Realty Digest

Realty Digest
A Quirky Collection of News and Information
From Malcolm Carter

**** October 21, 2006 ****

Referrals are our bread and butter. Please help us keep the pantry full by letting us know about friends, relatives, neighbors and colleagues at work who may be thinking of moving.

GREENSPAN IS TURNING UPBEAT ON HOUSING MARKET: The U.S. housing market appears to be emerging from its recent travails and the "worst may well be over," former Federal Reserve Chairman Alan Greenspan was quoted as saying in a Reuters piece. "I suspect that we are coming to the end of this downtrend, as applications for new mortgages, the most important series, have flattened out," Greenspan said at an event in Calgary, Canada, sponsored by BMO Financial Group, according to a transcript BMO made available. "There is a good chance of coming out of this in good shape, but average housing prices are likely to be down this year relative to 2005. I don't know, but I think the worst of this may well be over," he added.

NAR SEES REBOUND IN SALES EARLY NEXT YEAR: Lower home prices are turning potential buyers into active lookers, and sellers are showing more willingness to negotiate, according to the National Association of Realtors (NAR). "Given a positive economic backdrop of lower interest rates and job creation, we expect sales activity to pick up early next year," says David Lereah, NAR's chief economist. He forecasts existing-home sales to be fairly stable in the fourth quarter, but sales for all of 2006 are expected to drop 8.9 percent - the third strongest year after consecutive records in 2004 and 2005. New-home sales are expected to fall 17.3 percent this year to 1.06 million, the fourth highest year on record. Housing starts are predicted to be down 10.9 percent to 1.84 million in 2006. With a recent correction in the market, Lereah says that the national median existing-home price likely will rise 1.6 percent to $223,000 for all of 2006, then remain slightly below year-ago levels before gaining positive traction in the first quarter of 2007. The median new-home price is projected to decline 0.2 percent to $240,500 as builders cut prices to move unsold inventory. The 30-year fixed-rate mortgage will probably average 6.5 percent in the fourth quarter but will trend up modestly in 2007, says NAR.

FREDDIE MAC DETECTS FAINT SIGNS OF A MARKET BOTTOM: Signs that housing markets are nearing a floor include stabilizing mortgage applications for home purchases, "cautiously optimistic" consumer sentiment, and a slowdown in price appreciation that will help improve affordability, according to economists at Freddie Mac, reports Inman News. In their monthly report on the outlook for the economy and housing, they warn that there "will undoubtedly be more bumps on the way" and that the "ride could be rocky in some markets." But solid economic fundamentals "should help avert a crash landing." Past gains in housing prices, which give homeowners the ability to borrow money using equity in their homes, will continue to bolster consumer spending through 2007, the Freddie Mac economists say. As the gap between fixed and adjustable mortgage rates narrows, the ARM share of the mortgage market is forecast to drop to 17 percent in the fourth quarter of 2006 and remain there throughout 2007. Applications for purchase mortgages have stabilized at 2003 levels, when demand for housing was "moderately strong," Freddie Mac notes. The economists expect the 30-year fixed mortgage rate will average of 6.4 percent in the fourth quarter and remain little changed in early 2007.

IT'S A CORRECTION, NOT A CRASH, SAYS THESE ECONOMISTS: The Wall Street Journal Online asked Celia Chen, director of housing economics for Moody's Economy.com; Christopher Mayer, a Columbia University housing economist; and Susan Wachter, a professor of real estate, finance and city and regional planning at the University of Pennsylvania's Wharton School, to write down their views on how the housing market could shake out. Said Ms. Chen: "Housing markets are sliding fast. Home sales are well off of last summer's peak, house prices are down on a year-ago basis, inventories are mounting, and leading indicators of housing activity suggest that the market will weaken further before it turns up. Indeed, by at least one indicator, conditions have sunk to the depths hit during the last housing bust in the early 1990s. Housing markets clearly need to correct to offset some of the excesses that have built up during the exceptionally strong boom of the last several years. . . The good news is that the market is correcting, not crashing - and other economic drivers are strong enough to withstand the hit." Chimed in Mayer: "I generally agree with Celia. Yet a longer historical perspective is also necessary. The housing market is still in reasonable shape, even if housing indicators are below their recent historical highs. Existing home sales and housing starts are above their levels a decade earlier and more than 50 percent above their cyclical lows in the early 1990s. The recent 0.50 percentage point decline in mortgage rates, falling construction costs and increasing commercial construction will likely ease the macro effects of a housing slowdown. Despite the hype about adjustable rate mortgages, statistically, housing prices in the last three decades have been much more responsive to changes in long-term real rates than to inflation or short-term rates. Housing did not stop rising when the Fed started raising rates two years ago, but it did slow when long-term real rates started their sustained rise at the end of 2006. If long rates increase again, the housing market may be in for much more trouble. Of course, there is no national housing market, and individual markets respond very differently to national trends. Newspapers and commentators have been calling this a bubble for more than four years. The evidence just does not support this claim, as I noted last year in the Journal. However, some markets are clearly in trouble (South Florida, Phoenix, Las Vegas and, to a lesser extent, California). Condominiums are facing much more difficulty than single-family homes." And this from Wachter: "We were asked as part of this project to respond to the question: 'What's next for the U.S. real estate markets: Soft landing? Bubble bursting? Crash-and-burn?' My answer is all of the above. As Celia points out, due to fairly strong economic fundamentals, the majority of U.S. real-estate markets are experiencing - and are only likely to experience - a modest correction."

