Maximizing Your Returns During Peak Rental Season in NYC

In the property management industry, we know that the period between April and September is the peak season for rentals in NYC.  This is the time when renters, home owners and first-time home shoppers decide to make the transition to their next home. It’s is estimated that between roughly 78% of all moves happen during this period with the highest number of moves in June, July and August.

In that same period of time, roughly 30% of individuals decided to forego renewing their lease and look to new housing.  With so many people moving during this period it become critical that property managers in NYC become aggressive in advocating on behalf of your landlords and look for the best tenants available. Property managers should focus on turnover during this peak season in order to get the best quality tenants and increase rents if the market allows in your neighborhood.

During the peak rental season the market is at its highest point with respect to prospects looking for a new place to call home. This means you can ask for a slightly higher rent amount than you would in the off season. In addition to setting a higher standard for tenants, you can also set the rent slightly higher and still have a plethora of prospects who are willing to pay a bit more for their ideal home. Even in New York City’s feverish market, we can push rents a little further during this peak period.

As a seasoned real estate practitioner, property manager or landlord in New York City, you want your property to come available for rent April through September. The best way to ensure that this happens is to negotiate with your tenants for the lease to end during the peak rental period.  It can be advantageous on your end to sign a longer lease or shorter depending on when you are signing in order to gain the peak season for renters.

At Blue Harbour Property Management, we have helped many landlords maximize their rental revenues by using techniques such as using the peak season for the signing of leases.  This has become more important as rents have vacillated in Brooklyn, Manhattan and Queens for the last 18 months.

If you need assistance with the management with your property in the NYC region or would like additional information on what services we provide you can contact us at anytime at 718-843-1185.  We are a leader of small and medium sized properties in the New York City region.

http://www.blueharbourpropertymanagement.com/maximizing-returns-peak-rental-season-nyc/

Visit us at www.blueharbourpropertymanagement.com

Existing Home Sales Increase to Highest Level Since 2007

Existing-home sales in March increased to the highest level since 2007 according to a report by the National Association of Realtors. The report saw sever shortages in overall supply and homes coming off the market faster than in months prior. Total existing home sales, completed transactions including single-family homes, townhomes, condominiums and co-ops, increased 4.4% to a seasonally adjusted rate of 5.71 million in March, according to the report by NAR.  It is an increase of 5.9% above last year’s pace, marking the strongest month of sales since February 2007.

Lawrence Yun who is the NAR chief economist, says existing sales had a serious comeback in March and the gains were led in the Northeast and Midwest.

"The early returns so far this spring buying season look very promising as a rising number of households dipped their toes into the market and were successfully able to close on a home last month," he said. "Although finding available properties to buy continues to be a strenuous task for many buyers, there was enough of a monthly increase in listings in March for sales to muster a strong gain. Sales will go up as long as inventory does."

Of importance in the New York City region, March existing-home sales in the Northeast surged 10.1 percent to an annual rate of 760,000, and are now 4.1 percent above a year ago. The median price in the Northeast was $260,800, which is 2.8 percent above March 2016.

The median existing-home price continued to rise, hitting $236,400 in March. This is up 6.8% from last year’s $221,400 and marks the 61st consecutive month of annual home-price increases.  One of the major factors in the rising home prices has been competition as we have seen properties stayed on the market for 34 days in March.  The is down significantly from 45 days in February and 47 days last year.

Short sales stayed on the market an average of 90 days in March as foreclosures usually sold in about 52 days. Non-distressed homes took the shortest time to sell at 32 days, the shortest time since NAR began tracking in May 2011. In fact, 48% of homes sold in March were on the market for less than a month. First-time buyers were 32 percent of sales in March, which is unchanged from February and up from 30 percent a year ago.

http://www.blueharbourpropertymanagement.com/existing-home-sales-increase-highest-level-since-2007/

www.blueharbourpropertymanagement.com

Blue Harbour Property Management Introduces A Client Referral Program for NYC Realtors

Blue Harbour Property Management introduces a client referral program for realtors.  Do you have clients who have tried selling their homes or apartment but are currently considering the rental market as an alternative? Or maybe you have recently sold real estate to someone who now needs property management services. If so, please consider recommending Blue Harbour Property Management. We offer up to a 25% referral commission for any property management opportunities you send our way that result in a minimum 1 year agreement.

