Home Builder Confidence Remains Strong But Drops Slightly From Previous Months

The National Association of Home Builders (NAHB) and Wells Fargo released their March report on home builder confidence and it shows that home builder sentiment remains strong although has slipped from the record highs of previous months.   The Housing Market Index (HMI) indicates that there has been a decrease of one point to 70 in March.  This is a slight reduction from the readings of February which was revised to 71.  December saw the highest post-recession readings of a 74.

Based on a monthly survey NAHB conducts, the HMI 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.” Any number over 50 indicates that more surveyed builders viewed conditions as good than poor.

With respect to current sales, the HMI survey showed that confidence held steady at a 77.  Sales for the next six months expectations dropped 2 points to a 78.  In the Northeast, builder confidence increased 1 point to a 56.  Previous months saw builder confidence drop 5 points in February so positive sentiment is seeing an upswing in our area.

NAHB Chairman Randy Noel  said “Builders’ optimism continues to be fueled by growing consumer demand for housing and confidence in the market. However, builders are reporting challenges in finding buildable lots, which could limit their ability to meet this demand.

Challenges aside, there is optimism of continued growth in home building for the future.  Robert Dietz, Chief Economist for the NAHB believes so in stating "A strong labor market, rising incomes and a growing economy are boosting demand for homeownership even as interest rates rise. With these economic fundamentals in place, the single-family sector should continue to make gains at a gradual pace in the months ahead.”

 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/home-builder-confidence-remains-strong-but-drops-slightly-from-previous-months/

Housing in NYC Is Becoming More Affordable Amid Increased Wages and New Apartments

The Wall Street Journal is reporting that housing costs are taking less of a percentage of a household's monthly budget as the strong economy and the availability of newly constructed apartments make it more affordable for the majority of New Yorkers.  The information was compiled via survey by the U.S. Census Bureau that is conducted every three years.  The survey indicates that the surge of construction in the past few years and a strong economy in which the growth of jobs has outpaced the increase in rents are making things even manageable for lower income groups.

The survey also found a record 3.47 million housing units in New York City.  This is  an increase of 117,000 since 2011.  It is also estimated that an additional 35,000 rental apartments and 15,000 condominiums are due to open in 2018 and 2019.  Mark Willis, a fellow at NYU Furman Center states “Rising vacancy rates citywide are a sign that, overall, the housing supply is starting to catch up with demand, helping to relieve the upward pressure on housing costs."  Vacancy rates throughout the city has hit 3.63% which is the 3rd highest vacancy rate since 1965.  Vacancy rates in Manhattan was 4.73% which was the highest recorded in the last decade.

With respect to household income, NYC renters saw an increase of eleven percent (11%) over the last survey while rents rose  8.2%. For tenants in rent-stabilized apartments, incomes increased 7% while rents rose by 2.6%.  Despite all these positive signals, the city’s housing commissioner Maria Torres-Springer said that they city is still facing an affordability crisis and they will continue to strengthen rent laws as well as building and maintain existing affordable housing.

Landlord groups are hoping to remove Manhattan apartments renting for $2,000 or more from rent control.  Present law requires that rent control should be abandoned should the vacancy rates hit 5 percent.  Jack Freund, executive vice president of the Rent Control Stabilization indicated that the 5% standard is within the survey margin of error of the 4.73% vacancy rate Manhattan. Experts do not believe that the City Council will change any regulations with respect to rent control.

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/housing-in-nyc-is-becoming-more-affordable-amid-increased-wages-and-new-apartments/

NAR Study Show Millennials Lead All Generational Purchasers Relying On Real Estate Agents For Assistance

The National Association of Realtors (NAR) recently released the outcome of a study done named Home Buyer and Seller Generational Trends.   The report indicates that millennial home purchases increased over the year and constraints hampered many from leaving their parents homes.  Thirty six percent (36%) of all home purchasers were made by millennials leading all generational sects.  This was the fifth year in a row that the generation segment has led the survey.  Although most segments relied heavily on real estate agents for assistance in the purchase or sale of homes, ninety percent (90%) of all millennials were the most likely to purchase a home through a real estate agent.

