NAR Report: Housing Shortage Hampers Existing Home Sales in January

The National Association of Realtors (NAR) released their January 2018 report which indicates that housing supply is still affecting existing-home sales nationwide.  For the second month in a row, existing home sales which are completed transactions that include single-family homes, townhomes, condominiums and co-ops has gone down by 3.2% in January to a seasonally adjusted annual figure of 5.38 million units.  Overall sales are down 4.8% year to year which is the largest decline since 2014.

The main factor for the decline in the sale of homes during this period continues to be the lack of supply.  Lawrence Yun, chief economist for NAR states “The utter lack of sufficient housing supply and its influence on higher home prices muted overall sales activity in much of the U.S. last month.  While the good news is that realtor in most areas are saying buyer traffic is even stronger than the beginning of last year, sales failed to follow course and far lagged last January’s pace. It’s very clear that too many markets right now are becoming less affordable and desperately need more new listings to calm the speedy price growth.”

The numbers clearly show that house prices are becoming less affordable as the median existing home price increased to $240,500.  This is a 5.8% increase from the same period last year ($227,300).  Housing inventory overall increased this month 4.1% to 1.52 million homes but is still down 9.5% from a year ago.

In the Northeast, sales were down 7.6% from a year ago and decreased by 1.4% for the month.  The project annual rate of sales is 730,000.   Median purchase price in the region was $269,100.  This is an increase of 6.8% from January 2017.

 Blue Harbour Property Management is a full service NYC property management company servicing the boroughs of Queens, Brooklyn, Manhattan and the Bronx.  Whether it be a 1 bedroom condo or multi-family building we are able to assist our clients maximize their investments.

http://www.blueharbourpropertymanagement.com/nar-report-housing-shortage-hampers-existing-home-sales-january/

Bronx Tenants Will Be First To Benefit From Timely Payment of Rents Being Reported To Credit Bureau

As we have previously reported, the City Comptroller Scott Stringer wanted to initiate a program that would encourage landlords and NYC property management companies to give tenants the ability to opt into allowing their rent payments be reported in order to boost their credit scores.  Well it looks like a pilot program will indeed start soon.  The program which is being being called "Making Rent Count" will begin with the eligibility of up to 600 tenants and 27 buildings in the South Bronx.   The placement of the pilot program in the South Bronx neighborhood  is of significance as up to forty percent (40%) of individuals living in the area never had a credit score or are attempting to re-establish their failing credit.

The Banana Kelly Community Improvement Association is a not for profit developer that owns the buildings involved in the pilot program.  They will report the timely rents to the credit bureaus should the tenants elect to participate.  Stringer stated “We’re facing an affordability crisis, and we all know how soaring prices and sky-high rents make life difficult for New Yorkers across the five boroughs. One of the hidden roadblocks to financial success is credit – and access to it. This innovative new program empowers tenants, helps level the playing field."

As we have noted, people with bad credit face enormous challenges with obtaining favorable financing or do not qualify at all for loans.  They also have to pay higher car insurance premiums and have difficulties obtaining jobs and housing if a credit report is needed.   Banana Kelly's President  Harold DeRienzo said “Too many of our residents and members are forced to pay inappropriate, even predatory, premiums for consumer goods and services that have become basic necessities in life.  These costs place our residents at a disadvantage in so many aspects of daily life – applying for an apartment, applying for a job, buying a cell phone, entering into service contracts, and the list goes on.”  He is hoping this new program will assist his tenants being upwardly mobile financially.

According to the release, Comptroller Stringer is also urging further steps in easing the affordability crisis with respect to housing.  His outline is as follows:

• Allowing all NYCHA residents to opt in to a credit reporting program. That could be done by expanding an existing pilot partnership NYCHA has with the Brooklyn Cooperative Federal Credit Union and Urban Upbound Federal Credit Union, which allows tenants to opt-in to report their rent payments to credit bureaus. That program could be scaled to the entire housing system.
• Exploring incorporating rent into its affordable housing programs by incentivizing and informing developers of affordable housing about ways to develop a rent-reporting program.
• Proactively using its Department of Consumer Affairs to develop credit building curriculums which assist renters considering opting into a rent reporting program.
• Implementing a number of credit related consumer protections, including adjusting credit scoring models so that credit checks undertaken by landlords on prospective tenants will not negatively impact credit scores.
• Passing legislation to require landlords who run credit checks on prospective tenants to share credit reports with the applicant and increase consumer credit education initiatives offered by the City.

 Blue Harbour Property Management is a full service NYC property management company servicing the boroughs of Queens, Brooklyn, Manhattan and the Bronx.  Whether it be a 1 bedroom condo or multi-family building we are able to assist our clients maximize their investments.

http://www.blueharbourpropertymanagement.com/bronx-tenants-will-first-benefit-timely-payment-rents-reported-credit-bureau/

NYC Adds 250 Deteriorating Buildings Into Their Alternative Enforcement Program

NYC under the auspices of The Office of Housing Preservation and Development (HPD) enrolled 250 buildings with roughly 4,000 apartments to its Alternative Enforcement Program (AEP).   This is the 11th year of the program where 250 buildings are placed every year for the additional scrutiny of HPD.  The buildings that are have been chosen are listed here and they house 3,970 families and have 26,301 housing code violations.  Under AEP, the Department of Housing Preservation and Development (HPD) identifies the most distressed buildings in need of repair and systems replacement, and monitors the progress of owners towards correcting Housing Maintenance Code violations or corrects the violations itself.  An official for the city also said that the program subjects the owners to fees and tougher inspections if they don't make legally mandated repairs.
Some of the violations that have been levied against the owners are based on the presence lead-based paint, lack of heat or hot water, rodent infestations, inadequate fire exits and no electricity or gas.  The violations can be fixed by the landlord or can be repaired by the city and the landlord would have to reimburse for the repairs.  According to officials the landlords already owe more than $1.5 million for repairs already made by the City.
The breakdown of the 250 buildings put into the program this year are as follows:

• Manhattan: 47 buildings/ 940 units
• The Bronx: 57 buildings/ 1,169 units
• Brooklyn: 127 buildings/ 1,435 units
• Queens: 18 buildings/ 370 units
• Staten Island: 1 building/ 56 units

Mayor deBlasio said about the AEP buildings in a statement "This kind of willful negligence puts tenants in danger. It is immoral and illegal and we will use every tool we have to go after property owners and make these buildings safe for New York families."

