I love the day after Christmas where I'm usually found hanging around the house in my slippers and robe. I can quietly enjoy the day after all the whirlwind of festivities and take the time to reflect on what has happened and what may happen in the new year.
Manhattan real estate has been absolutely amazing over the past three months. It's as if - again - "the sky is falling" syndrome has returned. I love taking the time to think how to restructure and organize our business so we can change with the market. Because that is afterall the key to success - be changeable with the times.
By my side is Charleston (my faithful dog), who is essentially sleeping off the doggie treats he has been enjoying. He's encouraging me to do the same.
I wish everyone a wonderful holiday and I look forward to learning more in the new year.
Friday, December 26, 2008
Friday, December 5, 2008
NYC Apartment Rents Fell in November, Vacancies Rose
Bloomberg.com December 04, 2008
NYC Apartment Rents Fell in November, Vacancies Rose
Sharon L. Lynch
Manhattan apartment rents fell for a fourth consecutive month in November and vacancy rates reached 2 percent for the first time in almost two years as Wall Street’s financial turmoil took a toll on the housing market.
Rents dropped 2.2 percent to 4.9 percent across all sizes of apartments, with the biggest drop in the smallest flats. Studios rented for an average of $1,808, down from $1,901 in October, New York-based real estate broker Citi Habitats said today in a report.
Rents are declining as New York City is forecast to lose as many as 165,000 jobs, including 35,000 in the financial industry, as the impact of the credit crisis spreads throughout the economy. Wall Street firms including Merrill Lynch & Co. have produced mortgage-related losses and writedowns of more than $900 billion and are cutting staff as the economy weakens.
“There’s a lot of volatility out there. A lot of people are worried about their personal circumstances,” Citi Habitats President Gary Malin said in an interview. “Everyone is definitively conscious about price.”
SoHo Most Expensive
The city’s most expensive neighborhood remained the Soho/TriBeCa area, with studios renting for an average of $2,395, one bedrooms for $3,637, two bedrooms going for $5,300 and three bedrooms for $7,045.
A three bedroom in Soho/TriBeCa costs almost 20 percent more to rent than on the Upper West Side, the second most expensive neighborhood for that size apartment.
Excluding areas north of 96th Street, the cost of a studio apartment fell the most in West Midtown, with the average declining 10.6 percent to $1,832. One bedrooms dropped the most in Midtown East, where they fell 7.5 percent to $2,621.
Murray Hill had the biggest drop in two-bedroom apartment rents, falling 10.4 percent to $3,225.
The biggest drop in three-bedroom apartments was in the Wall Street/Battery Park City neighborhood, where the average cost dropped 6.1 percent to $5,304.
The least expensive neighborhood south of 96th Street for studio apartments, two- and three-bedroom apartments was the Lower East Side. Studio rents there fell 1 percent to $1,600 a month, two bedrooms declined 3.2 percent to an average of $2,917 and three-bedrooms were little changed at $4,081.
For one-bedroom units south of 96th Street, the least expensive area was the Upper East Side, where prices fell 2.6 percent to $2,228.
More Discounts
Rising vacancies are also prompting some landlords to offer incentives such as a free month’s rent, Malin said.
“If I’m a tenant, I’m certainly going to have more options of apartments to look at,” Malin said. “They are also going to have more options when it comes to pricing.”
Rents are falling in Manhattan as apartment sales also decline and the inventory of unsold properties rises.
Sales fell for the third consecutive quarter and inventory rose by a third even in the three months ended Sept. 30 even as prices continued to extend a five-year streak of gains, New York-based real estate appraiser Miller Samuel Inc. and broker Prudential Douglas Elliman Real Estate said in a report on Oct. 3.
Transactions dropped 24 percent to 2,654 from a year earlier and the number of apartments on the market increased to 7,003. The median price of a condominium and co-op jumped 7.4 percent to $928,263, the second highest on record.
The third-quarter Manhattan property market results were the first to capture sales since Bear Stearns & Co. was forced to sell itself to rival JPMorgan Chase & Co. in March after customers and lenders fled on speculation the company was short of cash.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aCnxy9pXB7O0
NYC Apartment Rents Fell in November, Vacancies Rose
Sharon L. Lynch
Manhattan apartment rents fell for a fourth consecutive month in November and vacancy rates reached 2 percent for the first time in almost two years as Wall Street’s financial turmoil took a toll on the housing market.
Rents dropped 2.2 percent to 4.9 percent across all sizes of apartments, with the biggest drop in the smallest flats. Studios rented for an average of $1,808, down from $1,901 in October, New York-based real estate broker Citi Habitats said today in a report.
Rents are declining as New York City is forecast to lose as many as 165,000 jobs, including 35,000 in the financial industry, as the impact of the credit crisis spreads throughout the economy. Wall Street firms including Merrill Lynch & Co. have produced mortgage-related losses and writedowns of more than $900 billion and are cutting staff as the economy weakens.
“There’s a lot of volatility out there. A lot of people are worried about their personal circumstances,” Citi Habitats President Gary Malin said in an interview. “Everyone is definitively conscious about price.”
SoHo Most Expensive
The city’s most expensive neighborhood remained the Soho/TriBeCa area, with studios renting for an average of $2,395, one bedrooms for $3,637, two bedrooms going for $5,300 and three bedrooms for $7,045.
A three bedroom in Soho/TriBeCa costs almost 20 percent more to rent than on the Upper West Side, the second most expensive neighborhood for that size apartment.