The survey which evaluates the generational differences of recent home buyers and sellers found that millennial buyers prioritize living close to friends and family over a home’s location and proximity to schools.  Thirty six percent (36%) of all sales were made by millennials over the past year.  This was an increase of two percent (2%) over the previous year.  Gen X buyers ranked second 26 percent, a decrease of 2 percent (2%) and followed by younger baby boomers eighteen percent (18%) and older baby boomers at fourteen percent (14%).

NAR chief economist Lawrence Yun states market conditions are hampering millennials from further gains in homebuying.  Particularly steep competition from low inventory and increased purchase prices are affecting advancement.

"Realtors throughout the country have noticed both the notable upturn in buyer interest from young adults over the past year, as well as mounting frustration once they begin actively searching for a home to buy.  Prices keep rising for the limited number of listings on the market they can afford, which is creating stark competition, speedy price growth and the need to save more in order to buy.  These challenging market conditions have caused – and will continue to cause – many aspiring millennial buyers to continue renting unless more Gen Xers decide to sell, and entry-level home construction picks up significantly.”

Another interesting conclusion from the survey is that younger boomers were the most likely to purchase a multi-generational homes reciting that the main reason being they would like to purchase for their adult children to live at home.  They also took into consideration of their parents living with them.  The same went for Gen X purchasers as  what was found was a huge jump (over 10% increase in both categories) in the reason for the purchase was for their adult children (35%) and parents living with them (30%).

All generation segment continue to use real estate professionals in drove in order to secure a transaction.  As noted earlier,  90 percent, millennials were the most likely to purchase a home through a real estate agent. Overall, at least 84 percent in every other generation worked with an agent to close real estate transactions.

"On the seller side, Gen X and older boomers were the most likely to use an agent (91 percent), followed closely by millennials (90 percent) and younger boomers (88 percent). The near universal use of an agent to sell a home helped keep for-sale-by-owner transactions at their lowest share ever for the third straight year (8 percent)."

 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-study-shows-millennials-leads-all-generational-purchasers-relying-on-real-estate-agents-for-assistance/

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/

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/

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/

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/

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/

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/

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/

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/

What Should I Be Looking For In A NYC Property Management Company?

So you have decided that you may need assistance managing your rental properties.  It may be because you are relocating or just because it takes too much time dealing with the day to day operation of your investment.  It can be a headache for some dealing with tenants issues as well as keeping up with maintenance and collecting rent.  The big question you have is "What should I be looking for in a NYC property management company?".   Sure, many property management companies can collect your rent and rent your units when they become available but you should be looking for more from you property management company.  Below is some considerations that you should look into when considering a professional New York City property management company.

Does your management company up to date with the housing laws in NYC?

Being up to date with the real estate laws are very important with respect to property management.  It is important because having a legal issue will cost you in the thousands should they arise.  The potential of losing your cash reserve is possible if there is a mistake made.  It is important that your NYC property management company is familiar with all the laws with respect to housing so you can avoid the risks associated with the property.  Whether it be understanding how violations are given by the Department of Buildings to ramifications of landlord & tenant litigation your property management company should be adept of the intricacies associated with important cost saving issues.

Communication and screening of tenants

We have seen many times in the past that there is nervous excitement to have properties rented by owners.  Sometimes the fear of falling behind in mortgage payments becomes a serious issue and the screening process of prospective tenants falters.  When you hire a professional New York City property management company they will do the work for you.  Property management companies should take time in the screening of potential tenants.  They should also have processes in check in order to do screening of prospective tenants that complies with the laws of the State of New York.  A competent screening would include and criminal, landlord & tenant history as well as the credit check in order to see whether they are suitable for your property.  Although these objective tests may give you an idea of the person, it is also advisable to have an interview with the prospective renter to see if they are a good fit as well.  There is more to a person than just income on a sheet of paper and getting references as well as an interview should provide the property management company enough information to decide whether the renter is suitable or not.