Housing Preservation and Development Commissioner Maria Torres-Springer stated

"HPD is working on all fronts to make sure that landlords live up to their obligations to provide tenants with the safe, quality housing that they rightfully deserve. The Alternative Enforcement Program is a powerful tool to take negligent owners to task and address systemic conditions in buildings.  I want to thank the hardworking team in HPD's Office of Enforcement and Neighborhood Services, as well as the many elected officials and community groups who partner with us to protect our city's tenants."

Having an experienced NYC property management company can assist landlords comply with violations and avoid be put on a list such as the Alternate Enforcement Program.  Blue Harbour Property Management is a full service NYC property management company servicing the boroughs of Queens, Brooklyn, Manhattan and the Bronx that is one of the top property management companies assisting landlords in difficult matters.  Whether it be a 1 bedroom condo or multi-family building we are able to assist our clients maximize their investments.

http://www.blueharbourpropertymanagement.com/nyc-adds-250-deteriorating-buildings-alternative-enforcement-program/

NAR Report: Home Prices Hits All-Time High in 64 Percent of Markets; Inventory Historically Low

Home prices are now at their all-time highs in 114 out of 177 markets (64%)  measured by the  National Association of Realtors (NAR) according to their new quarterly report.   The median price for existing single-family homes the fourth quarter 2017 was $247,800.  This is an increase of 5.3 percent from fourth quarter 2016 ($235,400). The report also purports that an increase of existing home sales in the last quarter of 2017 has facilitated inventory to reach all time lows.

Existing-home sales which includes single family residences and condos/coops has  increased 4.3 percent to a seasonally adjusted annual rate of 5.62 million in the fourth quarter.  This is higher than the 5.55 million pace during the fourth quarter of 2016.  Also of note in the fourth quarter is that there were 1.48 million existing homes available for sale.   The meager amount is roughly 10.3 percent below the 1.65 million amount of homes available at the same time in 2016. The average supply during the fourth quarter was 3.5 months down from 4.2 months.  The general consensus is that 6 months of inventory is considered a healthy balance.

Lawrence Yun, chief economist for NAR states   "A majority of the country saw an upswing in buyer interest at the end of last year, which ultimately ended up putting even more strain on inventory levels and prices.  Remarkably, home prices have risen a cumulative 48 percent since 2011, yet during this same timeframe, incomes are up only 15 percent These consistent, multi-year price gains have certainly been great news for homeowners, and especially for those who were at one time in a negative equity situation; however, the shortage of new homes being built over the past decade is really burdening local markets and making homebuying less affordable."

In the Northeast home sales increased a significant 10.1 percent in the fourth quarter.  The median existing single-family house price in the area was $268,100 in the fourth quarter.  This is an increase of 4.2 percent from 2016 at the same time.

Blue Harbour Property Management is a full service NYC property management company servicing the boroughs of Queens, Brooklyn, Manhattan and the Bronx.  Whether it be a 1 bedroom condo or multi-family building we are able to assist our clients maximize their investments.

http://www.blueharbourpropertymanagement.com/nar-report-home-prices-hits-time-high-64-percent-markets-inventory-historically-low/

Manhattan Rents Decrease The Most Since 2011 As Concessions Deemed Not Enough

A new report by Bloomberg indicates that Manhattan median rents has been reduced 3.6% for the same time last year as the glut of inventory in Manhattan as well as more affordable units in neighboring boroughs have affected prices.  Median rents came in at $3,141 per unit according to Bloomberg and the decline is the biggest since October of 2011.  Concessions on newly signed leases increased to 49% of all signed for the period.  Concessions that many NYC property management companies and landlords have been using are free months of rent, free gym memberships, gift cards as well as landlord's picking up broker's fees.

The trend in residential units in Manhattan is beginning to catch up to the trend that has already been seen in the commercial sector.  Commercial landlords have increasingly within the last two years given increasing perks and have negotiated shorter lengths of leases in order to lure tenants.  Retail has been the most hit with rents being reduced by as much as 30%.

The vast amount of inventory seems to be the main factor in decreasing rents.  A report compiled by Citi Habitats shows that around 5,630 newly built apartments will be introduced to the market this year.  This is above the amount that entered in 2017 which was calculated to be 4,270 units.

Some also believe that neighboring boroughs and cities have affected Manhattan rents as well. Gary Malin, president of Citi Habitats says to Bloomberg “The dynamic has shifted,” with Brooklyn, Queens and the New Jersey waterfront becoming viable options to many renters.  Tenants are looking for value, and they’re open to suggestions.”

Although rents have decreased in Manhattan, it certainly not affected sales prices.  A new report by City Realty indicates that prices are still rising.  According to the report, the average sales price in Manhattan increased 15% to $2.3 million for December 2017.  Sales volume also increased roughly 8% from the month previous month as there was 884 transactions recorded in December.

Blue Harbour Property Management is a full service NYC property management company servicing the boroughs of Queens, Brooklyn, Manhattan and the Bronx.  Whether it be a 1 bedroom condo or multi-family building we are able to assist our clients maximize their investments.

http://www.blueharbourpropertymanagement.com/manhattan-rents-decrease-since-2011-concessions-deemed-not-enough/

Commercial Lease Assistance Program Announced By NYC Will Include An Average Of 40 Hours of Free Legal Services

The City of New York has announced a new program to assist small business owners with issues revolving around their tenancy. The Commercial Lease Assistance Program which will be under the guidance of the NYC Department of Small Business Services, will give small businesses an average of 40 hours of free legal services.  The city has stated that the services that will be covered will include issues revolving around "negotiating a lease, resolving landlord issues, responding to an eviction notice, breach of contract disputes, and lease renewal."  The announcement further explains that the program will not represent clients that end up in court although there is not have been a statement on whether the selected attorney can represent the business in an outside capacity.

