Archive for Luxury

Douglas Elliman released the Fourth Quarter report for Manhattan Residential Co-op and Condo sales market.  The Manhattan Sales Quarterly Survey of Co-op & Condo Sales for 4Q-2014 reported here and summarized below was prepared by Miller Samuel for Douglas Elliman.

Manhattan_Sales_4QTR_2014

“All Manhattan price indicators showed robust gains from the prior year quarter, largely driven by low inventory and higher than average demand.”

 

Manhattan housing prices continued to rise, but the market remained challenged by the lack of inventory. Sales activity was high, but did not equal the record volume achieved last year. New development market share continued to expand with more new offerings coming online in 2015. The current market pace remains brisk with nearly half of all sales resulting in purchase prices that were at or above the asking price. Based on the strong finish for 2014, we are anticipating an active market going into 2015.

Douglas Elliman released the Third Quarter report for Manhattan Residential Co-op and Condo sales market.  The Manhattan Sales Quarterly Survey of Co-op & Condo Sales for 3Q-2014 reported here and summarized below was prepared by Miller Samuel for Douglas Elliman.

 “Manhattan housing prices continued to rise in the third quarter.  Rising inventory remained inadequate to meet the high level of demand”

3QTR Manhattan Sales

  •  The supply and demand imbalance has begun to push housing prices higher. Median sales price rose 4.2% to $908,242 from the same period last year. As a result of the shift towards more 3-bedroom and 4-bedroom sales, the overall average sales price jumped 17.4% to $1,684,729 from the prior year quarter.
  • The monthly absorption rate, the number of months to sell all inventory at the current rate of sales, increased to 5.3 months from the prior year record low of 3.6 months. As a result of limited supply and fast market pace, 49.2% of all transactions were sold at or above list price at time of sale.
  • Despite the third consecutive quarter with a year-over-year rise in listing inventory, supply remains 16.1% below the 14-year third quarter average of 6,957. Listing inventory jumped 27.6% to 5,828 from the prior year quarter, with a much larger increase seen with condos than co-ops.
  • Days on market, the average number of days to sell all apartments that closed during the quarter, expanded by 4 days to 92 days, marking the second fastest marketing time in 15 years.
  • Listing discount, the average percentage difference between the listing price at the time of sale and the sales price fell to 1.1% from 2% in the year ago quarter.

Sep
04

How’s the Market – August 2014

Posted by: | Comments Comments Off

While Quarterly Sales Reports show closed activity for the previous quarter, monthly Contract Signed reports are the ‘crystal ball’ of closed sales to come. Granted, all contracts signed for any given month may not close in the next month, and some may not close at all but most (over 95%) will become closed sales which will become part of the next Quarterly Sales Report.

In the following charts and graphs you can see how the market stacks up against last month and this month last year.

 

AV&MED_SP_DOM_08-2014 - Copy

DISC_AP_08-2014 - Copy

Sales_Region_08-2014 - Copy

 

Manhattan_Sales_Q4_2013Douglas Elliman released the Fourth Quarter report for Manhattan Residential Co-op and Condo sales market.  The Manhattan Sales Quarterly Survey of Co-op & Condo Sales for 4Q-2013 reported  here and summarized below was prepared by Miller Samuel for Douglas Elliman.

“The market was characterized by record fourth quarter sales volume, record low inventory and record condo prices.”

  • There were 3,297 sales, up 26.9% from the prior year period, to the highest fourth quarter sales total in 25 years.
  • With the surge in sales in the fourth quarter, inventory could not enter the market fast enough to meet demand, causing inventory to fall 12.3% to a record low of 4,164 from the prior year quarter.
  • The individual co-op and condo markets indicated that record low inventory and record high sales were finally pressing prices higher. Co-op price indicators showed robust price gains in the lower half of the market and the condo median sales price set a 25-year record high of $1,320,000.
  • Listing discount, the percentage difference between the list price at time of sale and the sales price, slipped to 3.6% from 3.7% in the prior year quarter.
  • Days on market, the number of days from the last price change to the contract date, dropped by nearly half to 95 days from 177 days in the prior year quarter as supply evaporated.

May
07

Bigger Loans = More Hoops to Jump Through

Posted by: | Comments Comments Off

Jumbo loans, for most lending institutions, are defined as mortgages over $625,500, and they come in three sizes: small, medium and large. Face it if you’re buying in New York City and need a mortgage, you’ll likely be seeking one of these jumbo loans.

