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

**** February 3, 2007 ****

Thanks for thinking of us when friends, relatives or colleagues may be moving. We treasure referrals, which are the foundation of our growing business, and we prize anyone who makes them.

IN THIS ISSUE:

• Items of Interest
• Out and About
• New Listings

Items of Interest
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Home and Hearth

HERE’S A PROGRAM THAT COULD BE WELL WORTH WATCHING: In its continuing quest to teach us the difference between decoration and desecration, the HGTV cable network will air "25 Biggest Decorating Mistakes" on Feb. 3 at 7 p.m., says the Washington Post. House-and-home magazine editors, designers and HGTV hosts start by blasting the blunders, then offer solutions in a hilarious, opinionated countdown. No. 25 - a relative misdemeanor - is the rug designed to fit around the toilet (wear slippers and stick with a mat by the sink, decree the experts). No. 23 is underplaying the entryway (add a mirror or table to make a good first impression). No. 8 is using an out-of-place theme (don't try using tropical wicker in Alaska). Other infractions include uncomfortable dining chairs (upholstered seating encourages people to linger); too many sofa and bed pillows (toss out most of them); framed art hung too high (most are best around eye level); too many colors or patterns (you're allowed one large and one small pattern plus a stripe or plaid); and knickknack overload (rotate or recycle the tchotchkes). And the No. 1 mistake? Fake flowers. A bowl of lemons is classier.

IS IT LIT: Americans bought $746 million worth of candles and accessories in 2006, up 2.3 percent from the year before, according to market-research firm ACNielsen, reports the Wall Street Journal. The number, based on sales from mass retailers, doesn't include additional sales from specialty stores such as Yankee Candle Co., a national candle retailer based in South Deerfield, Mass. Not surprisingly, the growing popularity of scented and decorative candles as a chic and inexpensive design element is prompting fire safety concerns. Safety and industry officials are weighing new labels and standards for candle accessories that would lay out warnings more clearly. And the nonprofit National Fire Protection Association has stepped up its campaign to warn homeowners and children about the potential dangers of candles. "People look at candles and see how calming and pretty they are and sort of forget they are dealing with a potential fire hazard," says Barbara Miller, spokeswoman for the National Candle Association, an industry group in Washington that, yes, truly exists.

THE HOTTEST NEW ITEM FOR THE MAN WHO HAS EVERYTHING: It’s a home urinal, says the New York Times in Realtor. ''This is another way to make men feel pampered, the way the bidet made a woman feel her bathroom was complete,'' says Long Island architect Paul Rice. Toilet manufacturers are flush with success at this new market. Toto U.S.A. which added a home urinal to its line in 2005 for $975, has gone from selling dozens to hundreds a month in the last year. Villeroy & Boch has introduced eight different home urinal designs in the last four years. “This is found business,” says Tim Schroeder, president of Duravit U.S.A., whose water-free model sells for $895. Even developers and builders are taking note. The Duravit Utronic comes standard in roughly half of the 260 units of the new Turnberry Ocean Colony towers near Bal Harbour, Fla., where homes ranging in price from $1.4 to $4 million are almost completely sold out. Time was, all the developer needed was a whirlpool tub.

IS THIS THE NEXT STEP IN HOME ENTERTAINMENT: In the home of the not-too-distant future, video will zip from room to room, observes Business Week. You'll be watching movies downloaded from the Internet in your bedroom and cable TV on your PC. Of course, the high-speed network needed to make this latest vision of the "connected home" function doesn't quite exist yet - but it may be hiding in your walls, in the power wiring that already runs through your house. The idea of carrying data over electrical wires has been around for a long time, but early versions were slow and prone to interference, especially the electrical noise generated when appliance or air-conditioning motors start up. A new generation of powerline networking not only overcomes these difficulties but offers speeds at least as fast as the newest Wi-Fi. And the latest products are not subject to the seemingly random fluctuations in performance that afflict wireless. Options available now include the NetGear HDX101 (about $170 for the two units you'll need) and the Panasonic HD-PLC (about $200 a pair). These systems do a fine job of delivering broadcast-quality TV and could handle DVD quality with only an occasional glitch. High-definition TV is rougher: The picture freezes repeatedly, and the sound starts and stops. Powerline networking is more expensive and less convenient than Wi-Fi. But it can deliver data faster and more reliably than wireless.

