The Crickets are Alive

Yes - there's renewed life in the real estate action here in Manhattan and I LOVE it especially as we enter the traditionally slow holiday time. I was beginning to think that even the crickets had died here in the office....though I spend way too much time here working. I am continually looking for great people to associate themselves with us here.

Thank you thank you thank you

There's never enough gratitude for all we have -- plain and simple. Thank you everyone for allowing us to do what we love.

As Fall Begins

Have you seen the new real estate section of the New York Daily News? I have to tell you I like it very much. None of the chi-chi-I'm-so-cool-it's-ridiculous type writing...it's actually insightful and enjoyable - ah a concept.
Of course they have Barbara Corcoran as their new columnist on Fridays but as far as her words of wisdom that I have read so far, I've heard it and read it all before. It's hard to be always new but this colume is in need of it. The show - where she communicates with a doll is not exactly thrilling to me either but maybe to others....you tell me.

What I wish to learn more about is how she came to be the marketing maven she is, and how to position your company to sell it. That's what she did well - better than anyone.



So have you seen REBNY's listing portal - minus most of the listings? That's all I can muster about that one.

Winding down summer

Ah the thrill of it all - in one week how can we go from wearing coats to guard against the cold to wanting to rip our clothes off in the heat?

If you're a buyer - hit your offers by tomorrow! The last two weeks of summer are always a great time to put in an offer - that is, if the seller doesn't pull their listing off the market and decide to relist after labor day. It's been alittle lonely around the City these past days - I've been hearing the crickets in my office.

Meanwhile, I do have a few agents still running around and doing the best they can because nothing can replace just simple "drive".

Enjoy these last days of August, I am sure September is going to be full speed ahead and that is always enjoyable.

Ah the foresight

Three weeks ago I spoke here about the credit crunch and The New York Post got around to interviewing me about it this past week. They - like the Wall Street Journal - failed to quote me. Gee, I wonder why?


Maybe it's just my chirpy optimisim that always gets in the way? Perhaps and most likely so. At least that's my story (and I'm sticking with it.) Fault me but I just don't see the death knell ringing...yet.


We're a small firm - yep, that's obvious - our average sale is between 1M and 2M and reflective of the average in Manhattan overall. Maybe because I stress with my agents the importance of pre-qualifying buyers that we don't have many surprises. We aren't experiencing any radical changes in buying behavior either based on tightening lender scrutiny. We're just continuing to do business as we always have. Unqualified buyers (hopefully I state this because there may be things happening I'm just not told about) just wander elsewhere.



There always seems to be a plethora of real estate agents who fail to qualify buyers and prefer being "show-ers" of properties. I don't get it. I've been surprised by how many agents in Manhattan really don't need to work for living. Unfortunately (or fortunately)I never found myself among those ranks.



Meanwhile we're spinning down towards the end of the summer. This Saturday with the pristine air and cloudless sky brings a lack of humidity sniffing of fall more than Manhattan's usual summer fare. I'm honestly considering taking a break from Manhattan for a few days before the onslaught of the fall season beginning in September.



I look forward to learning what offers come forth from this weekend's open houses. I would imagine there will be low ball offers coming in on properties from buyers hoping to capitalize on all the press about the jumbo rates escalating. I can equally picture sellers saying "no" and holding their ground waiting for the customary school semester beginning and the next round of interested buyers returning from the sandy or wooded acres of their summer haunts.


There's still so much money floating around looking for a place to park in real estate. It's just so interesting.

Dog Days

Yes, we did survive the Con Edison steam pipe explosion which was across from our building...Wednesday's torrential rain (you haven't truly experienced Manhattan until you see water pouring down the central escalators of Grand Central and the subways all stop running) - and TORNADOES - in New York City! Gads. 20 years ago I remember commenting that soon we would see palm trees growing on 42nd Street, and my goodness we still have wacky weather. Doesn't that bring us to the question - when isn't it wacky?

So enough about the weather - on about real estate. Still our luxury market is strong, we can't get enough of great product in GREAT locations. Resales are strong IF the sellers have renovated and renovated well. If you can not tell the difference between Home Depot and hand crafted cabinets - well, on some people it can be lost, but on those who know -- the properties are being snatched as quickly as they come on the market.