While several banks offer these Jumbo Loans, the may have different requirements.  For Example

  • EverBank offers a Jumbo Loan up to $1.5M and requires a 20% down payment, and 12 months of cash reserves; a loan from 1.5M to 2.5M requires a 30% down payment and 18 months cash reserves; and over $2.5M requires $35% down and 2 years of cash reserves.
  • Bank of America offers a jumbo loan up to $1M with a 20% down payment; a $2.5M to $5M loan with 30% down; and $5M+ loans require a 35% down payment.
  • Wells Fargo Home Mortgage has several tiers starting at $417,000 to $2M with 20% down payment and 12 months cash reserves.  After that, for every $1M above the $2M requires an extra 5% down and additional cash reserves.

While most lenders build in some flexibility to their loan programs, expect to see credit score requirements of 720 and above and debt-to-income ratios of 40% to 43%.  You might be able to get more favorable terms if you have a strong financial profile.

Some other things to think about:

  • Relationship:  The first place to look is the lender where you do the majority of your business.  If you have a strong relationship with your lender already, they may be more likely to relax their requirements.
  • Identify liquid assets:  Some lenders will accept assets such as stocks that can be liquidated easily if the borrower does not have sufficient cash reserves to meet the tier requirements.
  • Shop sooner rather than later:  The new Consumer Financial Protection Bureau rules go into effect in early 2014.  These protections will tighten standards for verification of borrower income or assets and make interest-only loans difficult or impossible for many borrowers to obtain.

Based on Wall Street Journal article by Anya Martin

Last winter lawmakers in Albany enacted an extension to the 17.5% tax abatement through June 30, 2015, but they placed a restriction that excludes pied-a-terres.  Since all homes owned by LLCs and Trusts are considered pied-a-terres, they are excluded from receiving the abatement, according to the city’s Department of Finance.  According to spokesman Owen Stone, “We have not changed our interpretation of the law – the law has changed.  Under the previous law there was no restriction, and LLCs and Trusts could qualify, under the new law, they do not.”

This new law could affect approximately 7,700 homeowners who are concerned with their privacy and the convenience of owning property in a trust.  Some experts are saying the new law is penalizing people who want this privacy or convenience, even as the breaks are seen as essential to the market’s growth.

Even the most strict co-op boards who did not allow pied-a-terres have allowed them in recent years for trusts and LLCs, as long as only the trust holder lives there.

Based on article at The Real Deal

Comments Comments Off

 Q:  I am considering purchasing a condominium unit in a small building, but the condominium board does not have an accountant prepare audited financial statements.  Is there a requirement that condominium and co-op boards have accountants prepare audited financial statements?

 A:  No, there is no requirement that boards have accountants prepare audited financial statements.  However, audited financial statements prepared by an accountant provide assurance that the financial statements fairly reflect the building’s financial position.  Consequently, an audited financial statement will provide a prospective purchaser with confidence that they have an accurate picture of a building’s financial condition.  Purchasers considering a condominium or co-op that does not have audited financials should proceed with caution when conducting their due diligence.

 Important Tip:  As mentioned in a past Legal Line Question of the Week, audited financial statements for a condominium or co-op are one of the due diligence items that your real estate broker should request from the seller or managing agent as soon as possible in order to expedite the transaction.

 Based on REBNY article by Neil B. Garfinkel, REBY Residential Counsel Partner-in-charge of real estate and banking practices at Abrams Garfinkel Margolis Bergson, LLP   

This post is provided as informational proposes only and should not be construed as legal, accounting or tax advice by the RealEstateGeezer. You should seek advice from a qualified professional

This week, we released our Third Quarter report for the Hamptons & North Fork Sales Market.  Hamptons & North Fork Sales Overview Q3 2012 reported here and summarized below was prepared by Miller Samuel for Prudential Douglas Elliman.

“The East End market saw its highest number of third quarter sales in six years”

 

  • Number of sales increased 4.3% from the prior year quarter to 561, the metric’s highest third quarter total since 2006.
  • Listing inventory fell 14% from the prior year quarter to 1,924. Over the same period, the monthly absorption rate, or number of months to sell all listing inventory at the current pace of sales, was down from 12.5 to 10.3 months, the second fastest rate in over four years.
  • Median sales price fell 9.3% from $700,000 in the same quarter last year to $635,000, largely due to an increased number of lower-priced sales. Sales below $1M increased to 69.9% market share, up from 67.1% in the prior year quarter and above the five-year average of 66.5%.
  • Days on market, or number of days from the last price change to contract date, was 192 days, up from 170 in the prior year quarter.
  • Listing discount, the percentage difference between the list price at time of contract and the sales price, fell from 11.3% in the prior year quarter to 8.6%.