Excluding areas north of 96th Street, the cost of a studio apartment fell the most in West Midtown, with the average declining 10.6 percent to $1,832. One bedrooms dropped the most in Midtown East, where they fell 7.5 percent to $2,621.
Murray Hill had the biggest drop in two-bedroom apartment rents, falling 10.4 percent to $3,225.
The biggest drop in three-bedroom apartments was in the Wall Street/Battery Park City neighborhood, where the average cost dropped 6.1 percent to $5,304.
The least expensive neighborhood south of 96th Street for studio apartments, two- and three-bedroom apartments was the Lower East Side. Studio rents there fell 1 percent to $1,600 a month, two bedrooms declined 3.2 percent to an average of $2,917 and three-bedrooms were little changed at $4,081.
For one-bedroom units south of 96th Street, the least expensive area was the Upper East Side, where prices fell 2.6 percent to $2,228.
More Discounts
Rising vacancies are also prompting some landlords to offer incentives such as a free month’s rent, Malin said.
“If I’m a tenant, I’m certainly going to have more options of apartments to look at,” Malin said. “They are also going to have more options when it comes to pricing.”
Rents are falling in Manhattan as apartment sales also decline and the inventory of unsold properties rises.
Sales fell for the third consecutive quarter and inventory rose by a third even in the three months ended Sept. 30 even as prices continued to extend a five-year streak of gains, New York-based real estate appraiser Miller Samuel Inc. and broker Prudential Douglas Elliman Real Estate said in a report on Oct. 3.
Transactions dropped 24 percent to 2,654 from a year earlier and the number of apartments on the market increased to 7,003. The median price of a condominium and co-op jumped 7.4 percent to $928,263, the second highest on record.
The third-quarter Manhattan property market results were the first to capture sales since Bear Stearns & Co. was forced to sell itself to rival JPMorgan Chase & Co. in March after customers and lenders fled on speculation the company was short of cash.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aCnxy9pXB7O0
Tuesday, November 25, 2008
Thanksgiving
It seems with all that is happening in our real estate market - there is still much to be thankful for and that includes right now the ability to even complain about it.
Can I just start charging people $1.00 every time I'm asked - "How's the market?" I think it would help offset my bus fare. My favorite response has always been - "which market are you asking about?" Because we certainly have a commercial; residential; rental; sales; uptown; downtown; midtown; etc. set of markets all of which have been performing differently at different times. But we can be really safe saying now -- every one of these markets is essentially just WAITING. But -- the big one here -- if people felt edged out over the past year by prices, please start looking because there are possibilities out there now. For instance, co-op studios have dropped under 300K - and there is more to follow. Of course, many properties were just simply over-priced to begin with but there's no question that prices have dropped from 2007 - to the tune of 30%.
Traditionally everyone waits about 60 days after a Presidential election (Yea Obama!) to make any major decision, and this year is no different.
I'm longing for January 2009.
I loved receiving from Rick Gregory, my main man at Weichert Financial, the first news of the drop in rates today - followed up by his remarks that he will do whatever it takes to get the deal done for us. Now that's a CAN DO type of attitude I love. He's also a rarity in this business.
What is it about most Manhattanites that everyone has to be so cranky, all of the time? Is it because no matter how much money you make, it's never enough? No matter how many sit-ups you do, it's never enough? No matter how many friends you make - or for that matter, enemies, it's never enough? And on that note - it seems I have no end of either friends or enemies. I've been told it's because I speak my opinion -- classic Sagittarius trait I reckon. But for better and often for worse, I have unfortunately spoken my opinion.
So leading with "crankiness" -- we are smack up against Thanksgiving - a time of reflection, draggin' out the old speeches that other people wrote and said. And I'm feeling a wee bit cranky myself.
Can I just start charging people $1.00 every time I'm asked - "How's the market?" I think it would help offset my bus fare. My favorite response has always been - "which market are you asking about?" Because we certainly have a commercial; residential; rental; sales; uptown; downtown; midtown; etc. set of markets all of which have been performing differently at different times. But we can be really safe saying now -- every one of these markets is essentially just WAITING. But -- the big one here -- if people felt edged out over the past year by prices, please start looking because there are possibilities out there now. For instance, co-op studios have dropped under 300K - and there is more to follow. Of course, many properties were just simply over-priced to begin with but there's no question that prices have dropped from 2007 - to the tune of 30%.
Traditionally everyone waits about 60 days after a Presidential election (Yea Obama!) to make any major decision, and this year is no different.
I'm longing for January 2009.
I loved receiving from Rick Gregory, my main man at Weichert Financial, the first news of the drop in rates today - followed up by his remarks that he will do whatever it takes to get the deal done for us. Now that's a CAN DO type of attitude I love. He's also a rarity in this business.
What is it about most Manhattanites that everyone has to be so cranky, all of the time? Is it because no matter how much money you make, it's never enough? No matter how many sit-ups you do, it's never enough? No matter how many friends you make - or for that matter, enemies, it's never enough? And on that note - it seems I have no end of either friends or enemies. I've been told it's because I speak my opinion -- classic Sagittarius trait I reckon. But for better and often for worse, I have unfortunately spoken my opinion.
So leading with "crankiness" -- we are smack up against Thanksgiving - a time of reflection, draggin' out the old speeches that other people wrote and said. And I'm feeling a wee bit cranky myself.