HOUSING STOCKS ARE ON THE RISE, BUT FOR HOW LONG: The Dow Jones Wilshire U.S. Home Construction Index of home-builder stocks has increased about 15 percent since July 18, says the Wall Street Journal. While the index is still down for the year, that recent rise has outpaced broader market indexes and set off a debate among investors about whether the slowdown might end sooner for the home builders than many expect. Some bulls believe builder stocks hit a bottom toward the end of July, around the time that the Federal Reserve signaled it was considering a pause in its two-year campaign of interest-rate increases. Since the housing sector is so sensitive to mortgage rates, the signal mattered to home builders. The question now is whether the Fed's pause - and a recent drop in long-term interest rates - will be enough to bolster a sector so exposed to a housing slowdown that seems to be getting worse. "If the sector stops going down with bad news, it may imply that it has found a bottom," says John Buckingham, chief executive of Al Frank Asset Management, which has $800 million under management and whose investment newsletter, the Prudent Speculator, has recommended more builder shares in recent months. But Buckingham says his funds haven't added to their home-building stake recently. These are volatile stocks and bears believe the recent gains could easily be reversed as the housing market continues to slide. Banc of America Securities analyst Daniel Oppenheim last week downgraded Pulte Homes to "sell" from "neutral" and D.R. Horton, to "neutral" from "buy," citing the recent appreciation of their stocks.

NOW THE FRONT ON BIDDING WAR IS WITH RENTAL UNITS: Renters are beginning to resort to the same one-upmanship tactics to secure a choice apartment as buyers, observes the Wall Street Journal. In Washington, D.C., the owner of the Ellington, a 190-unit rental building on U Street, has a 12-person waiting list, and nearly a half dozen renters are paying rent two to three months before their move-in dates. San Francisco renters are showing up early to open houses and racing to fill out applications before other applicants. In Manhattan, some renters are offering landlords more money than asking rents, while others are paying the equivalent of the entire year's rent upfront in cash. Rental landlords, who used to fret as prime would-be tenants jumped into the housing market instead, suddenly are in the driver's seat. Nationally, rent for a 1,000-square-foot apartment has jumped 3.7 percent to $1,389 a month from $1,339 a year ago, according to data collected by Boston-based research firm Property & Portfolio Research Inc. Rent increases haven't been this high since the fall of 2001, when rents jumped by 4.1 percent. Rental vacancy rates dropped to 5.3 percent in the second quarter of 2006 from 6.2 percent in the second quarter of 2005; they eased very slightly in Manhattan, where they are under 1 percent. Demand is booming following several brutal years for landlords. From 2002 to 2005, 438,000 renters from age 20 to 34 nationwide took advantage of low interest rates and became first-time homeowners, says Hessam Nadji, managing director of Marcus & Millichap's research services.

BIG BUILDER REPORTS NUMEROUS CANCELLATIONS: NVR, the D.C. region's largest home builder, said that four out of 10 of its new-home sales in the Washington area were canceled last quarter, making it the latest builder to report that more buyers are backing out of deals, according to the Washington Post. Around the Washington market, cancellation rates have tripled in the past year, to 17 percent, according to researchers at Hanley Wood Market Intelligence. In August alone, that meant about 250 cancellations. In its most recent earnings report, builder Toll Brothers said cancellations in the quarter that ended in July had more than doubled, to 18 percent nationally, while numerous builders said in interviews that their cancellations locally had increased. Developers and builders concede that buyers are abandoning five-figure deposits on their future homes because they cannot sell their existing homes or did not sell them for nearly as much as they had counted on. In an effort to reverse the trend, builders are helping buyers sell their old houses, delaying closing dates or offering favorable loan terms - or even cash, beyond the free decks and plasma televisions they have been using to try to lure customers since the housing market began cooling a year ago.

HOUSING STARTS REBOUND, BUT PERMITS FALL: Nationwide housing starts in September regained the ground they lost in a steep decline the previous month, but issuance of building permits - a key indicator of future building activity - continued on a downward trend, according to numbers released by the U.S. Census Department. September housing starts rose 5.9 percent seasonally adjusted, near July's 1.76 million-unit rate and the third quarter's average of 1.74 million units. Single-family starts were up 4.3 percent, while multifamily starts were up 12.7 percent to a rate of 346,000 units. Although the report "showed that some real strength remains in the national housing market, all of the increase in housing starts was registered in the South and Midwest, where relatively good weather conditions apparently encouraged builders to draw down their backlogs of unused permits," said Chief Economist David Seiders of the National Association of Home Builders (NAHB). "But we believe the trend for housing starts is still downward at this stage of the game, as evidenced by the ongoing slide in issuance of new building permits and the significant decline in the inventory of previously issued permits," he commented. Issuance of total building permits declined 6.3 percent in September. Single-family permits were down 6 percent, and multifamily permits fell 7 percent.

BRITNEY MAKES OUT: For Jessica Klein and her husband Isaac Levenbrown, who already had bought the Hollywood Hills home of the actor Nicolas Cage, spent $4 million in August to buy Britney Spears's four-level 4,400-square-foot apartment in the Silk Building at East Fourth Street and Broadway, according to the New York Times. The place had been on the market for more than two years and was originally priced at more than $5 million. Prior owners included Keith Richards, that guitarist, and Russell Simmons, the hip-hop pioneer. Klein's credits include head writer for the soap opera "As the World Turns" and writer and producer for "Beverly Hills, 90210." It was unclear whether the couple is attracted to celebrity or to quirky homes, or found a bargain, especially compared with the hot prices in the Los Angeles real estate market.

