|
|
|
|
|
|
| welcome to emmasphere | 
emmasphere is a newsletter dedicated to information, ideas and the idiosyncrasies of the new york city real estate market and everything that it encompasses. Emma Hamilton Malina (212) 941 2557 Missed a newsletter? View ALL of my Active Listings Here |
|
|
|
| Market Update | |
Manhattan Trends - Market-wide - There were 2,700 market-wide closed sales during Q1 2012, even with Q1 2011 and a 1% increase from Q4 2011. Buyer demand is evident but limited condominium inventory is keeping sales growth muted. This quarter's transaction activity is still 18% below the trailing five-year average of 3,291 sales.
Market-wide pricing was higher compared to both Q1 2011 and Q4 2011. At $809,000, median price increased 1% from a year ago and 6% from last quarter. Average price per square foot, at $1,065, increased 4% from last year and 2% from last quarter. These increases are due in part to the three-plus bedroom market, where median price increased 7% from a year ago and 9% from last quarter, mostly fueled by the resale market.
Total vs. New Listings - Market-wide, there were 8,367 available listings at the end of Q1 2012, a 9% decline from Q1 2011. This significant reduction in inventory is a consequence of condo availability eroding at a much higher rate than co-op inventory. Condo inventory declined 13% from a year ago while co-op inventory declined only 4%. Available listings increased 7% versus Q4 2011 in a typical seasonal trend as sellers choose to list at the beginning of the year. 5,349 listings were added to the market between January and March, 17% less than were added during the same period a year ago but because of seasonality, new listings were up 25% from last quarter. Since listed inventory reached its peak in Q1 2009, inventory has declined 32%.
Manhattan Sales by Price Category - On par with Q1 2011, sales under $1 million accounted for 61% of the market during Q1 2012 due to an increase in market share below $500,000 balanced by an equivalent decrease between $500,000 and $1 million. Market share between $1 million and $3 million remained relatively even with last quarter and one year ago at 29%. Sales over $3 million accounted for 10% of the market, higher than both last year and last quarter due to expansion in the $3 million to $5 million range.
Brooklyn Sales by Price Category - Market share below $350,000 increased notably from a year ago, to 39% of sales while market share between $350,000 and $500,000 compressed significantly. Transactions between $500,000 and $750,000 retracted slightly while market share in the $750,000 to $1 million market remained even. In the $1 million to $2 million price range, market share increased to 7%, up from 5% a year ago and last quarter.
|
| In Contract: Lofty Living in Prime Chelsea | |
 Expansive one bedroom / one bath, pre-war coop in the coveted Broadmoor in the amazing neighborhood of Chelsea. Easily convertible to a two bedroom / two bathroom, this loft-like home benefits from windows on three sides and has views of the Empire State Building and tip of the Chrysler from both the living room and bedroom. Priced at just under One Million Dollars we accepted an offer after our first open house!
|
|
In Contract: Former Ex-Lax Factory | |
Following our first open house on this wonderful two bedroom home we received nine offers and ended up going to a best and highest bid with the top three offers. We are now in contract at nearly 7% above the original asking price!!
|
| For RENT: One Bedroom in the Christodora with Views as Far as the Eye can See! |
Gorgeous Space. Jaw Dropping Views Available June 1st Located on the 14th floor of the East Village's preeminent prewar, doorman condo - The Christodora - this amazing one bedroom apartment has windows on three sides showcasing some of the best views in all of NYC!!
|
| SUMMER SUBLET |
Looking for a cool space to live in while you're in NYC for the summer? Look no further. Located in a majestic former Synagogue this vast one bedroom space is the perfect summer oasis. Available June through August
|
 Questions, Answered - CREDIT!!!!!!!!!!!!!!!! | |
Dear Emma,
People continue to talk about the credit crunch and how having bad credit can effect our buying power and yet everyone we talk to wants to run it which we've heard brings our score down - can you give us a better understanding of what our credit really means in the grand scheme of buying our first home??? 
- CC (Credit Confused)
***************
Dear CC,
This is a great question and one that is so important yet often so overlooked. Your credit means everything - it's your financial report card. It's not simply about whether one has good credit or bad credit it's also about how good or how bad and also who's writing the report - not all credit scores are the same.