Thursday, November 13, 2008
Wednesday, November 12, 2008
NAR in MANHATTAN
Just returned from the National Association of Realtors Convention in Orlando, Florida and it was a blast. For nearly 25 years now, I've worked in Manhattan real estate and most of it I was completely ignorant of NAR's work and the opportunities available.
Gads, it's amazing to me how back woods Manhattan's real estate market is and the fact that a MLS exists and most people don't even know about it.
Well, our sellers and buyers do benefit from our membership and hopefully in time, others will too.
Gads, it's amazing to me how back woods Manhattan's real estate market is and the fact that a MLS exists and most people don't even know about it.
Well, our sellers and buyers do benefit from our membership and hopefully in time, others will too.
Friday, October 24, 2008
October Leading to the Polls
OK - I nearly "bugged" out when I saw that my last posting was in August. So much for careful blogging about real estate.
So what did you do when you heard all the financial news announced?
I had such an image in my mind - 1989/1990 people screaming, "The sky is falling, the sky is falling." Clients would yell at me, "We're in a depression!" Why do people feel they need to scream? Our path to incredulous?
Well, I don't know about you but what I did was to pack my satchel and headed to the loving realm of two of my best friends on the coast of Oregon. What a welcome relief. The land of sweatshirts; pick-up trucks; and salmon. Oh dear am I waxing "Palin"? And three weeks later...
Guess what?
We are all still here.
I'd love to break out into song at this moment but we are still talking about real estate and still talking about deals.
Been there - done that - we like to say. Take faith, we do survive these things. Sometimes we just need to be a bit more creative.
So, in that light I'm announcing that tomorrow I head to Pennsylvania to do some campaigning - for Barack Obama. Yes, here I am a founding member of the Federalist Society at New York Law School. I made a call to Tom Cole's office to deliver the news. As if he cares?
So, musing on many issues, I'm grateful our Mayor will be around to help lead this City for a third term. I've never been for extending term limits, but on this call - I beg for it. God bless America.
And to inspire everyone, here are the news headlines tonight as delivered to me by the National Association of Realtors. Enjoy!
State News
NYC Council extends term limits
The New York City Council voted by a margin of 29 to 22 to approve Mayor Michael Bloomberg’s plan to change the term-limits law so he can run for re-election following the conclusion of his second term, which ends in 2009. The bill gives all city officials an opportunity to run for a third term. A recent NY1 poll found that 89 percent of New Yorkers say the issue of term limits should be decided by a voter referendum. Meanwhile, 59 percent of city voters say they would “definitely” or “probably” vote for Bloomberg if he ended up on the ballot next year. Click here to find out how the Council voted.
Recent housing statistics
This past week a Prudential Douglas Elliman report found that the median sale price in Queens declined 11.4 percent to $400,000 from the comparable period in 2007. The report also said that sales dropped 35.3 percent to 3,240 transactions for the quarter, compared with the same time last year. The borough has been leading the city in foreclosures this year, up 100 percent compared to the third quarter of 2007. As for New York’s Capital Region, foreclosures have jumped 138 percent in one year, up from 232 foreclosures in the period of July-September 2007 to 553 for the same period in 2008. The silver lining in the Capital Region, despite the jump, is that the region had the 96th-lowest foreclosure rate among the country’s largest 100 metropolitan areas according to RealtyTrac.com.
New York schools could do more to cut property taxes
According to New York State Comptroller Thomas DiNapoli, New York school districts are setting aside about $400 million too much in special accounts to pay for departing employees’ unused time. In a statement DiNapoli said: “School districts may have thought they were planning prudently for long-term costs, but they actually were stranding more than $400 million that could have been used to reduce property taxes.” DiNapoli further recommended that lawmakers pass legislation to require that districts remove excess money from the special accounts. The money could go toward property-tax relief, capital projects or other post-employment benefits. Click here for more information.
So what did you do when you heard all the financial news announced?
I had such an image in my mind - 1989/1990 people screaming, "The sky is falling, the sky is falling." Clients would yell at me, "We're in a depression!" Why do people feel they need to scream? Our path to incredulous?
Well, I don't know about you but what I did was to pack my satchel and headed to the loving realm of two of my best friends on the coast of Oregon. What a welcome relief. The land of sweatshirts; pick-up trucks; and salmon. Oh dear am I waxing "Palin"? And three weeks later...
Guess what?
We are all still here.
I'd love to break out into song at this moment but we are still talking about real estate and still talking about deals.
Been there - done that - we like to say. Take faith, we do survive these things. Sometimes we just need to be a bit more creative.
So, in that light I'm announcing that tomorrow I head to Pennsylvania to do some campaigning - for Barack Obama. Yes, here I am a founding member of the Federalist Society at New York Law School. I made a call to Tom Cole's office to deliver the news. As if he cares?
So, musing on many issues, I'm grateful our Mayor will be around to help lead this City for a third term. I've never been for extending term limits, but on this call - I beg for it. God bless America.
And to inspire everyone, here are the news headlines tonight as delivered to me by the National Association of Realtors. Enjoy!
State News
NYC Council extends term limits
The New York City Council voted by a margin of 29 to 22 to approve Mayor Michael Bloomberg’s plan to change the term-limits law so he can run for re-election following the conclusion of his second term, which ends in 2009. The bill gives all city officials an opportunity to run for a third term. A recent NY1 poll found that 89 percent of New Yorkers say the issue of term limits should be decided by a voter referendum. Meanwhile, 59 percent of city voters say they would “definitely” or “probably” vote for Bloomberg if he ended up on the ballot next year. Click here to find out how the Council voted.