This week, we released our Third Quarter report for the Manhattan Residential Sales  Market.  Manhattan Residential Rentals Market Overview Q3 2012 reported here and summarized below was prepared by Miller Samuel for Prudential Douglas Elliman.

“Manhattan price and sales levels showed seasonal stability, despite listing inventory falling to a seven-and-a-half-year low.”

  • All price indicators posted modest year-over-year declines as 1-bedroom apartments jumped 5% in market share over the past year, reaching 37.8% of all sales. The median sales price was $890,000, down 2.3% from $911,333 in the prior year quarter. Year-to-date median sales price was unchanged from the same period a year ago at $850,000.
  • There were 2,952 sales in the quarter, the second highest total since the credit crunch began four years ago, second only to the prior year quarter total of 3,106 sales. While there was a 5% decline in third quarter sales from the same period a year ago, signed contracts increased 4.9% over the same period.
  • Listing inventory continued to decline, dropping 24.3% to 5,847 at the end of the third quarter, its lowest level since the first quarter of 2005. Despite the drop in supply, only 8.5% of all sales sold for more than their list price at the time of contract, down from 10.1% in the prior year quarter.
  • Days on market—the number of days from the last price change if any to the contract date—jumped from 119 days in the prior year quarter to 190, reflecting the increased sales of much older inventory.
  • Listing discount—the percent difference between the list price at time of sale to the sales price—increased from 4.4% in the prior year quarter to 7.2%.

Comments Comments Off
Aug
20

In the News – August 19, 2012

Posted by: | Comments Comments Off

08/15/12  In Manhattan Home Search, Some choose to Go Big:  There are a small, but growing group of New Yorkers with deep pockets and the stomach for renovations, some are creating single-family homes out of an apartment building.  Behold the return of the urban mansion.  See the full article in the Wall Street Journal 

08/16/12  Refinancing a Vacation Home:   Homeowners who want to take advantage of historically low mortgage rates and refinance a vacation home should be prepared for stricter loan requirement especially if they rent out the property.  See the full article in the New York Times

08/17/12  Rent or Buy?  Blanching at their rent bills, more New Yorkers are being forced to confront that age-old question, should I rent or does buying make more sense?  See the full article in the New York Times 

08/19/12 Upper East Side  fourth-grader Samuel Wohabe is cooking up quite a career in food: White House ‘State Dinner’ is next for the 9-year-old upper East Sider and co-winner of national Healthy Lunchtime Challenge  See the article in the New York Daily News

The friendly rivalry between London and New York City just tipped in New York’s favor in the global competition for wealthy buyers of million-dollar homes.  According to a recent study by Knight Frank, an international property consulting firm in London, the difference hinges on the tax burdens faced when heading to the closing tables in each city, with New York real estate purchases  over $3.1 million (about £2 million) resulting in about half as much in transaction taxes as those in buying in London.

In March, the British government raised the ‘stamp duty’ on properties valued over £2 million from 5% to 7% of the total purchase price.  Offshore corporations pay a staggering 15% to capture the revenue from wealthy foreigners who are the biggest buyers of central London properties.  For years, they have been legally avoiding paying stamp duty by structuring their deals through offshore entities.  Foreigners will also be subject to capital gains taxes when they sell their British properties.  The total sales in central London over £2 million has fallen by at least 3% from April to July compared to the same period in 2011.

Members of the London real estate community are outraged, saying the government is trying to wring more revenue from a thriving part of the British Economy.

European countries, who are struggling with recession and deficits, including France and Italy, have made similar moves to extract more from the wealthy.

Many billionaires who are, for the most part, obsessed with secrecy, tend to hide their identities inside complex corporate structures to protect their privacy.  These corporate structures will now cost buyers additional tax to protect their privacy.

The big question is, will the higher cost of buying in London and other cities in Europe drive high-end buyers to New York?  Even though New York is lagging in revenues, and already impose a ‘mansion tax’ on purchases of more than $1 million, there haven’t been any serious moves to push real estate taxes higher at this point.

Inspired by New York Times article

 This week, we released our Second Quarter report for the Hamptons & North Fork Sales Market.  Hamptons & North Fork Sales Overview Q2 2012 reported here and summarized below was prepared by Miller Samuel for Prudential Douglas Elliman.

 “The East End recorded its highest number of spring market sales in six years.”

