Home Sales Inventory Hitting All-Time Highs Throughout New York City According To New Market Report

StreetEasy  recently released their May 2018 Market Report and it is very promising for the future.  The market report which is a monthly overview of the Manhattan, Brooklyn and Queens sales and rental markets which aggregates data from public recorded sales and listing from real estate brokerages indicates that sales inventory is hitting all-time highs.  Manhattan in particular is increases year over year that is the highest on StreetEasy's record.  The figures are promising as inventory has been hampering the sales market for some time now.  These figures will hopefully allow buyers to have a better negotiating stance going forward.

According to the report, inventory in Manhattan rose 16.7% year over year which is the highest increase ever recorded.  Queens and Brooklyn saw increases actually higher than Manhattan.  Queens saw an increase in inventory of 42.8% while Brooklyn saw a 23.4% increase.  Although there was an increase in inventory, sales prices also increased throughout the three boroughs.  Queens is seeing all-time highs in home prices as there is a 9% year over year increase to a value of $544,587 or a $45,000 increase.

 Grant Long, Senior Economist for StreetEasy states the following: “Sellers are betting on a wave of demand from the peak shopping season, but this summer’s market has turned out to be a crowded one. However, prices are high and continue to rise. More affordable homes are the hardest to find, and are sure to sell quickly. But higher-end homes, particularly those joining the market from the ongoing stream of new development, will be pressured to lower prices or linger on the market. This summer is poised to offer an excellent negotiating opportunity for buyers with big budgets.”

Here are some of the highlights of the report per borough:

"Manhattan

• Sale prices rose in all submarkets but one. The StreetEasy Manhattan Price Index increased 0.6 percent to $1,157,995. Prices rose in four of the five submarkets, led by an increase in the Upper East Side, where the median home price rose 1.9 percent to $1,038,046. Prices in Downtown Manhattan remained flat at $1,691,204.
• Inventory rose at a record pace. Sales inventory in Manhattan rose 16.7 percent year-over-year. The Upper East Side experienced the largest increase, with inventory up 20.2 percent since last year.
• Fewer rentals offered a discount. Sixteen percent of rentals in Manhattan were discounted in May, a decrease of 1.6 percentage points from last year.

Brooklyn

• Prices reached new highs in North Brooklyn. The StreetEasy North Brooklyn Price Index increased 11.1 percent to $1,229,838, a record high for the submarket despite the looming L train shutdown. Borough-wide, prices rose by just 1.1. percent since last year, to $720,555.
• Sales inventory continued to climb, except in North Brooklyn. Sales inventory in the borough reached a record high — up 23.4 percent over last year. Inventory rose the most in South Brooklyn, which saw a 44.7 percent increase over last year. North Brooklyn was the only submarket where inventory dropped, by 6.7 percent since last year.
• Rents rose in all submarkets except North Brooklyn. The StreetEasy Brooklyn Rent Index increased 1.4 percent year-over-year to $2,562. South Brooklyn experienced the largest spike: up 2.6 percent to a median rent of $1,885. North Brooklyn was the only submarket where rents stagnated, likely because of the L train shutdown starting in April 2019. Rents in the submarket remained flat at $3,062.

Queens

• Sales inventory swelled. Queens saw the largest year-over-year increase in inventory, rising 42.8 percent. All five submarkets in the borough saw a surge in inventory.
• Queens was the only borough with an increase in the share of discounted rentals. Seventeen percent of Queens rentals offered discounts: up 2.9 percentage points over last year, and the highest share of the three boroughs analyzed."

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-sales-inventory-hitting-all-time-highs-throughout-new-york-city-according-to-new-market-report/

What NYC Property Management Companies Should Know About NYC's Smoking Policy On Residential Buildings

On August 28, 2018, the City of New York has placed as the deadline for all owners of all Class A multiple dwellings, including all cooperative corporations and condominiums to adopt a “smoking policy.  Local Law 147/2017 requires all buildings with 3 or more units to adopt a written policy with regarding to smoking on the premises.  What should be taken into account is that that smoking in the common areas of residential buildings such as lobbies and hallways has already been prohibited.  Also of note, this is not a smoking ban but a policy of smoking in residential units.  Property management companies in New York City should advise their boards in either condos and co-ops and owner of rental units of the upcoming Local law enactment.  They should also start preparing for the implementation in written form.

For condominium and co-operatives, it is implied that the board of managers (condos) or board of directors (co-ops) should adopt a written smoking policy and incorporate it into their by-laws as they would be considered owners. The law provides that “in a condominium, the board of managers shall incorporate the building’s smoking policy into the condominium by-laws or rules” and “in a cooperative apartment corporation, the board of directors shall incorporate the building’s smoking policy into the by-laws or rules of the cooperative apartment corporation.”  This issue that will become central is how will the boards have the ability to amend by-laws without unit owner or shareholder approval.  Amending the proprietary lease in co-ops will also be difficult and most of the time requires a super-majority of owners to do so.  How these boards resolve this issue is one that will be further analyzed as their policies get scrutinized by the City.

