Scott L. Gibson's Real Story on Real Estate

Annual Harvard study for housing shows a lot of promise but also some roadblocks

http://www.jchs.harvard.edu/publications/markets/son2010/index.htm

New York City Market Update

By: Sharon Katzoff, VP
Associate Broker, Corcoran

Dear Friends and Brokers,

Now that we have come to the end of the first quarter, I thought I would update you on the state of the New York City market once again.  Things are picking up and it is a great time to buy here.
 
Corcoran has released its First Quarter Corcoran Report, First Quarter Corcoran Report  our quarterly survey of residential real estate sales in Manhattan.  This report compares data based on deals that closed in 1Q 2010 (January 1 through March 31) with those closed in the prior quarter and in the same quarter one year ago.

 

This quarter continued the price stabilization in residential real estate that began in the Fourth Quarter of 2009.  A number of significant factors contributed to the phenomenon, including continued low mortgage rates, renewed consumer confidence and the extension and expansion of the home buyer tax credit.  Market-wide, the average sale price and the average price per square foot of an apartment were up two percent versus last quarter; for re-sales only both statistics were up three percent.

 

The pent-up demand that carried over from 2009 is beginning to be released as buyers take advantage of reduced prices and the favorable financial climate to acquire homes.  As a result, 55% of Corcoran agents in Manhattan have reported experiencing bidding wars in the First Quarter, and almost all of them say that their buyers are buying because they need someplace to call home, not for investment purposes.

 

The window for buyers to act on their advantage may be short-lived.  Market activity is significantly higher in 2010’s First Quarter than it was in 2009, and we are seeing an increase in property coming on to the market.  I will be tracking this closely over the spring and summer months, and would welcome the opportunity to answer any questions you may have about the report or the market generally.

Please pass this report along to anyone you feel may be interested. 

Looking forward to speaking with you soon.

 

Sincerely,

Sharon

__________________
	Sharon Katzoff, VP Associate Broker Corcoran d: (212) 941-2573 f: (212) 415-6127 m: (917) 304-3658 490 Broadway, New York NY, 10012

Consumer Price Index Rises in March

Here is the link for the latest consumer price index report that came out yesterday showing a rise from February levels and from last year.

http://www.conference-board.org/economics/ConsumerConfidence.cfm

New York City Market Update

By: Sharon Katzoff, VP

Now that everyone is back and has jumped into the New Year, I wanted to update you on the state of the New York City market, should you, your friends. family members or clients be interested in buying or selling a property in New York

I am happy to inform you that Corcoran has released its Fourth Quarter Corcoran Report, our quarterly survey of residential real estate sales in Manhattan.  This report compares data based on deals that closed in 4Q 2009 (October 1 through December 31) with that closed in the prior quarter and in the same quarter one year ago.

 

No doubt you have been following the economic news closely over the last year.  If so, you have had your eyes on the real estate market as a key indicator for economic recovery.

 

This quarter there is reason to be hopeful that the significant devaluation we have tracked since the demise of Lehman Brothers is coming to an end. Although values are down significantly compared with 2008 (median prices are 15% lower than they were one year ago; average price per square foot is 17% lower), prices in the Fourth Quarter were essentially unchanged from the Third, suggesting that buyers and sellers reached price equilibrium after twelve months of downward pressure. This was particularly apparent in the comparison of quarter-over quarter resales: the median price for a re-sold apartment in the Fourth Quarter was $725,000, down 3% from the prior quarter, while the average price per square foot rose 1% to $936.

 

In the past few months, smart buyers have been taking advantage of reduced prices, low interest rates and tax credits.  The Fourth Quarter was an extremely busy one for closings; when all deals are fully recorded in the public record, we anticipate this quarter will outpace the same quarter one year ago by 48% in number of sales.  In addition, the total available inventory has decreased 36% since the peak in March, restricting choice and increasing competition.

 

The combination of shrinking inventory, stabilizing prices and increased sales are hopeful signs for the value of real property as we enter the New Year.  I will be tracking them all closely as 2010 unfolds, and would welcome the opportunity to answer any questions you may have about the report, the market generally, or  just how to go about buying or selling in New York.

I look forward to hearing from you and hopefully assisting you with your New York City Real Estate needs. 

All the best for a prosperous and happy New Year!

Sharon_______________
	Sharon Katzoff, VP Associate Broker Corcoran d: (212) 941-2573 f: (212) 415-6127 m: (917) 304-3658 490 Broadway, New York NY, 10012

WorldWide real estate Belize, Pacific Palisades, Brentwood, Beverly Hills real estate

Just back from Belize, no not a vacation, but an opportunity to see the next Cabo San Lucas or Hawaii. They are not immune to the overall downturn in the real estate business world wide but, they are still selling and it's the best value for ocean front real estate that I have seen in a long while. We looked a new development on Ambergris Caye called South Beach. While its still in the "rough" phase, the developers are moving quickly and expect a build out within 5 years. While we were there, lots and units were selling and money was coming from different places around the world.

 I believe that there is an increasing anxiety around the world as to the value of our dollar and what inflation might do to that value so there is an increasing rush to place those dollars in a hard asset, and real estate is the best hard asset you could invest in. It's the first time I have traveled to a foreign country and paid for things in the local currency and been paid back in US dollars-not very comforting when it used to be that those dollars would of been coveted especially in countries less developed. 

Why are you buying and selling your house backwards?

Buying a home is the only "process' where you are buying a major asset without knowing what you bought before you agree to a price. On the other hand, it is the only major asset that someone sells without knowing exactly what they are selling (condition) and what the costs of that sale may be.

Home sellers should enlist the aid of their real estate agent to do all of the necessary inspections needed to sell a home prior to putting it on the market. Those "inspections" include a home inspection, termite inspection, any special area conditions, and a preliminary title report. It would also be good to have a certified appraisal done on the house to go with your agents market analysis. Of course this may incur additional costs up front for the home seller, however the information gathered may save the seller money as they have a better idea of what it will take to sell the property.

Why should I buy a house now?

Are you going to have to sell it in a year? Is this where you are going to be living your life and raising a family?

Because you should look at a house as your home first, for you and perhaps your family. A placed of comfort and security. The fact that it might be a good investment LONG TERM should be a consideration, but a second consideration.

As you finance most of the home purchase price, your main consideration should be the interest rate and what your monthly cost will be. A decline in a home price will not typically match what the actual costs of the home might be as a result of an increase in interest rates.