  • There were more sales in the second quarter spring market than there has been in any second quarter throughout the past six years. The second quarter total was 676 sales, 9.2% more than 619 sales in the prior year quarter.
  • Listing inventory was 2,452, 5.3% above 2,329 in the same period last year. As a result, the monthly absorption rate, the number of months to sell all listings at the current pace of sales, was 10.9 months, faster than the 11.3 months in the prior year quarter and the 12.9 month six-year average.
  • Median sales price was $735,000, 4.1% below $675,250 in the prior year quarter. Average sales price slipped a nominal 0.4% to $1,507,255 from $1,513,636 over the same period.
  • Days on market, the number of days from the last price change to contract date, was 193 days, 5 more than 188 days in the prior year quarter.
  • Listing discount, the percentage difference between the list price at time of contract and the sales price, slipped to 11% from 11.4% in the prior year quarter.

 

Comments Comments Off
Jul
31

In the News – August 5, 2012

Posted by: | Comments Comments Off

07/26/12:  Prudential Douglas Elliman Releases Exclusive 2nd Quarter 2012 Elliman Report for the Long Island Market.  The spring housing market in Long Island was brisk this year with an increase over last year’s sales even though we had unusually strong sales in the previous quarter caused by the warm winter.  Housing prices remained stable and inventory fell to a seven year second quarter low.  Record low mortgage rates continue to drive demand in this slow-to-improve economy and we anticipate more of the same conditions in the coming quarters.    Download the full report at Elliman.com  

07/29/12:  Big Ticket: Sold $27,376,940.03 An urban version of the traditional rambling family compound, a seven-bedroom, nine-and-a-half-bath apartment that occupies all 8,360 square feet of the 16th floor at 995 Fifth Avenue, a condop building formerly known as the Stanhope Hotel, was the biggest sale of the week, according to city records.  See the full article in the New York Times    

07/30/12  Country’s most expensive apartment lists for $100M:  The most-expensive apartment in the country — a triplex, wrap-around penthouse on W. 56th Street — can now be yours for just $100 million.  Read the full article in the New York Daily News

Today, we released our Second Quarter report for the Manhattan Residenital Co-op  & Condo Sales Market.  Manhattan Residential Co-op & Condo Sales Market Overview Q2 2012 reported here and summarized below was prepared by Miller Samuel for Prudential Douglas Elliman.

“Although Manhattan prices and sales remained stable, the decline in supply continued to present a growing challenge to the housing market.”

  • While price indicators showed modest declines from prior year levels, they were largely the result of a 6.7% jump in entry-level sales and a 3.6% increase in sales below $500,000. Median sales price declined 2.5% to $829,000 from $850,000 in the prior year quarter.
  • There were 2,647 sales in the second quarter, 8.1% higher than the 2,448 sale quarterly average over the past five years. The number of sales was essentially unchanged from the prior year levels, but there was significant disparity between co-op and condo results. Co-op sales increased 10.9% and condos declined 11.8% over the prior year quarter results.
  • Listing inventory fell 13.5% over the same period with new development inventory falling at a 20% pace, faster than 11.8% seen for re-sales. As a result, the monthly absorption rate fell to 7.9 months, the fastest market pace in more than 4 years.
  • Days on market—the number of days from the last price change, if any, to the contract  date—increased to 165 days from 136 days as falling supply helped sell off older inventory.
  • Listing discount—the percent difference between the list price at time of sale to the sales price—increased to 5.1% from 3.5% in the same quarter last year.

 

Jul
02

Beginner’s Guide to Doormen

Posted by: | Comments Comments Off

You’re living in a building with a doorman, something you’ve never done before.    It may be a little intimidating, after all, you see them every day, and they know who you hang out with, where you shop online and your favorite takeout.  A doorman can be a great asset to a building.  Most doormen are extroverts; they like being in contact with people.

Here are a few tips to smooth the nerves:

  • Introduce yourself with a nice smile. 
  • Doormen are a great resource for who on the building staff does what. 
  • Be polite, the Doorman is there to help you.
  • Know the limits.  The Doorman may be able to help you hail a taxi or carry your bags from the curb to the elevator, but they probably won’t be able to fix a leaking faucet or vacuum for you, but he will offer the name of the person who does those things for the building.
  • When you request assistance, frame it as a question “could you direct me…” rather than a demand.  As grandma used to say “You catch more flies with Honey”.

A doorman is generally part of the building’s security.  Knowing who belongs – and who doesn’t – is part of his job.  Don’t be offended if a new doorman introduces himself and asks you to state your business in the building.   Just smile, tell him who you are and your apartment number and you’ll be fine.

 

From New York Times article.