We make New York City property owners happy. Your clients will find that Blue Harbour Property Management's staff and personnel are easy to work with and will do its best to keep their property leased to qualified tenants at true market value. We assure you that Blue Harbour Property Management provide them with one of the finest property management and leasing endeavors available in our area. Blue Harbour Property Management does not list or sell real estate.  This means that we will faithfully refer your clients back to you when they are ready to sell their property or when a unit is available for rent.

With a combined 20 years of experience, Blue Harbour Property Management has excelled in giving our clients value. We are determined to excel in customer service for both our board members, residents and owners. Blue Harbour Property Managment facilitates owners reach their profit goals by using all methods available when overseeing properties.  We are a full service property management company serving Manhattan, Brooklyn, Bronx, Queens and the surrounding region.

To get started, or if you would like to receive further information you can contact us at (718) 843-1185 or email us at info@blueharbourpropertymanagement.com.

http://www.blueharbourpropertymanagement.com/blue-harbour-property-management-introduces-client-referral-program-realtors/

www.blueharbourpropertymanagement.com

Manhattan Real Estate Sales Shows Signs of Life

According to the Wall Street Journal, sales in Manhattan was the second strongest since 2008 and only 4% below last year's total for the same quarter.  The latest data, which was discerned by Wall Street Journal's analysis of public records confirm earlier reports of a rebound based on increases in new contracts signed so far this year. Since many co-op and condo transactions take months to be finalized, the closing data suggest the market began strengthening toward the end of 2016.

According to the article which you can read here, brokers and analysts said the recovery reflected renewed optimism by buyers after the stock market surged following the November presidential election. A spate of price cuts by sellers, as well as buyers’ eagerness to lock in before interest rates rose further also were factors it has been reported.

The median apartment price was $1.13 million, off less than 1% from record high prices in the first quarter of 2016 but above levels in the last three quarters. The median condo price was $1.73 million, down 3.4% from a year ago. The median co-op price of $772,500 was up slightly from the $770,000 median in the same quarter of 2016.

In total prices have remained high as a result of less of an inventory. Manhattan inventory was down 7 percent from February 2016 to last month, with Harlem, Washington Heights and other northern neighborhoods driving the decline with 23.4 percent fewer homes during that time period.  Manhattan is doing better on the rental side in February as median rents remained at $3,199, which is down only 0.3 percent year-on-year.

Expect a decrease in sales prices as more units hit the market.  There are many developments in the process of being completed and once they hit the market buyers will have more opportunities to obtain a bargain.

http://www.blueharbourpropertymanagement.com/manhattan-real-estate-sales-shows-signs-life/

www.blueharbourpropertymanagement.com

Judge sides with tenants in upholding New York City's One Year Rent Freeze

State Supreme Court Judge Debra James ruled against the lawsuit brought by the Rent Stabilization Association, which argued the city's Rent Guidelines Board acted inappropriately by instituting flat rents last June.  A rent freeze on one-year leases for New York City's rent-stabilized apartments will remain in effect according to Politico.

The Rent Stabilization Association were arguing on behalf of landlords inferring that the law governing the board requires it to account for the finances of a building — not tenants' rising costs. Judge James cited a prior court case she believes supports the tenant advocates. She also noted the board's longstanding, unchallenged practice of considering tenant affordability.

Tenants have now vowed to call for a rent reduction when the board begins preliminary hearings on Thursday, ahead of a June ruling. The board determines each year whether landlords can increase the rent on one- and two-year leases.  The board also determines how much of an increase can occur.

Joseph Strasburg, president of the landlord organization, said he disagrees with the ruling and stated that  Mayor Bill de Blasio's comments that he instructed the board to take into account tenants' concerns when ruling on the freeze as an indication of Mayoral interference with the board.  The Mayor has denied these accusations and has called them "ridiculous".  Mayor De Blasio went on to say "Working people have beaten the landlord lobby."

http://www.blueharbourpropertymanagement.com/nyc-one-year-rent-freeze-upheld-by-judge/

www.blueharbourpropertymanagement.com

Pending Homes Sales Adjusts to Second Highest Level in A Decade

Pending home sales increased in February and reached its highest level in over a year and second-highest level in over a decade according to NAR (National Association of Realtors). All major regions saw a notable hike in contract activity last month.  According to an index used by NAR called the Pending Home Sales Index, there was an increase of 3.4% in February to 102.1 in the Northeast, 11.4% to 110.8 in the Midwest, 4.3% to 127.8 in the South and 3.1% to 97.5 in the West.   This is the second highest level it has hit since May of 2006.