OH THOSE BATHROOM TILES: The ones with vibrant colors - such as lime green, lemon yellow and salmon pink, each often paired with black - can be traced to the art deco palettes of the 1930s and '40s, according to Joan Kohn, an author and HGTV cable channel host, says the Washington Post. "The style was initially very dramatic and glamorous." Pastel colors - powder blue and soft pink - reflect the fashion and optimism of America in the postwar '50s. Kohn says the popularity of pink tiles was inspired by the dress that first lady Mamie Eisenhower wore to the inaugural ball in 1953. Of course, she also wore funny hats, yet designers unaccountably thought her taste sufficiently refined for the bathroom. Short of ripping out the tiles, consider the tips offered here: washingtonpost.com/wp-dyn/content/article/2007/01/24/AR2007012400474.html

THIS YEAR’S COLORS ARE COMING DOWN TO EARTH: According to Color Marketing Group (CMG), the self-interested international association of color design professionals, the most powerful color trends for 2007 are driven by concern for the environment. “Our members specify color for everything from Cadillacs to Kleenex boxes,” said Jaime Stephens, executive director of CMG, “and they tell us that the mainstreaming of environmentalism is the key to next year’s colors.” Specifically, CMG predicts these trends: Look for softer, more botanical greens inspired by nature; the color of the sky, the color of water, true blues from nature will be everywhere; the new naturals, especially medium to dark browns, will be more earthy and grounded, reflecting the colors of rock and stone and soil; and lighter, neutral settings will be punctuated by warmed-up accent colors from a rich mix of countries and cultures, with deep, rich ethnic reds and warm, glow-y oranges as the “punch” colors for 2007. Whatever.

WHAT GOES AROUND COMES AROUND: Hear the words "swivel chair" and the images that come to mind are often less than stylish: clunky shapes and exposed mechanics best suited for an office or maybe something low and tubby, swaddled in a floral fabric with a flouncy skirt to disguise the works. So notes the Washington Post, which advises readers to hold onto your seat cushions because the dumpy '70s staple has evolved to become vogue; it's poised to make the rooms we live in much more adaptable. Furniture designers and manufacturers have recognized the eminent good sense of the swivel concept and are introducing new versions with cleaner silhouettes, more stylish fabrics and shorter skirts, an overall tailored look. The swivel mechanism likewise has been improved, offering a steadier, smoother ride while staying largely out of sight. Some chairs even re-center themselves when the sitter gets up. "A broader range of different styles have made [swivel chairs] more appealing to everybody," says Rob Pitt, director of upholstery at Crate and Barrel, where two swivel styles are offered. The swivel models "look like occasional chairs with added functionality, practicality and comfort."

The Soothsayers

EXPECT SALES TO KEEP SLIDING IN THE U.S. THIS YEAR: Sales of new and existing homes will continue their slide this year, largely because of investors pulling out of the housing market, Fannie Mae said, according to the Wall Street Journal. The company said sales of new homes are expected to drop by 7.1 percent in 2007, while sales of previously owned homes are expected to drop 8.1 percent. Fannie economists said the projected sales for 2007 would be the lowest since 2002. The two-year drop in sales during 2006 and 2007, the economists added, would be the largest since the 1989-1991 housing downturn. "We expect additional declines later this year as investors continue to leave previously hot housing markets, although the largest drops may be behind us," wrote Fannie economists including chief economist David Berson. Nationwide, home prices should fall by 1-2 percent this year, Berson predicted at a press briefing. However, he said, "most of the United States will probably not see home price declines at all - simply more modest gains." He said the modest gains combined with significant declines in some parts of the country would produce the estimated 1-2 percent net overall gain. Later in the year, an end to the glut of unsold homes may help prices rise, he speculated. Berson also told reporters at the briefing that the condominium market is suffering as investors are pulling out.

