Market continues to rise on strength on booming economy

As demand rises while the supply is tight, prices will trend upward.

As demand rises while the supply is tight, prices will trend upward.

Market continues to rise on strength on booming economy

“The strength of the housing market and robust demand for housing is citywide, in every borough and across every housing type,” said John Banks, REBNY President.

“This uniform improvement across the board is both a by-product of and a contributor to New York City’s vibrant economy, which continues to experience positive population and job growth.”

The entire NYC market saw increases in total consideration, sales volume, and average sales prices in the second quarter of 2015, according to the Real Estate Board of New York’s (REBNY) Second Quarter Residential Sales Report.

In Manhattan, total consideration for residential sales surged 20 percent year-over-year to $5.96 billion, while in Brooklyn, total consideration for residential sales increased 10 percent to $2.16 billion.

The total consideration for residential sales in Queens also rose 15 percent to $1.6 billion year-over-year.

The average sales price of a home in New York City increased 12 percent to $923,000 from $826,000 in the second quarter of 2014.

This rise was driven by a substantial uptick in average prices in all boroughs and particularly large average price increases in Manhattan.

Similar to the results in the last two consecutive quarterly reports, Manhattan condos again had the largest effect on the overall average sales price for a home in New York City this quarter.

The average price of a Manhattan condo increased 31 percent year-over-year to $2,353,000 while the number of sales increased 2 percent.

This large average price increase was partly attributable to more closings at 157 West 57th Street where six sales over $20 million dollars were recorded during the quarter, including one over $90 million.

Excluding the 157 West 57th Street sales, the average sales price for a Manhattan condo was $2,143,000, a 19 percent increase year-over-year.

The home sales markets in Brooklyn and Queens saw sizable average price increases of 9 percent year-over-year, while the Bronx and Staten Island saw average price increases of 7 and 6 percent respectively.

The total number of homes sales in New York City increased by five percent year-over-year to 11,262.
Year-over-year sales volume in: Queens rose 5 percent to 3,409 sales; Brooklyn increased 1 percent to 2,782 sales; and the Bronx rose 11 percent to 728 sales in the second quarter of 2015.

Don’t Miss These Homeowner Tax Benefits

Don’t Miss These Homeowner Tax Benefits

Written by Blanche Evans on 16 July 2015

One of the most useful yet widely misunderstood benefits of homeownership is tax deductions. Tax deductions are a welcome gift from the government, but if you’re renting, they benefit your landlord, not you.

Property tax deduction: Any money you paid during the year you purchase and in the years afterward to local state, county and city property tax assessors is tax deductible.

Mortgage interest deduction: Your mortgage interest on both first and second liens is tax deductible. Any points you paid to obtain a lower interest rate are deductible. Private mortgage insurance payments are also deductible.

Closing costs: Some fees to the mortgage lender are deductible. Ask your tax professional for guidance. You can deduct some moving expenses, such as items for home offices. Save your Hud-1 form and show it to your tax professional.

Home office deductions: If your home is your principle place of business, and you meet other IRS guidelines for home businesses, you can take a deduction on workspace dedicated to your business and no other purpose. You can also depreciate that portion of your home over 39 years. All improvements to the workspace are tax deductible. In addition, your security expenses, phones, internet costs, computers, insurance, and utilities can be deducted or depreciated according to IRS allowances. Percentages and limits apply, so talk to your tax professional.

Energy Star: If you purchased an energy efficient system or appliance for your home and it meets government Energy Star standards, you may deduct a portion of your expenses. Save your receipts.

Property sales deductions: If you purchased a home today, occupied it as a primary residence, and sold it in two years, you could be eligible for some capital gains exclusions up to $250,000 if you’re single, or $500,000 if you’re married. You can even live in the home two years, rent it out for three years, and still enjoy the capital gains exclusion.

There may be many other deductions out there for you to take advantage of that are associated with your home, so save all receipts throughout the year for repairs, parts, purchases, remodeling, etc. Some allowances and special circumstances apply, so before taking this exclusion, be sure to talk to your tax professional.

Save your tax records up to seven years, because you have to be able to support the deductions you take with documentation such as receipts, credit card statements, cancelled checks, and online banking. Make sure you take deductions and depreciation only for legitimate items.

Remember all the benefits you could be getting in deductions, your landlord is currently enjoying while billing all costs associated with managing the home to you. Wouldn’t you rather do that yourself?