Recent housing statistics
This past week a Prudential Douglas Elliman report found that the median sale price in Queens declined 11.4 percent to $400,000 from the comparable period in 2007. The report also said that sales dropped 35.3 percent to 3,240 transactions for the quarter, compared with the same time last year. The borough has been leading the city in foreclosures this year, up 100 percent compared to the third quarter of 2007. As for New York’s Capital Region, foreclosures have jumped 138 percent in one year, up from 232 foreclosures in the period of July-September 2007 to 553 for the same period in 2008. The silver lining in the Capital Region, despite the jump, is that the region had the 96th-lowest foreclosure rate among the country’s largest 100 metropolitan areas according to RealtyTrac.com.
New York schools could do more to cut property taxes
According to New York State Comptroller Thomas DiNapoli, New York school districts are setting aside about $400 million too much in special accounts to pay for departing employees’ unused time. In a statement DiNapoli said: “School districts may have thought they were planning prudently for long-term costs, but they actually were stranding more than $400 million that could have been used to reduce property taxes.” DiNapoli further recommended that lawmakers pass legislation to require that districts remove excess money from the special accounts. The money could go toward property-tax relief, capital projects or other post-employment benefits. Click here for more information.
Wednesday, August 13, 2008
Sales in Manhattan - What's Going On?
While it seems every paper and website has been quoting the same numbers regarding sales in NYC (most relevant to us is Manhattan) - there is a subject that needs to be acknowledged - taxes - the lack there of and how prices might be effected.
In at nutshell -- according to analyst reports from StreetEasy, the sales are: fewer $1million Manhattan apartments traded in the first half of 2008, than in the first half of 2007. However, almost one out of every two Manhattan apartments sold in the first half of 2008 was for at least $1million. Of course the numbers are twisted by 15 CPW and the renovated Plaza closings. But it’s all - interesting to think about.
So, while we have product - there are no fire sales.
August is ALWAYS a great time to buy because traditionally the market is at its “softest” -- sellers are nervous that their property is still sitting, and prices usually drop to compensate. But we saw a bidding war on an UWS two bedroom property over last weekend. Fully renovated, the property appeared at $870,000 - a GREAT price. Promptly 30 parties appeared at Sunday’s Open House - offers flooded in - driving the price 100K above asking - accepted - with three back-ups. As we say - HELLO - smart agent - good work.
But an announcement occurred today. Mayor Bloomberg stated that Wall Street’s mortgage losses have grown so large that some firms may pay little or no taxes for years, widening New York City and state deficits and challenging their ability to provide services.
Some companies are seeking refunds from the city on taxes they paid ahead of time, saying losses have cut their tax liability to zero. The banks pay tax on 110 percent of earnings in advance as a “safe harbor,” protecting against penalties for underpayment.
“It will be a number of years before Wall Street starts paying taxes again,” the mayor said at a press conference yesterday in Manhattan. “They will carry forward all of those losses.”
Now - what also needs to be remembered is that we have in the City a good two years of property tax surpluses that accumulated over the past crazy, bonus years in real property sales. That cushion does assist in the total scheme. The Mayor stated “services” and I think perhaps there should be some thought of belt tightening on many of our public programs our population enjoys.
According to State Comptroller, Thomas DiNapoli, financial firms posted $501 billion in write-downs and credit losses worldwide since the start of last year, a figure the World Bank predicts may rise to $1 trillion as the credit squeeze sparked by the subprime market collapse worsens. The tax drain in New York, where Wall Street accounts for 20 percent of state revenue and about 9 percent for the city, will have an effect.
“If the World Bank’s prediction that the large investment banks will book up to $1 trillion in write-downs because of the mortgage crisis is true, then Mayor Bloomberg is absolutely right,” said Lynn Turner, former chief accounting officer of the U.S. Securities and Exchange Commission. “These guys won’t be paying taxes for some time.”
Do I see this as a call for alarm in our real estate market? No, I don’t. Not yet. That cushion is going to cover for a while - but there’s always the fact that it can be siphoned off fairly quickly to areas compensating for a lack of income.
As we enter 2009 -- I want to reconsider all of this.
In at nutshell -- according to analyst reports from StreetEasy, the sales are: fewer $1million Manhattan apartments traded in the first half of 2008, than in the first half of 2007. However, almost one out of every two Manhattan apartments sold in the first half of 2008 was for at least $1million. Of course the numbers are twisted by 15 CPW and the renovated Plaza closings. But it’s all - interesting to think about.
So, while we have product - there are no fire sales.
August is ALWAYS a great time to buy because traditionally the market is at its “softest” -- sellers are nervous that their property is still sitting, and prices usually drop to compensate. But we saw a bidding war on an UWS two bedroom property over last weekend. Fully renovated, the property appeared at $870,000 - a GREAT price. Promptly 30 parties appeared at Sunday’s Open House - offers flooded in - driving the price 100K above asking - accepted - with three back-ups. As we say - HELLO - smart agent - good work.
But an announcement occurred today. Mayor Bloomberg stated that Wall Street’s mortgage losses have grown so large that some firms may pay little or no taxes for years, widening New York City and state deficits and challenging their ability to provide services.
Some companies are seeking refunds from the city on taxes they paid ahead of time, saying losses have cut their tax liability to zero. The banks pay tax on 110 percent of earnings in advance as a “safe harbor,” protecting against penalties for underpayment.