T

he Pending Home Sales Index is a leading indicator for the housing sector, based on pending sales of existing homes. A sale is listed as pending when the contract has been signed but the transaction has not closed, though the sale usually is finalized within one or two months of signing.  According the NAR, the index is based on a large national sample, typically representing about 20 percent of transactions for existing-home sales. In developing the model for the index, it was demonstrated that the level of monthly sales-contract activity parallels the level of closed existing-home sales in the following two months.

To review the Index you can click here.

NAR chief economist Lawrence Yun stated that  February's convincing bump in pending sales is proof that demand is rising with spring on the doorstep. "Buyers came back in force last month as a modest, seasonal uptick in listings were enough to fuel an increase in contract signings throughout the country.  The stock market's continued rise and steady hiring in most markets is spurring significant interest in buying, as well as the expectation from some households that delaying their home search may mean paying higher interest rates later this year."

Existing-home sales nationwide are expected be around 5.57 million this year which would be  an increase of 2.3 percent from 2016 (5.45 million). The national median existing-home price this year is expected to increase around 4 percent. In 2016, existing sales increased 3.8 percent and prices rose 5.1 percent.

http://www.blueharbourpropertymanagement.com/pending-home-sales-second-highest-level-in-a-decade/

www.blueharbourpropertymanagement.com

Lower Income Families Will Get Increase In Subsidies in NYC to Combat Homelessness

Due a a settlement of a lawsuit brought forth by 4 families facing eviction, New York State will increase rent subsidies to low-income families based in New York City.  The settlement  will increase the aid under the Family Eviction Prevention Supplement by as much as 78% based on an article by the New York Times.   The Times states that a family of three presently would be eligible for $850 a month but under the new subsidy will be eligible for $1,515 a month.  The increase in the subsidy is the right direction as market rents have increased dramatically since the inception of the program in 2004 and allows individuals to be able to afford market rents.  The increase will be the first one under the program and will will most likely go into effect in early April of this year.  The basic shelter allowance will not be increased under the program.

The City of New York is confident that the new subsidies will curb the increase of homelessness in the City as rents have skyrocketed since the inception of the Family Eviction Prevention Supplement.  Mayor De Blasio recently announced the opening of 90 new shelters which his administration hopes will curb the plight of the record 60,000 homeless individuals in the City.

A positive aspect of the subsidy increase would be property managers in New York City being more inclined into accepting more tenants under the program.  As the amount is closer to market rents and guaranteed by the State, it will give more of an assurance that payments will be made and revenues will increase.

http://www.blueharbourpropertymanagement.com/lower-income-families-will-get-increase-subsidies-nyc-combat-homelessness/

www.blueharbourpropertymanagement.com

Builder Confidence Remains High for January 2017

As we are heading into a new administration, builder confidence remained optimistic for the start of 2017 as there is an increased vigor that President-elect Trump's team will bring in a new era of a pro housing business environment.  Builder confidence decreased by just 2 point to 67, down from December's revised 69, according to the National Association of Home Builders  and Wells Fargo Housing Market Index.   The level of confidence in December was the highest level since July of 2005.   In the regional level, the Northeast saw a decease in confidence of 5 points from a 57 in December to January's level of 52.  The January number still is significantly higher than it has been in recent times as well.

The HMI is a weighted average of separate diffusion indices for these three key single-family series. The first two series are rated on a scale of Good, Fair and Poor and the last is rated on a scale of High/Very High, Average, and Low/Very Low. A diffusion index is calculated for each series by applying the formula “(Good-Poor+100)/2” to the present and future sales series and “(High/Very High – Low/Very Low + 100)/2” to the traffic series. Each resulting index is then seasonally adjusted and weighted to produce the HMI.

Based on this calculation, the HMI can range between 0 and 100.

“Builders begin the year optimistic that a new Congress and administration will help create a better business climate for small businesses, particularly as it relates to streamlining and reforming the regulatory process,” said NAHB Chairman Granger MacDonald, a home builder and developer from Kerrville, Texas.

