Weekly News (February 28, 2018)

1. Palisades Park, NJ faces suit over approval for high-rise 

• Kibel Cos. (Manhattan based. Owns “Carriage House” in Fort Lee) filed a suit against 14-story high-rise known as the Aquaterra Apartments in the Long Swamp section between Fort Lee and Palisades Park (East Edsall Blvd. and 14^th St)
• Palisades Park town approved this apartment in October 2017
• Defendants are Palisades Park Zoning Board of Adjustment and property owner Berkeley Palisades Park
• Original Plan: 17-story, 154 units was changed to 14-story, 212 units

2. Palisades Park, NJ, Schools will have armed security guards 

• Chris Chung announce that the Mayor will support the budget for this project.
• All school system: Early Childhood (K-1^st Grade), Lindbergh Elementary / Middle (2^nd– 7^th Grade), High school (8^th-12^th Grade)
• Secaucus, East Brunswick, etc. will follow
• NY Mayor mentioned that it needs $1.2 Billion budget for 1400 schools in NY → Not realistic

3. Flushing, NY, residential house price soars without ceiling 

• Average selling price in 4^th QT, 2017 → over $1 Million (Historical record)
• According to REBNY, 1~3 family house Average selling price: $959,000 in 4^th QT, 2016
• $1,003,000 in 4^th QT in 2017
• Long Island: $1,285,000 / Astoria: $1,1149,000 / Douglaston, Little Neck: $1,105,000 / Rego Park, Foresthill: $1,035,000
• Condo Average selling price in 4^th QT 2017: $961,000 → 79% Up, compared to last year($537,000)
• NYC residential Average selling price → 1% Down / Manhattan → 7% Down to $1,803,000
• Flushing area’s sharp price increase is due to new Luxury condo construction

4. House price recovered fully in many area in US ( Miju KyungJe)

• $9 Trillion in US has been recovered since the finance crises
• 36.5% has been Up from the bottom in 2011
• Lowest point was during Winter of 2011 → Household lost: $45,500
• Currently Average gain is $55,200 from lowest point → $9,700 Increase from top before crises
• High recovery area: San Jose, San Fran, L.A, San Diego, Seattle (All in CA)
  Example) San Francisco area → 91.7% Up from the bottom → Almost double from the bottom)
• Low recovery area: Indianapolis, St. Louise, Cincinnati
• Lowest point in NY/NJ → June, 2012 (24.3% Down → Lost Average $108,200)

5. New Jersey High Korean population towns’ Property Tax increase 

• Leonia →4.7% (Up to Average $12,621), Palisades Park → 3.5% Up (Was Average $9,407)
• Tenafly Up to over $20,000 fist time (2.8% Up) → 2^nd in Bergen County
• 1^st in Bergen County→ Alpine (Average $21,933)
• NJ Average tax increased by 1.6% (Bergen County increased to Average $11,000) → 3% Up during Governor Christie 7 year period
• New Governor Phil Murphy’s greatest task → Control property tax

6. Reference IR will be increased 4 times in 2018 

• Jerome Powell (Chair, Federal Reserve) is optimistic → Good signal from wage increase and inflation (will reach to long term goal of 2%)
• Powell mentioned there is chance to raise 4 times instead 3 times (Probability: 33%)
• NY 3 major stock indicator dropped due to mentioning of more IR increase

7. US Treasury Bond gained profit rate → Stocks dropped 

• According to Goldman Socks, 10 Year T Bond profit rate went up to 4.5% → Will induce stock price drop
• Stock might be dropped by up to 20~25% → Economy growth will be reduced, but not to recession