The Commercial Lease Assistance Program will receive $2.4 million in funding from the City of New York.   Gregg Bishop, Commissioner of the NYC Department of Small Business Services says “Small businesses don’t have legal teams like the big guys do, but we are making it clear that the City stands in their corner.  Even basic legal help can be costly and out of reach for small business owners, but this free service will go a long way towards helping small business owners solve problems related to their lease.”  This is the second program that the City of New York under the de Blasio administration will be funding to assist tenants.  In July of 2017, the City Council passes legislation to allow low income tenants to have free legal representation if they are facing eviction.  The new program will have an income eligibility requirement as well.

According to the release, small business owners in need who cannot otherwise afford an attorney are eligible for this program. Examples of businesses that may be eligible:

• Are immigrant-, minority-, women-, or veteran-owned,
• Employ local low-income residents,
• Are located in a rezoned or high-poverty areas; Or
• Offer job training opportunities

Mayor de Blasio said in a statement “Small businesses are the economic heart and soul of this city and they deserve every opportunity to succeed.  The Commercial Lease Assistance Program will give small-business owners the help they need to resolve legal issues without driving them out of business.”   Gale A. Brewer, Manhattan Borough President expanded the need for this program for small businesses in saying "Small businesses are big contributors to our city, which is why it’s crucial that we provide support services to help them compete and thrive.  Legal assistance, especially lease assistance, will be a big help for storefronters and small business owners.”
To be eligible to participate, your business must:

1. Be a small business according to the US Small Business Services Administration (PDF);
2. Be located in New York City;
3. Not be a franchise establishment; and
4. Meet the income eligibility requirements of the legal service provider.

Businesses can visit nyc.gov/commlease or call 311 to determine their eligibility for the Commercial Lease Program.
Blue Harbour Property Management is a full service NYC property management company servicing the boroughs of Queens, Brooklyn, Manhattan and the Bronx.  Whether it be a 1 bedroom condo or multi-family building we are able to assist our clients maximize their investments.

http://www.blueharbourpropertymanagement.com/commercial-lease-assistance-program-announced-nyc-will-include-average-40-hours-free-legal-services/

National Survey Shows NYC Renters Have Increased Satisfaction And Are Pleased With Value

Kingsley Associates, a business intelligence firm headquartered in San Francisco and a leader in resident and tenant satisfaction surveys released a report for ending in the 2017 period.  The national survey which polls tenants from leading cities throughout the United States indicates that renter satisfaction remains steady throughout the nation, however we are seeing tremendous increases since the last report from 2016.  The survey, which you can read fully here also indicates that renters in New York City gave higher scores with respect to renter renewal intent and value for amount paid for 2017.

National renter satisfaction according to the survey indicated that the rate of satisfaction climbed .1% in 2017 for 76.9% in the fourth quarter 2017.  New York City saw the highest levels of tenant satisfaction as the rate increased 3.2%.  Other significant cities with increases included Atlanta at 1.6% increase and Denver with 1.8%.  An increase in renter renewal intent was also highest in New York City according to the report.  There was an increase of 5.4% of tenants likely to renew their leases.  Increases were also seen in Boston at 4% and Atlanta.

Nationwide renters who were satisfied with the value they receive from their apartment compared with the price they pay increased only .1% from the previous quarter to 54.5%.  New York saw tenants very happy with the value of their rentals.  According to the report:

"Despite being known as an expensive rental market, New York has consistently achieved higher scores than most of the largest U.S. markets in renter satisfaction, renter renewal intent, and value for amount paid throughout the past year. In New York, 81.0% of renters are satisfied overall, 58.0% intend to renew their leases, and 56.7% are satisfied with the value for amount paid. For renters who indicated that they intend to renew their leases, location, community management, and security were the top factors influencing their decision. For renters who expressed satisfaction with value for amount paid, location, apartment features, and rental rate greatly influenced their positive value perception.
Recent changes in the New York market have shifted the power from apartment owners and managers to renters. "

So what do tenants believes give value to their apartment?  The survey indicates that air-conditioning, dishwashers, washers and dryers, and garbage disposals are the biggest amenities tenants are looking for.  Overall 75% of the polled renters said they wouldn't lease a particular unit if these features weren't included.

Blue Harbour Property Management is a full service NYC property management company servicing the boroughs of Queens, Brooklyn, Manhattan and the Bronx.  Whether it be a 1 bedroom condo or multi-family building we are able to assist our clients maximize their investments.

http://www.blueharbourpropertymanagement.com/national-survey-shows-nyc-renters-increased-satisfaction-pleased-value/

NYC Mayor Sets Money Aside in Preliminary Budget For Program to Legalizing Basements in Brooklyn

According to the city's 88.7 billion dollar budget, Mayor de Blasio has set aside 5.7 million dollars for a program to legalize basements in East New York.  The pilot program will be set up in East New York, Brooklyn and is part of the Mayor's plan of adding an additional 5,000 affordable housing units in the city which is a major goal of Mayor de Blasio.  The project will turn basement apartments in East New York into legal and habitable units and is part of a larger investment of 12.5 million dollars over a 3 year period.

City Councilman Rafael Espinal was a proponent of the East New York Neighborhood Plan whose goal is to "promote affordable housing preservation and development, encourage economic development, create pedestrian-friendly streets, and invest in community resources to support the long-term growth and sustainability of East New York, Cypress Hills and Ocean Hill" according to the city's website.  A spokesman for Mr. Espinal has indicated that the process of legalization would include include ensuring the presence of a window, proper fire safety requirements and other security provisions.  The City will also  loan money to cover retrofitting costs and for tenant relocations for the period of when the repairs need to be performed.  City agencies will also guide homeowners through the process and the converted units will be regulated by HPD.

