Weekly News (January 27, 2021)

This week’s Interest Rate (4th Week)

(By Fairway Home Loan  )  

Prime Rate:3.0% / Ref IR: 0.00- 0.25% .

 2021 Conventional loan limit: Conforming: $548,250/ Conforming high balance: $882,375

Chris Chung, Mayor of Palisades Park, NJ will challenge to the State Assembly

(Korea Times 1/25)

• After Loretta Weinburg, the 37th district Assembly member, announced her retirement, the Mayor Chung announced he is willing to challenge the position and seek for Democratic nomination.  The 37th district includes Alpine, Bogota, Cresskill, Englewood, Englewood Cliffs, Fort Lee, Hackensack, Leonia, Northvale, Palisades Park, Rockleigh, Teaneck, and Tenafly.
• If he wins the election, he will become the first Korean State assembly member.

Edgewater (NJ)  Zoning Board will review the high-rise apartment complex

(Korea Daily  1/26)

• The development company, 575 River Road LLC is planning to build high-rise apartment and townhouse complex at the former Golf range in 12.8 Ac lot which was operated by Korean owner, and closed in 2017. The complex includes 345 unit apartment and 30 unit townhouse.  The special zoning board meeting will be held on 1/28.
• According the State rule, 15% of an apartment has to be “Affordable Housing”.
• Edgewater town has already issues with traffic jam and dense public school.

NYC still does not allow opening indoor restaurants. Customers come to NJ/LI

(Korea Daily 1/27)

• NYC kept closing indoor restaurants since 12/14 and the Mayor said that opening indoor restaurant will not allow for a while due to the fact that Coronavirus spreading is serious.
• Customers are coming to New Jersey and Long Island to enjoy dining at the restaurants, which make waiting lines sometimes.  A customer has experienced a 40 min waiting in
• The restaurant owner of “Miss Korea BBQ” on 32nd St, Manhattan said that the current business is only 10-15%, compared to pre-pandemic period and complaint the town policy for the restaurants.

New Design unveiled for Port Authority Bus Terminal

(WSJ/ Record 1/22 )

• After nearly a decade of reviewing plans, scratching them and then drawing up more, the Port Authority of New York and New Jersey has finally zeroed in on a single design for a new Port Authority Bus Terminal according to the document released on 1/21.
• The plan would demolish the existing terminal and construct a new one in the same location, build an additional facility on the west side of Ninth Avenue for bus storage and to serve commuters while the new terminal is built, construct new ramps and include new private developments on the property to help pay for the proposal, which is estimated to take 8 years and would have a target completion date of 2031.  And it is estimated to cost about $10B.
• The agency has considered more than a dozen design proposals, including suggestions to place the terminal in the lower level of the Jacob Javits Convention Center or on the other side of the Hudson River in New Jersey.
• The current terminal, which opened in 1950, last underwent a major expansion in the early 1980s.  In recent years it has struggled to accommodate about 260,000 weekday riders, most of them commuters from suburban New Jersey.

US Jobless claims decline to a still high 900,000

(Record/ WSJ 1/21)

• The number of American seeking unemployment benefits fell slightly last week to 900,000, still a historically high level that points to ongoing job cuts in a raging pandemic.
• The government said 5.1 million Americans are continuing to receive state jobless benefits, down from 5.2 million in the previous week.  That suggests that some of the  unemployed are finding jobs, others are likely using up their state benefits and transitioning to separate extended benefit programs.
• Jobless claims, a proxy for layoffs, remain well above the pre-pandemic peak of 695,000 and higher than in any previous recession for records tracking back to 1967.

SamSung might invest $17B in U.S. – A big gift to Biden? 

(WSJ/ Korea Daily   1/25 )

• According to WSJ, SamSung is considering semi-conductor factory in TX(Austin), AZ, or NY of which total investment could be $17B.
• SamSung forecasted a Super Cycle of semi-conductor industry with 5G, AI, Driverless Driving, and Cloud market.
• Intel might team up with SamSung as the semi-conductor foundry partner.  Austin, TX ,where SamSung has a big base and recently Apple, GM, Oracle are moving into, is called “Silicon Hills”
• SamSung’s investment can be a gift to Biden who declares “Made in All of America”.

2021 residential market is more active than 2020 

(Korea Daily  1/23)

• Washington Post reported forecasts from 7 different major players in U.S. residential market.
• NAR: residential sales will make a record this year. New construction sales will increase 21% and existing home sales will increase 9%.  Home price will increase 3% and mortgage rate will be around 3.1%.
• com: Home price will reach to the ceiling and buyer’s competition will be high.  2021 residential market will be more normal, compared to 2020.  Inventory will be increased with slow pace. Existing homes sales will increase 7% and new construction will increase 9%.  Mortgage rate will increase to 3.4% till the end of the year.
• Redfin: Buyer will be around in the market due to 3% level mortgage rate.  Vaccine and re-opening business will trigger more buyers and sellers than 2020.  Residential sales will increase 10% and inventory will increase 5%, compared to 3% decrease in 2020.  Home price will increase 5%, compare to 6% in 2020.
• Zillow: Home sale increase will be the highest in the recent 40 years.  Home sales will increase 21.9% to 6.9M.
• NAHB: In 2020, the industry was busy in general except March and April. NAHB/Wells Fargo index shows 58 in 2019, 90 in Nov 2020, and 86 in Dec 2020. Despite of material cost increase and lack of lots, single home consecution increased 11% in 2020 and re-modeling market showed growth as well. In 2021, single home construction will show growth to 1M, compared to 880,000 in 2020.
• AEI: Director, Edward Pinto says there will be still lack of inventory in 2021.  Typically 6 month supply is normal, but now it shows 2.3 month for existing homes and 3.5 month for new homes. Home price increase will be 10.3% and more home sales this year.  First home buyer support by Biden admin will boost home price increase.
• MBA: In 2020, mortgage total amount including re-fi was $3.6T while the highest was $3.8T in 2003.  This year will not reach to that level and forecast is $2.8T. Mortgage rate will be 3.2% toward the end of the year.