So now let's look at how the notice requirement can be met on this rule:
For purposes on residential buildings that are strictly rental the rules are the same without having board approval first which is necessary for condos and coops.  Once a board adopts a policy for smoking, it must be disclosed by “owner” to all “tenants”.  Tenants includes subtenants as well.  The smoking policy must either be provided to each tenant or posted in a prominent location.  A copy of the smoking policy must be provided to all tenants on an annual basis. The annual distribution can be given either by providing a copy to each tenant or by posting the notice in a conspicuous place.

For new tenants or resident the law provides that the condominium unit owner and cooperative tenant-shareholder incorporate the smoking policy into “any agreement to rent or purchase the dwelling unit or shares in the cooperative apartment corporation”.  Therefore it should be incorporated into all new leases going forward.
The penalties for not complying with Local Law 147 can be costly.  Specifically initial penalties will be between $200 and $400 for a first violation.  Second violations will be between $500 and $1,000 in a period of twelve months and between $1,000 and $2,000 for a third and subsequent violations in a period of twelve months.

With right amount of planning complying with new smoking policy in New York City should not be difficult.  For more information on Managing Smoke Free Rental you can click 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.

NYS Senate Passes Bill to Give A Property Tax Rebate To Homeowners From the NYC Surplus

The New York State Senate recently passed a bill authorizing the City of New York to give a property tax rebate to homeowners based on the projected surplus the City will have.  The bill sponsored by Andrew Lanza from Staten Island would authorize cities with a population of one million or more to provide a rebate of a portion of the real estate taxes on owner occupied residential real estate.  New York State Comptroller Thomas P. DiNapoli announced a projection that New York City will enjoy a surplus of $2.6 billion for this current fiscal year. This bill is based on these projection and would “empower New York City to share some of its prosperity with the hardworking families according to the press release.

The bill which you can read in its entirety here will affect residences up to 6 family units and tenant stockholders of condos and co-ops.  The rebate will be the lesser of up to $400 for the amount of the imposed annual tax liability on the property.   The bills allows the local law to be changed in order to give the rebate for the period between July 1, 2018 and ending at July 13, 2020.  In order to receive the rebate, the owner cannot be in arrears in an amount exceeding $25 for the year in which the rebate will be claimed.

Senate Majority Leader John Flanagan states, “There are very few places in New York where the cost of living for middle class homeowners is higher than in New York City. On top of that, the city property tax system is very unfair and the tax burden continues to rise at alarming rates. For years, our Senate Majority has been leading the charge to cut these out-of-control taxes and fees, and this legislation will help ensure that struggling homeowners in the five boroughs are given real savings.” Senator Lanza who sponsored the bill stated that he would continue the fight on burdensome real estate taxes.  “With the projected City surplus, this rebate will provide relief to hardworking taxpayers from the ever increasing burden of city property taxes. I urge my colleagues in the Assembly to pass it. I also thank Councilman Steve Matteo for his tireless efforts and leadership as he fights to deliver property tax relief to the people of Staten Island and New York City, and I will continue to work with him toward that end.”

The bill will not go to the Assembly where it will be scrutinized before a vote to occur.  Senator Martin Golden of Brooklyn called upon the Assembly to make the bill a priority for passage so it can be signed by Governor Cuomo.

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/nys-senate-passes-bill-to-give-a-property-tax-rebate-to-homeowners-from-the-nyc-surplus/

Northeast Existing-Home Sales Increase Despite Nationwide Downward Projection

The National Association of Realtors (NAR) released their report on existing-home sales for the month of May and it shows that the national trend of sales in the sector is trending downward for the second consecutive month.  All markets show a drop off with the exception of the Northeast which saw a 4.6% increase.  The numbers come as no surprise as inventory as well as increase mortgage rates are hurting the industry.

According to the report, which is considered completed transactions including single-family homes, townhomes, condominiums and co-ops, decreased 0.4% to a seasonally adjusted annual rate of 5.43 million for May. Sales are now down 3.0% from 2017.

Chief economist for the NAR Lawrence Yun stated “Closings were down in a majority of the country last month and declined on an annual basis in each major region. Incredibly low supply continues to be the primary impediment to more sales, but there’s no question the combination of higher prices and mortgage rates are pinching the budgets of prospective buyers, and ultimately keeping some from reaching the market.” Despite seeing almost historic levels of decreased inventory there was an increase this month.  Housing inventory jumped in May 2.8% to 1.85 million existing homes available for sale.  It is worth noting that this is 6.1% lower year over year.

The Northeast was the only region that saw an increase in existing-home sales.  In May, sales increased 4.6% to an annual rate of 680,000.  This amount is still 11.7% below the same time in 2017.  The Midwest saw the most drastic decline in 2.3% followed by the West at 0.8% and the South at 0.4%.

Also of note, median existing-home price for all housing types hit an all time high in May at $264,800.  This is up 4.9% from May 2017 ($252,500) and the 75th straight month of increases.  Mortgage rates also increase for a 7th consecutive month to 4.59%.  The increase in both sales prices and mortgages rates are hampering first-time home buyers in entering into the market according to Yun.  “The abrupt hike in mortgage rates this spring, along with price appreciation and competition being the strongest in the entry-level part of the market, is why first-time buyers are not as active as they should be and their participation remains below its historical average.”

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/northeast-existing-home-sales-increase-despite-nationwide-downward-projection/