SEP 10 2010
VOL 1 ISSUE 2
HOT NYC REAL ESTATE By Tuval Mor & Christine Ra
WILL I SHARE MY NEW APARTMENT WITH BED BUGS?
CLIENT’S CORNER
As if the high rents and the rising cost of living in NYC were not enough (the Metro Card may increase to $130 early next year!!), New Yorkers were dealt another blow… little blood sucking creatures that share your bed. No, we are not referring to your spouse, but to bedbugs. In fact, bedbug attack were so widespread and severe in the past few months that the AMC 25 theater had to be closed after customers complained of getting bedbug bites. Other victims have included Victoria's Secret stores, Abercrombie & Fitch, and the Time Warner Center. Bedbugs, at one time kept under control through pesticides, are now once again spreading like wildfire due to the increase in traveling and immigration and the banning of DDT. According to New York City health officials, one out of every 15 citizens has battled bedbugs in the last year.
Thanks to all my clients for another great month. I am proud to have been able to find you great apartments. Special thanks to George Wang for referring me to Ian Pinto and his family; it was great to help them find their new home! I enjoyed meeting you all these recent months and I’d like to wish you an amazing year in your new apartments: Daniel Rendon & Brandy Rendon, Hannah Rebhorn, Daniel B Roberts, Brian Rindenau, Melissa Buono, and of course George Wang.
The good news
Well, the city council has declared war on the little buggers and $500,000 of our taxpayer money will be spent on a 'bedbug battle plan'. If you plan to rent an apartment soon, you can feel a bit safer now since as of the beginning of this month, Governor Paterson signed S8130 into law, requiring owners of New York City residential property to disclose bedbug infestation history before an apartment is leased. The legislation requires disclosure of bedbug infestation regarding the apartment rented by tenants and the building within the last 12 months. The law takes effect immediately. So in the next apartment that we will find for you, you’ll sleep safe ...we won’t let the bedbugs bite!
City Connections Realty
SEP 10 2010
VOL 1 ISSUE 2
A HOT SUMMER IS OVER. WHEN IS THE BEST TIME TO RENT? Will you miss the crazy heat of the summer? Let’s talk in a couple of months when you will feel like a pint of Ben & Jerry's left in a NY deli freezer. The weather was not the only hot thing this summer - the rental market was steaming! Third quarter of rentals showed the characteristic surge in rental volume that the warm summer months usually bring. Approximately 75% of all leases expire between April and September. This summer’s rush was strong, and prices crept up closer to 2007 levels. Landlords also took advantage of the seasonal momentum to pull back on giving concessions such as free rent or paying broker fees, a change which didn’t seem to affect the rush. The recession might not be over but the high demand made this summer a time not to submit lowball offers, but to move quickly once a desired apartment was found. Lower rent deals and OP (the owner pay broker fee) apartments are more likely to come back in the picture past October, when the market slows and landlords fear apartments may sit empty through the long and slow winter months. This means in the coming fall landlords are more likely to negotiate on price. So if you act quickly in the month of September, you can still have your pick of the litter as inventory is high. If, however, you are looking for a better deal, expect softening rents with fewer apartments to choose from in the coming months, although be aware that inventory will be much less.
The good news
The good news is....prices are still below 2007 highs and there are deals to be found if you act quickly. And if you plan on moving in the winter months, you can look forward to even better rents! Although not all LANDLORDS are flexible about the negotiating prices, we can advise you on what to offer and how low that offer can be. For you, the qualified renter, we can use our knowledge and expertise to SAVE you a lot of money!!
SEP 10 2010
VOL 1 ISSUE 2
I BOUGHT NEW COOKWARE FOR MY NEW HOME! OOPS….. DID I JUST KILL MY DEAL? Ah, the thrill of purchasing your dream home can inspire you to go out shopping for the perfect living room set with matching drapes, before the closing. If you planned on doing that with credit, best to wait till after the closing. Due to high foreclosure rates throughout the nation, Fannie Mae has instituted a new Loan Quality Initiative which requires that any lender determine that “borrower liabilities incurred up to, and concurrent with, closing are disclosed and evaluated in qualifying the borrower for the loan.” This period between the approval and the closing is usually called “the quiet period.” Lenders can vary in how they enforce this new initiative that just came into effect, but in many cases what this means is a second credit report pull right before closing. Did you buy a new professional cookware set for your new kitchen on a new Sears’s card that the cashier talked you into for the 10% discount? Well if you use the entire $1000 limit on your purchase, this seemingly innocuous purchase could throw your debt-to-income ratio off. Fannie Mae and others have done studies and found consumer behavior patterns correlating with mortgage losses and as a result have incorporated sophisticated new credit surveillance systems into the mortgage industry. It is important for home buyers, and also those looking to refinance their mortgage, to be aware that unlike the boom years, today every action that pertains to their credit will be considered until the closing, and that credit splurges during the quiet period are a clear no-no in today’s mortgage environment.
The good news
If you put those credit cards on ice until your new home is really yours, you should have a smooth closing. And with all the thousands of dollars you’ll be saving with these historically low interest rates (around 4%), you can afford to splurge on the perfect furnishings and accessories… just wait a little bit, until after the mortgage is closed!
SEP 10 2010
VOL 1 ISSUE 2
VOL 1 ISSUE 3
JUNE 1ST 2010
SALES NUMBERS HAVE DOUBLED FROM 2009. SO THE RECESSION IS OVER, RIGHT? While deals are getting done again after the deep freeze of the recession, especially in rentals, not everyone is optimistic about the state of the recovery. New York City appraiser Jonathan Miller has indicated that both the U.S. and New York City are not economically out of the woods yet. For one thing, while residential prices in New York have stabilized since the worst of the downturn, experts say substantial price increases here are unlikely anytime soon. Miller, CEO of appraisal firm Miller Samuel, whose quarterly reports are the most widely followed barometer of the New York City residential market, also noted that there's been slim progress on the job creation front, which is widely considered the key to a true and lasting recovery. "The hiring on Wall Street is encouraging, and layoffs there only ended up at half of projected levels," said Miller. However, employment is still not up to pre-recession levels. It seems it is safe to predict that there won’t be very large increases in sales prices in the next two years, and the markets likely to possibly decrease further in price are those below $1 million and above $15 million.
The good news
When the market is at its worst it’s a great time to buy a great property at a great value before prices rise again. There is a common agreement that NY real estate is the fastest market to recover, especially when we take into account that real estate prices have failed to fall apace with those in other big cities. Tourism, and the worldwide fascination with New York that clogs our sidewalks, coupled with the wondrous money-making machinery that is Wall Street, reminds us that the New York real estate market has a lasting attraction and after all, things could be much worse. We could be like the rest of the country!
Thank you for reading! Christine Ra Senior Agent, City Connections Realty
Tuval Mor Senior Agent, City Connections Realty
71 West 23rd Street 10th Floor New York, New York 10010
71 West 23rd Street 10th Floor New York, New York 10010
Cell: 917.400.2110
Cell: 646.342.1757 Office: 212.627.7800
Email: christiner@ccrny.com BlackBerry – 24/7
Email: Tuvalmor@ccrny.com Palm Pre – 24/7
Resources: businessinsider.com nycsubwaynews.com themoneytimes.com theapplepeeled.com therealdeal.com observer.com