REBNY Report Indicates Third Straight Quarter of Decreased Residential Real Estate Sales in NYC

The Real Estate Board of New York (REBNY) published their first quarter report for 2018.  What it indicates is that residential real estate sales is down for the third straight quarter.  For the first quarter of this year, New York City residential sales were down 16 percent.  Total value of real estate transactions for the quarter was $10.3 billion in comparison to $12.3 billion for the first quarter of 2017.  The $2 billion decrease for the first quarter of 2018 was the largest year-over-year drop recorded since the third quarter of 2009 according to REBNY.

Total residential sales consideration decreased in three of the five boroughs.  Manhattan saw the biggest decrease in sales consideration for the quarter at 30% to $4.61 billion.  This was followed by Brooklyn -12% to 2.36 billion and Staten Island -1% to $711 million.   The Bronx saw an increase in sale consideration by 16% to $436 million in the Bronx and Queens saw an increase of 7% to $2.21 billion.

For the quarter, sales volume only increased in the Bronx by 8% to 998 for the quarter.  In the other boroughs sales were down led by Manhattan being down by 20% (2,417), Brooklyn by 15% (2,466), Staten Island  by 9% (1,338) and Queens by 4% (3,650).  Overall, the average sales price of a home in New York City during the first quarter of 2018 was $951,000, a seven percent decrease from the first quarter of 2017.

On a positive note, the average sales price for a one-to-three family dwelling in New York City overall has hit an all time high.  The average sales price of a one-to-three family dwelling in New York City was $791,000 which is a two percent increase from last year’s first quarter average.  With respect to the boroughs, Queens, the Bronx, and Staten Island all registered record highs for the first quarter. The average sales price for a one-to-three family dwelling increased 6% to $717,000 in Queens, 7% to $517,000 in the Bronx, and 9% percent to $563,000 in Staten Island.

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/rebny-report-indicates-third-straight-quarter-of-decreased-residential-real-estate-sales-in-nyc/

City Council Passes Rezoning of Jerome Avenue Enabling The Development of Residential Buildings

The City Council has finally approved the rezoning of 95 blocks of Central and South Bronx along Jerome Avenue.  The approval which took over three years to be finalized will allow for the development of an estimated 4,600 new housing in the area.  The plan also calls for a permanent 1,150 affordable units to be built within the next decade and transform what is now considered an industrial area into one with mid-sized high rise apartments and retail.

According to the Commercial Observer, the Jerome Avenue district will run from McClellan Street in the south to 184th Street in the north, passing through Highbridge, Concourse, Mount Hope, University Heights and Morris Heights. Along with the deBlasio administration's adherence to the recently passed Mandatory Inclusionary Housing Amendments enacted in 2016, the administration also agreed to constructing two elementary schools, initiating a Housing Task Force whose goal is to preserve 2,500 units in the area and creating a program funded by up to $200,000 which will be used for tenant organizing and addressing tenant displacement.

Opponents of the City Council vote were very vocal of the displeasure of the rezoning.  Of their concerns are that the rezoning would reduce the amount of affordable housing.  They wanted more assurances that there would be added requirements by developers to include affordable housing.  Another concern is that businesses along Jerome Avenue would be compromised by construction that will eventually take place.  Many would have to shutter because of it.  Despite this, Borough President Ruben Diaz, Jr. supports the overall plan and believes that the protections set forth in the plan should enhance the visibility of the area.

"With today’s vote, the City Council has secured a positive future for the Jerome Avenue corridor that is inclusive of the area’s current residents and does not leave the people of The Bronx behind.  As part of the ongoing negotiations on this rezoning, both my office and the City Council, led by Council Member Vanessa Gibson, have secured considerable protections for the area’s existing residents and businesses. My office was able to negotiate commitments from the administration that will provide deep affordability in new apartments, new protections against tenant harassment and the preservation of thousands of existing affordable units in Community Boards #4 and #5, among others.

