From My Desk to Yours August 2019
Those hazy hot and humid days of August are upon us in this third month of summer, the perfect time of year to hang your GONE FISHING sign and when most Europeans take their annual vacations. Celebrate Sisters’ Day on the month’s first Sunday, Lazy Day on the 10th, Middle Childs’ Day on the 12th, and Just Because Day on the 26th.
Did You Miss our 2Q2019 Manhattan Market Report?
Data indicates an interesting, yet oddly typical second quarter. Declining sales seen in the first part of the year turned to moderate growth with 2,380 recorded sales in 2Q, up 31% from the first quarter, and 7% higher than last year’s second quarter. The total number of sales in 1Q and 2Q this year is on pace with the first half of 2018, down only 1% year- over-year. The number of contracts signed increased to 3,196 contracts signed, up 29% from the first quarter and 3% from this time last year. But properties spent a notably longer time on the market at an average of 168 days, up from last quarter’s peak. In addition, the average price dropped 5.8% for sales and 9.3% for contracts with an average 8% discount, up 1% from this quarter last year. Manhattan is seeing more buyers, but those buyers have more options and are taking more time to make decisions. The new mansion tax effective July 1, 2019 drove up activity with an increase in contracts in June. How this tax truly impacts the market remains to be seen in the coming months. Read more.
Coming Soon
My Compass associate and NYRS@ compadre Kathy Kaye is selling her own apartment at 200 Central Park South. Overlooking the park from the 25th floor from oversized picture windows, this stunning two-bedroom residence boasts custom features throughout including cook’s kitchen, fitted walk-in closets and luxurious master bath. Diplomats and pied-à-terre residents are welcome. Call for a sneak peek. 200 Central Park South, 25B
Did You Know?
Public reaction to the recently enacted Housing Stability and Tenant Protection Act of 2019 is sharply divided between tenant advocates who applaud the changes and landlords and real estate professionals who believe the new laws will have unintended consequences. There is currently a federal lawsuit pending which if successful might modify the changes that went into effect on June 14, 2019. In a city where more than 65% of residents are renters, protections were needed, but not when owners are disincentivized to invest in new developments and to upgrade existing properties. While it may be good news that rent increases will be nominal and evictions will become more difficult, some of the changes may perpetuate a housing shortage and decrease tax revenues for the city. For example, high income deregulation has been repealed, so the turnover rate on regulated apartments will likely be very low, and these apartments will more likely be occupied by high-income tenants than the low-income tenants the new laws were designed to protect. With major capital improvements capped at 2% and individual apartment improvements capped at $15K every 15 years, buildings may fall into disrepair, and the value of buildings with regulated tenants will decrease. Moreover, developers will be discouraged from converting rental buildings into condos as they now require 51% of tenants to purchase, up from 15%. Click here for a summary of the new law.
In Good Company
Meet Franklin H. Julie who has been practicing law for over three decades and whom I’ve known for even longer. Frank specializes in estate and trust planning and administration. He’s a great listener and an outstanding legal strategist. With sensitivity and intellect, he customizes estate tax and asset protection plans to accommodate individual family needs and circumstances. While he serves a wide range of asset levels, his expertise lies in structuring complex plans for high-net-worth individuals and business owners. He’ll tailor creative and insightful solutions to maximize estate, gift, income and generation skipping tax efficiency. Frank is a genius with a soul. https://www.kjandblaw.com/franklin-h-julie.html
Shirley Hackel, NYRS®
shirley.hackel@compass.com | (914) 980-0371