THE RISK OF HOME PRICE DECLINES IS RISING IN THE U.S.: So says PMI Mortgage Insurance Co., which attributes the trend to continued deceleration in home price appreciation and decreased affordability. Economic fundamentals remain strong in most areas, however, with historically low unemployment rates and strong job growth, which helps mitigate the risk of price declines. "Over time, moderating appreciation will bring prices back in line with economic fundamentals, particularly incomes, bringing the market back to a healthy balance," the company said. PMI U.S. Market Risk Index(SM) scores increased for 34 of the nation's 50 largest metropolitan statistical areas (MSAs), resulting in an increase in the average score from 328 to 342; that rise translates into a 34.2 percent chance that home prices will decline in two years. Nineteen MSAs face a greater than 50 percent chance that home prices will decline, up from 18 last quarter. While year-over-year appreciation remained in the double digits in 14 of the 50 largest MSAs, the rate of appreciation slowed in 43. The risk of price declines continues to be concentrated in California and along the Eastern Seaboard. Of the 19 MSAs facing a greater than 50 percent chance of a price decline, eight are in California, eight are in the Northeast and two are in Florida. According to PMI, the D.C. area has the 14th highest risk and the New York City region, 15th highest. On the East Coast, Long Island is the most likely - 60.1 percent - to see housing-price declines, followed by Boston-Quincy, Mass., at 59.5 percent, according to the report.

Tax tips

THAT &%!!# ‘MANSION’ TAX: Is the 1 percent “mansion tax” imposed by New York State on a house that costs $1 million or more, including many closing costs, deductible on the buyer’s federal income tax return? asks a New York Times reader. A Joel E. Miller, a Queens tax lawyer, is quoted as saying that mansion taxes, whether imposed by New York or another state, are not deductible on a buyer’s federal tax return. He added that the federal tax code specifies the types of taxes that are deductible; for example, real property taxes and state income taxes are specifically deductible for people who itemize. He noted that while a mansion tax is not deductible, it does increase the property’s tax basis. The basis - basically the purchase cost plus the cost of any capital improvements made to the property - is subtracted from the sale price to arrive at the capital gain realized on the sale of the property. Since the mansion tax is added to the basis, that will ultimately reduce the tax paid on a gain on the sale of the property.

YOU CAN LIVE SEPARATELY AND STILL EXCLUDE $500,000: To qualify for the full $500,000, married-couple, principal-residence-sale tax exemption, Internal Revenue Code 121 requires each spouse to occupy the home as his or her primary dwelling at least 24 of the last 60 months before its sale, but not necessarily at the same time, notes Robert J. Bruss in the Washington Post. A joint tax return must be filed in the year of principal-residence sale. If only one spouse meets the occupancy test of IRC 121 when the home is sold, although both names are on the title, the sale qualifies for a maximum $250,000 tax exemption. Consult a tax adviser for details.

The Mortgage Biz

RATES ARE CLIMBING: The 30-year fixed-rate mortgage (FRM) averaged 6.34 percent for the week, up from last week’s 6.25 percent and last year’s 6.23 percent, reports Freddie Mac. The 30-year FRM has not been higher since the week ended Oct. 26, when it was 6.40 percent. The 15-year FRM this week was 6.06 percent, up from last week, when it averaged 5.98 percent, and from a year ago, when it was 5.81 percent. That rate has not been higher since the same week last October, when it averaged 6.10 percent. Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) were 6.04 percent this week compared with 6.00 last week and 5.87 percent a year ago. One-year Treasury-indexed ARMs averaged 5.54 percent, up from last week’s 5.49 percent. At this time last year, it was 5.33 percent. The 1-year ARM has not been higher since Nov. 9, when it averaged 5.55 percent. "Interest rates moved higher following the latest upbeat economic news," said Frank Nothaft, Freddie Mac vice president and chief economist. "The strong 3.5 percent annualized growth in the economy over the final quarter of 2006 occurred while inflation moderated. Solid economic growth and tepid inflation contributed to the Fed's decision to leave the target short-term interest rate unchanged.”