 

The City Council has built on that success, securing new protections and job training services for the autoworkers within the Jerome Avenue corridor, new funding for park and infrastructure improvements, and new programs to encourage local hiring. I especially want to thank City Council Members Gibson and Fernando Cabrera for their focus and dedication on this issue, and the years they have spent working to ensure that the needs of the community are balanced against the expectations of this rezoning. The people of The Bronx are not opposed to improvement. However, the rezoning of the Jerome Avenue corridor must work for everyone. The agreements that have been secured by my office and the City Council will help do just that, and I look forward to working with the administration to begin the implementation of the initiatives and programs they have agreed to provide."

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/city-council-passes-rezoning-of-jerome-avenue-enabling-the-development-of-residential-buildings/

NYC Investment Sales Down Almost Forty Percent; Bronx Only Borough With Higher Sales

The Real Estate Board of New York (REBNY) published their Investment Sales Report for the Second Half of 2017 and it shows that real estate investment sales continue to nosedive.  Investment sales have now fallen since the first half of 2015, when New York saw $37 billion in real estate sales. Sales have fallen on every report since 2015 except one period for the second half of 2016.  The report indicates that the total monetary value for all recorded sales was $17 billion throughout the city which is a 37 percent decline compared to the second half of 2016. The total number of transactions also draw a drop of 19 percent year over year.  The only borough that saw a positive investment with respect to monies spent was the Bronx where investors spent $1.5 billion in the second half of 2017 where $1.4 billion was spent in 2016 second half.

Manhattan investment saw a considerable drop as sales decreased 40 percent to $10.1 billion in the second half of 2017 from $17.0 billion in the second half of 2016.  Also of note, transactions decreased 26 percent from 2016.  The report shows also that the average price per square foot of office properties Manhattan declined 12 percent to $823 from $930.

Brooklyn sales for the second half of 2017 dropped 27 percent to $3.2 billion from $4.4 billion in the second half of 2016. The amount of transactions decreased 18 percent to 783 in the second half of 2017 from 954 in the second half of 2016. The value of Brooklyn investment sales transactions accounted for 19 percent of NYC total sales.

Queens investment sales dropped 46 percent from the same period of the second half of 2016.  Total amount spent was $1.9 billion for the period.  There were 18 percent fewer transactions in the second half of 2017, 534 investment sales, compared to 649 in the second half of 2016.

Staten Island saw sales drop 59 percent or $203 million.  The number of transactions completed in the borough declined 30 percent to 190 compared to 273 in the second half of 2016.

Although the report didn't come out totally positive, the outlook still looks upbeat according to the President of REBNY John Banks.

 “The current demand and value of Bronx properties, as seen in our most recent New York City Residential Sales Report, carried over to investment property trades in the second half of 2017.  While the pace of completed transactions lagged citywide in 2017, investors continue to show interest in income-producing properties 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-investment-sales-down-almost-forty-percent-bronx-only-borough-with-higher-sales/

Home Sales expected to Expand Moderately in 2017 According to NAR. Buyer Enthusiasm Restrained

Home sales will expand moderately in 2017 amid consumer confidence abated by increased mortgage rates and affordability concerns.  According to the National Association of Realtors Housing Opportunity and Marketing Experience (H.O.M.E) survey, 57% of renters said that now is a good time to purchase a house.  Among present homeowner, 78% said presently it is a good time to purchase.  Both figures are below the last survey performed last year.  In 2015, tenant's confidence to purchase was at 68% while existing homeowners were at 82%.

The 2017 Housing Forecast Update which you can review here, is predicting that existing home sales will close out 2016 with an annual increase of 3.3% and reach about 5.42 million.  This will be the best year recorded since 2006.   NAR is also predicting that in 2017 existing home sales will increase slightly less at 2% to around 5.52 million. Home prices will continue to rise, increasing 5% this year and 4% in 2017, according to their predictions.  The forecast also predicts that interest rates will increase to 4.6% and the Federal reserve will raise rates to 1.25%.

