Press Release brought to you by Stoler Report

Michael Stoler Real Estate Newsletter The Stoler Report-New York's Business Report What's Happening In Newark?-Part II Airing

04/15/2013

Greetings!

This week join Michael Stoler on the television productions of New York Real Estate TV, LLC.

Monday, April 15th, Michael Stoler's guest on "Building New York-New York Life Stories" is Lowell Hawthorne, CEO, Golden Krust Carribean Bakery

On Tuesday evening, April 16th, the topic of the Stoler Report-New York' Business Report  is "What's Happening In Newark?-Part II

My guests on the broadcasts include Miles Berger, Kevin Cummings, Frank Giantomasi and Steven Pozycki.

The Stoler Report-New York's Business Report now airs a total of 8 times a week on CUNY TV in New York City.

Building New York-New York Life Stories, airs 10 times a week, 8 times a week in New York City and 2 times a week around the nation on JLTV and Direct TV.

Every Monday morning  you will receive the latest real estate article by Michael Stoler on the state of the market an information about the upcoming guests on the productions of New York Real Estate TV, LLC
Sincerely
Michael Stoler

Governor signs legislation to renew modified tax abatement for cooperative/condominium apartments

Governor Cuomo recently signed legislation to renew a modified tax abatement program for cooperative/condominium apartments through 2015. The most significant changes to the program related to more restrictive primary residency requirements and a change based on apartment valuation.

The abatement gives eligible cooperative and condominium owners a reduction in their property taxes.

To be eligible for the abatement, the unit must be your primary residence. If the unit is not your primary residence, the abatement will be phased out and completely removed by tax year 2014/2015, which starts on July 1, 2014.

The benefit amounts have increased for many property owners. Before the law changed, the abatement was 17.5% for all properties with an Assessed Value or more than $15,000 and 25% for properties with an Assessed Value of $15,000 or less.

The new law has changed the Assessed Value thresholds and benefit amount as follows:

Assessed Value                              Benefit Amount Per Year

                                                2012/2013    2013/2014    2014/2015

$50,000 or less                       25%                  26.5%          28.1%

$50,001-$55,000                    22.5%               23.8%          25.2%

$55,001-$60,000                    20.0%               21.2%          22.5%

$60,001 & above                    17.5%               17.5%          17.5%

   New York City residential market making a comeback with sales prices and activity on the rise

The Real Estate Board of New York (REBNY) reported that the New York City residential sales market registered a significant increase in sales activity and median sales prices citywide, despite the lack of inventory.

The number of sales of all homes (cooperatives, condominiums, and one to three family dwellings) citywide climbed 11 percent for the first quarter of last year, and four percent from the previous quarter. The average sales prices of a home in New York City for the quarter was $805,000, with an average price in Manhattan, increasing 8 percent to $1,493,000; the Bronx average sales price rose 5 percent to $348,000; Brooklyn prices increased 14 percent to $634,000; and the averages sales price in Queens rose to $408,000, a 4 percent increase from the first quarter of 2012.

The median sales prices in the first quarter of 2013 climbed seven percent from the first quarter of last years to $480,000, the highest mean sales price for all homes in the city since 2008.

The average sales price of an apartment in the Big Apple during the first quarter was $943,000, an 8 percent increase over the year. The average price of an apartment in Manhattan was $1,393,000; while in the Bronx the average price was $275,000, an increase of 14 percent. Average price in Brooklyn also rose by 14 percent to $540,000, and he average sales price in Queens increasing to $274,000, growth of 3 percent.

Condominium sales prices increased by 8 percent from the first quarter of 2013 were $1,224,000, up 8 percent from the first quarter of 2012. Average price for a Manhattan condo increased by 4 percent rising to $1,752,000. Brooklyn, one of the most sought after residential markets registered a 20 percent increase in average sales price rising to $682,000, while the average sales price in Queens increased 5 percent to $434,000.

Prices for cooperative apartments also rose by 13 percent from the first quarter of 2012, with average sales price registering at $743,000. The average price of a co-op in Manhattan increased 9 percent to $1,133,000 year over year. The average sales price in Bronx was $241,000, an increase of 7 percent. Prices increased by 9 percent in Brooklyn to $386,000 and the average sales price in Queens for a cooperative apartment increased by 6 percent to $214,000.

