Market Survey Shows That New York City Construction Costs Remain The Highest Worldwide

Turner & Townsend, a multi-national company famous for their project management and program management consultancy work released their annual International Construction Market Survey.  According to the company,  the survey collects information from 46 international markets to determine to global state and direction of the market.  The survey indicates that New York City leads the world in construction costs for the second year in a row in the Turner & Townsend survey.
The five most expensive locations are New York City, San Francisco, Hong Kong, Zurich, and London. The survey looked at 6 different types of buildings in order to assess total building costs. 

The buildings that were taken into consideration were the following:

High-rise apartments
Office block prestige (Commercial office space)
Large warehouse distribution centers
General hospitals
Primary and secondary schools
Shopping centers including malls

Overall construction costs in New York City decreased 12 percent in 2017 and expenditures were measured at $45.3 billion.  This is the second highest on record after 2016. They are forecasting expenditures to hit $52.5 billion in 2018 citing recent tax cuts as an incentive for driving businesses back to the United State and specifically New York City.

Future developments will revolve around government fund and non-residential construction.  "Non-residential and government-funded construction will drive much of the growth in 2018 and 2019. Government expenditure is expected to reach USD16bn, with half spent in New York City.  New York is currently experiencing massive redevelopment.  The biggest project is the USD20bn Hudson Yards, which includes 18 million sq ft of commercial and residential space. The Long Island Express, a USD10bn transport project, includes a station under Grand Central. Meanwhile, La Guardia airport is adding a new USD8bn terminal. Employment in construction is at record levels with skilled trades in short supply."  The report indicates that the overall forecast looks bright driven by positive economic growth.  Construction costs will remain high as there is a shortage of skilled labor in NYC. 
The outlook nationwide looks rosy as well as construction costs hit an all-time high of $1.3 trillion last year.  Skills shortage and material costs continue to plague the industry.
On the salary side, New York City was second behind Zurich Switzerland where the average wage was $98.30 per hour in comparison to Zurich's $104 per hour.  The report did indicate that only high union wages were taken into consideration and did not include private sector rates.

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/market-survey-shows-that-new-york-city-construction-costs-remain-the-highest-worldwide/

Existing Home Sales For February 2018 Increases Despite A Significant Drop in the Northeast

Existing home sales grew three percent (3%) in February changing course from the previous two months which were hampered by low inventory levels and overall increases in sales prices.  The report produced by the National Association of Realtors (NAR) saw the Northeast region (-12.3%) having a huge decrease in existing home sales and that was followed by the Midwest (-2.4%).  Strong sales in the South (+6.6%) and West (11.4%) led to the growth for February altogether.   Cold and severe weather as we have seen in New York City this winter has affected existing home sales for the period for the Northeast region.

Total existing-home sales which are completed transactions that include single-family homes, townhomes, condominiums and co-ops increased to a seasonally adjusted annual rate of 5.54 million in February which is an increase from 5.38 million in January. With the numbers for this month, overall sales are ahead of last year's pace by 1.1%.  Median existing-home price increased 5.9% from the same period last year to $241,700.  It is the 72^nd straight month of year-over-year gains.  Surprisingly, total inventory rose 4.6% for February to 1.59 million existing homes.  The amount is a positive sign however is still 8.1% below the amount for the same time in February 2017 and is the 33rd consecutive month we have seen year over year inventory being lower.  Unsold inventory is at 3.4 month supply which is significantly low.  A healthy supply would be 6 months.

Chief economist for the NAR Lawrence Yun said the following:

“A big jump in existing sales in the South and West last month helped the housing market recover from a two-month sales slump.  The very healthy U.S. economy and labor market are creating a sizeable interest in buying a home in early 2018. However, even as seasonal inventory gains helped boost sales last month, home prices – especially in the West – shot up considerably. Affordability continues to be a pressing issue because new and existing housing supply is still severely subpar.  The unseasonably cold weather to start the year muted pending sales in the Northeast and Midwest in January and ultimately led to their sales retreat last month. Looking ahead, several markets in the Northeast will likely see even more temporary disruptions from the large winter storms that have occurred in March.”