CHUMP CHANGE FOR ONE BUYER BREAKS PROPERTY HIGH: The elusive $50 million mark for a single-family residence in New York City has been broken by investment banker J. Christopher Flower, who paid $53 million for the 20,000-square-foot townhouse at 4 E. 75th St., according to city records, the New York Post reports. The sale ends years of speculation about the fate of the 25-room townhouse, which has stood mostly vacant since banker Jacqui Safra and his longtime partner, movie producer Jean Doumanian, bought the property in 1987 for $6.9 million. Flowers, 48, who's listed in the Forbes 400, with an estimated worth of $1.2 billion, is a Harvard-educated former general partner of Goldman Sachs who now heads investment firm J.C. Flowers & Co. The previous record was $45 million for a 10,000-square-foot condo at the 15 Central Park West complex.

BROKERAGE FEES COME UNDER ATTACK: The commission structure in the real estate industry is "an anomaly" that may inflate compensation for services rendered by tens of billions of dollars each year, according to an article published by the AEI-Brookings Joint Center for Regulatory Studies, reports Inman News. The draft paper - "A Critical Assessment of the Standard, Traditional Residential Real Estate Broker Commission Rate Structure" - suggests that consumers would benefit most from fee-for-service real estate companies that base compensation on flat fees, hourly fees and other specific payments for services rather than relying on a commission rate that is based on a percentage of the sale price of a home. "Residential real estate brokers and salespersons have long quoted their fees as a straight percentage of a home's sale price. This traditional formula, however, ill serves the interests of both home buyers and sellers, and is a primary reason why such fees may be inflated by, on average, more than 100 percent or $30 billion annually," contends government lawyer Mark S. Nadel in the draft, on which he is seeking comment. (How about, don't even think about it?) The article says that there are many agents who are willing to provide real estate services for flat fees of less than $5,000 per transaction, agent costs per transaction do not appear to be directly proportional to the varying level of house prices, and commission compensation and brokers in other countries charge "much lower fees for providing similar services." More price competition in the real estate industry "could very possibly reduce total revenues for brokers precipitously, by $30 billion or more annually," the author contends. "This gives traditional brokers a strong interest in resisting this result."

TITLE INSURERS ARE UNDER CONTINUED SCRUTINY: The insurance companies that sell coverage to protect against problems with land titles on homes and other property are coming under new regulatory scrutiny, notes the New York Times. In a report, Washington state regulators said that title insurance companies there flouted laws by spending thousands of dollars on pro basketball tickets, shopping trips, cocktail parties, boat trips and golf tournaments in exchange for customer referrals. The recipients of the lavish gifts, the regulators said, were bankers, builders and representatives of real estate companies. The insurers will not be fined. "The real shocker was the scope and extent of the abuse," Mike Kreidler, the insurance commissioner in Washington, said in a statement. The expense of the improper payments increased the cost of title insurance for home buyers, who are almost universally required by lenders to purchase the coverage, he added. Title insurers have paid more than $35 million to settle regulatory complaints in more than 30 states. They say they try to work within the law and treat customers fairly. But a spokeswoman for Land-America, Lloyd Osgood, said "the laws governing the conduct of the title insurance industry are often unclear at the state and federal level."

CHANGE SOUGHT IN A TAX BREAK FOR DEVELOPERS: The Bloomberg administration plans to recommend that the city's most popular tax break for housing developers be overhauled as a way of creating a more powerful incentive to build lower-cost housing, reports the New York Times. It would be the first major change in the program, known as 421-a, in the 35 years since it was conceived. Under the current program, which was started when the housing market was stagnant, developers of new apartment buildings in most neighborhoods are eligible for a 10- to 15-year exemption from the increase in real estate taxes resulting from the work. Only in a few parts of the city - central Manhattan and Greenpoint-Williamsburg in Brooklyn - are they required in return to include lower-priced units, either on site or nearby. Under the new proposal, those areas would be expanded to include Lower Manhattan, parts of Harlem, the Dumbo section of Brooklyn, Brooklyn Heights and other parts of the Brooklyn and Queens waterfront. The tax break would be tightened in other ways, too. There would be a strict limit on the size of tax breaks to market-rate units, and the maximum benefit - a 25-year tax break - would go only to projects citywide that include low-priced units. "The program will steer more developers toward creating affordable housing because of the incentives built into the program," said Shaun Donovan, commissioner of the city's Department of Housing Preservation and Development. "But at the same time, there will also be more taxes paid to the city of New York because of the reforms, and we're going to take those increased taxes and put them back into affordable housing."

DEVELOPMENT OF NEW CONDOS IS ON THE DOWNSWING: Last year, developers submitted plans for 14,159 new condos (which included a handful of new development co-op units as well) in New York City, the Real Deal magazine says. The number was 8,072 in 2004. Although this year's total through August hit 11,265, on pace to beat last year's mark, the magazine projects that plans for only as many as 3,035 units would be submitted for the third quarter of 2006. That's down from 4,301 unit plans submitted in the second quarter, which itself was down from the 4,941 units in the first quarter of 2006. Market analysts attribute the nine-month downward trend to rising construction and land costs.

AND IN STUYVESANT TOWN, THE WINNER IS. . . JERRY SPEYER: The real estate magnate, who controls some of the city's most prominent landmarks - from Rockefeller Center to the Chrysler Building - signed the largest American real estate deal ever, agreeing to pay $5.4 billion for Stuyvesant Town and Peter Cooper Village, a vast corridor of 110 apartment buildings along the East River, the New York Times reports. Speyer, the chief executive of Tishman Speyer Properties, and his partner, the BlackRock investment bank, outmaneuvered more than a half-dozen other bidders, including a group aligned with tenants who had hoped to preserve the two adjoining complexes on First Avenue between 14th and 23rd Streets as enclaves of middle-class housing. At $4.5 billion, a tenant offer lagged behind bids from some of the biggest names in real estate: Apollo Real Estate Advisors in a joint offer with the Dermot Company; the Related Companies with Lehman Brothers; the Millstein brothers; and Vornado Realty Trust. Tishman Speyer and BlackRock were among about eight companies invited to make final bids for the complexes. Apollo, the No. 2 bidder, came in at $5.33 billion.