“It will be a number of years before Wall Street starts paying taxes again,” the mayor said at a press conference yesterday in Manhattan. “They will carry forward all of those losses.”
Now - what also needs to be remembered is that we have in the City a good two years of property tax surpluses that accumulated over the past crazy, bonus years in real property sales. That cushion does assist in the total scheme. The Mayor stated “services” and I think perhaps there should be some thought of belt tightening on many of our public programs our population enjoys.
According to State Comptroller, Thomas DiNapoli, financial firms posted $501 billion in write-downs and credit losses worldwide since the start of last year, a figure the World Bank predicts may rise to $1 trillion as the credit squeeze sparked by the subprime market collapse worsens. The tax drain in New York, where Wall Street accounts for 20 percent of state revenue and about 9 percent for the city, will have an effect.
“If the World Bank’s prediction that the large investment banks will book up to $1 trillion in write-downs because of the mortgage crisis is true, then Mayor Bloomberg is absolutely right,” said Lynn Turner, former chief accounting officer of the U.S. Securities and Exchange Commission. “These guys won’t be paying taxes for some time.”
Do I see this as a call for alarm in our real estate market? No, I don’t. Not yet. That cushion is going to cover for a while - but there’s always the fact that it can be siphoned off fairly quickly to areas compensating for a lack of income.
As we enter 2009 -- I want to reconsider all of this.
Tuesday, August 12, 2008
I have such a headache
I just got off the phone for a second time today with a person in a relatively high position in their firm wanting to know what's going on in our market.
Yes, I have such a headache.
I do get a bit tired of people equating what is occuring in the rest of the country with Manhattan and wanting an explanation as to why they don't seem to be able to get that two bedroom home for 200K less than the asking price.
Please forgive me but there's a reason for the adage, Location, Location, Location! I've lost count of how many times I've said this, wrote it, but give me a property in great condition in a great location and unless it's absurdly overpriced, it's going to sell..
I think I'm getting too cranky here today..
Yes, I have such a headache.
I do get a bit tired of people equating what is occuring in the rest of the country with Manhattan and wanting an explanation as to why they don't seem to be able to get that two bedroom home for 200K less than the asking price.
Please forgive me but there's a reason for the adage, Location, Location, Location! I've lost count of how many times I've said this, wrote it, but give me a property in great condition in a great location and unless it's absurdly overpriced, it's going to sell..
I think I'm getting too cranky here today..
Monday, July 14, 2008
Fannie Mayhem: A History (Wall Street Journal)
Ok - This is reprinted in total from today's Wall Street Journal (Opinion Journal) and I believe a very nifty "snapshot" of events that occurred over the past four years leading to what occurred this weekend:
Fannie Mayhem: A History
July 14, 2008
• Fannie Mae Ugly 07/12/08 – Investors continued to flee Fannie Mae and Freddie Mac almost as frantically as the political class tried to reassure everybody there was nothing to worry about.
• The Price of Fannie Mae 07/10/08 – It's time Americans understood the price they could soon pay for the Beltway's confidence game with these high-risk "government-sponsored enterprises."
• Too Political to Fail 04/21/08 – Fannie Mae and Freddie Mac aren't held to the same standards of accountability as everyone else.
• Fannie Mayhem 11/20/07 – Chuck Schumer is lucky Congress ignored his idea that Fannie Mae and Freddie Mac should ride to the rescue of the housing market.
• Fannie More 10/23/07 – Barney Frank and Chuck Schumer have come up with a proposal that would increase the risk to taxpayers from Fannie Mae and Freddie Mac.
• Fannie to the Rescue? 09/29/07 – Fannie and Freddie went up the Hill to fetch a pail of money.
• Freddie Krueger Mac 05/10/07 – Just when you think they're defeated, Fannie Mae and Freddie Mac arise in Congress to kill any attempt to clean up their dangerous habits.
• The Fannie Tax 04/12/07 – Democrat Barney Frank and the Bush Administration seem to have found common ground on new rules for Fannie Mae and Freddie Mac. Naturally, there's a catch.
• Memo to Fannie 06/14/06 – A joke in Washington these days goes like this: "What's the difference between Enron and Fannie Mae? Answer: The guys at Enron have been convicted."
• Freddie's Friends on the Hill 04/27/06 – The Federal Election Commission sheds some light on how Freddie Mac rewards its friends.
• Fannie Mae's House 10/25/05 – Every Congressional session can be counted on to produce its share of bad bills. But the "reform" bill for Fannie Mae and Freddie Mac is in a class of its own.
• Fannie's Friends on the Hill 05/09/05 – Congress finally seemed ready to protect taxpayers from Fannie Mae and Freddie Mac. Then Republican Mike Oxley decided to ride to their rescue.
• Fannie Turns a Page 12/23/04 – Fannie Mae – a slick, semiprivate firm operating with the patronage of politicians – is the kind of institution one still expects to find in a country like France.
• Fannie the Centaur 12/17/04 – Understanding their half-man, half-beast nature is crucial to fixing Fannie Mae and Freddie Mac in the wake of their recent financial scandals.
• Fannie Mae Liberals 10/14/04 – There were many moments of high entertainment during the House hearings on Fannie Mae's creative accounting. But our favorite was the Mister Magoo performance given by Barney Frank (D., Massachusetts).
• Fannie Mae Enron? 10/04/04 – The company was cooking the books. Big time.