Did you know:
- Any collection amount, even if it is for $10.00, can reduce your score by over 100 points.
- Most negative information remains on your report for 7 years.
- Bankruptcy remains on your report for 10 years.
Experian, TransUnion and Equifax are the three main credit reporting agencies BUT the FICO Score (Fair Isaac Company) is the most commonly used by mortgage banks. A "PLUS Score" which is what is often sold on the discount sites can be up to 50 points higher than your actual FICO score and a Vantage Score can be up to 200 points higher. If you want the most accurate snapshot of your credit score - go to myfico.com - or have your mortgage broker run it for free.
Will running my credit reduce my score?? Yes, but not by much (approx 5 points) AND if you're doing it multiple times in a 30 day period - they won't keep dinging your credit so feel free to shop around in that 30 day period.
The higher your FICO score the more the score will reduce with new derogatory information reported - so keep it clean kids and pay those bills on time!!!
Old credit is great for credit scores since it reflects a consumer who has wisdom and experience at managing credit, separating from those with poor payment history and high balances.
Timing and strategy are important to keep in mind when applying for new credit too. For example, if a consumer has a 750 credit score and is planning on buying real estate or refinancing a loan they should not open credit until the loan is approved. Even opening one new account could drop the 750 score low enough to affect an interest rate, costing the borrower hundreds of thousands of dollars over the life of the loan. Since the threshold for excellent credit is 740 and above, once the new account is opened and updated on the credit report scores will definitely drop over 10 points and exclude that applicant from the better interest rates. Some might even find they are rejected for a loan.Those in the market for a mortgage must use timing and goals to make decisions.
So how does this all factor into Buying Power?
Since banks have raised their thresholds for what is average, good, and great credit, many transactions have either failed due to lowered credit scores or buyers pay much higher premiums for loan approval. If a buyer is borrowing $700,000 through a Fannie Mae loan and they have a 660 to 739 FICO score they will have to come up with $19,250 in points at closing (a point is 1% of the loan) or pay an approximate interest rate of 5% (today) over the loan term. If the buyer had a 740 plus FICO credit score they would not have to pay any points and the rate would be approximately 4% (today).
Let's say they don't have the additional $19,250 to buy the rate down that extra 1% what would happen?
Buyer A has a 660 credit score and pays 5% interest on the $700,000 loan. Over 30 years the cost would be $1,352,796.
Buyer B has a 740 plus credit score and pays a 4% interest rate on the $700,000. Over 30 years it will cost him $1,203,094.
THE SAVINGS WOULD BE $149,702 over the course of the 30 year loan - which equates to approximately $416 PER MONTH!!!! Kind of Crazy, right??? Credit Matters, big time!!!
All of this wonderful information is courtesy of the amazing Tracy Becker - from North Shore Advisory - a company whose employees have sorted MANY of my clients credit issues BEFORE venturing into the Real Estate Waters - if you think your credit could use some fine tuning - let me know and I'll make the intro!!
Emma
|
| Car Sharing |
Join Zip Car and get $25 worth of driving credit - beep, beep, zoom, zoom |
| Need More Room? |
 As Corcoran is owned by NRT (the world's largest residential real estate brokerage firm) I can make any connection in any town for anyone. Is someone you know moving to Chicago? Is your pregnant sister in California in need of a bigger place? Are your friends in Vermont getting married and need to make a move to a larger place? Or perhaps your grandparents in New Jersey are thinking of selling and getting a place in Florida? If you know someone who needs to make a move, let me know. I'll work tirelessly to find the perfect broker for you or them.
|
|
As always, if you're considering buying, selling, or investing in New York City real estate, or just checking in to say hello, please reach out to me anytime.
Feel free to forward this newsletter and my contact information to your family and friends who might be interested as well. I'm always available as your resource. Corcoran Group Real Estate 490 Broadway New York, NY 10012 O) 212 941 2557 C) 917 297 4875 F) 212 230 7322
All materials presented herein are intended for information purposes only and have been compiled from sources deemed reliable. Though information is believed to be correct, it is presented subject to errors, omissions, changes or withdrawal without notice.
|
|
|
|
|
