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/

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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/

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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