Mr. Espinal stated “For too long tenants and homeowners were being put at risk of eviction and major fines, while the city was missing out on an opportunity to maintain thousands of affordable units.  I am excited for what the pilot program will yield for our immediate community, but I am also eager to see how this will reshape New York if the pilot is successful and goes to scale across the five boroughs.”

Blue Harbour Property Management is a full service NYC property management company servicing the boroughs of Queens, Brooklyn, Manhattan and the Bronx.  Whether it be a 1 bedroom condo or multi-family building we are able to assist our clients maximize their investments.

http://www.blueharbourpropertymanagement.com/nyc-mayor-sets-money-aside-preliminary-budget-program-legalizing-basements-brooklyn/

Report Indicates that Airbnb Removes Available Housing and Increases Rents in NYC

A report by McGill University's School of Urban Planning shows a negative effect of Airbnb to residents of New York City.  The Report titled "The High Cost of Short-Term Rentals in New York City" and authored by a research group at McGill University and funded by a hotel union found that 45% of Airbnb listings were illegal.  This amount accounted for $435 million in revenue during the period of the report which was between September 2014 through August 2017.  Of further significance is that New York City  is that Airbnb has taken out of the market between 7,000 and 13,500 units of housing from New York’s long-term rental market.  This has had adverse effect on rent prices as median rents has increased $380 all throughout the city and $780 in Manhattan alone.

The study found that Airbnb has had a positive affect on gentrification in that 72% percent of the population in neighborhoods at the highest risk of Airbnb-induced gentrification across the city are predominantly non-white. According to the research there is a significant disparity on the income earners of using the short term rental marketing.  "Airbnb hosts are 5 times more likely to be white. In those neighborhoods, the Airbnb host population is 74% white, while the white resident population is only 14%. White Airbnb hosts in Black neighborhoods earned an
estimated $160 million, compared to only $ 48 million for Black hosts—a 530% disparity. "

Airbnb has gone on the record and has disputed the findings of the McGill report.  They state that their methodologies are flawed especially the amount of nights visitors rent to Airbnb guests.  They also say that Airbnb has created $3.5 billion in economic activity for the city and 2 million guests have used them.  It should be noted that under NYC law, it is presently illegal to rent out an entire apartment in a multi-unit building for less than 30 days. Homeowners can be punished with violations and fines as a result.  Many NYC property management companies have been proactive to the use of Airbnb by their tenants and have sent out notices to existing tenants of buildings indicating that they would pay rewards for information resulting in the use of short term rentals by other tenants.  It is of high priority to property management companies to curtail the use of Airbnb as penalties and fines would be given to the owners of the premises.

Blue Harbour Property Management is a full service NYC property management company servicing the boroughs of Queens, Brooklyn, Manhattan and the Bronx.  Whether it be a 1 bedroom condo or multi-family building we are able to assist our clients maximize their investments.

http://www.blueharbourpropertymanagement.com/report-indicates-airbnb-removes-available-housing-increases-rents-nyc/

Singapore Surpasses China To Become Largest Asian Investor In US Real Estate

Singapore has surpassed China as the leading Asian investor in the United States real estate market.  This is the first time that Singapore has outspent China since 2012 with respect to U.S. real estate.  A report co-authored by  Real Capital Analytics and Cushman & Wakefield show investors from Singapore spent  $9.5 billion on U.S. properties, while Chinese investors $5.9 billion.  This was a decrease in investment from China at 66% according to Bloomberg.
The level of investment from Singapore will continue to remain strong.  According Cushman &

Wakefield's executive director for capital markets for Asia Pacific Priyaranjan Kumar “We expect Singapore to continue to be the single largest source of Asian investments in the U.S. real estate markets”

Sovereign wealth fund GIC Pte accounted for 75% of the $9.5 billion of Singaporean purchases, investing in properties including 60 Wall Street in Manhattan for $1.1 billion.  Commercial real estate investment by Singapore worldwide increased to $28.4 billion and their investments in the United States is ranked third worldwide lead by Canada as the top investor and France.

China's slowing of investments in  the U.S. real estate market may be attributed to governmental restrictions set forth in late July 2o17.  Their governmental agencies released a revised list on restricted and permitted international investments.  In short, China placed real estate transactions valuing over $1 million in a restricted category. This would put additional governmental scrutiny into the transactions.  The time for the transactions to be approved would be delayed and would therefore curtail investors' ability to invest in real estate.

If you are interesting in investing in real estate and would need assistance in managing your property Blue Harbour Property Management may be the right choice for you.  Whether you have a 1 bedroom coop or a multi-unit high rise building we can assist you in maximizing you expectations.  We are a full service NYC commercial and residential property management company servicing Queens, Brooklyn, Manhattan and the Bronx.

http://www.blueharbourpropertymanagement.com/singapore-surpasses-china-become-largest-asian-investor-us-real-estate/

Existing Home Sales Down in December But Overall Year Was Best Since 2006

Existing home sales decreased by 3.6% in December for a seasonally adjusted rated of 5.57 million.  The amount is an 1.1% in 2017.  This amount has eclipsed the 2016 figure (5.45 million) and is  the highest since amount of existing-home sales since 2006 (6.48 million).  Total existing home sales are completed transactions that include single-family homes, townhomes, condominiums and co-ops.  The report was presented by the National Association for Realtors (NAR) also indicated that sales price and the amount of inventory affected sales in December.

Lawrence Yun chief economist for the NAR states "the housing market performed remarkably well for the U.S. economy in 2017, with substantial wealth gains for homeowners and historically low distressed property sales. Existing sales concluded the year on a softer note, but they were guided higher these last 12 months by a multi-year streak of exceptional job growth, which ignited buyer demand,” said Yun. “At the same time, market conditions were far from perfect. New listings struggled to keep up with what was sold very quickly, and buying became less affordable in a large swath of the country. These two factors ultimately muted what should have been a stronger sales pace.  Closings scaled back in most areas last month for this same reason. Affordability pressures persisted, and the pool of interested buyers at the end of the year significantly outweighed what was available for sale.”