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-for-february-2018-increases-despite-a-significant-drop-in-the-northeast/

NY Has Most Apartments Under Construction Nationwide; NYC Remains Alluring to Renters As Economy Grows

GlobeSt.com is reporting that New York has more than 60,000 apartment units under construction and that’s the most out of any city that CoStar Group has been tracking nationwide.  CoStar is a provider of information, analytics and marketing services to the commercial real estate industry in the United States founded in 1987.  In an in-depth interview with CoStar Group analyst Lauren Baker many interesting tidbits of the state of New York City apartment renting came into light.  CoStar reports that the since the economy is growing, we should see a healthy rental market for years to come.  Here is some highlights of the interview:

“People want to live where they are working, so office construction drives residential properties, and all of these companies want to be in Manhattan,” says Baker. “Highly educated, younger people, 24 to 35-year-olds with a bachelor’s degree are moving into Manhattan.” In contrast, the outer areas in the state of New York have been decreasing in population.

The financial sector accounts for more that one-quarter of total wages paid and there is expansions by private equity investors, M&A and hedge funds.  The growth in the financial sector has been higher that the national average however they have been seeing some of the bigger banks still laying off employees and reducing bonuses.  However they do believe that with the profits of the six largest US banks substantially growing with deregulation assisting there may be a greater jump in the sector.  

Media and technology will be the stimulus of the city’s future economic growth according to CoStars NYC 2017 multifamily market report as it as been growing for the last 3 decades. Eighty six percent of tech job are in Manhattan but firms are beginning to set up in Brooklyn and Queens as well.  As more people are moving in these industries we are seeing more units being built in places like Long Island City located in Queens and Brooklyn.  More than 8,000 housing units are under construction in Long Island City which is the most in any submarket in the US according to Baker.  She also says “There’s a ton of multifamily units being constructed currently, especially in the outer boroughs.”

The outer boroughs offering lower prices, larger apartment sizes and more amenities.
At the end of the day, NYC will remain an attractive area for renters to be moving to.  Baker states “New York is New York. It’s not going anywhere. People want to live here. It’s proven time over time. It doesn’t matter how many units are built. People want to live here at the end of the day.”

 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/ny-apartments-construction-nationwide-nyc-remains-alluring-renters-economy-grows/

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

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

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

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

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

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

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

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

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/

Tenants Will Soon Be Able To Make Rental Payments With Bitcoin

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

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

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

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

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

Preparing Your NYC Rental Property For the Fall Season

The weather is finally changing in New York City.  We have gone from the lazy days of Summer with sweltering heat to gradual changes in temperature that will eventually result in freezing temperature entering the holiday season.  With these changes also comes additional responsibilities for the New York City property manager.  We believe that there are several inspections that can be performed that will potentially save you from headaches and money in the future.

The beautiful changes in the colors of the leaves also means that a bountiful amount of them will begin falling onto your property and around it. The leaves can sometime clog gutters which can result in damage to the roof of the property, excess flooding and water damage in general.  Doing an inspection of the gutters and roof is an important objective for the property management company.  The beginning of autumn is the start of hurricane season and we have seen from Hurricane Sandy that the New York City metropolitan area can be affected by it.  What the inspector should be looking for are leaks and destroyed and/or damaged shingles on the roof.  The inspector should also be looking for gutters that are in disrepair and potential clogging.

The second issue that needs to be addressed is the heating of the premises.  As we know, there is a dramatic change in temperatures here in New York City.  One week we will see beautiful 80-degree temperatures and within 7 days have seen changes of temps of up to 40 degrees.

With these changes in the weather, property management companies should do an annual heating checkup.  This includes inspecting the boiler, water heater as well as the furnace.  By doing this, you can troubleshoot any issues that may arise when the cold weather hits.  Troubleshooting issues can potentially save you money in energy costs by remediating anything that is in disrepair. It is also important to inspect the chimney to see if there are any issues there.  Annual cleanings are sometimes necessary and it will give you an opportunity of clearing any debris that has accumulated during the year.