Sales per brisk for condominiums on the Upper East Side and Tribeca. The average sales price of a condominium on the Upper East Side during the first quarter of 2013 increased 6 percent compared to the first quarter of last year to $1,780,000. The number of sales on the Upper East Side increased 33 percent over the same period last year. Average sales price of a condo in Tribeca increased to $3,030,000, 13 percent higher than the first quarter of last year, with the number of sales increasing 40 percent over the same period.

The Upper West Side continues to be a sought out neighborhood for cooperative sales increasing by 16 percent compared to the first quarter of 2012. The average co-op sales price of $1,232,000 was 12 percent greater than the first quarter of 2012.

People are seeking residence in Brooklyn, especially in Williamsburg section. There were only 73 condominium sales in the chic section of Williamsburg during the first quarter of 2013; a 52 percent decrease from the first quarter of last year due to a lack of new inventory. The first quarter 2013 average price of $738,000 for a condo in this neighborhood was 23 percent higher than the average price in the first quarter of 2012.

Sales were brisk in the Flushing section of Queens registered the most activity in the borough. There were 99 condominium sales in Flushing, a 21 percent rise from the first quarter of 2012. The next closest neighborhood was Jackson Heights/Elmhurst with 46 condo sales. The average price of a condo in Flushing was $467,000; a 10 percent increase from the first quarter of 2012.

The total consideration for all residential sales in New York City during the first quarter of 2013 was $8.1 billion, up 23.4 percent from the first quarter of last year and 7.6 percent from last quarter.  This quarter's total consideration is also a post financial crisis high for the quarter.  The last time total consideration was recorded this high for the first quarter was in 2008 when $10.0 billion in residential sales were recorded.

Spur the significant increase in total consideration was a result of sales of luxury condominium and cooperatives by local and foreign investors. Steven Spinola, REBNY, president, said "The luxury market continues to show strength but a broader look at various market segments shows that the residential real estate market has recovered.  We are concerned about the impact of the lack of inventory.  However, we are confident that the market will continue to improve as we progress into the second quarter of 2013."

Total consideration for Manhattan was $4.7 billion for the first quarter of 2013, up 28.7 percent from the first quarter of last year and 6.4 percent from the last quarter of 2012. This too represents a post crisis highpoint. In Brooklyn, the total consideration of residential sales reached $1.6 billion. This is the highest total consideration in Brooklyn in the first quarter of a year since the Brooklyn market's pre-crisis peak in 2007.

For the nation, the Mortgage Bankers Association reported that the applications for conventional purchase loans increased by more than 5 percent, for the week ending April 5, 2012, bring the conventional purchase index to its highest level since October 2009 and the highest level since the expiration of the homebuyer tax credit.

The refinance share of mortgage activity increased to 75 percent, while the adjustable rate mortgage share of activity decreased to 5 percent of total applications.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,500 or less) decreased to 3.68 percent, the lowest rate since January 2013, from 3.76 percent, with points remaining unchanged at 0.43 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans.  The effective rate decreased from last week.

The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,500) decreased to 3.79 percent, the lowest rate since January 2013,  from 3.85 percent, with points decreasing to 0.36 from 0.37 (including the origination fee) for 80 percent LTV loans.  The effective rate decreased from last week.

The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA decreased to 3.43 percent, the lowest rate since January 2013, from 3.48 percent, with points increasing to 0.52 from 0.38 (including the origination fee) for 80 percent LTV loans.  The effective rate decreased from last week.

The average contract interest rate for 15-year fixed-rate mortgages decreased to 2.92 percent, the lowest rate since January 2013, from 2.99 percent, with points decreasing to 0.34 from 0.36 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.

The average contract interest rate for 5/1 ARMs decreased to 2.58 percent from 2.60 percent, with points increasing to 0.37 from 0.32 (including the origination fee) for 80 percent LTV loans.  The effective rate decreased from last week.

 

04/15/2013 - 09:29

Source

Stoler Report

Want more news about Stoler Report? Click here