The median sales price increased in December to $246,800 which is an increase of 5% from the same time last year ($233,300).  With respect to inventory, we saw a drop of  11.4% to 1.48 million existing homes available for sale.   Inventory is now 10.3 percent lower year over year (1.65 million) and has decreased for 31 consecutive months

On the mortgage front, interest rates have increased to 3.95 percent on fixed rates this month which is an increase from November and third straight month in increases to interest rates.  Mr. Yun believes that increases in interest rates along with high sales prices will make it harder to for first time home buyers to enter the market in 2018.  "Rising wages and the expanding economy should lay the foundation for 2018 being the turning point towards an uptick in sales to first-time buyers. However, if inventory conditions fail to improve, higher mortgage rates and prices will further eat into affordability and prevent many renters from becoming homeowners" said Yun.

Of note in the Northeast, existing-home sales decreased 7.5% to an annual rate of 740,000, and are now 2.6% below 2016 figures. The median price in the Northeast was $261,400.  That is a 3.0% from last year as well.

Blue Harbour Property Management is a full service NYC property management company servicing the boroughs of Queens, Brooklyn, Manhattan and the Bronx.  Whether it be a 1 bedroom condo or multi-family building we are able to assist our clients maximize their investments.

http://www.blueharbourpropertymanagement.com/existing-home-sales-december-overall-year-best-since-2006/

Advantages Of Being a Pet-Friendly Landlord

For many landlords and property management companies in New York City, the decision in allowing pets is a tough one.  Some of the decisions for not allowing pets involve noise complaints (dogs barking) or damage to the property (damage to walls, floors, carpeting etc.).  As a result of not allowing pets, it is being reported by a nationwide study that landlords are decreasing their chances of increasing their overall profitability of their investment. The study which was conducted by Firepaw, a not for profit organization that promotes animal welfare through research found that owners of properties that are pet friendly towards their renters will see an increase in revenue overall.  The study found that pet owners are reluctant to give away their pets and will pay a premium in order to keep them.  Also, renters are deciding to keep their pets more than ever as the amount of pet owning renters has increased to 75% from a low of 43% in 2012.

The study indicated that there is a rental premium between housing accepting animals and those that do not between 20-30%.  Another aspect was turnover was less with tenants will pets.  The study showed that tenants significantly longer in pet-friendly unit.  The report indicated according to the survey that tenants would stay an average of 46 months in pet-friendly environment in comparison to 18 months in prohibited units.  Other factors that are considered when deciding on having a pet-friendly building would be having more applications for units, lower vacancy rates and less amount of money for the marketing of units due to increased demand.

The Firepaw study indicates that the damage resulting from pet is actually a lot less than perceived.  The study showed indicates that 85% of landlords permitting pets reported having some amount of pet-related damage at some time.  However. the damage was normally covered by the pet deposit.  The study found that the difference between damage for non-pet owners to pet owners was less than $40 overall, with an average for $323 in damage for tenants without pets and average of $362 for tenants with pets.

With rents being of significance in the New York City region and razor thin margins for profitability many property managers and landlords worry about the damage that can occur from having pets on their investment properties.  Increased insurance charges and liability for dog bites are also concerns.  Most of the concerns can be addressed by the premium rents received from tenants who are in need of pet-friendly housing.  Also by addressing your concerns by picking up a deposit for pets should offset any damage to the property at the time of the turnover.  For most landlords and NYC property management companies it only looks like a win to allow pets in their properties.

If you are looking for property management services in the New York City area, Blue Harbour Property Management may be the company that will best fit your needs.  Whether you have a 1 bedroom condo or a multi-unit high rise apartment building, we can assist you in maximizing your expectations.  We are a full service NYC commercial and residential property management company servicing the areas of Queens, Brooklyn, Manhattan and the Bronx.

http://www.blueharbourpropertymanagement.com/advantages-pet-friendly-landlord/

Value of U.S. Homes Increases; Renters Continue to Spend More in New York According to Report

It turns out that investment in real estate is still a great choice according to a new report by Zillow.  According to the report the value of U.S. homes has increased $2 trillion dollars or 6.5% year over year.  The total value of all homes in the United States is up to $31.8 trillion dollars.  The gains are significant and are the fastest increase in value since 2013.

To put these numbers of the value of U.S. homes into perspective,according to the Federal Reserve U.S. real estate was valued at $24.25 trillion in 2006 which is considered the height of the real estate bubble.  The total value levels presently would be higher than these pre-recession figures even if you accounted for inflation which 2006 value would be priced at $29.4 trillion today.

With respect to which cities have the highest value it appears that Los Angeles is the most valuable U.S. housing market.  The value of total homes in the regions came in at $2.7 trillion.  New York came in at second, at $2.6 trillion. The 10 most valuable metropolitan areas are worth $11.3 trillion combined, or 36 percent of the total value of the U.S. housing stock.  Bloomberg lists the top 10 cities value along with their changes from the last years figures.

Renters remain considerable spenders in the real estate market.  There was an increase in spending by renters by $4.9 billion dollars.  Renters spent a record amount in the amount of $485.6 in 2017.  It remains that Los Angeles and New York has the most renters as well as spend the most amount in the rental market.