HUGE NEW HOUSING DEVELOPMENT IS IN THE WORKS: Mayor Bloomberg announced plans to buy 24 acres of Queens waterfront property for a towering development, which would be the largest middle-income housing complex built in New York City in more than 30 years, says the New York Times. Under the proposal, the city would bring as many 5,000 new rental units to a largely industrial area of Long Island City, where chic restaurants are just beginning to appear amid low-slung factories and three-family homes. The new apartments, Bloomberg said, would be for families of four earning between $60,000 and $145,000 a year, who would pay $1,200 to $2,500 a month in rent.

THE DISTANT HOME RESULTS IN A COSTLY TRADEOFF FOR MANY: Low- to moderate-income working families are finding that as they move further from work to afford housing they end up spending as much, or more, on transportation costs than they are saving on housing. That's according to a new study of 28 major Metropolitan areas nationwide, including New York City and D.C., conducted by the Center for Housing Policy, the research affiliate of the National Housing Conference (NHC). The study also found that the combined burden of transportation and housing costs for working families was remarkably constant across all the Metropolitan areas studied at an average of 57 percent of annual income. "Working families are increasingly moving further from their jobs to find affordable housing. Yet, we found that many of these families end up spending more on transportation costs than they save on housing," said Jeffrey Lubell, executive director of the Center for Housing Policy.

NO SURPRISE THAT MOVING COSTS PLENTY: A recent survey conducted by Move Inc. finds that homebuyers and renters in the pre- and post-move cycle spend approximately $170 billion annually on move-related products and services. Move's 2006 Mover Survey examined nearly 40 purchase categories and found that, in the months surrounding a move, the average household spends nearly $9,000 on products and services that are linked directly to the move. Approximately half of the moving-related expenditures are spent on a variety of household goods and services, including home decorating, improvement and repair. Movers spend 60 percent more on such purchases than non-movers. The rest of the moving-related expenditures are spent when switching to new merchants for services such as banking, cable or satellite TV, telephone service and Internet access.

FOR REAL ESTATE COMPANIES, LEGAL FEES ARE INESCAPABLE: The average U.S. real estate company faces an average of 10 separate lawsuits pending in U.S. courts each year - one of the lowest among industries covered in an annual survey – according to Inman News. Conducted for Fulbright & Jaworski, a large corporate law firm, the survey also found that the typical real estate company spent an average of $389,000 on litigation in the past year. The law firm asked 422 corporate lawyers worldwide about their top litigation worries and attitudes. Basic real estate issues were identified as one of the top three concerns for 75 percent of real estate company general counsel in addition to contract disputes and insurance matters by smaller percentages. Other results: 13 percent of real estate companies surveyed expect their U.S. case loads to increase next year; 57 percent of real estate companies need the services of six or more outside law firms to handle their legal disputes work; 25 percent of real estate companies have had at least one $20 million-plus lawsuit initiated against them in the last year; 25 percent have class actions pending against them; and 60 percent of all real estate companies have conducted an internal investigation requiring the assistance of outside counsel within the last year.

FOR BUILDERS, IT'S NOT LOOKING WORSE: Breaking a string of eight consecutive monthly declines, the National Association of Home Builders/Wells Fargo Housing Market Index (HMI), which gauges builder sentiment in the single-family housing market, posted a modest one-point gain to stabilize at a level of 31 in October. "While the index remains at a low level, the single-point increase from September's reading suggests that builder attitudes for new-home sales may be stabilizing," said NAHB Chief Economist David Seiders. "This is attributable to several key economic factors: Mortgage interest rates have fallen substantially from their summer highs, energy prices have dropped dramatically from their recent peaks, consumer sentiment has posted a strong rebound and the job market is doing reasonably well."

HANG IT ALL: With proper technique, hanging pictures on a lath-and-plaster wall isn't a problem, observes Inman News, which obviously never tried to mount three of them in a straight line. If the pictures are small and equipped with a wire on the back, use a small picture hook and nail. To install small picture hooks, all you need is a hammer – and a morning with Peter, Paul and Mary. Gently tap the nail provided with the hook diagonally into the wall using the hook itself as a guide. With small hooks there is little danger of cracking the plaster. Larger hooks may require pre-drilling a hole. A cordless drill equipped with a drill bit slightly smaller than the nail is the tool for the job. Drilling a pilot hole removes some of the plaster and greatly reduces the possibility of cracking the plaster. Make sure to drill the hole on an angle that approximates the angle of the path of the nail. For small- and medium-sized pictures you don't have to be concerned about hitting a stud. The plaster has enough structural integrity to hold their weight. Be cautious about trying to drive a nail into a piece of wood lath. If a nail strikes a piece of lath under the plaster, there is a good chance it will vibrate, break the plaster keys and loosen the plaster from the lath. A "key" is the term used to describe wet plaster that oozed between the lath when applied and dried partially encasing the lath. You'll be able to tell if the nail strikes a piece of lath - it will bounce back when you tap it with your hammer. If that happens, drill a pilot hole no matter which size nail you use. For hanging large, heavy pictures it is recommended to use a wood screw as hanger if the screw can be installed in a stud or a wall anchor if it does not hit a stud. Whether installing a wood screw or wall anchor, pre-drill a hole in the wall to inhibit cracking. For a wall anchor insert the cylinder into the pre-drilled hole, tighten the bolt so that the cylinder compresses and back the bolt part way out of the cylinder and hang the picture. Use two fasteners for very large or heave pictures.