NAR Chief Economist Lawrence Yun said “Although the economy is expected to continue to expand with around 2 million net new job creations, existing home sales are expected to see little expansion next year because of affordability tensions from rising mortgage rates and prices continuing to outpace income growth.  Yun also states that new affordable construction will be key in 2017.  “Some would-be sellers may be reluctant to move up or trade down – especially if they’ve refinanced in recent years.  That’s why it’s extremely necessary for homebuilders to step-up their production of homes catered to buyers in the affordable price range. Otherwise the nation’s low homeownership rate will struggle to shift higher in 2017.”

The report is in direct contravention to a Redfin report which projected that 2017 will be break 2016's record for sales.  Redfin also predicts that existing homes sales are will increase 2.8% in 2017 and inventory will recover to 1.7% year over year, after falling an estimated 3.4% in 2016.

With home sales to increase in 2017 we expect property management services in New York City to expand as well.  Blue Harbour Property Management manages properties in Bronx, Brooklyn, Queens and Manhattan and surrounding regions.  We tailor our services to maximize revenue potential for homeowners.  If you are in need of property management you can contact us at 718-845-1185 for a free consultation.

http://www.blueharbourpropertymanagement.com/home-sales-expected-expand-moderately-2017-buyer-enthusiasm-restrained/

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Bronx Remains Hot and a Great Opportunity for Real Estate Investors

The Bronx, once considered a symbol of urban blight and an example of fiscal irresponsibility has now become a hot real estate market with tremendous opportunities for the future.  With prices remaining high in Brooklyn and Manhattan many investors are deciding on planting their feet in the Bronx because of lower prices and the flux of businesses that have been moving to areas such as Mott Haven, Melrose and Port Morris.   

Many developers are buying up vacant land and/or renovating existing properties.

Bronx-wide real estate sales has increased tremendously within the last few years.  For instance, in 2014 borough-wise investments for the year were $1.1 billion.  That amount skyrocketed held by two development projects to $2.4 billion in 2015.  The two projects were one by The Chetrit Group and Somerset Partners to build two 25 story towers at 2401 Third Avenue and 101 Lincoln Avenue and The Hudson Companies La Central where they are planning to build 992 affordable units in Melrose.

Major real estate investors are also entering the market at Related Companies purchasing 737 units throughout that borough as well as Harbour Group International along with York Equities purchasing 38 buildings encompassing 1000 units.  Overall multi-family sales increased 67% in the borough.

With all this flurry of activity it is no surprise that residential real estate has been on an uptick.  According to REBNY Third quarter report,  overall sales in the Bronx has increased 13% year over year with home prices increasing to an affordable (in comparison to Brooklyn, Manhattan, Queens) $400,000. City Island, Pelham Bay, Pelham Strip, Country Club, Throgs Neck, Schuylerville remains hot with average sales price of a home up to $525,000 an increase of 14%.  All of these indicators show that the borough will be ripe for investment for the future.

If you are in need of a professional property management company servicing the Bronx, contact Blue Harbour Property Management.  We will consult with you and come up with a strategy of maximizing your real estate investment.

http://www.blueharbourpropertymanagement.com/bronx-remains-hot-great-opportunity-real-estate-investors/

Visit us at www.blueharbourpropertymanagement.com

NYC cracking down on Landlords failing to fix Violations by Withholding Rent

The City of New York has finally had enough of landlords not fixing violations attributable to their buildings.  They have decided to take a legal measure not used since the Koch administration and withhold rents it pays for public assistance at the buildings in question.  The two landlords had a combined 239 violations of which 78 of those violations deemed "hazardous".

The landlords were among eight warned by City Hall and Public Advocate Letitia James in May to clean up their buildings or have their rent withheld.  The buildings are located in the Bronx and upper Manhattan.  The rest of the landlords decided to make the necessary repairs and were not penalized.  For more information on this click here.