With investors still being in the market or snapping up new properties there will be a need for experienced property management companies to assist with day to day operations and maintenance of these properties.  If you are in the market for an investment property or looking for a NYC property management company to oversee and facilitate your objective on increasing your revenue choosing Blue Harbour Property Management may be a good choice.  We are a full-service professional NYC property management company managing commercial and residential properties throughout the New York City region.  We manage unit in Queens, Brooklyn, Manhattan and the Bronx.

http://www.blueharbourpropertymanagement.com/value-u-s-homes-increases-renters-continue-spend-new-york-according-report/

Safety Tips For Surviving New York City Cold Weather

As we enter into the New Year, we are experiencing severe winter advisories in New York City.  For property management companies it becomes a trying time as there are always concerns about fires, exploding frozen water pipes and failed heating.  The National Weather Service is predicting temperatures in the teens and 20's for at least another 10 days entering into 2018.  With wind chills, the temperature will be below zero.  This is significant cold weather either if you are indoors or outdoors.  So what can you do to protect yourself and your property during this terrible stretch of bitter cold?
The Red Cross states that nearly half of U.S. households use alternative heating sources like space heaters, fireplaces or wood or coal stoves to stay warm. Of such alternative heating sources, 74% of fire related deaths are attributable to them.  The Red Cross suggest the following:

• If someone intends to use a space heater, attempt to choose a model that shuts off automatically if the heater falls over.
• Space heaters should always be placed on a level, hard and nonflammable surface in the home.
• The heater should be kept away from flammable materials, pets and children.

The city's Emergency Management Department also has some suggestions that should be used in surviving the frigid environment.  Specifically they advised the following:

• Stay indoors as much as possible and only go out when during sunlight hours.
• When venturing outdoors, wear dry, warm clothing; cover exposed skin; don’t forget your hat, hood, scarf, and gloves; and try to keep your fingertips, nose, and earlobes covered.
• Limit alcohol consumption—drinking can increase chances of hypothermia and frostbite.  This is important consideration if you are going out for New Year's celebrations.

Finally when you are indoors it is necessary to protect your pipes from freezing over as well as maintaining your heating.  Tenants and homeowners should do the following:

• When the weather is very cold outside, let the cold water drip from the faucet served by exposed pipes. Running water through the pipe - even at a trickle - helps prevent pipes from freezing.
• Check all other faucets in your home to find out if you have additional frozen pipes. If one pipe freezes, others may freeze, too.
• Open up cabinets where pipes are exposed.  This will enable warmer air to circulate around pipes to prevent freezing.

If you are having issues with heating or pipes bursting you should call your landlord immediately.  If you are not getting a timely response and need immediate help you can call 311 who can assist and report to the Department of Housing Preservation and Development.
Blue Harbour Property Management is a full service property management company representing landlords with residential and commercial properties.  If you are in need of expert property management service we can be of service.  We are a NYC property management company with buildings in Queens, Brooklyn, Manhattan and the Bronx.

http://www.blueharbourpropertymanagement.com/safety-tips-surviving-new-york-city-cold-weather/

US New Construction Home Sales Hits 25 Year High

With the demand for houses maintaining a ferocity and the supply for existing home maintaining a low level, US home buyers have decided to go to route of purchasing new construction.  Sales of new homes were purchased at a pace not seen in 25 years and sales of new construction homes increased 17.5% in November from a month earlier.

According to the report released by the Commerce Department, new home sales last month increased to a seasonally adjusted annual rate of 733,000 units compared to 624,000 in October.   It is the biggest monthly gain since January 1992.
New construction homes have increased steadily and the inventory of existing homes continue to fall.  Some of the demand is also precipitated by an increasing economy and 17 year low in unemployment.  Sales of existing homes has also increased at sizzling pace which will see an estimated 5.81 million sold within the year and a 3.8% increase year over year.   This has amounted to a significant shortage while demand is strong in all regions.

In the Northeast, sales of new construction homes increased by 9.5%.  The Western region lead the overall charge with an increase of 31%.  This was followed by the South with an increase of 14.9%, then the Northeast and the Midwest having the 6.9% increase.  Median sales prices increased by 1.2% to $318,700 and the average sales price is $377,100.

The numbers falls in line with Homebuilder confidence levels which we reported on and can be read here.  According to the survey, homebuilder confidence hit a high of 74 on their index.  The number reached according to the survey is the highest since 1999.

If you are an investor or homeowner looking for management of a new construction or existing residence than Blue Harbour Property Management is for you.  We are a full service NYC property management company representing commercial and residential buildings and homes in Queens, Brooklyn, Manhattan and the Bronx.

http://www.blueharbourpropertymanagement.com/us-new-construction-home-sales-hits-25-year-high/

Existing Home Sales Pace Strongest Since 2006

According to the National Association of Realtors (NAR), existing home sales has increased for 3 consecutive months and is now on its hottest pace since December of 2006.  According to the report, the amount of total existing home sales which are defined as completed transactions including single-family homes, townhomes, condominiums and co-ops, increased 5.6% from last month to 5.81 million sales in November.  The sales pace represents an increase of 3.8% from year over year and the strongest pace of existing home sales since December 2006.

Lawrence Yun, chief economist for the NAR seems extremely optimistic from the report.  He states “Faster economic growth in recent quarters, the booming stock market and continuous job gains are fueling substantial demand for buying a home as 2017 comes to an end.  As evidenced by a subdued level of first-time buyers and increased share of cash buyers, move-up buyers with considerable down payments and those with cash made up a bulk of the sales activity last month. The odds of closing on a home are much better at the upper end of the market, where inventory conditions continue to be markedly better.”

Also of significance the median existing home price increased once again to $248,000.  It is an increase of 5.8% from the same time last year.  Supply remains a concern with the market and has affected both increases in home prices and sales.  The report indicates inventory has dropped 7.2 percent to 1.67 million existing homes available.  The amount of inventory is 9.7 percent lower than a year ago (1.85 million) and has fallen year-over-year for 30 consecutive months.   There are concerns of affordability as we enter into the new year.  There is speculation that mortgage interest rates will be increased leading to higher prices if inventory congestion remains.

In the Northeast the November existing-home sales increased 6.7 percent to an annual rate of 800,000. The median sales price in the Northeast was $273,600, which is 4.0 percent above November 2016.

