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

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

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

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

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

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

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

Queens Home Prices Rise The Most In New York City According To New Report

A new report by StreetEasy indicates that home prices in Queens are increasing the most that any borough in New York City.  Of the 10 neighborhoods identified where prices are soaring throughout the city, 5 are in Queens with Jamaica Estates leading the way with 186% from the same period in 2016.  StreetEasy looked at its listings data and at records from the New York City Department of Finance. Median sales prices from the third quarter of 2017 were compared with those during the same period in 2016, and only neighborhoods with at least 25 sales were considered, to avoid artificial spikes.

The report indicates that although median sales prices have gone up it doesn't necessarily mean that the values of such houses in the area have increased.  StreetEasy Senior Economist Grant Long states “The price of homes in a neighborhood can go up for many reasons.  For example, the value of existing homes in the area may have gone up; bigger homes may be for sale in the area; or newer, more upscale homes may be on the market.”

The areas of Queens that have been identified are Jamaica Estates (186% increase/ $435,440 median sales price), Clearview (132% increase /$650,000 median sales price), Little Neck (117% increase/$607,500 median sales price), Elmhurst (70% increase/$692,500 median sales price ) and Queensboro Hill (45% increase/$850,000 median sales price).  The rest of the top 10 areas where there has been an increase in home prices are Midtown South- Manhattan (107% increase/$1,339,591 median sales price), Ocean Parkway- Brooklyn (69% increase/$802,500 median sales price), Upper East Side- Manhattan (60% increase/ $1,400,000 median sales price), Ditmas Park- Brooklyn ( 55% increase/ $765,942 median sales price) and Flatiron- Manhattan (43% increase/ $2,706,633).

If you are purchasing a new property or already have a property and looking for professional property management Blue Harbour Property Management may be right for you.  We are a full service NYC property management company servicing Queens, Brooklyn, Manhattan and the Bronx.

http://www.blueharbourpropertymanagement.com/queens-home-prices-rise-new-york-city-according-new-report/

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/

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/

North Brooklyn Home Prices Increase to $1.5 Million. Significant Uptick in Traffic

A New Report for the Fourth Quarter was released by Ideal Properties Group.  There is a need for a subscription to view the report however, we can share with you some of the important details of the report.   The report indicates that average prices are approaching historic amounts and will eventually hit $1.5 million per home. It is being reported Brooklyn brokers are seeing a significant uptick in year-end buyer traffic.  They expect increased interest with new developments in the core neighborhoods in North Brooklyn and Brownstone.

There is a  $1.49 million average for townhouses, co-ops and condos in neighborhoods such as Greenpoint, Brooklyn Heights and Park Slope.  This is a  2.6 percent increase year to year .  Townhouses led the market in those areas with an average price of $2.5 million in the fourth quarter of 2016.  That is a  4.1 percent decrease from the same period in 2015.  Condo prices  had an average sales price of $1.5 million, which was a 24 percent increase over the fourth quarter of 2015.

North Brooklyn and Brownstone continues to be a seller's market as stated in the report,

" Ending the year in testament to enduring buyer interest, the majority of all properties sold in the closing quarter of 2016 (52 percent), sold either at, or above list price. This quarter’s sales at a discount from asking price settled at the 48 percent mark, echoing the findings of previous quarters of 2016. Thirty-nine percent of all residential properties sold this quarter in Brownstone and North Brooklyn traded above the price".

North Brooklyn consists of Greenpoint and Williamsburg.  Brownstone consists of Boerum Hill, Brooklyn Heights, Carroll Gardens, Clinton Hill, Cobble Hill,  Downtown,  Dumbo, Fort Greene,  Gowanus,  Park Slope,  Prospect Heights and  Windsor Terrace.

With increase levels of activity and interest, we expect property management in North Brooklyn to continue to be strong.  If you need property management assistance in Brooklyn or anywhere in the NYC region, you can contact Blue Harbour Property Management.  With over 20 years of experience, we will maximize the revenue potential of your real estate investment.

http://www.blueharbourpropertymanagement.com/north-brooklyn-home-prices-increase-1-5-million-significant-uptick-traffic/

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