FIND A ROOMMATE, WISELY: If you're considering this route, here's some advice, from the Washington Post, that could keep disaster from striking: 1. Get it in writing. Government officials, housing counselors and lawyers agree that the more you get in writing - even in group houses, where roommates are often subletting semi-officially on a single lease in a single tenant's name - the easier it'll be to seek recourse if something goes wrong. It's sort of like a prenup," suggests Ann Marie Y. Hay, executive director of Georgetown University's Law Students in Court program, who often deals with tenant issues. "You hate to put it in writing because it seems like you don't trust them, but it's safer . . . and benefits both parties," she says. 2. Do your homework. To pick the right roommate, start with a careful interview process that includes a credit check. Once you're settled, commit to maintaining open lines of communication. "If you do it right, the friendship that develops between roommates can last a lifetime," says Sylvia Bergthold, author of "Sorry, the Boa Has Gotta Go: A Roommates Survival Guide." 3. Keep an open mind. Don't close your mind to potential roommates just because they seem different from you on the surface. Having a mix of personalities under one roof doesn't guarantee that mayhem will ensue, according to Bergthold: Many roommate friendships are struck by strangers with different backgrounds.

THOSE APPEALING RATES CONTINUE TO PERSIST: The 30-year fixed-rate mortgage (FRM) averaged 6.36 percent for the week ended Oct. 19, down slightly from last week's 6.37 percent and up from last year's 6.10 percent, reports Freddie Mac. The 15-year FRM was unchanged at 6.06 percent. A year ago, it was 5.65 percent. Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) were 6.11 percent this week, up slightly from 6.10 percent last week. A year ago, it averaged 5.59 percent. One-year Treasury-indexed ARMs were 5.57 percent in comparison with 5.56 percent the prior week and 4.89 the prior year. "Mortgage rates didn't move much either way this week as the markets wait for the next scheduled FOMC meeting," noted Frank Nothaft, Freddie Mac vice president and chief economist. "General consensus leans heavily toward the notion that the Fed will not raise rates at that meeting, taking upward pressure off mortgage rates this week. "A rate change in either direction would impact short-term rates more directly, but what the Fed says in its statement can have an impact on long-term rates."

LOAN APPLICATION VOLUME DIPS: For the week ended Oct. 13, applications decreased by 2.2 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the decrease was 2.3 percent compared with the previous week and 11.4 percent compared with the same week one year earlier. Seasonally-adjusted, refinancings went down by 5.3 percent from the previous week, while purchase applications went up by 0.4 percent. The refinance share of mortgage activity decreased to 45 percent of total applications from 46.4 percent the previous week, and the adjustable-rate mortgage (ARM) share declined to 26.5 percent.

Starting at 96th on the Eastside and 110th Street on the Westside, Harlem has a large stock of 19th century brownstones with great, original architectural details from the 1880's. Many neighborhoods are undergoing renovation as people look to Harlem as a new frontier for more affordable housing. Some of the key Harlem neighborhoods are the famous Strivers' Row from West 138th to West 139th Street with beautiful brownstones, Mount Morris Park from 120th to 125th Street, Hamilton Heights from West 145th to West 155th Street, and Fifth Avenue from 125th to 132nd Street. Prices are generally lower than some other Manhattan areas and there is an excellent subway and bus transportation system.
Undergoing its second Renaissance, Harlem not only has some of New York's most impressive row houses and apartments, it also is home to City College and several famous landmarks. In addition, the 1802 home of Alexander Hamilton at 87 Convent Avenue, between West 141st and West 142nd streets, merits a visit. Also visit the nearby City College campus to see the beautiful Harris Hall and Shepard Hall. Harlem's central shopping district, West 125th Street, has an eclectic mix of retail outlets and larger chain stores. The area has undergone rapid transformation, and some small businesses as well as nearby residents are struggling to cope with huge increases in rents as national chains move in such as Blockbuster and H & M. Former president Bill Clinton has his office here.

No trip to Harlem would be complete without visiting its museums, churches (at minimum, for the rousing gospel services) and mosques, restaurants and music venues. Some of the many highlights include the African American Wax Museum, the Black Fashion Museum, the Studio Museum in Harlem, the Abyssinian Baptist Church (where Adam Clayton Powell held forth), Sylvia's Soul Food, the Lenox Lounge and the Apollo Theatre, a concert venue for luminaries as well as a rite of passage for rising musicians. Count Basie, Bessie Smith, Nat King Cole, Marvin Gaye, Sammy Davis, Jr., and Aretha Franklin have all played the Apollo, and past winners of its unrestrained weekly amateur night include Billie Holiday, Ella Fitzgerald, Sarah Vaughn and the Jackson Five. In addition, several tour companies feature special offerings, such as gospel tours, church visits, and jazz outings. If you're hungry, two more recent additions in westernmost Harlem, the enormous Fairway Supermarket as well as Dinosaur BBQ, are worth a visit.

Hot and Cool
West 123^rd St./$2.2 million*

High priced and horrid
Central Park North/$2.2 million*

*Details below

For some downtown types, the Upper East Side might as well be another planet, notes the Insider, from which this neighborhood description is taken. Given the abundance of deluxe highrises, swanky boutiques and affluent professionals, the area screams yuppiedom.

Indeed, the city's "Silk Stocking District," - roughly 60th to 96th Streets, from Fifth Avenue to the East River - is one of New York's poshest neighborhoods. Here are upscale clothing emporiums such as Barney's, Ralph Lauren and Calvin Klein; exclusive private schools such as Dalton and Brearly; the auction houses of Christie's and Sotheby's; even the mayor's official residence, Gracie Mansion.