If you are a homeowner or looking to purchase a home and are in need of property management than Blue Harbour Property Management can assist.  We are a full service residential NYC property management company with buildings managed in Queens, Brooklyn, Manhattan and the Bronx.

http://www.blueharbourpropertymanagement.com/existing-home-sales-pace-strongest-since-2006/

Homebuilder Confidence Hits Highs Not Seen Since July 1999

According to a report by the National Association of Home Builders the confidence in the market of single-family homes increased to a level of 74.  The reading marks the highest level of builder confidence since July of 1999.  A reading of 50 marks the demarcation line of whether builder's sentiment is either positive or negative.  The sentiment grew 5 points from last month and 5 points overall year over year.

Some of the factors that has helped with homebuilder sentiment is the improving economy and the removal of regulations by the government.

“Housing market conditions are improving partially because of new policies aimed at providing regulatory relief to the business community,” said NAHB Chairman Granger MacDonald, a home builder and developer from Kerrville, Texas.

According to the NAHB the monthly survey was derived from a monthly that the NAHB has been conducting for 30 years.   The NAHB/Wells Fargo Housing Market Index gauges builder perceptions of current single-family home sales and sales expectations for the next six months as “good,” “fair” or “poor.” The survey also asks builders to rate traffic of prospective buyers as “high to very high,” “average” or “low to very low.” Scores for each component are then used to calculate a seasonally adjusted index where any number over 50 indicates that more builders view conditions as good than poor.  Three factors that have increased is that buyer traffic jumped 8 points to 58. Also, current sales conditions rose 4 points to 81 and the expectation of sales for the next six months increased 3 points to 79.  One of the main deterrence to increased sales would be inventory and there still remain shortages in housing nationwide.

"With low unemployment rates, favorable demographics and a tight supply of existing home inventory, we can expect continued upward movement of the single-family construction sector next year," said NAHB Chief Economist Robert Dietz.

Of significance for us in New York City is that builder confidence inched up 1 point in the Northeast according to the new survey.

If you are a builder or a homeowner looking for property management in NYC Blue Harbour Property Management may be for you.  We are a full service residential building management company managing properties in Queens, Brooklyn, Manhattan and the Bronx.

http://www.blueharbourpropertymanagement.com/homebuilder-confidence-hits-highs-not-seen-since-july-1999/

Tenants Will Soon Be Able To Make Rental Payments With Bitcoin

It is being reported by CNBC that ManageGo, a Williamsburg Brooklyn based rental payment platform being used by property managers with over 6,000 buildings in their portfolio throughout New York City will be accepting Bitcoin to their list of acceptable payment arrangements for the service.  The company will also add payments through Bitcoin, Ether or Litecoin.

The way it would work is that the paying tenant who uses bitcoin and will the app ManageGo which will convert the bitcoin to dollars using Coinbase, a digital cryptocurrency broker. The landlord will gets the rent payment in dollars and the value of the exchange is locked in at the time of the payment.  Executives at ManageGo believe that it is only a matter of time before property managers and landlords jump in on using the payment method.  The demand for the use of the payment method has been low and there is a belief that larger landlords would be reluctant to use it until there is a higher demand and Bitcoin becomes less volatile.

According to Chaim Lowenstein, vice president of business strategy at ManageGo, the company has already received interest from landlords.  "We lead in innovation, so we saw bitcoin was something that's going to happen and become a standing currency sometime in the future.  Right now there are types of clients we have, their tenants fit the profile, and we wanted to offer it as the new amenity beyond a fancy gym or a new couch in the building."  Lowenstein also believes that this ability to accept payments of this nature can make them stand out from the competition.

Blue Harbour Property Management does not currently accept payments through ManageGo and will monitor the utility of the service going forward.  We are a full service NYC property management company managing buildings in Queens, Brooklyn, Manhattan and the Bronx.  If you are in need of professional property management you can reach us at 718-843-1185 or at info@blueharbourpropertymanagement.com.

http://www.blueharbourpropertymanagement.com/tenant-will-soon-able-make-rental-payments-bitcoin/

10 Year High Reached On New US Home Sales

In a sign that is considered unexpected as well as a good sign for the construction industry, the sale of new homes purchased by Americans was finalized at the fastest rate in over 10 years.  The Commerce Department is reporting that new-home sales last month rose to a seasonally adjusted annual rate of 685,000 and is a 6.2 percent monthly increase.  This is the highest sales volume for new construction since October of 2007.

As reported earlier, because of the lack of existing homes many Americans are now looking for new construction to suit their need for housing.  The shortage of housing has also increase the sales price of a new home.  The average sales price of new construction homes increased 13.6 percent year over year to $400,200.

There is a 4.9 months to clear the supply of houses on the market.  This is the least amount of housing since July 2016 and down from 5.2 months in September. A six-month supply is viewed as a healthy balance between supply and demand.

Leading the way on new construction sales is in the Northeast.  New single-family homes sales increased by a whopping 30.2 percent in the Northeast.  This is also the highest levels since October 2007.  It is now being suggested that the three month increase in new US home building along with an increase in existing home sales there is a rebound in the housing market.  Housing for the year has been considered hampered by the shortages of housing, hurricanes in the South as well as the unavailability of skilled labor and land.   The new report may indicated that housing is gaining momentum going into 2018.

If you are interesting in purchasing a new construction and in need of property management than Blue Harbour Property Management can be of assistance.  We are a full-service NYC property management company servicing Queens, Brooklyn, Manhattan and the Bronx.

http://www.blueharbourpropertymanagement.com/10-year-high-reached-new-us-home-sales/

Existing Home Sales Increase In October; Supply Still Low

That National Association of Realtors (NAR) is reporting that existing home sales for the month of October 2017 is up 2% to what they believe is an adjusted annual rate of sales of 5.48 million.  This is a positive readjustment as the September predicted annual rate was 5.37 million.  The sales figures comes amid continual shortages of inventory in housing as well as interruption in sales in hurricane regions in Texas and Florida.  NAR believes that the interruptions in sales in hurricane ravaged areas should dissipate by the end of the year.

