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/

September 2017 Existing Home Sales Unexpectedly Rebounds

The National Association of Realtors (NAR) is reporting that total existing-home sales which are completed transactions that include single-family homes, townhomes, condominiums and co-ops, rose 0.7 percent to a seasonally adjusted annual rate of 5.39 million in September from 5.35 million in August. The report which you can read here, comes amid three consecutive months of monthly existing home declines which were affected by hurricanes hitting the Southern United States and shortages in housing.

Lawrence Yun, chief economist for the NAR states “sales activity likely would have been somewhat stronger if not for the fact that parts of Texas and South Florida – hit by Hurricanes Harvey and Irma – saw temporary, but notable declines.”  Texas and Florida make up 18 percent of all existing home sales nationwide.

Housing inventory rose 1.6 percent to 1.90 million existing homes available for sale.  This is 6.4 percent lower than a year ago (2.03 million) and has fallen year-over-year for 28 consecutive months. It should be also be noted that unsold inventory at a meager 4.2-month supply at the current sales pace, which is down from 4.5 months a year ago.  The shortage of existing homes affected the median sales prices of homes.  The median existing-home price in September was $245,100 nationwide which is an increase of 4.2 percent from September 2016 ($235,200).

Existing condominium and co-op sales decreased 1.6 percentage points to an adjusted figure of 600,000 units annually, 1.6 percent below figures of a year ago. The median existing condo price in September was $231,300 — up 4.1 percentage points from 2016.
Here in the Northeast, September existing-sales are at a projected annual rate of 720,000.  This amount is the same as August and is below last year's figures by 1.4 percent.  The median price of an existing home in the Northeast was $274,100.  That amount is 4.8 percent above September 2016. 

New York State Association of Realtors has indicated that there were 98,176 closed sales through the first nine months of 2017, a 1.7-percent increase from 2016 and 38,445 closed sales in the 2017 third quarter which is a decrease of 3.1 percent from the 2016 third quarter total of 39,693.   Statewide median sales price through the first three quarters of the year was $250,000, a 5.5-percent increase from the same period in 2016.

 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/september-existing-home-sales-unexpectedly-rebounds/

Pending Home Sales Breaks Trend and Increases in June 2017

The National Association of Realtors (NAR) is reporting that pending home sales increased in June 2017 which is bucks a three month trend of decreased contract activity from the same time a year ago.  NAR used a pending home sales index which rose 1.5 percent in June to 110.2.  The index has increased 0.5 percent over the past 12 months and for the first time since March.  All major regions saw an increase of activity except the Midwest according to the report.

Lawrence Yun, chief economist for the NAR believes that low supply is hampering an increase in activity although the nation has 2.2 million net new jobs.  He states "Low supply is an ongoing issue holding back activity. Housing inventory declined last month and is a staggering 7.1 percent lower than a year ago.  Market conditions in many areas continue to be fast paced, with few properties to choose from, which is forcing buyers to act almost immediately on an available home that fits their criteria."  There were 1.96 million homes for sale in June, a 7.1 percent decline from a year ago.

Of particular interest here in the Northeast, the pending home sales index indicates a 0.7% increase in activity from the previous month and 2.9% increase year to year.  The NAR considers Connecticut, Maine, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, Vermont as comprising the Northeast.

Yun expects existing-home sales to finish around 5.56 million, which is an increase of 2.6 percent from 2016 (5.45 million). The national median existing-home price this year is expected to increase around 5 percent. In 2016, existing sales increased 3.8 percent and prices rose 5.1 percent according the the report.  The median sales price is currently at $263,800 an increase of 6.5% year over year.

The Pending Home Sales Index is an idex devised by the National Association of Realtors for the housing sector, based on pending sales of existing homes. A sale is listed as pending when the contract has been signed but the transaction has not closed.  The index is based on a national sample, typically representing about 20 percent of transactions for existing-home sales.

 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/pending-home-sales-breaks-trend-increases-june/

Queens Property Management Companies Staying On Top of Maintenance Requests

Most owners in Queens, New York believe that if they purchase a new property or have renovated it within the last few years that there wouldn't be a need for maintenance of their property.  While this may be true and there are many examples of tenants being in the property for over a year without a huge expense associated with fixing issues, there will come a day eventually that there will be a need.  Unfortunately tenants do not handle properties like owners and therefore appliances break rather quickly, faucets break and floors might need to be fixed.  When owners decide to use a Queens property management company the strategy on handling maintenance can be differ.  Some property management companies in Queens use a pro-active role that involves preventative measures and others just do the minimum in fixing what needs to be fixed and move on.  Both have their advantages and deciding to use preventative measures will be costly up-front but will save you at the end of the day.

