Weekly News (August 16, 2017)

1. Palisades Park, NJ Town Hall will move to new location

• At 27 Fairview Street by Eminent Domain (Proposal made on 7/25)
• Eminent Domain decision will be made on 8/22
• 2.43 Acre Lot owned by 2 Korean → Purchased at auction at $3.94 Million in 2008 → valued at $6.5 Million 10 years ago → Town is in the process of appraisal
• New town hall → Admin, Police station, Fire Department, Gym, etc. (Parking lot construction is under consideration)
• Looking into synergy effect with new Hudson Bergen Light Rail station at Ruby Street

2. Commercial deals decreased in NYC?

• According to REBNY, Commercial transaction: $18 Billion during 1^st Half of 2017 → 39% Down CMT last year same period ($29.5 Billion) (Highest peak: $37 Billion in 2015)
• In Manhattan, 46% Down
  Office building: Down by 40% ($7.3 Billion) – Though 245 Park Ave office building sold at $2.2 Billion) Multi-Family (Rental) Complex: Down by 51% ($1.9 Billion)
• Reasons: 1) Interest rate moves up, 2) Investor’s assets reduced, 3) Market is unclear

3. New York Metro housing owing rate → 50.7% (1 renter among 2 people)

• 2QT, Big city house owning rate is 49.8%
• NYC Metro → 3^rd from the bottom
• White: 72% > Asian: 56.5% > Hispanic : 45.5% > Black: 42.3%
• US Average rate: 63.7% in 2QT (0.1% Up CMT last QT, 0.8% Up CMT last year)
• Lowest rate area is Washington DC (39.2%)
• Highest time: 2004, 2QT and 4QT → 2%
• Lowest time: 2016 2QT, 1964 3QT → 9%

4. Brooklyn house price is so high → no ceiling

• 2QT residential price is up by 51% CMT last year 2 QT (In Manhattan, 15% Up)
• Inventory lowered by 15%, but sale transaction increased
• 23% of listings closed higher than listing price
• Especially, new construction condo was hot → Doubled CMT to last year

5. New Jersey is #1 for foreclosure in US

• According to Atom Day Solution, 424,800 foreclosure during the 1^st Half of 2017 in US
• Down by 20% CMT to 1^st Half of 2016
• New Jersey → 0.99% house foreclosed (US Average rate: 0.32%)
• Delaware (0.73%) → Maryland (0.62%) → Illinois (0.55%) → Connecticut (0.50%)
• Among big cities (Population over 200,000): Atlantic City, NJ → #1 (1.71%), Trenton, NJ → #2 (1.02%) in US.
• Average foreclosure processing period: NJ (3.7 Year) → Indiana (3.5 Year) → New York (3.4 year) → Florida (3.3 Year)

6. Consumer price went up by 0.1% in July 

• Market expectation was 0.2%
• UE rate: 4.3% → lowest in 16 years
• Federal Reserve Bank will be in dilemma (Promised to raise IR one more time this year)
• So far, consume price went up by 1,7% for one year (July, 2016 ~ July, 2017)

7. Homes for Sale at 20 year low 

• According to ‘Realtor.com’ survey, 59% of 1054 home owners answered they will not sell their houses next year
• Housing shortage forced many FHB to consider smaller homes or condo as a way literally get their foot in the door
• Nationally, there was a 4.3-month supply of homes on the market in June → down form 4.6-month a year ago (Average supply is 6 month)
• 85% of baby boomers answered have no plan to move next year (Home owners are 78% among baby boomers: 33 Million properties)

8. Homebuilder sentiment index rose in August

• Homebuilder are feeling more confident
• NAHB/Wells Fargo builder sentiment index rose to 68 (64 in July)
• In general, above 50 is good rather than poor
• Index has been over 60 since Sep 2016