Finally, your inspection should be focused on the exterior of the premises.  Falling trees and limbs can create hazards with heavy rains and increased storm winds.  You should determine what portions of the tree is healthy for these conditions.  If the entire tree needs to be taken down then it should be considered as well.  Hiring a professional landscaper that has expertise in tree services can assist you if you are not familiar with what would constitute unhealthy tree conditions.  They will be able to inspect, trim or remove if they see what can potentially be a costly condition for your property and tenants.

Taking preventative measures early in the fall season can save yourself and landlords time and money in the long run.  If you are in need of an experienced NYC property management company for your rental property that can assist your preparing for the Fall Season than Blue Harbour Property Management might be for you.  We are an experienced property management company servicing Queens, Brooklyn, Manhattan and the Bronx.

http://www.blueharbourpropertymanagement.com/preparing-nyc-rental-property-fall-season/

Avoidable Mistakes for the First Time NYC Real Estate Investor

When investing in real estate in New York City, it is common to think that you will turn a serious profit with a quick flip.  Having that mentality has worked in the past but now more than ever it is important to have a long-term strategy in investing in real estate in New York City.  The gains that you will receive normally come from solid real estate investment strategies which include increasing the value of your holdings by hiring a reputable New York City property manager.  Hiring the right property management company will only enhance your ability in building equity and increasing passive income. 

Quick returns as we have mentioned are rare.  Many people go and come out of the real estate investment industry quickly because they never received the returns they were expecting or outright lost money.  So what are some common mistakes that we see from first time real estate investors?

Purchasing a property you wouldn't think is suitable for yourself

If you cannot imagine yourself living in the house you are considering purchasing then you shouldn't.  The question I always ask clients is "What if something catastrophic happens...would you live there?" If the answer to the question is no then the property isn't the right fit for you.  The goal on your purchase is to find something that tenants would be receptive to.  If you are not that interested, than this would be a clear sign that you wouldn't be as energetic into the investment.   

Not having "rainy day" money for emergencies

There are many times that I have seen investors go into a transaction with zero reserves.  This would put a strangle on your personally if you do this.  You should account for basic monthly expenses as well as have a reserve on hand in the event of a unforeseen repair or expense.  You should always take into account utilities expenses and general maintenance fees such as the property management and landscaping.  You should also have a cash reserve fund in place in the event that a tenant decides not to pay rent for instance or the boiler needs an emergency repair.  The failure to do this can result in potential withholding of rent.  Also you will also have to tap into your personal money to fix such as a retirement account or credit card which will affect you and your family for potentially years. 

Taking it personal and forgetting the bottom line

At the end of the day, owning a rental property in New York City is nothing more than business.  You should treat it that way and not let your emotions run your decisions.  Sometime it can seem personal when you have tenants and they want to tell you their life stories for their failure to pay the rent.  You have to be tough and always treat the managing of your property like your own business.  A top-notch NYC property management company can assist you in staying on course with your objectives.  They will also lighten your load and allow you to concentrate on other pressing issues that you may or may not have.  This can result in shedding the burdens that you may have and allow you to purchase additional rental properties.  

Addressing these common mistakes will help you along your way in being a successful real estate investor.  Sure there are other variables at place in maximizing your returns but by focusing on the tips above will help you in achieving your long term goals.

If you are in need of property management in New York City for your real estate purchase, Blue Harbour Property Management can assist you.  Contact us at 718-843-1185 or email at info@blueharbourpropertymanagement.com.

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/avoidable-mistakes-first-time-nyc-real-estate-investor/

City Council Enacts New Law To Prevent Gas Leak Injuries

The City Council of New York City passed Local Law No. 153 in November 2016 and it was signed by the Mayor in December.  The law is finally in effect and it will effect landlords and NYC property management companies going forward.  Specifically the law says as follows:

"The owner of a dwelling shall deliver or cause to be delivered to each tenant and
prospective tenant of such dwelling, along with the lease or lease renewal form for such tenant or prospective tenant, and shall post and maintain in a common area of the building containing such dwelling, a notice, in a form developed or approved by the department, regarding the procedures that should be followed when a gas leak is suspected. Such notice may be combined with any existing required notices and shall instruct tenants to first call 911 and then call the relevant gas service provider, whose name and emergency phone number shall be set forth on such notice, before contacting such owner or an agent thereof when a gas leak is suspected."