When it comes to maintenance requests, we always advise our clients to prepare for the worse.  Our staff here at Blue Harbour Property Management has over 20 years of experience dealing with home repairs and we put our best foot forward in order to handle it in a timely, professional and cost-efficient manner. We have dual roles.  Making the tenants satisfied that their requests have been addressed and also making sure that the repairs are not overly costly to our landlords.  As such, we have come up with some tips on keeping overall costs down while making sure that your tenants are happy with their issues:

1. Landlords should make sure that they put aside a cash reserve in the event that repairs are necessary.  Here at Blue Harbour Property Management, we advise our landlords to set aside at least $1,500.00 for expenses.   Although this might be considered a large sum, you must account for the unexpected catastrophic repair that can set aside an owner for months.  By being prepared, it will save you from it affecting your personal life if it ever happens.
2. If your Queens property that you expect to rent is a tad older, we say more than 12 years old, you can expect to pay a little more for its upkeep.  What you should do is keep a running list of what may need upgraded or repaired.  By doing this, many things will not come as such a surprise when you have to spend on the material and labor.  Examples such as taking notes on if your gutters need to be replaced, windows need to be changed etc.
3. Respond to repair requests in a timely fashion.  You should make sure that you are always in compliance with New York City Housing Codes and regulations.  The failure to do so may result in fines or emergency repair costs that the City charges.  Also, by responding to repairs requests fairly reasonably, you will be strenghthening your relationship with your tenants.

 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/queens-property-management-companies-staying-top-maintenance-requests/

Consumer Bill of Rights revealed in New York for Homeowners in Foreclosure

The State of New York has unveiled a consumer bill of rights for homeowner that are in any stage of the foreclosure process.  The statement which can be read in full here, informs the homeowners as a consumer that they have rights during the process and advises them that they have a right to seek legal counsel if they are facing a foreclosure in New York.  The bill of rights also tells borrowers that they have the right to stay in their home during the foreclosure process.  Many people have been under the impression that they must leave their houses once they are not able to pay their mortgage.  The language of the bill states..“If you abandon your home, the plaintiff (bank or mortgage servicer) may be able to foreclose on your property through an expedited process in court.  To prevent this outcome, stay in your home and carefully review and respond to documents you receive from the plaintiff or the court in your foreclosure case. A failure to respond or appear in court when required to do so could make it easier for the plaintiff to show that your property is vacant and abandoned, which could put you at risk of an expedited foreclosure.”  The Bill of Rights thereafter goes through the steps and legal process that must take place before the home is foreclosed upon.

The consumer bill of rights is part of legislation originally introduced by New York Attorney General Eric Schneiderman in 2014 and 2015.  The purpose of the laws were to reduce the number of zombie homes by informing homeowners of their right to stay in their home until a court orders them to leave.   Furthermore, the legislation is intended to combat the blight of vacant and abandoned properties by expediting the rehabilitation, repair and improvement of these properties.

Additionally, the new laws will also impose a duty on banks and servicers to maintain zombie homes in the pre-foreclosure timeframe and they would be required to create an electronic registry of abandoned properties  The banks and servicers would also have to expedite foreclosure for vacant and abandoned properties to get them back on the market.  The legislature would require the foreclosing party takes action to ensure new parties enter the property within 180 days.

The foreclosure time from the first missed payment to the exiting of the property in New York State is 1,070 days.  New York has the second highest amount of abandoned foreclosures with 3,352 according to RealtyTrac.  The new legislation hopes to address these issues head on.

Blue Harbour Property Management has managed many New York City properties where the homeowners has purchased directly from the bank.  If you are looking for property management in NYC of your previous bank owned property contact Blue Harbour Property Management.  We can give you a comprehensive service package that will assist you to maximize your rental revenues.

http://www.blueharbourpropertymanagement.com/consumer-bill-rights-revealed-new-york-homeowners-foreclosure/

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