• Fannie Uncovered 09/23/04 – The housing-finance giant has been engaging in some accounting funny business.
• Fannie's Risky Business 02/25/04 – Alan Greenspan puts his credibility behind the cause of reforming Fannie Mae and Freddie Mac.
• Christmas for Fannie Mae 12/23/03 – The Federal Reserve Board releases a new staff study about the impact of taxpayer subsidies for Fannie Mae and Freddie Mac.
• White House Fannie Pack 11/11/03 – White House chief economist N. Gregory Mankiw dares to tell the truth about Fannie Mae and Freddie Mac. The mortgage giants were not amused, which means we're getting somewhere.
• Fannie Takes the Hill 10/09/03 – When the House of Representatives can't get even a modest regulatory bill out of committee, the dangers of Fannie Mae become clear in reality.
• Speaking Truth to Fannie 03/12/03 – The president of the Federal Reserve Bank of St. Louis warns of a potential crisis arising from Fannie Mae and Freddie Mac.
• Fan and Fred Get the Business 02/19/03 – The year has not started auspiciously for the two mortgage-finance behemoths.
• Fannie Mae's Risky Business 09/23/02 – We've been suggesting that Fannie Mae was exposed to too much interest-rate risk. All of a sudden investors seem to agree with us.
• Fannie Capitulates, Sort Of 07/15/02 – Fannie Mae and Freddie Mac end months of resistance, stonewalling and downright crankiness and agree to register their common stock with the Securities and Exchange Commission.
• Fannie's Inside Info 07/01/02 – Even in this post-Enron world, Fan and Fred do not provide as much information about these securities as private mortgage lenders do.
• Inside Fannie 03/19/02 – Fan and Fred don't function like other companies. They're allowed to pile up debt, implicitly guaranteed by taxpayers, without being held to even the minimum of corporate governance standards.
• Frantic Fannie 02/28/02 – Companies taking on so much risk and debt, and backed by taxpayers, ought to be more transparent in what they tell the world.
• Fannie Mae Enron? 02/20/02 – Fan and Fred look like poorly run hedge funds: lots of leverage and snarkily hedged risk. Does the word Enron ring any bells?
Fannie Mayhem: A History
July 14, 2008
• Fannie Mae Ugly 07/12/08 – Investors continued to flee Fannie Mae and Freddie Mac almost as frantically as the political class tried to reassure everybody there was nothing to worry about.
• The Price of Fannie Mae 07/10/08 – It's time Americans understood the price they could soon pay for the Beltway's confidence game with these high-risk "government-sponsored enterprises."
• Too Political to Fail 04/21/08 – Fannie Mae and Freddie Mac aren't held to the same standards of accountability as everyone else.
• Fannie Mayhem 11/20/07 – Chuck Schumer is lucky Congress ignored his idea that Fannie Mae and Freddie Mac should ride to the rescue of the housing market.
• Fannie More 10/23/07 – Barney Frank and Chuck Schumer have come up with a proposal that would increase the risk to taxpayers from Fannie Mae and Freddie Mac.
• Fannie to the Rescue? 09/29/07 – Fannie and Freddie went up the Hill to fetch a pail of money.
• Freddie Krueger Mac 05/10/07 – Just when you think they're defeated, Fannie Mae and Freddie Mac arise in Congress to kill any attempt to clean up their dangerous habits.
• The Fannie Tax 04/12/07 – Democrat Barney Frank and the Bush Administration seem to have found common ground on new rules for Fannie Mae and Freddie Mac. Naturally, there's a catch.
• Memo to Fannie 06/14/06 – A joke in Washington these days goes like this: "What's the difference between Enron and Fannie Mae? Answer: The guys at Enron have been convicted."
• Freddie's Friends on the Hill 04/27/06 – The Federal Election Commission sheds some light on how Freddie Mac rewards its friends.
• Fannie Mae's House 10/25/05 – Every Congressional session can be counted on to produce its share of bad bills. But the "reform" bill for Fannie Mae and Freddie Mac is in a class of its own.
• Fannie's Friends on the Hill 05/09/05 – Congress finally seemed ready to protect taxpayers from Fannie Mae and Freddie Mac. Then Republican Mike Oxley decided to ride to their rescue.
• Fannie Turns a Page 12/23/04 – Fannie Mae – a slick, semiprivate firm operating with the patronage of politicians – is the kind of institution one still expects to find in a country like France.
• Fannie the Centaur 12/17/04 – Understanding their half-man, half-beast nature is crucial to fixing Fannie Mae and Freddie Mac in the wake of their recent financial scandals.
• Fannie Mae Liberals 10/14/04 – There were many moments of high entertainment during the House hearings on Fannie Mae's creative accounting. But our favorite was the Mister Magoo performance given by Barney Frank (D., Massachusetts).
• Fannie Mae Enron? 10/04/04 – The company was cooking the books. Big time.
• Fannie Uncovered 09/23/04 – The housing-finance giant has been engaging in some accounting funny business.
• Fannie's Risky Business 02/25/04 – Alan Greenspan puts his credibility behind the cause of reforming Fannie Mae and Freddie Mac.
• Christmas for Fannie Mae 12/23/03 – The Federal Reserve Board releases a new staff study about the impact of taxpayer subsidies for Fannie Mae and Freddie Mac.
• White House Fannie Pack 11/11/03 – White House chief economist N. Gregory Mankiw dares to tell the truth about Fannie Mae and Freddie Mac. The mortgage giants were not amused, which means we're getting somewhere.
