March 29, 2016
Newsmax quoted me in How to Buy and Sell in the Sexiest of Real Estate Markets. It opens,
With the opening of the 7 subway station at 34th Street last year, more than 100 shops and 5,000 residences, the Hudson Yards neighborhood in Manhattan is creating new demand for housing.
“We’ll likely witness a progression of rising prices as the entire development grows both residentially and commercially,” said Brad Malow, licensed real estate broker with Charles Rutenberg, a real estate firm in Manhattan.
Stretching from West 30th to 34th Streets and 10th to 12th Avenues, Hudson Yards is just one example of how supply of inventory impacts pricing in the world of real estate.
“The problem right now in the sales market is that supply is not catching up fast enough to pent up demand,” Malow told Newsmax Finance. “If supply increases and demand stays the same, what usually results is lower pricing.”
The New York housing market is very different from most others in the U.S. The vacancy rate in New York has hovered at 2% on average, according to a Douglas Elliman/Miller Samuel data and new development inventory is up 101% with supply and demand fluctuating from season to season.
That makes proper pricing important to the marketing of all types of property given the extraordinarily low vacancy rate.
“The supply of new housing is very low given the size of the market and the rental market is heavily regulated, depressing the rents for many units,” said David Reiss, professor of law with the Brooklyn Law School in Brooklyn.
- The Consumer Financial Protection Bureau has implemented a new rule that effectively implements the Helping Expand Lending Practices in Rural Communities (HELP) Act.
- The House of Representatives passed the Foreclosure Relief and Extension for Servicemembers Act of 2015 (S. 2393), which provides financial protections, for instance in foreclosure, for those who incurred debt prior to active service.
- The S. Supreme Court comes out 4-4 on discrimination claims in spousal guarantor suit following the death of Justice Antonin Scalia, affirming the lower court decision.
- The NJ Tax Court held that when valuing a piece of land, environmental contamination caused by a chemical manufacturing facility should be considered.
- American Capital Ltd., a private equity firm, attempts to nix suit by Mission Peak Capital affiliate alleging that it reneged on a $52 million sale of commercial mortgage-backed securities.
- The Securities & Exchange Commission filed suit against two brothers and their real estate investment firm for allegedly taking $2.7 million from investors in a Ponzi scheme.
March 25, 2016
- The S. Commerce Department reported a 5.2 percent increase in housing starts in February 2016, a 7.2 percent increase from January in single-family homes.
March 24, 2016
- The Hispanic Wealth Project released “The State of Hispanic Homeownership Report,” which found that Hispanic homeownership is at its highest since 2009.
- The Harvard Joint Center for Housing Studies released a case study examining the private for-profit sector’s importance in affordable housing development, focusing on the country’s leading for-profit affordable housing developers.
March 23, 2016
- Speculative Fever: Investor Contagion in the Housing Bubble, Patrick J. Bayer, Kyle Mangum & James W. Roberts, Economic Research Institutes at Duke (ERID) Working Paper No. 211.
- Network Affiliation and Mortgage Modification in the Non-Agency MBS Market, James Neil Conklin, Moussa Diop & Walter D’Lima.
- Special Economic Zones in the United States: From Colonial Charters, to Foreign-Trade Zones, Toward USSEZs, Tom W. Bell, Chapman University, Fowler Law Research Paper No. 16-02.
- Addicted to Government? The Impact of Housing Assistance on Program Participation of Welfare Recipients, Barbara A. Haley & Aref Dajani, Poverty & Public Policy 2015.
- Sharing and the City, Michèle Finck & Sofia Ranchordas.
- Residential Mortgages and Public Policy: What to Do with Fannie and Freddie?, David Kohn & James S. Sagner, Business and Society Review, Vol. 121, Issue 1, pp. 161-183, 2016 (Paid Access).