Rent collection

At the end of the day, the collection of the rent is the end goal for your rental property.  The process can become easier with an experienced NYC property management company.  Giving the ability to make online payments and giving them options to pay the rent are important considerations that a property management company should look into. When the tenant moves in there should be  a clear understanding of how and when payment should be sent.  Avoiding confusion in the beginning of the relationship save you plenty of time and will improve your overall relationship with your tenant during their term.

With the expectation of being available 24/7 and having your own life to live managing a New York City rental property can be demanding.  Partnering with an experienced New York City property management company can make your life much easier.  Your ability to exceed your revenue goals increases with professional management by your side.

If you are in need of assistance of managing your property Blue Harbour Property Management is a great choice.  We are a full-service NYC property management company servicing the areas of Queens, Brooklyn, Manhattan and the Bronx.

http://www.blueharbourpropertymanagement.com/looking-nyc-property-management-company/

Queens Housing Sales Outpaces Brooklyn and Manhattan; Rents Remain Cool

A new report published by StreetEasy indicates that Queens housing sales remained competitive in comparison to Manhattan and Brooklyn.  According to the August 2017 Market Reports, sales in Queens were completed 6 days faster year over year.  Homes in the borough spent a median of 53 days in the market.  In 2016 houses spent a median of 59 days.  The report also indicates that the median resale price in Queens increased by 7.4 percent to $503,864. The fastest pace was in the Rockaways which increased at the fastest pace at 15.6 percent.

The report indicates that Manhattan and Brooklyn properties did not fare as well as Queens.  Properties in these boroughs stayed on the market significantly longer than the same period last year.   Manhattan properties spent 14 days more in the market to 84 days.  Brooklyn properties also remained on the market but for less time at 68 days or 8 days more than in 2016.  According to Senior Economist Grant Long at StreetEasy :

“The glut of luxury housing in Manhattan and Brooklyn has been a key driver of the slower-moving markets in those areas.  More affordable housing options are still limited and as a result, New Yorkers are increasingly turning to Queens for the best deals, causing home prices and competition there to spike.”

Of significance NYC property management companies are rents fluctuations in the boroughs.  In Manhattan, median asking rents rose 0.6 percent from August 2016 to $2,992.  Fastest rent growths were in Upper Manhattan.  As for Brooklyn asking rents rose 1.1 percent to $2,459.  Rents are up 1.4 percent year over year however according to StreetEasy "Despite Queens rents rising more than those in Manhattan and Brooklyn, its pace of price growth was the slowest on record: up 1.4 percent year-over-year to $1,998."

If you are purchasing a property and are in need of a NYC property management company then contact Blue Harbour Property Management.  We are a full-service NYC residential property management company servicing Queens, Brooklyn, Manhattan and the Bronx.

http://www.blueharbourpropertymanagement.com/queens-housing-sales-outpaces-brooklyn-manhattan-rents-remain-cool/

What NYC Property Management Companies Should Do To Avoid The Claim of Security Deposits

As a NYC property management company or landlord sometimes claiming a tenant's security deposit is more work than actually releasing it.  Many instances lead to lawsuits where the tenants feel that they are entitled for the release of the initial deposit.  This can lead to wasted time by yourself or employees and monies lost for retaining a lawyer. So how do you avoid this situation?  Communication has always been the major part of getting out of this jam.  By communicating with your tenants during their tenancy it can save you time and money lost and hurt feelings at the end of the day.  Below is some other ways to avoid claiming the security deposit at the end of the lease term.

