NYC MARKET UPDATE
The real estate market is up in 4 of the 5 boroughs in New York City. Median home values are down in Manhattan, where its become a buyers market. Median prices have dropped -6.1% in Manhattan year-over-year, according to Zillow. The median home value in Manhattan is now $1,228,200.
Brooklyn home values are holding steady, up a modest 1.5% year-over-year. The median price of homes currently listed in Brooklyn is $749,000. In Queens, median home values have gone up 5.1% over the past year. The median home value in Queens is $649,700 right now.
The hottest real estate market in the city right now is the Bronx, where the median home value is $437,900. Bronx home values have risen 9.8% over the past year. Staten Island home values have gone up 5.8% over the past year. The median home value in Staten Island is now $532,800.
NATIONAL MARKET UPDATE
The median home value in the United States is $226,700, an increase of 6.6% over the past year. Zillow predicts median home values will rise 4.1% over the next year. In February, existing home sales experienced their largest monthly gain in four years, according to a recent report by the National Association of Realtors.
Over the last two years, the average homeowner has accrued about $21,300 in home equity, according to the National Association of Realtors (NAR). NAR Chief Economist Lawrence Yun said that a combination of lower mortgage rates, more inventory, rising income and higher consumer confidence are driving sales.
Rising home prices aren’t discouraging homebuyers. According to a recent quarterly NAR survey, more Americans believe that now is a good time to purchase a home, citing the improved economy as an incentive. NAR Chief Economist Lawrence Yun said other factors are spurring buyer optimism, including more available homes for sale and stabilizing home price trends.
Yun also notes that mortgage affordability in 2019's first quarter was favorable to homebuyers, because the Federal Reserve isn’t going to raise overnight borrowing rates to banks, which contributed to mortgage rate declines and making homeownership slightly more affordable for homebuyers. Mortgage rates remain near historically low levels.
Colin R. O'Leary
Licensed Real Estate Salesperson
Berkshire Hathaway HomeServices New York Properties
590 Madison Avenue, New York, New York 10022
Direct: 646.677.9346| Mobile: 516.330.2756
Bio & Listings: bhhsnyproperties.com/colin
Real Estate Board of New York Member
U.S. Air Force Veteran
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The new triangular observation deck at the #HudsonYards will be the highest in the city at 1,100 feet when it opens in 2020.
The B1M, a construction video channel, travels from east to west to showcase the largest infrastructure projects currently under construction on each of the six inhabited continents. See the video below.
This 1994 documentary by the History Channel details how the history and creation of the NYC subway system. The system started out with a single elevated line only in Manhattan. It quickly morphed into a 245-mile long underground rapid transit systems that spread to all ends of the city. Millions of people ride the system each year, making it one of the busiest rapid transit systems in the world today. Watch the documentary below to learn more about the history of rapid transit in NYC.
Is Warren Buffet now the King of Residential Real Estate? Warren Buffet owned Berkshire Hathaway HomeServices has surpassed Realogy's NRT to become the largest residential brokerage in the country, by the number of deals closed. The Minneapolis-based company closed 346,629 deals in 2018, narrowly ending NRT's 20-year reign on top.
Berkshire Hathaway HomeServices has been in expansion mode over the past couple of years and now has over 44,000 agents and 919 offices in all 50 states. The company opened its first office in NYC in 2017. The company has also began expanding overseas, recently opening offices in London, Berlin, and Milan, with further plans to open offices in Paris, Hong Kong, Mexico City, and Tokyo.
NRT, the company that owns residential brokerage powerhouses like The Corcoran Group, Coldwell Banker, and Sotheby’s International Realty, has dropped to the second spot on the list after a very respectable 20-year reign on top. NRT narrowly fell to the second spot on the top residential brokerage list having closed 337,235 deals in 2018, just 10,000 transactions short of the top spot.
NRT still has something to celebrate though. The company had the highest sales volume in the country last year, with $176.4 billion in sales. Berkshire Hathaway HomeServices came in second in sales volume selling $135.9 billion dollars worth of real estate, up from $125.4 billion in transaction volume in 2017. Compass and Douglas Elliman took the third and fourth spots in total sales volume. Compass generated a respectable $45.5 billion in sales volume, while Douglas Elliman generated $28.1 billion in sales volume.
A new 2-minute time-lapse video has been released that shows the brand new Hudson Yards mega-development project in NYC rising over a six-year period. The video was shot from high above the 28-acre project in midtown east between December 2012 and March 2019. More than 3 million photographs and 500,000 hours of imagery were compiled by New Jersey-based web camera company EarthCam to create the stunning time-lapse video. The video includes ultra-widescreen panoramic views of the development site. The $25 billion mega-development opened recently to much fanfare. The Hudson Yards development includes new luxury high-rises, high-end offices, restaurants, a school, and a new climbable work of art dubbed as the Vessel.
Watch the time-lapse video of the Hudson Yards construction below.
The Chrysler Buildings ownership is about to change hands. Signa, Austria’s largest private real estate company, has agreed to purchase the Chrysler Building in NYC for $150 million. Signa, has agreed to purchase the building in a partnership with RFR Holding LLC, a Manhattan-based real estate investment firm. The agreement is said to have been signed on Friday, according to Fox Business.
The current owner, a Abu Dhabi government fund, will take a big hit on the sale after paying $800 million for a 90% stake in the building back in 2008. New York developer Tishman Speyer, who currently manages the property, owns the remaining 10% interest. One of the issues facing the Chrysler Building is that it does not own the land that the property sits on. The owners are required to pay a sizeable land lease yearly to the Cooper Union school, who owns the land. The annual land lease just increased to $32.5 million in 2018, from $7.75 million the year prior. This major increase in fees due yearly because of the land lease certainly has effected the market value of the property. The building first opened in 1930 and is in need of significant upgrades to bring it into the 21st century.