It took two months longer on average to sell a New York City luxury apartment in 2016 compared with 2015. That’s according to the real-estate agency Olshan Realty, which on Wednesday published its year-end report on the New York residential market.
It backed up other reports released earlier in 2016 that showed the luxury market in Manhattan, New York’s most expensive borough, had a tough year. Unlike other price segments of the housing market, there’s an excess of luxury apartments, giving buyers power to negotiate asking prices lower.
“New York City’s rental market has been mostly steady, except at the high end, where the inventory has risen and rents have drifted down,” the Federal Reserve said in a recent Beige Book based on comments from its contacts.
Construction workers, cashiers and janitors are moving out of Washington, D.C., while doctors, economists and software developers are moving in. As the cost of housing increases in the city, it’s part of a larger trend, says the District of Columbia’s Office of Revenue Analysis (ORA), which has low-wage workers fleeing for the suburbs, and higher-wage workers flocking to urban cores.
The reading marks a change from almost unbridled consumer optimism in a housing market that has carried the Canadian economy since the 2008 global financial crisis, even as policy makers warn price gains in some cities are unsustainable.
Bubbly cities like Singapore and Vancouver have started punishing foreign housing investors that have pushed up property prices to unaffordable – and unsustainable – rates. Foreign investors are now being taxed in many of these areas, and as a result, their real estate markets have begun to tank.During this housing burst, the most high-end, desirable locations will be hit the hardest.
The point here is that while the housing market has recovered – the media should be asking ‘Is that all the recovery there is?’
With 30-year mortgage rates below 4%, we should be in the middle of the next housing bubble with prices and home ownership rising. The question the media should be asking is “why?” Furthermore, what happens if the “bond market bears” get their wish and rates rise?
The housing recovery is ultimately a story of the “real” unemployment situation that still shows that roughly a quarter of the home buying cohort are unemployed and living at home with their parents. The remaining members of the home buying, household formation, contingent are employed but at lower ends of the pay scale and are choosing to rent due to budgetary considerations. This explains why household formation is near its lowest levels on record despite the “housing recovery” fairytale whispered softly in the media.
While the “official” unemployment rate suggests that the U.S. is near full employment, the roughly 94 million individuals sitting outside the labor force would likely disagree. Furthermore, considering that those individuals make up 45% of the 16-54 aged members of the workforce, it is no wonder that they are being pushed to rent due to budgetary considerations and an inability to qualify for a mortgage.
The risk to the housing recovery story remains in the Fed’s ability to continue to keep interest rates suppressed. It is important to remember that individuals “buy payments” rather than houses, so each tick higher in mortgage rates reduces someone’s ability to meet the monthly mortgage payment. With wages remaining suppressed, and a large number of individuals not working or on Federal subsidies, the pool of potential buyers remains contained.
The real crisis is NOT a lack of homes for people to buy, just a lack of enough homes for people to rent. Which says more about the “real economy” than just about anything else.
While there are many hopes pinned on the housing recovery as a “driver” of economic growth in
2013, 2014, 2015,2016 – the lack of recovery in the home ownership data suggests otherwise.
Several modern public housing projects are not only beautiful living spaces, but smart, money-saving, eco-friendly designs using innovative technologies.
Unity Homes has recently unveiled a prefab home, which is sustainable yet still made to last for at least as long as traditionally constructed homes. The home has a number of certifications, including LEED v4 Platinum, while it is also net-zero energy and can be constructed on site in three days or less. It is also fitted with the largest number of Cradle to Cradle (C2C) certified building products used in a residential project to…
There is a growing sense of tighter financial conditions, particularly to the commercial real estate sector. Late last year the regulators issued a joint statement on Prudent Risk Management for Commercial Real Estate Lending and the latest Senior Loan Officer Opinion Survey (SLOOS) shows that banks tightened their lending standards to commercial real estate meaningfully in 4Q15…. The growing sense of gathering clouds in terms of tightening financial conditions to commercial real estate translates into a more challenging road ahead for US commercial real estate.
Lever Architecture has designed a 12-storey building for Portland, Oregon, that will be one of the tallest wooden buildings in the US.
The value of many oceanfront properties on the East Coast could drop dramatically if Congress were to suddenly end federal beach nourishment subsidies. Values could fall by as much as 17 percent in towns with high property values and almost 34 percent in towns with low property values. A gradual reduction of the subsidies, in contrast, is more likely to smooth the transition to more climate-resilient coastal communities.
How nauseating: NYC provides tax support to billionaires:
New York City’s method of assessing property values is so out of whack that the buyer of the most expensive apartment ever sold — a $100 million duplex overlooking Central Park — pays taxes as if the place were worth just $6.5 million.
With controversial tax breaks granted to the One57 condo tower, the total property tax bill for the spectacular penthouse is just $17,268, an effective rate of 0.017 percent of its sale price.
By contrast, the owner of a nearby condo at 224 E. 52nd St. that recently sold for $1.02 million is paying an effective rate of 2.38 percent, or $24,279, according to data compiled for The Post by the Revaluate.com real-estate information website.
Small-scale urban spaces can be rich in biodiversity, contribute important ecological benefits for human mental and physical health (McPhearson et al., 2013), and overall help to create more livable cities. Micro_urban spaces are the sandwich spaces between buildings, rooftops, walls, curbs, sidewalk cracks, and other small-scale urban spaces that exist in the fissures between linear infrastructure (e.g. roads, bridges, tunnels, rail lines) and our three dimensional gridded cities.