Compared with other areas of Manhattan, the streets are clean, the homeless population minimal and the overall atmosphere - some would contend - somewhat stiff.

It's true, the Upper East Side is no haven for "artsy" types. You're more likely to come across Chanel, Gucci and Louis Vuitton here than purple hair, combat boots and multiple body piercing.

Along Fifth Avenue, you'll find mansions formerly owned by turn-of-the-century industrialists and philanthropists and, alongside them, majestic apartment buildings which are now, and have always been, the domain of the super rich. Still, many apartments east of Lexington Avenue are comparable in price with other parts of Manhattan. Sandwiched between the luxury doorman buildings are older, less glamorous dwellings.

While the avenues running north and south are usually bustling with commerce and traffic, most Upper East Side cross streets are tree-lined and serene. Further east, around York and East End Avenues, it's even quainter. But the hike to the subway several blocks away on Lexington Avenue can be brutal on cold, wintry days.

There are many restaurants and bars along First, Second and Third avenues, There are sports bars, singles bars, coffee bars, cigar bars and every ethnic food imaginable. In the first half of the 20th century, Yorkville, the northeast section of the Upper East Side, was home to thousands of German, Hungarian and Czechoslovakian immigrants. Today, the last vestiges of this once thriving community can be experienced at a few remaining old-world restaurants.

One of the major cultural landmarks on the Upper East Side is the 92nd Street YMHA on Lexington Avenue. More than just a gym, the "Y" is famous for its lectures, seminars, concerts, walking tours, after-school programs and adult education classes. Learn a language, a musical instrument, even how to flirt. Or listen to luminaries such as Barbara Walters, Chris Darden, Mario Cuomo and Clint Eastwood - all of whom have spoken at the "Y."

The Upper East Side also is home to some of the world's most magnificent museums. Among them are the Guggenheim, the Whitney, the Frick Collection, the Cooper-Hewitt and the Jewish Museum. But the grandest of them all is the Metropolitan Museum of Art.

The nation's 78 million baby boomers have diverse plans and timelines for their retirement years, resulting in different housing requirements and significant shifts from patterns established by earlier generations, according to a study by the National Association of Realtors (NAR).

"The differences from past generations - and between baby boomers themselves - will have a significant impact on housing needs over the next 10 to 20 years that is very different from the World War II generation," says David Lereah, NAR's chief economist. "Many boomers simply don't know how they'll retire."

The comprehensive study is based on a survey of nearly 2,000 American baby boomers born between 1946 and 1964 - the largest generation in U.S. history. The survey was conducted for NAR by Harris Interactive.

The survey also revealed a lot about where retiring baby boomers will move and how much money they'll have available to spend on housing.

Sunbelt is popular choice. Forty-two percent of survey respondents would like to retire in the South, 32 percent in the West, 15 percent in the Midwest and 12 percent in the Northeast. "This tells us that the Sunbelt will remain a traditional draw for retirees," Lereah says.

High median income. Most boomers live in two-income households, with a median income in 2005 of $64,700, which is 31 percent higher than the median for all households. This generation makes up 37.5 percent of U.S. households but receives nearly half of all aggregate household income. "This translates into a lot of purchasing power and helps to explain why 8 out of 10 boomers are home owners," Lereah says.

But not everyone is rich. For baby boomers earning $100,000 or more, the study shows that more than 9 in 10 are home owners. Even so, 19 percent of respondents are renters, 37 percent say they have just enough to make ends meet and 17 percent say they are having financial difficulty. Furthermore, most survey respondents were unsure of their financial future, with three-quarters saying they're not financially prepared for retirement and many expressing anxiety about their ability to retire. Some boomers said they might withdraw retirement funds for housing or real estate expenses.

Diverse real estate holdings. A quarter of baby boomers own one or more other kinds of real estate in addition to a primary residence: 13 percent own land, 8 percent own rental property, 7 percent a vacation home or seasonally occupied property, 2 percent commercial real estate and 3 percent some other kind of real estate.
Plans involve vacation homes. Four out of 10 respondents intend to convert their vacation home into a primary residence in retirement. Analysis by NAR shows baby boomers are proportionately more active in the second home market, owning 57 percent of all vacation/seasonal homes and 58 percent of rental property.

Rural destinations lead the pack. Half of boomers who live in an urban area would like to retire in a small town or rural area. Their ideal retirement location characteristics include a lower cost of living, being near family, quality health care, better climate and being near a body of water. More than a third of all baby boomers want to retire in an urban or suburban setting, motivated by quality health care and cultural activities. Half of boomers said they would consider living in an age-restricted community.

Will help kids buy a home. Almost one in four boomer households have a high net worth of $500,000 or more, and this ratio is expected to increase in the future as the generation ages. Virtually all high-net-worth households are home owners (97 percent), and 47 percent are likely to also own other real estate in addition to their primary residence. More than a third expects to help children or grandchildren with a down payment on a home. Wealthier boomers want amenities where they retire, including cultural activities such as museums and art galleries. As a result, they are more likely to retire in an urban area or city.

Francese of American Demographics magazine warns that some of the responses about retirement preferences are based on dreams. "Surveys of future intentions often include a dose of wishful thinking, and attitudes can be influenced by the media and other outside pressures," he says. "For example, many are probably not going to be able to, or even want to, retire in a small rural town far from their current home, even if they may dream about it currently."

Below are just a few of the newest listings of condominiums and cooperatives put on the market by various brokers.