This has been a very busy summer for us even with the many fluctuations in temperature and weather. The fall season is going to be very interesting.

What I will find will take some study is what is occurring with jumbo rate loans (417K and higher). That does affect our Manhattan market where most of the loans are jumbo simply because of the initial high cost of property. This week the rates jumped up - banks are tightening (to some of us - we believe it's about time) the requirements qualifying buyers. Most of our high end customers will continue to be unaffected by these changes; however, first time buyers will be affected.

My contact at Trachtman & Bach, Inc., the very capable Janine Baron, alerted me to the hold on home equity loans that has just squashed their products. Buyers need to scrutinize their credit reports - clean up any delinquencies - so they can be at the forefront of receiving a preferred loan rate.

One of the things about a blog - you've got to post to it....so here we are in the midst of the annual humidity festival a/k/a New York City and I'm finally getting around to writing.

So first I have a newspaper observation:

Is anyone paying attention to what is happening over at the New York Daily News? They seem to be shaking up the teams over at the New York Times and pulling their best people over. I'm thrilled to see it take place and excited by their enthusiasm and dedication to changing their real estate section. I look forward to seeing what develops.

On a more national media note:

With Manhattan's real estate market being very strong - about the only gloom and doom media writers can whip up seems to be about the sub-prime market. Where was everyone when Washington Mutual whisked into Manhattan offering their 100% financing products? I always have been against 100% financing and today's stories merely give substance to the argument.



I remember a discussion I had with one of our developers in the City - oh about 4 years ago now. He was instrumental in several larger projects Uptown. In a discussion about what financing should they allow for a new housing project - he initially proposed 100% financing. He looked at me and said, "If someone doesn't get 100% financing, something is wrong with them." My response, "You believe that?" His response was yes and in fact on his Florida home he had done just that. His thought process was --- if you don't acquire 100% financing, then perhaps you shouldn't be buying because you don't believe in the strength of your investment. I thought that was an interesting analysis - I didn't agree. I guess that makes me just a wee bit more risk adverse, but I've been in the business for over 20 years.




Why am I babbling here about sub-prime loans? The Wall Street Journal interviewed me a while back about the subject. It was never printed. Perhaps because I could not agree with a conclusive remark that we were witnessing the "collapse" of our Manhattan real estate market. Thank goodness 75% of the housing in Manhattan is cooperative ownership (whatever your opinion may be - good or bad) with the Boards who have not forgotten what happened in the late 1980's -- and well, they should not.


I attended a legal continuing ed class two weeks ago about foreclosures today in real property. An interesting statistic was given. Of all the loans that have been processedin New York State, only 13% qualify as sub-prime. My goodness. I guess with that fact in mind - it leads me to think we should continue discussing whether we should be in Iraq.

May 2007 State of the Market

So far this has been an extraordinary year - once again. While the majority of the United States is experiencing a “down” housing market, Manhattan sales continue to escalate and in this spring season we are experiencing scenes reminiscent of years ago - dozens of persons appearing at open houses and bidding wars raging on the best properties. However, the bidding wars now are confined to the properties found in prime locations and presented in “move-in” condition.



Importantly the New York Times reported that the Federal Reserve announced May 9, 2007, that the Federal Funds Rate would not increase. http://www.nytimes.com/2007/05/10/business/10fed.html?th&emc=th
Favorable loan rates continue to fuel the interest of buyers.



Persons ask -- is this a buyers' or sellers' market? My answer remains - neither - it is a traditional market where well priced properties are still highly desired. Buyers still have product options. However, one area demands excitement -- there does not appear to be a sufficient supply of luxury large properties available for the buyers who want them.



Miller Samuel Appraisers http://www.millersamuel.com/ reported that in the first quarter of 2007, the average sales price of a Manhattan apartment was $1.29 million, an increase of 5.4% from $1.22 million reported in the fourth quarter of 2006. The average price per square foot experienced a rise of 7.2% to $1,070.



We are finding that the experienced brokers who are properly accessing the value of a home for their sellers are having their property’s asking prices met. There is not much negotiation happening across the market as a whole. Clearly if a property today lingers on the market, it is not priced properly.