Chief Economist for the NAHB Robert Dietz also sees a 10% increase in single family construction in 2017 which will add to the gains of 2016.

With the HMI index high, we can expect more activity in NYC property management.  If you are in need of property management in NYC, contact Blue Harbour Property Management.

http://www.blueharbourpropertymanagement.com/builder-confidence-remains-high-january-2017/

Visit us at www.blueharbourpropertymanagement.com

North Brooklyn Home Prices Increase to $1.5 Million. Significant Uptick in Traffic

A New Report for the Fourth Quarter was released by Ideal Properties Group.  There is a need for a subscription to view the report however, we can share with you some of the important details of the report.   The report indicates that average prices are approaching historic amounts and will eventually hit $1.5 million per home. It is being reported Brooklyn brokers are seeing a significant uptick in year-end buyer traffic.  They expect increased interest with new developments in the core neighborhoods in North Brooklyn and Brownstone.

There is a  $1.49 million average for townhouses, co-ops and condos in neighborhoods such as Greenpoint, Brooklyn Heights and Park Slope.  This is a  2.6 percent increase year to year .  Townhouses led the market in those areas with an average price of $2.5 million in the fourth quarter of 2016.  That is a  4.1 percent decrease from the same period in 2015.  Condo prices  had an average sales price of $1.5 million, which was a 24 percent increase over the fourth quarter of 2015.

North Brooklyn and Brownstone continues to be a seller's market as stated in the report,

" Ending the year in testament to enduring buyer interest, the majority of all properties sold in the closing quarter of 2016 (52 percent), sold either at, or above list price. This quarter’s sales at a discount from asking price settled at the 48 percent mark, echoing the findings of previous quarters of 2016. Thirty-nine percent of all residential properties sold this quarter in Brownstone and North Brooklyn traded above the price".

North Brooklyn consists of Greenpoint and Williamsburg.  Brownstone consists of Boerum Hill, Brooklyn Heights, Carroll Gardens, Clinton Hill, Cobble Hill,  Downtown,  Dumbo, Fort Greene,  Gowanus,  Park Slope,  Prospect Heights and  Windsor Terrace.

With increase levels of activity and interest, we expect property management in North Brooklyn to continue to be strong.  If you need property management assistance in Brooklyn or anywhere in the NYC region, you can contact Blue Harbour Property Management.  With over 20 years of experience, we will maximize the revenue potential of your real estate investment.

http://www.blueharbourpropertymanagement.com/north-brooklyn-home-prices-increase-1-5-million-significant-uptick-traffic/

Visit us at www.blueharbourpropertymanagement.com

Slowdown underway with Manhattan Real Estate Sales Prices. Buyers finding more Bargains

In a decline that the industry has no doubt seen coming, Manhattan resale home prices have declined the most in the last four years.  According to a Bloomberg article, the median price of previously owned condominiums and co-ops fell 6.3 percent in the fourth quarter from a year earlier to $900,000.  It was the first annual decline in this sector since the beginning of 2015, and the biggest since the third quarter of 2012.  Resales dropped 8.1% in that quarter.

This is a growing sign that sellers have diminished expectations for the quick sale and there will be a growing need for correctly pricing inventory to market needs.  The days of overpricing seem to be of the past as the number of resales has been dropping for the previous five quarters and buyers are are reluctant to invest in the more costly listings.

Corcoran Group reported that all completed sales, including previously owned and newly built homes, dropped 15 percent from a year earlier to 3,104. Signed contracts also slid 15 percent. Downtown Manhattan, below 34th Street through Tribeca, was an exception. Sales in that area climbed 11 percent to 983. Inventory jumped 33 percent to 1,826 listings, according to the brokerage.  Also, previously owned properties that sold in the period spent an average of 80 days on the market, up from 71 days a year earlier. It has also been reported that Manhattan resale deals totaled 2,385 which is a decline of 1.5 percent.

Property management companies in Manhattan will have to invest more time in making sure accommodations and customer service are of value benefit as an additional incentive to buyers.  It will assist sellers in an accurate pricing method when sitting down with realtors and potential purchasers when the time is right.

http://www.blueharbourpropertymanagement.com/slowdown-underway-manhattan-real-estate-sales-prices-buyers-finding-bargains/

Visit us at www.blueharbourpropertymanagement.com