 The law is a direct response to the deadly gas explosion that took place in the East Village in 2015.  The explosion located at 121 Second Avenue occurred as a result of an illegal tap into a gas main.  The buildings adjacent to the explosion was completely destroyed between Second Avenue and St. Mark's Place.  Two people died and nineteen people were injured as well.  Eventually, the District Attorney's Office for Manhattan announced the indictment and arrest of five people in connection with the explosion.  Parties involved were the building owner, her son, the licensed plumber who subcontracted to an unlicensed plumber, the unlicensed plumber and an additional contractor.  They were charged with several charges, the most agregious being manslaughter and negligent homicide.
In order to comply with the new law, managing agents should post a sign in the hallway of the building. A sample of the sign you can read here.

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-enacts-new-law-to-prevent-gas-leak-injuries/

Home Staging Report Released By NAR Shows It Leads To Decreased Time On Market

Home staging is the art of preparing a residence for sale in the real estate marketplace.  In the past, agents and sellers were perplexed at the idea of promoting their homes and what needed to be performed in order to put the property in the most interesting light.  As time has gone by, owners and agents are not either becoming more aware of what is necessary in the area of home staging or are using professionals that commit all their time to the science.  In New York City, many realtors and property management companies have used the services of professional home stagers to promote their units and will continue to utilize their resources.

The National Association of Realtors recently released the 2017 Profile of Home Staging.  In the profile, buyers and sellers agents were asked in their view, how home staging impacts the overall real estate transaction.

According to the July report, about two-thirds of sellers' agents said that staging a home decreases the amount of time the home spends on the market, with 39 percent saying that it greatly decreases the time and 23 percent saying it slightly decreases the time. Sixteen percent of sellers' agents believe that staging either greatly or slightly increases a home's time on the market, while 8 percent believe that it has no impact.  On the buyers side, seventy-seven percent of buyers' agents said that staging a home makes it easier for buyers to visualize the property as their future home, and 40 percent are more willing to walk through a staged home they first saw online.  Forty-nine percent of buyers' agents said that staging has an effect on most buyers. Another 48 percent stated that staging has an effect on some buyers' opinion of a home, but not always, and only 4 percent said that it has no impact on buyers.

With respect with how staging affects the value of the property, 31 percent of buyers agents stated that staging a home increases its dollar value by 1 to 5 percent. Thirteen percent said that staging increases the dollar value 6 to 10 percent, while 25 percent stated it has no impact on dollar value.  Sellers agents were more positive in that 29 percent reported an increase of one to five percent in dollar value offered by buyers, 21 percent reporting an increase of 8 to 10 percent, and 5 percent reported an increase of 11 to 15 percent.

Realtors then recommended improvements that can affect their showing.  Ninety-three percent recommend decluttering the home, 89 percent recommend an entire home cleaning, and 81 percent recommend carpet cleaning.  Landscaping and paint touch-ups are also recommended to give properties a great first impression.

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-staging-report-released-nar-shows-leads-decreased-time-market/

Rent Increase Approved on Regulated Apartments in New York City

On a decision that will affect up to one million rent regulated apartments in New York City as well the the property management companies delivering services, the Rent Guideline Boards voted to increase rents for the first time in three years.  On a 7-2 vote, the 9 member panel decided to increase rents  up to 1.25 percent for one-year leases, and 2 percent for two-year leases. The new regulation by the Board will affect leases commencing October 1, 2017 and terminating September 30, 2018.  New York City rent regulated apartment units are in buildings that were built before 1974 with six or more units, and also constructed or renovated since then with special tax benefits.

The Rent Guidelines Board had decided not to increase rents for the past two years and were under increased pressure by landlord advocacy groups who complained of higher operating costs.  The Board took it into account when calculating the said increase.  According to the New York Times, the Board considered a 6.2 percent increase in the price index for operating costs for 2016 and forecast a 4.4 percent increase next year when determining the increase. Board members also considered that many tenants had stagnant incomes as the costs of living soared.