New-Home Sales Climb to 7-Year High

New-Home Sales Climb to 7-Year High

New-home sales surged to the highest rate since February 2008, as the new-construction market continues to gain ground this year. Sales of newly built single-family homes increased 2.2 percent, reaching a seasonally adjusted annual rate of 546,000 units in May, according to a report from the Commerce Department.

“Our builders are seeing motivated buyers and the release of pent-up housing demand,” says Tom Woods, chairman of the National Association of Home Builders. “However, builders are facing supply-chain challenges, which is affecting the inventory of new homes.”

Sales are nearly 20 percent higher than the pace in May 2014. New-home inventories remain tight at 206,000, a 4.5-month supply at the current sales pace. That’s pushed the average sales price of a new home sold in May to $337,000.

“This month’s new-home sales report is consistent with other government data and rising builder confidence that indicate a continual recovery of the housing market,” says David Crowe, NAHB’s chief economist.

Regionally, new-home sales were mixed in May. They rose 87.5 percent month-over-month in the Northeast and had a 13.1 percent boost in the West. However, new-home sales dropped 5.7 percent in the Midwest and 4.3 percent in the South.

Source: National Association of Home Builders and “New Home Sales Up 2.2% in May,” Forbes.com (June 23, 2015)

How renting became the new homeownership – The Washington Post

“This shift, underway since the housing bust, is flipping conventional images of what it means to rent: Renters are now living, by the millions, in single-family homes that were once owned.” via How renting became the new homeownership – The … Continue reading

The Pain of Fixture Feuds – When Buyers and Sellers bicker over what stays.

This article appeared in the June issue of Realtor Magazine.

You are just about at the end of negotiations and out of the blue the parties to the sale are having a standoff over the bathroom faucet. Sounds petty? Read on to find out how you can avoid this situation in the future…

>>>The Pain of Fixture Feuds | Realtor Magazine.<<<

BUY, SELL, RENT. WHAT SHOULD YOU DO?

BUY. SELL. RENT. Choices, choices, choices.

Let’s take a look at who has the wind at their back in this market.

Landlords/Investors After the recession homeowners who were forced to sell are still unable to get back into the housing market, either because of credit issues or because they are being priced out of the market by the competition. There is a shortage of inventory, and there are many cash buyers with deep pockets swooping in, especially in the single family housing market. Investors make up a large portion of these cash buyers, and they turning the homes into rental properties, taking advantage of the current shortage. Rental rates are rising and occupancy is high.

Sellers If ever there was a time to sell, this is it. With the shortage of inventory, if a home is well-priced, it is going to go into multiple offers and selling quickly, most probably over the asking price. However, the downside here is that if a seller is thinking of selling and buying another home in Los Angeles, then they will put themselves in the pool with all the other buyers competing for the same homes. A seller cannot make their offer contingent on the sale of their own property as it will not be accepted, so unless they don’t have to rely on the sale of their own property to buy then they should think carefully. However, don’t worry about buying at the top of market because you are also selling at the top of the market.

Buyers If you are sick of paying someone else’s mortgage and have decided that it makes more sense to buy than rent, just be strong and stick with the market. Keep making offers until yours is the successful one. Yes it could be near the top of the market right now, but real estate will always be a good investment, and whenever you buy you will look back and be glad you did. Your alternative is to remain in the ranks below.

Renters Sometimes it just does not make sense to buy. Your rent is so cheap. You love the area in which you live and would not be able to afford to buy there. You don’t have the down payment or your credit is not good. You are nervous about committing yourself to a mortgage. These are all valid reasons not to buy. But, the rental market is a fickle one. Right now rents are on the rise, vacancies are down , and competition is high, making buying a home look more and more attractive. Do the math and see what makes more sense long term.

State of the Market for First Quarter of 2015

Here are Staten Island real estate market statistics as of March, 2015 which marks the end of the first quarter for 2015. 

Year to date pending sales are up 24.5% from 2014 and closed sales are up 16.7%.

At the same time the inventory of homes for sale has decreased by 22.5% and the months of supply of inventory has gone from 8.6 months to 6.3 months of supply. 

The median sales price is up 1.3% while the average sales price is actually down 0.4% indicating that the entry level priced homes are gaining while the prices of homes on the higher end are actually slipping.

With mortgage interest rates remaining low we are in a healthy real estate market at this time.
Source: SIBOR May 11, 2015

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