WOMEN ARE PENALIZED IN LENDING: They are more likely to receive subprime home mortgages than men, according to a new study released by the Consumer Federation of America (CFA). In 2005, about a third of women took out mortgages with interest rates over 7.66 percent (well above the average prime mortgage rate of 5.87 percent) compared with about a quarter of men, the advocacy group’s study found. The study examined 4.4 million mortgage originations throughout the country where borrowers identified their gender. CFA examined borrower incomes based on the Area Median Income where they lived to analyze comparable borrowers across the country. The CFA analysis found that the subprime disparity between women and men increased for women with higher incomes relative to men with similar earnings. Although women earning below the area median income were 8 percent more likely to receive subprime loans than similarly earning men, women earning more than double the area median income were 50 percent more likely to receive subprime loans than men with similar earnings. "Evidence suggests that women have slightly higher credit scores on average than men and similar credit usage patterns, yet the fact that women are more likely to receive more expensive mortgages at all income levels undercuts the lending industries calm assurances that borrowers are priced based on their creditworthiness," said Allen Fishbein, director of Housing and Credit Policy at CFA.

YOU CAN REMEDY A POOR CREDIT SCORE: The most recent entries to your credit report carry more weight than old ones, notes the Washington Post. So, although bad debts, charge-offs and late payments can stay on your credit report for at least seven years, you have the opportunity of providing an explanation of your situation in a very limited space on future credit reports. Your credit report must show that you are caught up, but it will also show that you were late. A first-time delinquency can drag down your score by at least 100 points. The later the payment, the more the damage. Nobody needs to pay to fix errors. Contact the credit bureau that created the report and work with the bureau to erase mistakes. Having credit cards open does not harm your credit score and can even help if they are in good standing. Having them maxed out hurts.

SUBPRIME MORTGAGES FACE INCREASING PRESSURE: The once booming market for home loans to people with weak credit - known as subprime mortgages and made largely to minorities, the poor and first-time buyers stretching to afford a home - is coming under greater pressure, reports the New York Times. The evidence can be seen in rising default rates, increasingly strained finances at mortgage lenders, and growing doubts among investors. Now, Wall Street firms, which had helped fuel the growth in the market by bankrolling and investing in subprime mortgage lenders, have begun to pinch off the money spigot. Several mortgage lenders have recently collapsed. While the failures so far are small in number, some industry officials are concerned that they could be the first in a wave. The subprime sector, which produced loans worth more than $500 billion in the first nine months of last year, could shrink significantly. Across the industry, 2.6 percent of the subprime loans securitized in the second quarter of 2006 had been foreclosed on or repossessed within six months. That is up from 1 percent for loans securitized in the second quarter of 2005, according to Moody’s Investors Service, the ratings agency.

LOAN APPLICATIONS ARE ON THE RISE: For the week ended Jan. 26, volume increased by 3.2 percent on a seasonally adjusted basis from one week earlier. Unadjusted, the change was 5.9 percent. It rose 0.7 percent compared with the same week one year earlier. Refinancings went up by 4.9 percent, and purchase applications rose by 1.3 percent, seasonally adjusted, over the prior week. The refinance share of mortgage activity decreased slightly to 47.4 percent of total applications from 47.8 percent the previous week, and the adjustable-rate mortgage (ARM) share increased to 21.4 from 20.3 percent.