The Rent Stabilization Association (RSA), which is the largest trade association in New York City exclusively dedicated to protecting and serving the interests of the residential housing industry and representing over 25,000 landlords and agents proposed a higher increase.  They requested a 4 percent increase for one year leases and 6 percent for leases with two year terms.  Jack Freund, vice president of the RSA believes that the slight increase was politically motivated as he believes the Board panders to Mayor De Blasio's political agenda.

The Mayor's Office spokeswoman Melissa Grace stated:
“We will never go back to the days when the landlord lobby got big rent hikes regardless of what the data said. Taken together, the past four years have had the lowest guidelines in history — including the first two freezes ever — and a court ruling affirming the importance of tenant affordability in this equation.”

 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/rent-increase-approved-regulated-apartments-new-york-city/

CoreLogic Reports 6.6% Increase In Home Prices

CoreLogic,  the Irvine, California based corporation providing financial, property and consumer information, analytics and business intelligence reports that home prices increased from April at 1.2% and overall yearly price increase from May 2016 to May 2017 at 6.6%.  This is according to CoreLogic HPI which is a methodology using public records, servicing and securities real-estate databases and incorporates more than 40 years of repeat-sales transactions for analyzing home price trends.

According to CoreLogic HPI Forecast home prices will increase by 5.3 percent on a year-over-year basis from May 2017 to May 2018, and on a month-over-month basis home prices are expected to increase by 0.9 percent from May 2017 to June 2017.  HPI Forecast uses advanced variables and HPI to determine future figures.

Dr. Frank Nothaft, chief economist for CoreLogic states “The market remained robust with home sales and prices continuing to increase steadily in May.  While the market is consistently generating home price growth, sales activity is being hindered by a lack of inventory across many markets. This tight inventory is also impacting the rental market where overall single-family rent inflation was 3.1 percent on a year-over-year basis in May of this year compared with May of last year. Rents in the affordable single-family rental segment (defined as properties with rents less than 75 percent of the regional median rent) increased 4.7 percent over the same time, well above the pace of overall inflation.”

Frank Martell, president and CEO of CoreLogic says “For current homeowners, the strong run-up in prices has boosted home equity and, in some cases, spending. For renters and potential first-time homebuyers, it is not such a pretty picture. With price appreciation and rental inflation outstripping income growth, affordability is destined to become a bigger issue in most markets.”

Mr. Martell's statement is an issue that property management companies must address to compete in the environment.  Although New York City properties may begin to appreciate, potential tenants are still wary of the increase in rental pricing and are hesitant to enter into agreements.  Successful property management personnel should still perform due diligence to determine what the market bears and how to attract the best tenants for their available units.

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/corelogic-reports-6-6-increase-home-prices/

Existing Home Sales Rise in May 2017

The National Association of Realtors (NAR) is reporting an increase in existing home sales of 1.1% in May, which is a positive adjustment from April which saw a decrease in sales.  Total existing home sales is defined as completed transactions that include single-family homes, townhomes, condominiums and co-ops.  The annual rate of home sales increased to 5.62 million which is ahead of the seasonally adjusted rate from April at 5.56 million.
Lawrence Yun, NAR chief economist, says

"sales activity expanded in May as more buyers overcame the increasingly challenging market conditions prevalent in many areas. "The job market in most of the country is healthy and the recent downward trend in mortgage rates continues to keep buyer interest at a robust level," he said. "Those able to close on a home last month are probably feeling both happy and relieved. Listings in the affordable price range are scarce, homes are coming off the market at an extremely fast pace and the prevalence of multiple offers in some markets are pushing prices higher."

 Inventory rose 2.1% in May to 1.96 million homes.  This is lower than the same period last year where there were 2.14 million available homes, a decrease of 8%.  As a result of decreased inventory, the median home sales price increased nationwide to $252,800.  This may be affecting overall sales and deflating the market according to Yun.  He states that "home prices keep chugging along at a pace that is not sustainable in the long run.  Current demand levels indicate sales should be stronger, but it's clear some would-be buyers are having to delay or postpone their home search because low supply is leading to worsening affordability conditions".   House price gain may also be affected by the 16 year low unemployment rate.