The failure to cure violations on your property can become a major obstacle in profiting on your investment.  Although the above result appears to be an extreme case, you can see what the failure to upkeep your property can lead to.  In most cases, the choice of a reputable NYC property management company can assist you in fixing violations on your property.  The majority of property managers have software that can detect when violations have been assessed and can take actions to cure them.  In the alternative, choosing a property mangement company in New York City that has the expertise in preventing the violations can save you money and hassle in the long run.

Troubleshooting potential issues and having a long term strategy in place for preventative measures are some of the services that Blue Harbour Property Management provides.  If you are in need of a property management company that can assist with your troubled property, call us and we will meet with you and determine what is the best plan for the health of your property.

http://www.blueharbourpropertymanagement.com/nyc-cracking-landlords-failing-fix-violations-withholding-rent/

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Blue Harbour Property Management Opens New Office in Forest Hills, New York

Blue Harbour Property Management is proud to announce the opening of our Forest Hills, New York office.  CEO Jules Doodnath has been directing the property management office in South Ozone Park from its inception in 2013.  “The Forest Hills Office has been envisioned for some time for Blue Harbour Property Management as we would like to position ourselves in one of the hubs of commercial activity in Queens, New York” Mr. Doodnath commented.  Blue Harbour Property Management will maintain the expertise in small and medium sized rental units but will now be able to accommodate a plethora of bigger multi-family units throughout New York City.

Mr. Doodnath also says there’s no better time to open a new building management office than now. “There are many opportunities that exist in today’s market and opportunities will continue as our economy grows and institutional lenders create alternatives for the real estate investor to finance properties.  We are proud to service our clients and to continue to serve our community as well.”

The new office will be located at 118-35 Queens Boulevard in the Forest Hills Tower complex . For more information, contact Blue Harbour Property Management at 718-843-1185 or e-mail at info@blueharbourpropertymanagement.com.

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.

http://www.blueharbourpropertymanagement.com/blue-harbour-property-management-opens-new-office-forest-hills/
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Finding a NYC Property Management Company that Cares as Much as You do

Finding a New York City property management company that cares about your rental as much as you do can be an arduous task.  Some companies may have so many rentals that they will concentrate on the higher value ones instead of looking at all their managed properties equally.  They may also value properties in a different borough that may be not where your property is located.  For instance, some property management companies will value their Manhattan apartments more than their units located in Brooklyn.  That is why doing the requisite research is very important when deciding on a building management company in NYC.  It may be a time- consuming task and you may vacillate on your decision but here are some factors you should look into when deciding on a manager:

Discussing the problems at your property and coming up with solutions: Although a property manager may not call you whenever there is an issue at the managed property there should be a certain protocol on when he or she could call the owner.  For instance, some property managers use a monetary value that authorization needs to be discussed.  At Blue Harbour Property Management we discuss any repair or expense that exceeds $500.  This allows the owner to be up to date with what we believe are intermediate level of repairs.  A good property should manager should call and discuss your options on how to resolve the issue.  It shouldn’t be that the building manager calls you when there is a catastrophic event that occurs at your property like Roof damage etc.

Discussing strategic improvements to maximize revenue: Good property managers shouldn’t just babysit your property.  They should be forward thinking and look at ways to improve the value of your property.  They should be concerned for instance about how much revenue the investor’s property in the Bronx is making and how much actual net profits they are receiving.  Thus, you should find someone that is always looking at making you the maximum amount of money.  Increasing rents, reducing costs and maximizing revenue should be words coming out of your property manager’s mouth all the time.

Always maintaining communication: Does your property manager answer your phone calls or promptly return your calls when they are missed? Are there check and balances at their office so calls don’t go un-answered.  Do you have the property manager’s cell phone number?  Can you text the manager?  Remember at the end of the day, it is your property and your property management company works for you and not the other way around.  You should be able to pick up the phone and ask questions about your investment.

If you are looking for a new NYC property management company that cares about your property as much you do, Blue Harbour Property Management is the right company for you.  If you have any questions about the services we provide you can contact us at 718-843-1185.

http://www.blueharbourpropertymanagement.com/finding-nyc-property-management-company-cares-much/
Visit us at www.blueharbourpropertymanagement.com