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

Home Builder Confidence Soars to an 11 Year High

Home builders saw a boost in confidence in home building, not seen since 2005 according to the National Association of Home Builders/Wells Fargo Housing Market Index.  The increase brought the index level to a 70 which is a 7 point increase from the 63 measured for November.  A number over 50 indicates more builders view conditions as good than poor.  Regionally in the Northeast the Index indicates a 12 point increase from November showing a rate higher than the national average.  This is a good indication that sales and development of homes will increase as well as there be a growing need for property management services here in NYC.

The index is used by economists to track the inclination among home builders on whether they will start new home constructions.  The economic outlook would be bright as new projects would lead to new hires and more spending in the construction industry.  NAHB Chairman, who himself is a developer from Illinois says that there is a direct correlation between the election and the index.  He states  “This notable rise in builder sentiment is largely attributable to a post-election bounce, as builders are hopeful that President-elect Trump will follow through on his pledge to cut burdensome regulations that are harming small businesses and housing affordability.  This is particularly important, given that a recent NAHB study shows that regulatory costs for home building have increased 29% in the past five years.”

Sales of new, single-family homes are on pace to reach the highest level this year since the recession began in 2007. Chief Economist for NAHB Robert Dietz believes that the overall picture is looking positive.  “Though this significant increase in builder confidence could be considered an outlier, the fact remains that the economic fundamentals continue to look good for housing” he says.

There is one recent event that may limit homeowner's  ability to afford homes and that is the Federal Reserve's announcement to raise interest rates.  The assumption is by raising the central bank's  rate it would put pressure on the banks to increase mortgage rates.  There is also a  presumption that the Fed may increase rates a few more times in 2017.

http://www.blueharbourpropertymanagement.com/home-builder-confidence-soars-11-year-high/

Visit us at www.blueharbourpropertymanagement.com

Brooklyn Remains Top Sellers' Market in NYC According to New Study

Investors in the market are always looking for the most advantageous deals.  Sellers are  looking for the optimal time to cash out on their property. A new study by StreetEasy indicates that the deals are spread out more throughout the City while the sellers'  have more power in Brooklyn.  The Buyer/Seller survey looked into several factors in determining what is the best to both categories.  The factors included on what they call the Buyer/Seller index included factors as:

• Time on market
• Price cuts
• Sold price in relation to asking price

Based on the criteria it was found that Brooklyn maintained its lead for sellers looking to cash out.  The best neighborhoods for sellers along with the median sales prices according to the index were:

Kensington- Brooklyn $515,000

Prospect Heights- Brooklyn $735,000

Fort Greene-Brooklyn $ 682,720

Cobble Hill-Brooklyn $1,330,000

Lower East Side in Manhattan  $775,000

The neighborhoods that are tougher to sell are spread throughout the boroughs. These are areas that units are harder to sell and prices are reduced in order to close transactions:

Kew Gardens Hills - $248,000

Canarsie - $380,000

Sheepshead Bay - $390,250

Midtown - $1.45 million

SoHo - $3.29 million

This information should assist he investor make informative decisions in determining where to purchase their next property.  There is much more wiggle room when it comes to negotiating prices in the Buyer’s index.  The index can assist you prepare your finances accordingly in order to get into these markets.  Determining what the market and future rents can be are will also help in determining whether this will potentially be an overall profitable investment for your real estate portfolio.

If you are in need of management of your property or properties in NYC then Blue Harbour Property Management is the company for you.  We can help you determine what is the value of your investment and cater to it so you can maximize the revenue potential.

http://www.blueharbourpropertymanagement.com/brooklyn-remains-top-sellers-market-according-new-study/

Visit us at www.blueharbourpropertymanagement.com