Additionally, many persons who took a “wait and see” attitude this past winter are discovering that the market has advanced past them this spring.


However we believe that a good real estate sales agent is one who watches carefully what is happening in the market; evaluates it and remains in weekly contact with their seller as to the reaction in the marketplace and my sincere hope is to encourage careful evaluation.

In this post, I'd like to discuss a subject that has been of increasing concern to me -- discrimination against the disabled and our search to find appropriate homes for the Developmentally Disabled.


When I was in law school, I had the opportunity to moderate a discussion group that featured our former U.S. Attorney General under two Presidents and twice Governor of Pennsylvania- Dick Thornburgh. He played a leading role in the enactment of the Americans with Disabilities Act. In a conversation with him, I learned that his son had been in a car accident which left his son disabled and through personal experience, Mr. Thornburgh learned of the many obstacles faced by those with disabilities and he wanted and worked for change.



The Americans with Disabilities Act is one of our most important legislative triumphs.

My interest in improving the lives of the disabled does not come from any direct personal experience. My interest comes simply from the belief that it is a test of who we are as a society - as to how we treat those less fortunate then ourselves.

Thankfully our State since the days of Willowbrook and the 1970's, has changed how the disabled are cared for and treated. It is one of my proudest tasks that today I am the exclusive Site Selector for New York State in locating homes for the Developmentally Disabled in four of our five New York City boroughs.

However, I have been dismayed at the prejudice we still encounter -- largely from the Real Estate Brokerage Community with an antiquated belief that property values will be lowered by having the State care for Disabled individuals in our residential communities. It's a belief I find appalling.

Are persons aware of the number of disabled persons being born today and of the current aging population? Are persons aware that with the passing of time - families will not be able to continue to care for these individuals but will be looking to the State to care for them?

Each home that my team of agents examine -- we ask, would I place my child here to live? -- the answer should only be yes.

My hope is that as the New York Times in recent weeks has written stories about the disabled, that it is creating renewed interest in the sophisticated care and humanitarian spirit of what is being accomplished and being worked towards - and that home owners looking to sell their properties will see selling their homes to the State for the Developmentally Disabled as a proud endeavor.

March Rolls In

Here we are beginning the ever popular spring season in real estate and it's amazing how much activity is happening in Manhattan. (First let's strangle that furry rodent who predicted an early spring...)
Customers who have failed to attend recent open houses - can not believe that they can be one of sixty people showing up to view a property. Are we back to two years ago -- but with some more affordable pricing?

Needless to say - some folks in Harlem read the recent New York Times Article about Washington Heights maintaining its property values over the past six months and have taken the opportunity to RAISE their asking price. I don't know quite what makes these sellers believe that it will prompt more offers -- but I do believe the brokers are being told what to do in those scenarios. What broker would think that is a wise move when a property has already been sitting on the market for a few weeks?

I know one thing and that is that I am in need of more smart agents to join our firm to handle the referrals coming into our office. We have buyers - renters - looking to live in Manhattan and I need the agents to work with them.

On another subject -- I'm looking to see if anyone is actually using the new Agency Disclosure Forms. If you have an agent who has spoken with you about Agency relationships, I'd like to know about it.

Enjoy the warming weather and the warming real estate market.

Real about Real Estate

Beginning the new year in Manhattan - there's a lot of sale and rental activity in all budget ranges - not just the high-end as most publicized. This has been one of the busiest January's - in keeping with the stronger market we've experienced in recent years.

Nay sayers - I believe they are sitting still in their rental apartments waiting for that magical time when they will finally purchase a home which never seems to happen...yet watching each year pass and seeing nothing at the end of it except the state and a landlord getting wealthier off of their hard earned money.

What's new? Importantly there is a new agency disclosure form that just went into effect this month. Currently it applies to 1 - 4 family dwellings. However, there is legislation that has been introduced in Albany to have the disclosure form apply to cooperatives and condominiums which of course represents the majority of property in Manhattan. Stay tuned for further developments.

And the story of the Real Estate Board of New York and the Public Portal continues to be source of a) annoyance to many; b) consternation to some; and c) not even worth thinking about by others.