Digestible Real Estate News
We’re keeping this recurring piece to do a bit more for those genuinely interested in New York real estate, not just food porn, and give my LinkedIn designation a little luster. Taking a note from the easy to absorb nuggets of information in Robinhood Snacks‘ newsletter (blanketed with this unshakable food theme), here are your RealEstateSnacks so I can make this newsletter tax deductible.
1. Extra, extra – mortgage rates are the lowest they’ve been in over three years, giving a big boost to the country’s housing market headed into spring. The 30-year fixed-rate average fell to 3.45% on Thursday according to Freddie Mac. That’s down from 3.51% the week before and 4.41% at this time last year. The average rate for a 15-year mortgage also dropped to a three-year low at 2.97%. In June, it stood at 3.28 percent. Lower mortgage rates are not only pushing home sales, as credit-qualified individuals can lock in a low rate, but are also spurning an increase in refinancings for folks with existing mortgages.
2. As uncertainty tends to be kryptonite for the market, one would assume that logic applies to Presidential election years. Election years, most notably during the fall market, give pause to some buyers as they wait to see the outcome. One analysis found that sales between June and October are up to 12.7% weaker in election years than non-election years. However, beginning in November during an election year, sales overpower their non-election year counterpart, with the release of pent-up demand. In general, election cycles coincide with a decline followed by an uptick after the election, regardless of who wins. The metric considered here is number of sales, not sale price.
3. Wall Street bonus season has usually meant an influx of spring buyers with full pockets; this year may be a slightly different tune however. Wall Street bonus season is a heyday in the minds of sellers, as they picture eager buyers armed with hefty bonus checks and willing to pay top price. However in a buyer’s market, that vision may be more like a mirage. Not only are finance employees seeing payouts at to the beginning of the year, but year-end incentives are expected to fall 5% this year, following last year’s results, when bonuses fell for the first time in three years. In addition, buyers are trending more conservative with how they use total compensation. A dark horse influencing the market still is the 2017 federal tax overhaul, as any tax changes take a few years to sink in. One bright spot is that many buyers are capitalizing on their equity with stocks up, so pockets may be more full than one thinks.
4. As I believe I can speak for all us, Penn Station is one of the Dante’s Rings of Hell. However it wasn’t always like this…the Penn Station that was torn down in 1963, was one of the most beautiful buildings in NYC. Read more about its illustrious start, glorious life, and sad demise to make way for the dumpster fire that is modern Penn Station.
^ I KNOW. NOW WE HAVE BASICALLY ONE, MASSIVE SBARRO.
And for the homes I’m ogling this month…
…10 East 14th Street, #PH1 for a spicy $5,495,000 with this insane living room…
….this dreamy West Village townhouse at 73 Perry Street listed for $11,995,000…
….the most unique loft in Brooklyn at 28 Old Fulton Street listed for $2,350,000…