Weekly News (August 1, 2018)

1.  New Jersey is #2 for Public Education System in US

• According to WalletHub, NJ : 67.09 (out of 100) → #2 / MA: 74.1→  #1
• NJ→ Education Quality: 3rd, Safety: 9th
• CT: 66.93→ #3 / NH: 65.11→#4 / VT: 63.18→#5
• NY: 53.36 →  #22 ( Quality:24^th, Safety: 12nd)                                                                         
• Criteria: Math, English, SAT score, Student and teacher ratio, bullying accident rate, drop out rate

2. Avg. Age in Palisades Park, NJ → 39.5

• According to Census between 2012 – 2016, Average age in Rockleigh  → 70
• Saddle River: 52.9  → Alpine:51.5 → Norwood: 49.7/ #7 – Paramus:46.9 / #9 – Englewood Cliffs:46.3 / #10 – Fort Lee: 45.8
• Palisades Park: 39.5 / Ridgefield:40.9 / Leonia: 43.2 / Tenafly: 43.2
• Youngest town → Garfield:35.5. East Rutherford:35.7 / Lodi:36.7

3. High rate for Korean owned foreclosure(Sheriff Sale) in Bergen Co, NJ

• As of 6/29/2918, total sheriff sale  → 1718 in Bergen Co.
• Among them, 217 owned by Korean →13% (Korean population: 7% in Bergen Co)
• Korean Owned Sheriff Sale  → Fort Lee: 28 (Total 53) / Palisades Park: 25 (Total 31) / Edgewater:13 / Paramus:10/ Norwood: 10 / Closter:8 / Old Tappan:8
• Among 70 towns in Bergen Co, 47 towns had at 1 Korean owned sheriff sale
• A church building in Fair Lawn and Old Tappan
• Highest price  → $4,530,933 in Alpine, owned by Mr. Hwang
• Reason: weak retail business owned by Korean / Increase on-line business
• The other side business  → Increase of investment by purchasing through sheriff sale
• One can see about 30% of Korean in auction  → Flippers

4. Unusual Phenomena in Queens, NY → Price going up with enough supply

• House prices in Queens will go up continually even with high volume condo supply in NYC (Over supply might introduce price drop in NYC over all)
• In Queens, especially Flushing has potential demand which is higher than supply
• Reason: Population influx is bigger
• Acc to Street Easy, Queens Flushing is #1 seller market among 10 NYC seller market
• Belle Harbor → 40% Up from last year (median price:$1.18M)
• Near Flushing, Auburndale → 21% UP from last year (median price:$856,500)
• Acc to Elliman, house median price in Queens →6% Up (median price:$558,000)
• Some say price might be unstable temporarily  → Chinese money is not circulating well → Super active one or two years ago, but less sales recently → Possibly adjustment period

5. New Apartment supply in Queens à Highest in 5 Boroughs

• 4536 units are supplied for the first 6 months in 2018  → 143% Up from 2017 2nd
• 8% Up from last year (High growth since 3rd Qt in 2013(4.9%))
• Manhattan : 52.5% Up (1044  → 1592 units) / Brooklyn:49.1% Up (3482  → 5190)
• Bronx: 37.5% Up (2500 → 3438 units)
• Hotel development is also active : 10.5% Up (2114  → 2337 rooms)

6. US Economy(GDP) Growthà 4.1% in 2nd Qt

• GDP = Private Consumption+ Investment + Government Spending + Trade surplus
• 8% Up from last year (High growth since 3rd Qt in 2013(4.9%))
• So, GDP growth in first half (1Qt: 2.2%)  → 1% (Trump promised 3% for the year)
• Private consumption → increased by 4%  → Major factor
• Trade deficit (in Products and service) was reduced by 6.6% to $43B.
• Experts say it might not be easy to keep up same growth level due to trade policy.
• WSJ forecasted 3rd Qt: 3%, 4th Qt:2.9%.
• Market watches Ref IR (Current: 1.75 -2%)  → forecasted 2 times increase this year.

7. New home sales in Juneà Down by 5.3%

• Commerce Department announced.
• New home sales: 631,000 (666,000 in May)
• Forecast was 669,000 because of economy recovery (Lowest in 8 months)
• Median sales price: $302,100 → 2% from last year ($309,700 in May)

8. NJ 2018-2019 Budget passedà Avoid Government shut down

• Total $34.7B.
• For income over $5M  → Increased to 10.75% (from 8.97%) will be applied to 1760 in NJ → $280M additional Tax
• Corporate Tax : Increased to 11.5% (from 9%) for 4 years  → lowered to 9% afterwards
• Start levying sales tax to Airbnb / Ex: $186.59/night (from $174/night) in Cape May, NJ / $440/night (from $413/night) in Hoboken, NJ
• Uber/Lift rider pay additional charge: $0.25/mile for sharing with other. $0.5/mile for riding alone
• 75% sales tax will be applied to Electronic Cigarette (Tax: $0.1/milliliter nicotine)

9.  “The Mountain” Lot in Beverly Hills in CA listed at $1B

• Total 157 Ac. Listing price : never existed before.
• Listing agent: Aaron Kirman (commission → $20M) says probable buyer will build his/her own compound (His marketing budget: $400K – $1M / 2800 people who owns more than $100M in the world → About 200 people might be interested)
• In the past, $150M for 120 Ac (Paul Allen: Microsoft Co-founder) / $250M for 4 story super luxury mansion.
• Twice size of Disneyland (85 Ac)