221 W 21st St - 3B, NEW YORK, NY, 10011
$449000
Bedroom(s): 1
Bath(s): 1
Square Feet: 525 SqMt
In the listing agent's inimitable words: "Cozy Pre-War 1 Bedroom in the heart of Chelesa. Situated on a tree lined block in an elevator building, this 1 BR has all the essentials! Recently renovated kitchen, exposed brick walls, wood floors, through the wall A/C, seperate storage unit in the basement and decorative Fireplace. The building does have laundry in the Bldg. and a part time superintendant. Pets are allowed with Board Approval."
Listing #: 806911

160 West End Ave - 5U, NEW YORK, NY, 10023
$499000
Bedroom(s): 1
Bath(s): 1
Square Feet:
In the listing agent's inimitable words: "Fall in love with this rarely available layout, sunny one bedroom facing east. Enter through the foyer leading into the spacious living and entertaining space featuring a wall of windows which flows to the generously proportioned bedroom and bathroom area with ease. Tastefully renovated kitchen and bathroom, hardwood floors, abundance of closet space, maintenance includes gas and electric. Time Warner and RCN high speed internet and cable ready. Top full service doorman/concierge building featuring gym, storage room, package room, dry cleaner on premises. Located in the prime Lincoln Center neighborhood, steps away from all transportation and Broadway for dancing, dining, shopping and more!"
Listing #: 806915

2025 Broadway - 24B, NEW YORK, NY, 10023
$510000
Bedroom(s): 1
Bath(s): 1
Square Feet: 0 SqMt
In the listing agent's inimitable words: "Stunning sunsets and amazing views west to the Hudson River are yours in this high floor Upper West side home. Move right into this excellent condition one bedroom apartment with a nice sized kitchen, separate dining area and four large closets. Both kitchen and bathroom have been renovated with neutral finishes to suit all. The location is superior -- right in the heart of the Upper West Side -- close to subways, buses, Fairway, Citarella, restaurants and shopping. The full-service luxury building has many amenities including a roofdeck with full city views, public storage, bike storage, common laundry room and pets are welcome."
Listing #: 807245

444 E 75th St - 14H, NEW YORK, NY, 10021
$525000
Bedroom(s): 1
Bath(s): 1
Square Feet: 800 SqMt
In the listing agent's inimitable words: "Bright and spacious with views to die for! This large one bedroom is renovated with crown moldings, a Waterworks bathroom and a separate dining area. The windowed kitchen is wider than most one bedroom kitchens with a pass-thru window. In the oversized bedroom there is room for a home office or extra seating area.Your new home is steps away from the cross town bus and Express taxis to the Wall Street area. Apartment Features: South exposure, West exposure, Full city view Building Features: Courtyard, Roof deck"
Listing #: 807838

180 West End Ave - 5S, NEW YORK, NY, 10023
$529000
Bedroom(s): 1
Bath(s): 1
Square Feet:
In the listing agent's inimitable words: "This coveted 1 bedroom layout, features a fantastic entertaining space which includes an expansive lvinging room, a dining/office area, rarely available in this property category and a renovated kitchen.Open city views, incredible closet space, utilities included in the maintenance and an exceptional,full service building with a gym, full complement of building staff,on site managing agent and security personnel make this a very special property. Apartment Features: North exposure, Partial city view, Modern kitchen, Great closet space Building Features: Courtyard, Roof deck, Childrens room, Central laundry room, Package room"
Listing #: 903255J

588 West End Ave - 9C, NEW YORK, NY, 10024
$549000
Bedroom(s): 1
Bath(s): 1
Square Feet: 600 SqMt
In the listing agent's inimitable words: "Warm and inviting NE facing corner apartment in prime WEA bldg! Apt has 9ft clgs, windows in all rooms, and closets and hidden storage areas throughout. In addition, the apt is completely pre-wired for your client's listening pleasures. Floor plan flows easily and lends itself perfectly to living and entertaining in NYC!"
Listing #: 806929

33 Riverside Dr - 7FA, NEW YORK, NY, 10023
$565000
Bedroom(s): 1
Bath(s): 1
Square Feet: 650 SqMt
In the listing agent's inimitable words: "Modern apartment with strip hardwood flooring throughout, beamed ceilings and a large granite kitchen. Three built-in closets, windowed bathroom and two windows in the living room and bedroom, a very quiet and private apartment situated at the rear of the building. This land marked building has a full time doorman and is a well established co-op in one of the best locations on Riverside Drive, close to the park and the 72nd Street subway."
Listing #: 389398J

155 W 68th St - 907, NEW YORK, NY, 10023
$599000
Bedroom(s): 0
Bath(s): 1
Square Feet: 600 SqMt
In the listing agent's inimitable words: "Prime White Glove Full Service Condominium with circular driveway entrance, garage and a roofdeck. Apartment has open west exposure and is in excellent condition, with updated separate kitchen and bath. Great storage and large walk- in closet included."
Listing #: 807571

155 E 49th St - 8B, NEW YORK, NY, 10017
$599000
Bedroom(s): 1
Bath(s): 1
Square Feet: 600 SqMt
In the listing agent's inimitable words: "This luxurious and spacious One Bedroom captures the true New York experience in a Sophisticated 24 Hour Doorman and Elevator Attendant Building. The Apartment Boasts an Exquisitely and Tastefully Designed Chef s Kitchen with Beautiful Granite Counters with matching Granite Floors, Custom Designed Wood Cabinets & Built-ins, all New Stainless Steel GE Profile Appliances in Kitchen, Elegantly Designed Marble and Tile Bath with Window, Large Oversized Windows with City Windows in Bedroom. Enjoy leisurely strolls to all the Best that New York has to offer and be virtually steps from everything, Rockefeller Plaza, Museums, Many of New York s Best, Restaurants and Designer Stores, and all subways including Grand Central Station.It Really Doesn t Get Better Than This!"
Listing #: 69335J