Of significance in the Northeast the May figures saw an increase of 6.8 percent to an annual rate of 780,000, and are now 2.6 percent above a year ago. The median price in the Northeast was $281,300, which is 4.7 percent above May 2016.  Existing home sales for properties listed between $500,000-$750,000 increased 20.6% from the same period last year.  It increased 30.3% for properties listed between $750,000-$1,000,000 and 32.1% for properties listed above $1,000,000.  The New York City region would attribute significantly to this increase.

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-rise-in-may-2017/

What Manhattan Property Management Companies Should Know About Millennial Renters

It has been said that the millennial generation is one of renters.  There are plenty more in the generation that are looking to suspend home ownership in lieu of renting.  Manhattan property management companies have to adjust to this generation's notions of purchasing property and should ask the tough questions as to what exactly are Millennials looking for in a rental property?  According to a survey by J. Turner Research titled A New Lease On Millennials we may have some answers.
According to the survey, the main factors that affect a rental decision are location, quality of amenities and price point.  Survey takers also took into consideration commute times for work, proximity to public transportation value of the property and the condition of the underlying rental unit.
Amenities have become a prime consideration for renters.  We have seen many units staying vacant because the unit did not match when it comes to amenities-wise other units in the specified location with comparable price points.  Features such as including a washer and dryer and having access to outdoor patios have become important for renters.  For building managers in New York City, upgrading your pool or on-site gym should become on your to-do list if you are expecting to attract more millennial renters.

With millennial renters becoming a bigger percentage of the New York City rental market, property managers should start taking note of what the market is bearing and begin to feature additional features that younger renters are looking for.  While some things may not be possible at the property it is easy to upgrade existing "convenience" items.  Remember it is an investment and although it seems costly now, you can potentially retain a tenant that will be with you for many years to come.
It is estimated that there will be close to 80 million millennials moving out in the next few years.  With that knowledge it is important to start adapting to these renters attitudes towards renting and being developing a strategy to lure the highly valuable millennial renters for the future.

 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-property-management-companies-know-millennial-renters/

Maintaining Efficient Rent Collection Methods for NYC Property Management Companies

When you own New York City investment property whose main income is the rental revenues, your objective is maximizing the rent you collect, not only by the amount but the time frame of collecting it. The most convenient and hassle free occurrence is if all tenants paid their rent on time and it would clear in a flash.  The truth of the matter is that no matter how well you try, this rarely occurs the way you would like.  Although background screenings including the disclosure of  financial documents and reviewing landlord/tenant issues with the court may prevent the majority of bad tenants, sometimes tenants fall into unexpected financial situations which will affect your bottom line.  It also means that you will not be collecting your rent in a timely fashion.  This is why landlords should choose a property management company that will assist in maintaining regular flows of payments even in the worst of circumstances

Communicate with tenants your expectations on payment

There are two things that a successful property management company should do to ensure that rent collection is optimized.  The first is that Blue Harbour Property Management has had success starting with the careful screening of your potential tenants.  We use all of our resources to get a financial background of the prospective tenant.  We ask for financial documents as well as look at the court records to see if there have been any previous issues with the individuals with collecting rent and actions being brought against that person.
When there is vacancy whether it be in a single-family home or in a 100-unit apartment complex, some would try to cut corners and rent your property as quickly as possible and not be as diligent as you should be with your tenant choices. The staff at Blue Harbour Property Management as well as the realtors associated with us are extremely cautious and patient.  We do our research and provide the right information such as looking at the FICO credit score of the prospect and see whether their income is sufficient enough to be able to pay the rent regularly.
Once the tenant is decided on, we explain to them what our expectations are with respect to rent delivery and documents are provided to them at the lease signing on where and/or how rent can be submitted.