The lease should be explicit on the responsibilities of all parties

Besides speaking to your tenant about expectations, the lease should clearly delineate the reponsibilites of all parties to the lease.  I normally set up a section and write in bold what the expectations are. Doing this will avoid having problems in the future where there might be a disagreement of whether a certain function was the property management company or tenant's resposibility.  Nipping issues in the bud can save your money and time.

Always provide a move-in inspection with your new tenant

I have learned as a NYC property manager that move-in inspections are important.  What started as just filling out a check-list has now turned into a more thorough inspection.  With smartphones having the ability to capture photos and videos, I now can take pictures of the property as well as have in-depth videos if need be.  By capturing the condition of the premises, it is easier proof should you need to bring in evidence in Court.  It also can be a deterrance in legal action if you can show the pictures to your tenant and explain when the photos were taken.  Sometimes their memory is foggy as well and it can definitely refresh their recollection.

 Bi-annual inspections of the units

As a property management company in NYC it can be a chore to make sure that all your managed units are in a great condition.  It takes a dedicated staff of professionals to implement policies and enforce them to make sure that you are doing what is necessary to ensure that all of your units are in a favorable light.  It is important to express to your tenants that you will do inspections of the premises at least every six months.  By doing so, it will allow you to see if your tenants are taking care of the premises.  It will also allow you to troubleshoot any issues that might arise in the future and remediate them.

Walk-through at the end of the lease term

It is your responsibility to do a walk-through of the premises at the end of the lease term.  You should do the inspection using the same level of detail that you did during the initial inspection with your tenants.  This should include both pictures and videos if necessary.  Many times in the past we have used these pictures in Court in the event there is a legal case with reference to the security deposit.  Having the tenants sign off on the report is also important as they will acknowledge the condition of the premises at the time of giving back possession.
Taking these steps will help you avoid many painful days in the future.  By keeping detailed records it will only assist you in retaining the security deposit if necessary.  However it is always best that your tenant's expectations are clear to avoid this.

If you are in need of a NYC property management company than Blue Harbour Property Management is for you.  We are an experienced full-service NYC building management company managing properties in Manhattan, Queens, Brooklyn and the Bronx.  Call us at 718-843-1185 for a free consultation.

http://www.blueharbourpropertymanagement.com/nyc-property-management-companies-avoid-claim-security-deposits/

Home Prices Breaks Highs of 2016 As Demand Outstrips Supply

Home prices nationwide has increased by 6.2% from the second quarter of 2016 as the price of $255,600 hits peak levels.  The new report by the National Association of Realtors (NAR) indicates that as a result of low supply of housing, prices has remained strong and grown in 87 percent of measured markets.  According to the report, sale prices have increased in 154 out of 178 metropolitan areas from the same quarter last year.

Total existing-home sales which includes single family and condos, slipped 0.9 percent to a seasonally adjusted annual rate of 5.57 million in the second quarter from 5.62 million in the first quarter.  The sales figures are still 1.6 percent higher than the 5.48 million pace during the second quarter of 2016. Both of the figures aboves indicates that there is a need for newly constructed projects.  NAR chief economist stated "The glaring need for more new home construction is creating an affordability crisis that needs to be addressed by policy officials and local governments. An increasing share of would-be buyers are being priced out of the market and are unable to experience the wealth building benefits of homeownership".

Of significance in the New York City region and the Northeast, total existing-home sales in the Northeast rose 1.3 percent in the second quarter. The median existing single-family home price in the Northeast was $282,300 in the second quarter, up 3.2 percent from a year ago.  Metro area condominium and cooperative prices, showed the national median existing-condo price was $239,500 in the second quarter, up 5.4 percent from the second quarter of 2016 ($227,200). Eighty-seven percent of metro areas showed gains in their median condo price from a year ago.  A recent report by the Real Deal Magazine indicates that up to forty percent (40%) increases in Flushing, Queens alone.  This will affect NYC property management companies as rents are affected by existing home sales prices and mortgages.

http://www.blueharbourpropertymanagement.com/home-prices-breaks-highs-2016-demand-outstrips-supply/

Cash Sales for Homes Heat Up as Inventory Remains Low

The housing market remains healthy as a new report by Freddie Mac indicates that the lack of inventory of houses is at a two month supply in larger cities.  Freddie Mac's outlook for August also indicates that because of the highly competitive market it is causing many more people to offer cash sales reducing mortgage originations.

