000’s house → 15~20 offers very quickly)
In general, 6 month inventory, but now only 3~4 month inventory
Average Days On Market: 51 → Changed to 41
Median price in Feb went Up by 5.9% to $241,700, compared to last year
36% of under age of 35 adults own houses (Middle of M Gen enter into residential market → Average income: $82,000 increased to $88,000)
New construction will be 900,000 this year → Current demand is $1,300,000

9. 12^th NY Real Estate Fair will held in Bayside, NY

On 4/14 (Sat) 10:00am~5:00pm at KCS at 203-05 32^nd Ave, Bayside, NY 11360
Revived Fair since 2014
Various seminars in 3 separate rooms including 3.75 CE credit class between 11:30am~2:30pm (C Land will have an exhibition booth and 7 agents will join)
Info: 917 992 3377