This quarterly snapshot of the Manhattan rental market shows average asking prices of apartments listed for rent with
Halstead Property in the 1st Quarter of 2009. Click below for full report:
Archive for the ‘Market Watch’ Category
Manhattan Rental market report – 1st Quarter ‘10
Friday, May 21st, 2010 Halstead HeymReport – April ‘10
Monday, April 26th, 2010Unemployment Falls in New York City for Third Straight Month
• New York City’s unemployment rate fell to 10.0% in March
from 10.2% in February.
• This was the third consecutive month the city’s
unemployment rate declined and its lowest level since July
of 2009.
• The U.S. rate was 9.7% in March, unchanged from the
prior two months.
City Job Losses Slow
• New York City lost 53,000 jobs for the period from March
2009 to March 2010.
• The biggest declines continued to be in fnancial activities,
which shed just over 19,000 jobs in the past year.
• Education and health services continued to add workers,
as their employment was 16,500 higher than during March
2009.
• The leisure and hospitality sector also showed signs of
strength, adding 7,300 jobs over the past year.
Conventional Mortgage Rates Fall
• The average 30-year conventional mortgage rate fell to
5.07% for the week ending April 15th, down from 5.21%
the week before.
• This rate had risen in each of the prior four weeks.
• One year ago, conforming rates averaged 4.82%.
Behind the Numbers 1st Quarter 2010
Monday, April 19th, 2010 Mortgage Rates Drop Below 5%
Wednesday, March 3rd, 2010Mortgage rates in the U.S. fell below 5% to an average of 4.95% for a 30-year mortgage, propping demand for home loans. This is in part due to the lowest number of purchase applications in nearly 13 years in the prior week and according to data by Mortgage Bankers Association.
As a result, purchase applications increased 9 percent while refinancing requests jumped 17.2 percent last week.
Halstead Property – 3rd Quarter Market Report
Thursday, October 22nd, 2009Second Quarter Market Report
Tuesday, September 22nd, 2009
Halstead Property publishes extensive resources for customers interested in buying, selling or renting property in the New York. This is our Quarterly Slaes Report for the Second Quarter of 2009.
Halstead Property – 1st quarter report
Friday, April 10th, 2009Mortgage rates at a four year low
Friday, December 12th, 2008
According to Freddie Mac, mortgage rates on a 30-year fixed mortgage dropped this week to a four year low, averaging at 5.47%. This new wave of lower interest rates started with Federal reserve buyout of $600 billion of mortgage related securities.
This resulted in spike in loan applications and people looking to refinance their homes. Low interest rates also translate into lower cost of ownership, which in addition to lower prices helps today’s buyers. This just means more affordability. here is an example:
One Bedroom Apartment assuming 40% down-payment:
April 2008 Price: $785,000
Cost of Mortgage @ 6.25%: $2900
Maintc. $1291
Total: $4191
December 2008 Price: $650,000
Cost of Mortgage @ 5.125% $2123
Maintc. $1291
Total: $3,414
According to this calculation, the buyer would get 20% savings purchasing this apartment now vs. April 2008. How great is that. BUYERS what are you waiting for. I was getting sick and tired of the constant talk of some people – “I am waiting for prices to come down, it’s too expensive”. Well this is that long awaited buyer’s market with deal to be made left and right, I am not seeing those same people pulling the trigger.
It’s no longer “BUYERS BEWARE” I say “BUYERS GO THERE”…….
MARKET RECAP
Tuesday, November 18th, 2008|
by Michael J. McGivney, SVP
Stanley Capital Mortgage Company Stress in the real estate market caused U.S. home sales to fall sharply between September and October, according to a national survey of more than 2,500 real estate agents conducted by Campbell Communications and reported at Housingwire.com. Survey results showed that buy-side respondents indicated a 19% drop in completed transactions through September. Falling home prices and the increasing share of deep-discount foreclosure sales drove the average purchase loan size to $219,000, down from $245,000 at the beginning of 2008.
Of course, the data is…dated. The Mortgage Bankers Association reported that its seasonally adjusted index of mortgage applications, which includes both purchase and refinance loans, for the week ended November 7 increased 11.9% to 425.0, up from the previous week when the reading hit its lowest since December 2000. The increase in home loan demand indicates some sign of market stabilization.
We could see a continued uptrend in purchase activity if mortgage rates remain stable. On that front, the trend is working to the market’s favor. Last week, the prime 30-year fixed-rate mortgage slipped five basis points to 6.39% while the prime 15-year mortgage dropped 13 basis points to 6.08%, according to Bankrate’s latest national survey. If there is a silver lining to an economic slowdown it is that mortgage rates tend to drop.
The good news is that consumers are feeling a bit more chipper than most pundits at expected. The Consumer Sentiment Index, compiled by the University of Michigan, shows sentiment improved in early November after dropping in October. Lower fuel prices played an important role in the improved outlook. Gas prices have declined 17% since late October. In many parts of the country, gas can be purchased for less than $2 a gallon.
The fact, often glossed over by mainstream media outlets, is that affordability is returning to the retail, housing and mortgage markets – and that’s a good thing.
