Weekly News (September 16, 2020)

This week’s Interest Rate (38th Week)

(By Fairway Asset )

(The rate based on 25% down payment with 740 above credit score)

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

Charging additional 0.5% for Re-Fi will be extended 3 month till December.
(FHFA will add an adverse Market fee as of 12/1/2020. There is potential interest rates rise)
FOMC in this week might affect interest rates.

NJ, Payment of additional $300 LWA support will begin next week possibly

(Korea Times  9/11)

• FEMA approved NJ application for additional $300 corona disaster supporting fund and NJ starts payment from the week of 14th for the portion of 8/2, 8/9, 8/16 possibly.  First, 2M people will receive the payment and additional 435,000 will be paid after some verification process.
• The State Labor department will start sending email to recipients from 9/11.  For those who receive emails, it means that they need further verification have to prove unemployment status or reduced work hours.

Another 220 Central Park South condo in Manhattan sells for $61.6M

(TRD /Jason Shim   9/15)

• An anonymous buyer closed on a $61.6 million unit on the ultra-exclusive condo’s 69th floor, according to property records. The price — agreed to two years ago — comes out to about $10,380 per square foot.
• The buyer on the record, identified as AEH Jay Corp., went into contract for the property in The limited liability corporation is linked to Rialto Management Corp., a real estate firm that manages commercial and residential properties as well as individual units “for investors and absent owners,” according to its LinkedIn profile.
• The same LLC also owns a 72nd-floor apartment in the Time Warner Center, purchased in 2013 for $18.8 million, according to property records.

NYC Rental Market in August varies from one neighborhood to the next

(TRD /Jason Shim   9/16)

• Manhattanites continued leaving their rentals, especially on the Upper East Side and Upper West Side, and landlords dangled discounts in Queens.  The Brooklyn rental market was tepid but was the strongest of the three.
• From July to August, Manhattan’s rental inventory jumped 11.9 percent, the analysis found.  The highest number of new listings was on the Upper East Side, where 1,272 units came onto the market.  The neighborhood ended August with 3,140 vacant rentals, the most in the city and an increase of 21 percent from July.
• Growing supply put downward pressure on rents throughout the city as landlords offered concessions on nearly a quarter of new leases signed in Manhattan.  In Brooklyn, almost 20 percent of new rentals included concessions.
• Queens stood out as the best place for renters to find bargains.  The median price for studios fell 10 percent to $2,140. A typical one-bedroom cost $2,500; two- and three-bedroom units were priced about the same, at $3,200 per month.

Cushman & Wakefield launched an alliance with Industrious, a co-working Co.

(WSJ  9/16)

• One of biggest worldwide commercial real estate service firm goes alliance with a co-working start up company to build market share in one of few growing office-space business during pandemic.  Industrious operates 100 locations in 50 cities.
• Before the pandemic, Buildings were increasingly becoming hybrids, with a portion occupied by tenants signing long-term and co-working portions operated by WeWork, Industrious or other firms that leases could be range from weeks to years.  JLL was projecting the flexible space would account for 30% of office space by 2030.
• Long term prospects for co-work look solid, because the pandemic is accelerating the flexible-workspace trend, if they could hold on for the short term set back.

Toll for NJ Turnpike and Garden State Parkway will be increased from 9/13

(Korea Times  9/11)

• Turnpike tool fee is increased 36% ($1.30) to average $4.80 from average $3.50.  Garden State Parkway toll is increased 27% ($0.30) to average $1.40.
• Driving from Cape town to Bergen county will cost $18.85 for Turnpike and $9.45 for Garden State Parkway.

US Residential market was hot during 2nd Qt this year

   (WSJ 9/9,  Korea Times 9/11)

• According to Black Night, mortgage amount during 2nd Qt this year hit $1.1T which was the record high since 2000.  The main reason was super low interest rates.
• Buyer who have financial strength purchased 2nd homes in rural area. Some buyers moved to house with more space.
• In spite of worries to real estate market due to the pandemic, residential real estate market is the most resilient and highest recovering sector of all.

Even in a Pandemic, buyer demand is high with steadily shrinking supply

(NAR Realtor Sep/Oct by Lawrence Yun)

• Home prices have mostly outpaced broader consumer price inflation over the past decade.  From 2010 to mid-2020, the median home price rose 61% to reach $295,300.
• American saw inflation of 18% and a wage hike of 30% over the same period.  Yet, the percentage of income devoted to buy a median priced house is essentially unchanged, reflecting the awesome power of low mortgage rates, which hit an all-time low in July and may fall even further.
• Amazingly, in the midst of a pandemic and high unemployment, home prices are setting new highs, with multiple offers common on many properties.
• The rate of home sales, after plunging during the spring shutdowns, is poised to surpass 2019 levels in the final months of the year.

Anthony Fauci, head of NIH said we will be back to normal by the end of next year

(Korea Times 9/14)

• Even though the vaccine become available, going back to normal life will be available toward the end of 2021, Fauci said.
• In an interview with MS-NBC, he said the vaccine will be available by the end of this year or early next year.  However, it will take time to be applied to the majority of people and get benefits out of it like the end of next year, which means we can go back to normal life.
• He warned that we will have to be careful to go through this Fall and Winter season, and asked even out door activities need to be careful with masks.

Others/Tech News : Apple unveils New Smart Watch

   (WSJ  9/16)      – It measures blood oxygen and a virtual fitness service, and bundled subscription options.
– Two models: $399.00/ $279.00