Cash sales made up about eighteen percent (18%) of total home sales for June.  This is an increase of the historical average of ten percent (10%).  The result is there is a loss in mortgage originations of $172 billion because cash sales are above historic norms.   "During the financial crisis, the combination of depressed house prices and tighter underwriting drove the share of cash sales as high as thirty-five percent (35%)" according to Freddie Mac.
The report also states:

"Usually, not many people like to invest a lot of cash into real estate, which is illiquid and has high transaction costs. However, in the current, highly-competitive housing market, a cash offer is an effective way to gain an advantage over other bidders. In a cash sale, the seller doesn’t have to worry about the buyer’s ability to obtain a mortgage or the chances that an appraisal will come in below the agreed sales price. Cash offers also are more common in purchases of investment property and second homes, where mortgage qualification requirements are stricter and mortgage terms are less attractive."

 Freddie Mac also believes that home sales will reach 6.2 million units this year.  This would be a three percent (3%) increase year over year. The market is primarily being stifled from growth potential by the supply in the housing market.

If you are purchasing a property and are in need of a NYC property management company then contact Blue Harbour Property Management.  We are a full service NYC residential property management firm servicing Queens, Brooklyn, Manhattan and the Bronx.

 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/cash-sales-homes-heat-inventory-remains-low/

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

Using NYC Property Management Companies to Stay in Control if you have to Relocate

If has become commonplace for us here at Blue Harbour Property Management to take on the operations of properties for owners who live out of either the state or the country.  Whether it is because you were required to move for personal family reasons or your job requires you to relocate, you are in need of a provider that you can have faith in.  You are in need of a company that can ensure your investment returns and handle your possession in a professional manner.  New York City is a tough market.  One mistake with a tenant or valuations can have you in a loss for months if not years.

Here at Blue Harbour Property Management we have had plenty of consultations with owners that believe they can manage their property while abroad.  They miscalculate the complexities of dealing with issues over the phone or via the internet when they have been accustomed to being present in the event that an emergency arises. Sometime it may take hours if not days to coordinate with the proper plumber or contractor to fix the problems arising at a certain property.  Having a professional close by to troubleshoot issues will benefit you not only with respect to repairs, but in rent collection, compliance with housing laws, tenant vacancies and day to day general maintenance.

The only stream of income normally for apartment building owners is the rental revenue.  There is a plethora of roles you must fill in order to receive the rent.  Your duties would include being the chief marketer, maintaining and repairing the property, purchaser of supplies and appliances, landlord/tenant specialist for legal proceedings and collections manager just to name a few of the roles you play.  With all these roles having to be filled and you being away, wouldn't you be better off using a professional NYC property management company to work on your behalf?   An experienced property management company can fulfill all of the roles and also serve as a troubleshooter to assist in unforeseen circumstances.  Also, having someone available 24/7 365 days a week can alleviate a huge burden taken off of your shoulders.

Knowing someone is available at all times to speak to you about your real estate investment is a huge benefit.  You will be able to discern the present status of your holdings but also project with some certainty the income potential in future years.  With detailed financial reporting and complete transparency you will be in a much better position in attempting to manage your portfolio being away.  Blue Harbour Property Management offers specialized property management services to maximize your revenue potential through experience and excellence in the field of property management.  No matter where you are in the world, we will be able to get the results that are expected with New York City properties.

http://www.blueharbourpropertymanagement.com/using-nyc-property-management-companies-stay-control-property-town/

Visit us at www.blueharbourpropertymanagement.com