If you were to weigh the balance of last week’s economic news, the scales would tip negatively, but not overly so.
|
|
Economic |
Release |
Consensus |
Analysis |
|
Industrial Production |
Mon. Nov 17, |
0.4% (Decrease) |
Moderately Important. The expected decrease mirrors the overall economy. |
|
Producer Price Index |
Tues. Nov 18, |
All Goods: 1.2% (Decrease) |
Very Important. Further decreases in the PPI will quell any inflationary pressures. |
|
Housing Market Index |
Tues. Nov 18, |
15 Index |
Important. The index is unlikely to show any improvement until 2009. |
|
Mortgage Applications |
Wed. Nov 19, |
No Estimate Made |
Important. Applications continue to ebb and flow with mortgage-rate volatility. |
|
Consumer Price Index |
Wed. Nov 19, |
All Goods: 0.5% (Decrease) |
Very Important. Lower consumer prices give the Fed more room to lower interest rates. |
|
Housing Starts |
Wed. Nov 19, |
800,000 (Annualized) |
Important. Lower prices are stimulating interest in the new-home market. |
|
Federal Reserve FOMC Minutes |
Wed. Nov 19, |
No Estimate Made |
Important. The minutes will likely reflect a recessionary bias. |
|
Leading Indicators |
Thurs. Nov 20, |
0.5% |
Moderately Important. Indicators will confirm current economic trends. |
|
Negativity Sells…Unfortunately The Treasury Department announced that it had scrapped plans to buy mortgage assets. Instead, the $700-billion Troubled Asset Relief Program (TARP) would continue to focus on direct capital injections to struggling banks and consider ways to help the “nonbank” financial sector. The media interpreted the strategy change negatively, hinting that Treasury Secretary Hank Paulson lacks direction and leadership. That’s not the case. Many financial experts believe the best strategy to get lenders lending is with direct capital injections that improve their equity accounts. What’s more, the variability in the value of many of these mortgage assets is so great in this market that arriving at a fair price is nearly impossible, so a switch to direct-capital injection is perfectly sensible. The same negative spin is often put on the mortgage market. Contrary to what you have read or heard, there is plenty of money available for home purchases, new home construction, and refinancing. While it is clear that guidelines for approvals have changed, becoming more restrictive due to the increases in mortgage delinquencies and foreclosures, loans are still available with zero down in some cases, borrower credit that is less than perfect, and down-payment assistance. Unfortunately, too many potential home buyers are heeding the headlines, and not even applying for a mortgage for fear of being rejected. We can’t repeat enough that this is one of the most favorable home-buyers markets in years, and that there is plenty of money available. It would be a shame for any potential buyer to miss an important opportunity due to misinformation. |
Manhattan Apartments Decline in Value
Monday, November 17th, 2008Crisis Hits Home for New Yorkers – Where Wall Street Meets Main Street
(MMJ) given the unprecedented events of the past 2 months we find it
necessary to provide an interim update on the state of the Manhattan
housing market. Declining prices, 10-15% per annum, are now clearly
broad based and affecting all neighborhoods. We have examined the data
and broken it down into two sets. Firstly, the closed sales and
secondly, the current pending deals and listings. These are our
findings based on the closed sales data as reported by The Real Estate
Board of New York (REBNY):
- Market conditions have been weakening since the
sub-prime crisis began in the summer of 2007. Effects were
generally contained to the tertiary sectors of the market until
2008.
- In March ’08, the weakness expanded into the broader
markets. Lenders tightened their underwriting criteria and demand
for apartments slackened.
- Average apartment price is down 8.8% since 1Q08. The
3Q08 average was $1,415,000 versus $1,552,000 for 1Q08.
- There were 4,019 closed apartment sales in the first
quarter of ‘08 and 3,664 in the 3rd quarter, also down 8.8%
- The median price of a Manhattan apartment peaked at
$920,000 in the second quarter and fell 8.2% to $845,000 in the
third quarter.The current data, pending trades and listings, are the best real time
indicators; however they are much more difficult to track. MMJ has
amassed a statistically significant sample (over 200 contracts since
September 1) from which we are able to draw the following conclusions:
- Market conditions have deteriorated further. Sales
volume (contracts) during September/October was off by
approximately 75% versus same period 2007.
- Numerous deals negotiated pre-September have been
re-traded and at lower levels
- Inventory levels are ballooning as absorption of new
developments drops off
- Job losses in the financial services sector are
widespread (estimated to reach 140,000 by year end) and expected
to continue
- Rental rates are also declining
- Overall Demand for housing is declining
-
In conclusion, the most current data indicate that prices have declined
at 10-15% per annum from 03/08 levels. Additionally, current trades are
now occurring at levels equal to the first half of 2006.
About MMJ & the Market Measure: Mitchell Maxwell & Jackson, Inc. is New
York’s largest residential real estate appraisal company. The Market
Measure reports periodic sales activity of specific property types
within established geographic parameters of New York City. With New
York’s largest residential sales database, the report shows changes in
the market by size, location, and price rang e. Quarterly and additional
reports can be found on the company website at www.mmja.com