85 Eighth Ave - 4E, NEW YORK, NY, 10011
$699000
Bedroom(s): 1
Bath(s): 1
Square Feet: 750 SqMt
In the listing agent's inimitable words: "This spacious one bedroom home has a newly renovated granite kitchen with stainless steel appliances including a dishwasher and microwave. All new bath, brand new cherrywood strip floors, lots of closets and the apartment has been freshly painted. Juliet balcony Serene and ample lighting from the south facing apartment Building amenities include a full time doorman/concierge, bicycle room, garage, courtyard/garden and laundry facilities on every floor."
Listing #: 807321

305 E 88th St - 2A, NEW YORK, NY, 10128
$735000
Bedroom(s): 2
Bath(s): 1
Square Feet: 0 SqMt
In the listing agent's inimitable words: "This is a true 2 bedroom with an excellent layout ( see floor plan) in a prewar circa 1927 building with 9.5 foot ceilings, crown moldings, and beautiful herringbone hardwood floors. The kitchen and bathroom have both been renovated and both have windows. A wonderful building to raise a family, it has a large children's playroom, a common garden, new laundry room, a bike room, a live-in super and it is pet friendly. Don't Wait."
Listing #: 807320

445 E 86th St - 5B, NEW YORK, NY, 10028
$749000
Bedroom(s): 1
Bath(s): 1
Square Feet: 900 SqMt
In the listing agent's inimitable words: "Junior 4, Co-op with Pre-War feel, a large one bedroom (900+ square feet). Can be converted easily into a 2 bedroom. Renovated Granite kitchen with wood cabinets, stone tile floors, all new appliances. Renovated bathroom stunning slate stone tile floor to ceiling. Beautiful Oak wood floors and crown mouldings throughout, all South exposures. Tree Lined Street, 1 block from Carl Schurz Park, Pet friendly A Must see for the serious home buyer."
Listing #: 807784

57 E 75th St - 2F, NEW YORK, NY, 10021
$850000
Bedroom(s): 1
Bath(s): 1.5
Square Feet: 855 SqMt
In the listing agent's inimitable words: "Unique sun filled multi-level Coop apartment located in the East 70s, steps from Central Park on one of the nicest blocks between Madison and Park Avenues. A private keyed elevator with a video TV security system leads you up to the entry level where there is a powder room and a new eat-in kitchen with a washer/dryer. Step up to the living room with a wood burning fireplace, four large windows with three exposures, plus a Juliet planting balcony. Step up again to a bedroom, dressing area and a full bath complete with Jacuzzi tub and bidet. This apartment has incredible closet and storage space and is in excellent move-in condition."
Listing #: 807308

400 E 85th St - 20E, NEW YORK, NY, 10028
$875000
Bedroom(s): 2
Bath(s): 2
Square Feet: 1200 SqMt
In the listing agent's inimitable words: "Dramatic open city & skyline views to the North & West from this family sized two bedroom two bath find. Beautifully renovated windowed kitchen with granite counters. Fantastic layout offers a grand living room with custom built-ins, crown moldings, a washer/dryer, and still plenty of room for a dining table. Great family neighborhood, convenient to transportation, shopping, restaurants and Carl Schurz park. Zoned for the award-winning P.S. 290 - Manhattan New School. Full service building with 24 hour doorman, new red brick facade, garage & bike storage. Pets are welcome."
Listing #: 806942

135 W 70th St - 2G, NEW YORK, NY, 10023
$899000
Bedroom(s): 1
Bath(s): 1
Square Feet: 0 SqMt
In the listing agent's inimitable words: "Approximately 1150sqft of PERFECTION. Fall in Love with this downtown-style chic loft in the best location on the Upper West side. This Massive 1 bedroom duplex has been completely renovated to suit all of your needs. Your gracious foyer opens to a 19 foot double height ceiling living room with sunny southern exposures a large enough space to dine, relax and even for an office area. The triple mint kitchen has all top of the line appliances and a dishwasher, gorgeous sea glass back splash makes being in the kitchen like being at a spa. Excellent closet space and a serene bedroom make this home complete. This full service luxe building leaves no stone unturned with an excellent full time doorman and staff that is anxious to please, building also has a laundry room, playroom and private storage."
Listing #: 807564

1 River Terr - 8B, NEW YORK, NY, 10282
$920000
Bedroom(s): 1
Bath(s): 1
Square Feet: 865 SqMt
In the listing agent's inimitable words: "Well proportioned sun drenched floor through one bdrm, with beautiful views of street and interior courtyard park. Apartment Features: East exposure, West exposure, Full garden view, Floors - hardwood, Light - excellent, Windows - new, Modern kitchen, Marble bath, Storage space, Walk in closets, Washer/dryer, Dishwasher Building Features: Exercise room, Childrens room, Central laundry room, Valet, Health club"
Listing #: 808026

75 East End Ave - 14A, NEW YORK, NY, 10028
$995000
Bedroom(s): 2
Bath(s): 2
Square Feet: 1350 SqMt
In the listing agent's inimitable words: "Ideal 2 bedroom, 2 bath apartment with windowed Dining area. Could be converted to 3rd bedroom or Den. Full Service building on East End Ave. Steps from Carl Schurz park and the Promenade. Building has a storage room,bicycle room, Garage and state of the art Gym. Pets OK."
Listing #: 807581

To see photos, more information and scores of other listings by brokers throughout New York City and Long Island, please visit our website at http://www.ServiceYouCanTrust.com, then click on the appropriate area. To view details of a particular property listed above you will need to note the address.