Weekly News (January 22, 2020)
This week’s Interest Rate (3rd Week)
30 Y Rate: 3.625%/ 15 Year Rate:3.25%/ 10 Y Treasury: 1.769%/ FHA:3.375%
Prime Rate:4.75% / Ref IR: 1.50- 1.75%
Korean owned Foreclosure in NJ slows down
(The Korea Times 1/16)
- According to Bergen County sheriff department, 27 foreclosures owned by Korean among 313 foreclosures as 1/10/2020, which is 8.6% owned by Korean, while it was 10.3% last year.
- Overall foreclosure is reduced to 313 from 1,035 a year ago, which was reduced by 69%. Korean owned foreclosures was reduced to 27 from 107 last year, which was reduced by 79%. It might indicate RE market in Korean community becomes more stable.
- In Palisades Park, there were 10 foreclosure houses in Feb last year, but only 2 houses this year. In Leonia, 7 foreclosures Last year and there is none this year, while 4 in Closter, 3 in Paramus, 3 in Tenafly.
“Western Yard” following Hudson Yard project is criticized by NY residents
(The Korea Daily 1/20)
- Hudson Yard project was known for successful one. The 2nd phase called “ Western Yard” project covers between 11th Ave and 12th Ave, and between 30th St and 33rd
- Original Hudson Yard project was planned in Bloomberg era, and there was enough park area along with the Hudson River in the plan, but recently the developer, Related, is trying to change their plan that the garage will be built in that space and park will be on top of the garage. The huge garage will hinder the river view.
KAF Group, a kitchen textiles company signed a lease at$60/sf in Koreatown
(The NYT 1/22)
- The 12-story building built in 1908 and known as Childrenswear Center, is at 34 W 33rd St between Fifth Ave and Ave of the Americas in Koreatown. KAF Group leased 1600 sf at month floor, which it will use for offices and a showroom, at $60/sf ( $96,000 annually)
- Tenant’s broker is Scott Ansel of Savills and Landlord’s broker is David Levy and Brett Maslin of Adams & Company.
Korean Community has more Attorney offices and Real Estate offices in 2020
(The Korea Times 1/22)
- According to The Korea Times report, in NYC 5 boroughs, the number of Korean business is 8,942 in 2020 which was decreased by 2.98% from last year while it was 9,217 in 2019 and 9,617 in 2018. The number of Korean business were over 10,000 in 2011 and it has been decreased since then.
- Moving companies and TakBae business were decreased most to 176 from 201(12.44% down). Restaurants were decreased to 329 from 347 (5.19% down).
- Office has biggest number of 1,002 which were decreased also. But attorney and real estate offices were increased to 432(1.89% up) and 685(4.9%) respectively. Real Estate office was increased most while it was 669 two years ago.
Mortgage application increased sharply in 2020
(The Korea Times 1/22)
- According to MBA, as of 9, home mortgage application has been increased by 30.2%, from last week. Also re-fi application has been increased as well by 43% which was highest since Jan 2015.
- The reason of this hike is because of 1) uncertainty of geo-political situation such as in Iran, 2) safety concern moving to more stable investment which is real estate, and 3) lowered interest rates.
M Gen’s Real Estate Asset is only 4% of total US Real Estate Asset
(The Korea Daily 1/22)
- According to WP, M Gen(1981-1996) own much less real estate asset (4% when median age of 31) while Baby boomer Gen (1946-1964) had 32% when they were young (median age was 35 in 1990).
- M Gen are reaching to the age for buying the first home soon, but it looks very difficult to reach to even 30% because of 1) increased house price, and 2) much debt such as student loan.
- Families with head of house under 35 has median debt of $21,000 in 1989 while it became $39,000 in 2016. Also that of student loan was increased to $18,500 from $5,600 for the same period.