• Fannie Takes the Hill 10/09/03 – When the House of Representatives can't get even a modest regulatory bill out of committee, the dangers of Fannie Mae become clear in reality.
• Speaking Truth to Fannie 03/12/03 – The president of the Federal Reserve Bank of St. Louis warns of a potential crisis arising from Fannie Mae and Freddie Mac.
• Fan and Fred Get the Business 02/19/03 – The year has not started auspiciously for the two mortgage-finance behemoths.
• Fannie Mae's Risky Business 09/23/02 – We've been suggesting that Fannie Mae was exposed to too much interest-rate risk. All of a sudden investors seem to agree with us.
• Fannie Capitulates, Sort Of 07/15/02 – Fannie Mae and Freddie Mac end months of resistance, stonewalling and downright crankiness and agree to register their common stock with the Securities and Exchange Commission.
• Fannie's Inside Info 07/01/02 – Even in this post-Enron world, Fan and Fred do not provide as much information about these securities as private mortgage lenders do.
• Inside Fannie 03/19/02 – Fan and Fred don't function like other companies. They're allowed to pile up debt, implicitly guaranteed by taxpayers, without being held to even the minimum of corporate governance standards.
• Frantic Fannie 02/28/02 – Companies taking on so much risk and debt, and backed by taxpayers, ought to be more transparent in what they tell the world.
• Fannie Mae Enron? 02/20/02 – Fan and Fred look like poorly run hedge funds: lots of leverage and snarkily hedged risk. Does the word Enron ring any bells?
Wednesday, July 2, 2008
Is it Up? Is it Down?
Shoot - I just read no less than ten different headlines reporting the news of the Manhattan real estate market - which way did it go? The New York Times today reported that sales are up - the number of transactions are down. Good grief.
This report came in today from Property Shark.
Key Takeaways from 2Q08 Manhattan Sales:
• Sales Transactions: The number of residential sales transactions declined by 38% compared to the same period in 2007, with re-sale transactions showing the largest decline.
• Median Sale Price: Median sale price rose 13% over the same quarter in 2007. Median price was down 2% for re-sale properties and up by 48% for new development units.
• Region of Manhattan: For re-sales, the uptown Manhattan market had the largest increase in median sale price compared to the same quarter last year. Among new development sales, the upper west side showed the greatest median sale price increase compared to 2Q07.
All I can tell you is that I think I'm the only one in Manhattan right now sitting at an office desk before this July 4th holiday.
Enjoy!
This report came in today from Property Shark.
Key Takeaways from 2Q08 Manhattan Sales:
• Sales Transactions: The number of residential sales transactions declined by 38% compared to the same period in 2007, with re-sale transactions showing the largest decline.
• Median Sale Price: Median sale price rose 13% over the same quarter in 2007. Median price was down 2% for re-sale properties and up by 48% for new development units.
• Region of Manhattan: For re-sales, the uptown Manhattan market had the largest increase in median sale price compared to the same quarter last year. Among new development sales, the upper west side showed the greatest median sale price increase compared to 2Q07.
All I can tell you is that I think I'm the only one in Manhattan right now sitting at an office desk before this July 4th holiday.
Enjoy!
Sunday, June 1, 2008
Darryl Strawberry told me he loved me
Does it count that I said I loved him first?
Honest - a New York moment.
It happened Friday as I was scampering into my office. 42nd Street between Mad and Park - and there he was standing in the doorway of one of our local stores. Smiling and looking very tall...with people looking very short next to him.
What is it about us that we can see someone who we've never met, but have followed their life through the media for so many years, and then simply shout, "I LOVE YOU"?
Of course I wanted to do a follow-up - "STAY OFF THE DRUGS" - but that thought of course only crossed my adled mind as I walked away...
Yes, a New York moment.
Honest - a New York moment.
It happened Friday as I was scampering into my office. 42nd Street between Mad and Park - and there he was standing in the doorway of one of our local stores. Smiling and looking very tall...with people looking very short next to him.
What is it about us that we can see someone who we've never met, but have followed their life through the media for so many years, and then simply shout, "I LOVE YOU"?
Of course I wanted to do a follow-up - "STAY OFF THE DRUGS" - but that thought of course only crossed my adled mind as I walked away...
Yes, a New York moment.
Tuesday, May 6, 2008
Housing Crisis is Over
OK - I said it today in our Sales Meeting. However, if you don't take my words for it, it just so happens that it's in today's Wall Street Journal, Page A23 - yep, the same words. http://online.wsj.com/article/SB121003604494869449.html?mod=djemITP
of course it's only an opinion.
As we've been watching the market nation-wide and the timing, we've essentially absorbed all the readjustments of all those 5 year ARMS that became due in the last four months. Either people were able to take advantage of the higher conforming loan amounts and excellent loan rates, sell, or they crashed. Manhattan - as normally happens - has been essentially immune to the vast changes seen across the country. Prices have adjusted. The badly constructed new developments will languish; the poorly designed floor plans will be passed over for another property better designed; better located; and in better condition.
We've been selling our exclusive listings within days. If the property is in great condition, and priced correctly, there are buyers wisely waiting the opportunity. Property is not being given away but it is definitely moving.
of course it's only an opinion.