Online Payment Process

More and more we are seeing property management companies allowing tenants to pay through an online portal.  Blue Harbour Property Management allows the majority of our tenants to pay their rent via our website.  This is now becoming a convenient way for tenants to make payments without any delays.  When the rent is collected the system automatically deposits the money into the owner’s bank account for use. By having the process become an automated one instead of personal allows us to have a better relationship with our tenants.  It also allows our staff to conveniently know when payments are made and whether any collections actions should be brought against the tenants.  Time is of the essence with rent payments and we are ahead of the curve with respect to making sure prompt attention is given to receipt of rents and curing any issues with respect to non-payment.

Clear rent policies along with a secure technology platform through Blue Harbour Property Management will help your New York City rental property rent collecting run efficiently.

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/maintaining-efficient-rent-collection-methods-nyc-property-management-companies/

City Council Likely Will Change Heating Requirements for NYC Landlords

In a move that will definitely affect NYC property managers and landlords in the colder months of the year, the city council will vote tomorrow on proposed new legislation would require indoor temperatures be at least 62 degrees between 10 p.m. to 6 a.m. Presently the law calls for between the hours of 6:00 AM and 10:00 PM, if the outside temperature falls below 55 degrees, the inside temperature is required to be at least 68 degrees Fahrenheit.  Also, at nighttime between the hours of 10:00 PM and 6:00 AM, if the temperature outside falls below 40 degrees, the inside temperature is required to be at least 55 degrees Fahrenheit.
It is being reported by Crain's  that a committee passed the bill which was similar to a failed proposal sent to committee in 2015.  The means the measure is likely to be approved by the full council tomorrow.  There is no indication that there will be an increase in the fines for the non-compliance of the proposed law.  Presently the fines are as follows:

• $250-$500 dollars per day for each initial heat or hot water violation
• $500-$1,000 per day for each subsequent violation at the same building during the same and/or the next calendar year from the initial violation or, during the same and/or the next heat season

If the owner fails to pay the Court ordered civil penalties, HPD will enter a judgment against the owner and the property and seek to enforce that judgment.

Proponents of the new legislation indicates that it will enhance the well-being of  tenants, particularly. As noted in the report, "Manhattan Borough President Gale Brewer added that boosting the nighttime minimum will bring New York City in line with Boston and Chicago, cities that often endure frigid winters on par with the Big Apple. The proposed bill would also get rid of the requirement that landlords only need to heat buildings when the outside temperature falls below 40 degrees, meaning the nighttime minimum would apply throughout the October 1 through May 31 heating season."

Opponents of the bill include environmental groups which state that increasing temperature will increase carbon emissions.  Mayor de Blasio has pushed to reduced emissions by 80% over the next three decades.  Property management companies in New York City as well as landlords should be aware of the changes and adjust accordingly based on the additional resources to be used based on the changes.

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-likely-will-change-heat-requirements-landlords/

Real Estate Sales Pace is Highest in Ten Years

The National Association of Realtors (NAR) is reporting the strongest national sales growth in a decade for the first quarter of 2017.  They are also reporting that as a result of this sales growth, inventory levels are down causing significant growth in the sector.  The report indicates that the national median existing home price has increased 6.9% from the first quarter of 2016 to $232,100.
In metropolitan areas, single-family home prices last quarter increased in 85 percent of measured markets, with 152 out of 178 metropolitan statistical areas according to NAR. Only  Twenty-five areas (14 percent) recorded lower median prices from a year earlier.
NAR chief economist Lawrence Yun states:

             "continual supply shortages ignited faster price appreciation across the country in the first quarter. “Prospective buyers poured into the market to start the year, and while their increased presence led to a boost in sales, new listings failed to keep up and hovered around record lows all quarter,” he said. “Those able to successfully buy most likely had to outbid others – especially for those in the starter-home market – which in turn quickened price growth to the fastest quarterly pace in almost two years.”

Mr. Yun goes on to say:

"several metro areas with the healthiest job gains in recent years continue to see a large upswing in buyer demand but lack the commensurate ramp up in new home construction. This is why many of these areas – in particular several parts of the South and West – are seeing unhealthy price appreciation that far exceeds incomes.”

 Total existing-home sales, including single family and condos, climbed 1.4 percent to a seasonally adjusted annual rate of 5.62 million in the first quarter.  This is the highest level since 2007 at 5.66 million and is 5% highest than the same quarter in 2016.