Lawrence Yun, chief economist for NAR pointed out that sales activity is continuing to grow in all four regions of the United States.  He goes on to state:

 "Job growth in most of the country continues to carry on at a robust level and is starting to slowly push up wages, which is in turn giving households added assurance that now is a good time to buy a home.  While the housing market gained a little more momentum last month, sales are still below year ago levels because low inventory is limiting choices for prospective buyers and keeping price growth elevated."

The total amount of inventory decreased once again in October as there were only 1.8 million homes available for sale.  This is a decrease of 10.4% year over year.  As a result of lower inventory, existing home prices have gone up by 5.5% ($247,000) during the same period.

Of note for us living in the New York City region is that existing home sales in the Northeast rose 4.2% to an annual rate of 740,000.  The average price in the Northeast has increase to $272,800 which is a 6.6% increase year over year.

As the economy improves we are also seeing more individuals looking for purchase a second home for investment purposes.  If you are looking for are have an investment property and are interested in NYC property management than Blue Harbour Property Management is for you.  We are a full-service building management company servicing properties in Queens, Brooklyn, Manhattan and the Bronx.

http://www.blueharbourpropertymanagement.com/existing-home-sales-increase-october-supply-still-low/

CoreLogic Report Indicates Home Equity Wealth Hitting An All Time High

In New York City we have begun to see a frenzy of real estate activity not seen in over a decade.  Sellers are benefiting from high selling prices and a limited supply of inventory of housing.  The boroughs of Queens and Brooklyn have been benefiting the most of the increase of home prices.  In a report that doesn't seem very surprising by CoreLogic home equity wealth attained by homeowners has reached an all-time high.  The amount has surpassed the previous all time high which is from 2006 and the report further indicates that next year home equity wealth will surpass this year's numbers.

Home equity wealth hit $13.9 trillion and surpassed the 2006 number by  $.5 trillion.  The report forecasts that home prices will increase another 5% next year which will increase equity by another 1 trillion dollars.

The home equity increase has been facilitated by significant home prices increase and lower supply of inventory of houses.  The chart above shows the correlation of home price increase and the amount of individuals with negative equity.  Homeowners with negative equity has decreased by over 9 million since 2011 as home prices continued to surge.

Should one decide to tap into their home equity it would allow financially strapped individuals to access cash in order to remodel their home or purchase additional real estate investments.  Having the ability to also sell the property or rent is a great option for someone who purchased just a few years ago.   There are many vehicles one could use to tap into your home equity such as HELOC (Home Equity Line of Credit) or a cash-out.  The latter being the more popular approach.

If you are thinking about tapping into your home equity or just considering on purchasing a real estate investment than Blue Harbour Property Management is for you.  We are a full service NYC property management company servicing Queens, Brooklyn, Manhattan and the Bronx.

http://www.blueharbourpropertymanagement.com/corelogic-report-indicates-home-equity-wealth-hitting-time-high/

What Factors Should A Homeowners Association (HOA) Look For In Deciding on Hiring a NYC Property Management Company?

When it comes to hiring a property manager in New York City the decision to hiring one for a Homeowners Associations (HOA) can be a daunting task in the general, a homeowners association is when a community of people buy properties in a proposed development. They form the government of the development and oversee the day to day operations of the HOA.  Membership in the HOA is usually mandatory by owners of the properties and members are fiduciaries who handle comply with community rules and collecting fees and fines.  The members volunteer their time without compensation to do this work.

Although there is definitely a cost saving function into using volunteer members into doing the managing of the HOA, it may become time consuming for members who have jobs and families to split time with.  When this becomes an issue for the members, you can see why there would be a need for a third party property manager in order to assist the HOA.  This is especially true when it is a growing or large community that may have issues such as compliance with regulations, collection of fees and fines and addressing community issues are involved.

We know that property management can become one of the most important aspects of having your HOA become successful.  That is why it is important in determining whether the fees associated with hiring a property management company outweighs going on it on your own.

Here are two huge factors that can be considered in deciding whether there is a need for a NYC property management company for your HOA:

• Do you have the amount of personnel to handle the operations of the HOA and are they qualified to do the work?

Because you have a volunteer staff, it is important to know whether they are committed to the job.  It can become difficult to amass a staff that is reliable when they are volunteering and have other responsibilities besides working for the HOA.  This may not be an issue if you have a fairly small amount of units, but it can become a little more burdensome when your HOA involves over 20 units and multiple buildings for example.

Also it is important to know whether you volunteer staff has the requisite expertise in order to do the job.  You can have the staff to do the job but if they do are not equipped in functioning then it becomes a liability for your HOA.  Having experienced members is something you should also be looking for if you want to go on your own.  Most property management companies have to expertise to handle these issues and in the long run will save your HOA time and money.

• Do you have the staff that is willing to enforce the rules of the HOA and collect fees?

Experienced property management companies have a staff that handles enforcement of rules and regulations.  They also have accounting software and staff that assists with the collection of fees and the levying of fines.  In many instances it can become difficult for neighboring owners to have one be a judge on a matter as well as the collector of fees.  There might become bad sentiments between neighbors that may become long-lasting as a result of a miscommunication or just because someone is doing their job on behalf of the HOA.

It is most of the times better to have an independent entity handle these situations.  There would be less animosity and property managers are aware of what is needed in order for owners to comply with the rules and can independently inspect the premises to make sure that there is a rectification of the violation.

It is also easier for property management companies to handle monthly fees and dues.  Besides collecting fees they have experience with collecting fines and assuring that the HOA is within their yearly budget.

Once your HOA decides that it would be in the best interest in hiring a property management company then you should consider reputable companies with experience in handling associations like yours.  Due diligence should be performed which would include interviews and follow-up phone calls to references.

It is important to take these factors into account when deciding on a property manager for your NYC Homeowners Association.  If you are in need for an experienced property management company that maintains successful and long-term relationships with the clients then Blue Harbour Property Management may be for you.  We are a full service property management company servicing Manhattan, Brooklyn, Queens and the Bronx.

http://www.blueharbourpropertymanagement.com/factors-homeowners-association-look-deciding-hiring-nyc-property-management-company/