As we've been watching the market nation-wide and the timing, we've essentially absorbed all the readjustments of all those 5 year ARMS that became due in the last four months. Either people were able to take advantage of the higher conforming loan amounts and excellent loan rates, sell, or they crashed. Manhattan - as normally happens - has been essentially immune to the vast changes seen across the country. Prices have adjusted. The badly constructed new developments will languish; the poorly designed floor plans will be passed over for another property better designed; better located; and in better condition.
We've been selling our exclusive listings within days. If the property is in great condition, and priced correctly, there are buyers wisely waiting the opportunity. Property is not being given away but it is definitely moving.
Friday, March 21, 2008
Spring Begins
There's an interesting feeling in our residential market these days. And what seems to be the problem? What I've observed is that the product in great shape and location goes almost as quickly as it hits the market. We still have buyers walking in and offering all cash.
And then we just encountered a buyer - HELLO FIRST TIME IN MANHATTAN - saying, "I think the market is going to come down so I will wait." Boy if I had a dollar for every time I've heard that statement since 2002...
But there are some facts to consider.
Our conforming loan limits have raised. But they are only good until the end of the year. The mortgage/loan rates are excellent. If you believe you are in a home too large, I say you should sell and downsize now. If you are in need of a larger home - the same is true. But you need to think about staying where you are for about five years.
Why listen to me? I've only been doing this business for 25 years...but don't just take my word for it. Here's Barbara Corcoran on the topic.
You will find this posted on MSNBC's website. http://www.msnbc.msn.com/id/23726652/
She states:
Waiting for prices to come down.
As smart as you think you are, you cannot sharpshoot the real estate market. You never know when the best time is. Prices ebb and flow, and occasionally, like right now, they go down a lot. Nobody knows when the tide will turn, and based on historic data it always inevitably does. The best you can do is buy within the low and we're definitely in the low right now.
You also need to keep the interest rates in mind. If you wait for prices to come down by 10%, and interest rates go up by a half a point, your monthly payments will be the same. (Emphasis added). Historically speaking this also makes now a good time to buy. The people I would advise not to buy right now are those who don’t plan to stay in their homes for very long. If, however, you are ready to make a long-term commitment, now is as good a time as any to buy a home.
So, here we are moving quickly into April with the chill still in the air. Have a blessed holiday.
And then we just encountered a buyer - HELLO FIRST TIME IN MANHATTAN - saying, "I think the market is going to come down so I will wait." Boy if I had a dollar for every time I've heard that statement since 2002...
But there are some facts to consider.
Our conforming loan limits have raised. But they are only good until the end of the year. The mortgage/loan rates are excellent. If you believe you are in a home too large, I say you should sell and downsize now. If you are in need of a larger home - the same is true. But you need to think about staying where you are for about five years.
Why listen to me? I've only been doing this business for 25 years...but don't just take my word for it. Here's Barbara Corcoran on the topic.
You will find this posted on MSNBC's website. http://www.msnbc.msn.com/id/23726652/
She states:
Waiting for prices to come down.
As smart as you think you are, you cannot sharpshoot the real estate market. You never know when the best time is. Prices ebb and flow, and occasionally, like right now, they go down a lot. Nobody knows when the tide will turn, and based on historic data it always inevitably does. The best you can do is buy within the low and we're definitely in the low right now.
You also need to keep the interest rates in mind. If you wait for prices to come down by 10%, and interest rates go up by a half a point, your monthly payments will be the same. (Emphasis added). Historically speaking this also makes now a good time to buy. The people I would advise not to buy right now are those who don’t plan to stay in their homes for very long. If, however, you are ready to make a long-term commitment, now is as good a time as any to buy a home.
So, here we are moving quickly into April with the chill still in the air. Have a blessed holiday.
Monday, February 25, 2008
YIKES
OK - here's the real question - who has not been hit with the flu? I think that February should just be declared flu month and no one bother traveling in any public transportation. Shoot I just got over a major hit that took me by surprise and knocked me out for an entire week. We are big washers-of-all-surfaces in our office and STILL....be careful out there.
So we have a changing market. This really is the year that if you were thinking of trading up or needing to refinance NOW's the time. The legislative changes only go through December 2008 so it's made to spur the market and everyone should take advantage of the higher loan amounts for conforming loans. Of course that takes in nearly all real estate in Manhattan but it's a great time for people to move either up, down, or refinance.
In case you ever wonder, I always practice what I preach! I'm doing both -- refinancing and purchasing.
I invite you to do the same.
So we have a changing market. This really is the year that if you were thinking of trading up or needing to refinance NOW's the time. The legislative changes only go through December 2008 so it's made to spur the market and everyone should take advantage of the higher loan amounts for conforming loans. Of course that takes in nearly all real estate in Manhattan but it's a great time for people to move either up, down, or refinance.
In case you ever wonder, I always practice what I preach! I'm doing both -- refinancing and purchasing.
I invite you to do the same.
Monday, January 14, 2008
May the Rates Be With You
Yes that is the force these days as we plunge into the beginning of the Spring season. Bank of America is bailing out Countrywide and JP Morgan Chase is riding to the rescue of many a loan faced with refinancing.
Indeed, the Fed will reduce rates - the bond market will rally and our mortgage/loan rates will dip lower. Please if you are looking for financing, do everything you can to get your credit rating as superb as you can. That is the key - always - but especially these days. There is product available.
Indeed, the Fed will reduce rates - the bond market will rally and our mortgage/loan rates will dip lower. Please if you are looking for financing, do everything you can to get your credit rating as superb as you can. That is the key - always - but especially these days. There is product available.
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