Weekly News (September 21, 2022)

Mortgage Interest Rates ReviewMortgage Interest Rates Review 

(Fairway Home Loan 09/20/2022)

World’s tallest tower deliver America’s priciest home at $250M: 센트럴 팍 타워 콘도, 2억5천 불에 리스팅

(WSJ     9/16/2022)

• Extell Development lists a triplex penthouse positioned at the highest of more than 1400 feet at $250M, which is the most expensive in the U.S, topping the $225M listing for Michael Eisner’s California estate.
• The triplex( 3 floors: 129th – 131st ) unit features size of 17,500 sf, 7 bedrooms, 1400 sf terrace with the views of Central Park, the Hudson and East Rivers. If the deal made, it will top the previous record of hedge-fund billionaire Ken Griffin paid $223M for a condo across the street at 220 Central Park South.
• The building, Central Park Tower, is located on 57th St between 7th Ave and Broadway and launched sales in October 2018. Construction on the 179-unit building began in 2014 was completed earlier this year.

Hudson Yard developer will bid Casino Manhattan’s west side: 허드슨 야드 개발업체, 카지노 추진에 참여    

(Crain’s    9/19/2022)

• The Related Cos., the developer behind Hudson Yard is planning to bid on a license with gaming hospitality giant Wynn Resorts to build a casino on Manhattan’s West Side.
• The state’s Gaming Commission plans to award up to three licenses for casinos in NY, and Mayor Eric Adams has asked for at least two of them in NYC.
• “As NYC emerges from the pandemic, the western yards provides the ideal site for a resort that will reinvigorate our tourism economy and billions in tax revenue for the city and the state”, said Related’s CEO, Jeff Brau.

Korean Population increased in NJ, declined in NY: 한인인구, 뉴져지 늘고 뉴욕 다소 감소

(Korea Times  9/15/2022)

• According to ACS(American Community Survey), Korean population in U.S. is 1,962,184 in 2021, up 1.8% from a year earlier(926,508).
• In NY State, Korean population is 141,745 and it is declined 1.5% from a year earlier(144,002). Korean in NYC declined 1.1% to 92,529.
• In NJ State, Korean population increased to 113,736 in 2021, up 7.6% from a year earlier(105,694).
• Age group between 35 – 54 in NJ takes 32.4% while NY takes 30.3%.
• Age group below 17 in NJ takes 22% while NY takes 20.6%.
• Age group above 65 in NJ takes 12.4% while NY takes 22%.

Home Sellers Shift Tack to Rent in Slow Market: 둔한 시장에서 주택 판매대신 렌트로 전환   

(WSJ  9/20/2022)

• Higher mortgage-interest rates have reduced home-buying demand, and homes are sitting on the market for longer. Home prices have slid from their springtime peaks in some market, and sellers are reluctant to lower their asking prices.
• The number of home listings that were delisted without going under contract rose 58% in August from a year earlier, though the overall numbers remain small.
• The phenomenon of delisting and renting out has become noticeable. In Southern California, 10% of home sellers switched their listings from for-sale to for-rent, and 9% in Texas did so.

Selling to Renting Conversion

Bonds’ Returns Pose New Threat to Stocks: 국채 수익률 상승으로 주식시장에 위협

(WSJ   9/20/2022)

• Bond yields are trading at their highest levels in more than a decade, posing yet another threat to a stock market that has struggled to find its footing this year.
• The returns one would get from stocks would almost always beat what one could get from government bonds yielding close to nothing à That dynamic has been upended. After several Fed interest-rate increases, yields across the Treasurys market has climbed to multiyear highs.
• Bond traders are pricing in a terminal rate – the peak federal-fund rate in a rate-increase cycle – of around 4.41%. Nomura economists are forecasting a terminal rate of 4.5% to 4.75%.

U.S. Treasury yields(2-year & 10-year), quarterly

Rising Housing Costs Drive Up Inflation: 솟아오르는 주택비용이 인플레이션의 주 요인

(WSJ     9/22/2022)

• Rents and other shelter costs are emerging as a major driver of overall consumer inflation, keeping it high at a time when many other sources are starting to ease.
• Economists expect housing inflation to strengthen further before cooling off in the coming months, but are unaware of when relief will appear.
• Not only are shelter costs rising, they are climbing at an accelerating pace, accounting for a growing share of the overall inflation rate – about 25% of August’s rate, up from 20% in February.
• Rising housing costs also increase the chances that the Fed will raise interest rate by 0.75% again at its November policy meeting, economists at Barclays wrote in a report for clients.

EB-5 Immigrant Investment Returns: 투자이민(EB-5) 프로그램 재개  

(Korea Times    9/22/2022)

• Rich families from China, India, etc are coming to U.S. via EB-5 Investment program again after a recess, according to Bloomberg.
• About $37B investment has made since 2008 through this program, but the program didn’t get extension since June 2021, and revived again since March, 2022 after the House passed and Biden signed.
• The minimum investment would be $1.05M with 10 legal employees, raised from $900K, but it would be allowed to invest $800K if the investment is made to under-developed area.
• The program is attracted to many rich Chinese families looking for alternatives from the COVID-9 lock down.

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