Of significance in the Northeast existing-home sales in the area declined 2.2 percent in the first quarter.  This is still 4.2% higher than the same period in 2016.  The median existing single-family home price in the Northeast was $255,000 in the first quarter, up 2.2 percent from a year ago.
We expect considerable opportunities in New York City property management as home prices continue to appreciate.
http://www.blueharbourpropertymanagement.com/real-estate-sales-pace-highest-ten-years/

Foreclosure Activity Lowest Since Pre-Recession 2005 Level

Housing appears to be stabilizing nationwide however there is still need for improvement in the New York City metropolitan region.  ATTOM Data Solutions, a company which curates a multi-sourced housing database released a report today indicating that foreclosure filings are at the lowest levels since 2005.  Foreclosure filings consists of default notices, scheduled auctions and the actual repossession of the property by the banks.  It is being reported that there were 77,049 filings on U.S. properties in April. This is down 23% from a year ago at the same point and at the lowest level since November 2005.

"Foreclosure activity continued to search for a new post-recession floor in April thanks in large part to the above-par performance of mortgages originated in the past seven years," said Daren Blomquist, senior vice president at ATTOM Data Solutions. "Meanwhile we are seeing an elevated share of repeat foreclosures on homeowners who often fell into default several years ago but have not been able to avoid foreclosure despite the housing recovery."
Of particular interest in the Northeast is that in New Jersey, Connecticut and Massachusetts foreclosure filings actually increased by 1%, 29% and 3% respectively.

Also of note is that a new analysis of repeat foreclosure starts, shows them increasing in some areas and in particular in New York City. In NYC repeat foreclosures occurred at 54%. This was the highest level of the 5 metropolitan areas that were examined for the analysis.  The other cities included Los Angeles (39%), Miami-Dade County (32%), Maricopa County, Arizona (26%) and Essex County, New Jersey (20%). A repeat foreclosure start is defined as a foreclosure start filed on a property address-owner last name combination in 2016 with a previous foreclosure start on the same property address-owner combination in the last 10 years.

Nationwide, initiating foreclosures are at pre-recession levels.  A total of 34,085 U.S. properties started the foreclosure process in April, down 6 percent from March 2017 and down 22 percent from the same time a year ago.

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/foreclosure-activity-lowest-since-pre-recession-2005-level/

Maximizing Your Returns During Peak Rental Season in NYC

In the property management industry, we know that the period between April and September is the peak season for rentals in NYC.  This is the time when renters, home owners and first-time home shoppers decide to make the transition to their next home. It’s is estimated that between roughly 78% of all moves happen during this period with the highest number of moves in June, July and August.

In that same period of time, roughly 30% of individuals decided to forego renewing their lease and look to new housing.  With so many people moving during this period it become critical that property managers in NYC become aggressive in advocating on behalf of your landlords and look for the best tenants available. Property managers should focus on turnover during this peak season in order to get the best quality tenants and increase rents if the market allows in your neighborhood.

During the peak rental season the market is at its highest point with respect to prospects looking for a new place to call home. This means you can ask for a slightly higher rent amount than you would in the off season. In addition to setting a higher standard for tenants, you can also set the rent slightly higher and still have a plethora of prospects who are willing to pay a bit more for their ideal home. Even in New York City’s feverish market, we can push rents a little further during this peak period.

As a seasoned real estate practitioner, property manager or landlord in New York City, you want your property to come available for rent April through September. The best way to ensure that this happens is to negotiate with your tenants for the lease to end during the peak rental period.  It can be advantageous on your end to sign a longer lease or shorter depending on when you are signing in order to gain the peak season for renters.

At Blue Harbour Property Management, we have helped many landlords maximize their rental revenues by using techniques such as using the peak season for the signing of leases.  This has become more important as rents have vacillated in Brooklyn, Manhattan and Queens for the last 18 months.

If you need assistance with the management with your property in the NYC region or would like additional information on what services we provide you can contact us at anytime at 718-843-1185.  We are a leader of small and medium sized properties in the New York City region.

http://www.blueharbourpropertymanagement.com/maximizing-returns-peak-rental-season-nyc/

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