The Big Apple

PROPERTY SALES UNDERPIN HUGE CITY SURPLUS: Mayor Bloomberg is projecting that the city will have a $3.9 billion surplus to carry over into its $57.1 billion budget next fiscal year, reports the New York Times. The mayor attributed the exceptionally large surpluses to a boom in property transfer taxes, including mortgage recording taxes, which can generate millions of dollars when large properties change hands. All told, the city expects to collect $2.9 billion in such taxes this year, compared with $902 million in the fiscal year Bloomberg took office. The city collects a transfer tax of 1 percent of the sales price up to $500,000 and 1.425 percent of the price above that amount. For a $1.5 million home, that totals $19,250. In addition, New York State collects a tax of 0.4 percent on the sales price, or an additional $6,000 on a $1.5 million home. Then there’s the “mansion tax,” a tax imposed by New York State on home sales of $1 million or more, which would now include a fair share of New York property transactions. That 1 percent tax yields the state $15,000 on a $1.5 million transaction. In addition, there is a mortgage tax, which varies by location in New York State, but is typically in the range of 2 percent. For a $1.5 million home, a $1.2 million mortgage would yield roughly $24,000, although buyers of co-ops typically do not face this tax. All told, that $1.5 million purchase could yield $64,250 in taxes for the city and state.

The Market

SALES OF PREVIOUSLY OWNED HOMES PLUNGE TO 17-YEAR LOW: Sales of existing single-family homes and apartments eased but prices stabilized as inventories tightened in December, according to the National Association of Realtors (NAR). The 2006 decline was the sharpest in 24 years. Although apartment sales rose 2.1 percent to a seasonally adjusted annual rate of 777,000 units in December from November, activity was 12.2 percent lower than the pace in December 2005. After setting 10 consecutive annual records, sales of existing condos and co-ops in 2006 fell 10.4 percent to 803,000 units, the third highest year on record. The median existing condo price was $227,000 in December, which was 0.3 percent above a year ago. The median 2006 condo price was $221,800, down 0.9 percent from 2005. Commented the advocacy group’s chief economist, David Lereah: “Despite all of the doom-and-gloom stories and dire predictions over the last year, 2006 was the third strongest year on record for existing-home sales. It looks like we’re moving beyond the low for the housing cycle last fall, and buyers are responding to historically low interest rates and competitive pricing by home sellers. In addition, a tightening inventory of homes on the market is supporting prices.” Total existing-home sales - including single-family, townhomes, condominiums, and co-ops - eased 0.8 percent to a seasonally adjusted annual rate of 6.22 million units in December compared with 6.27 million in November. Sales were 7.9 percent lower than a 6.75 million-unit pace in December 2005. There were 6,480,000 existing-home sales in 2006, down 8.4 percent from a 2005 record. The second highest total was in 2004. Total housing inventory levels fell 7.9 percent at the end of December to 3.51 million existing homes available for sale, representing a 6.8-month supply at the current sales pace and down from a 7.3-month supply in November. The national median existing-home price for all housing types was $222,000 in December, unchanged from December 2005. The 2006 median price was also $222,000, up 1.1 percent from a median of $219,600 in 2005.

AND NEW-HOME SALES TAKE OFF, BUT 2006 DROP WAS STEEP: They went up 4.8 percent to a seasonally adjusted annual rate of 1.12 million units in December, according to the U.S. Commerce Department. On an annual basis, new home sales registered 1.061 million units in 2006 - a 17.3 percent drop from the all-time high achieved in 2005 and the sharpest percentage decline since 1990. But the sales level was on par with the solid sales numbers registered in 2003, which preceded the unsustainable housing boom of 2004 and 2005. On a quarterly basis, sales of new single-family homes posted a rate of 1.061 million in the final quarter of 2006, up from 1.007 million in the third quarter, the quarterly low-point for the year. Inventory dropped to a 10-month low of 537,000 units in December, equivalent to a 5.9-month supply at the current sales price and down from a recent high of 7.2 in July.

PENDING HOME SALES GLADDEN THE NAR: Pending home sales are higher, affirming the stabilization that is occurring in home sales, according to the National Association of Realtors (NAR). The Pending Home Sales Index, based on contracts signed in December, rose 4.9 percent from November but fell 4.4 percent below December 2005. The monthly gain was the biggest increase since March 2004, when the index rose 6.9 percent. A steady narrowing from year-ago readings has been observed since last July, when the level of unsold housing inventory peaked at an all-time high. Commented David Lereah, NAR’s chief economist: “Some of the monthly gain may be weather related, but it appears buyers are becoming more comfortable, sensing the timing is good and that their local market has bottomed out. I expect modest sales gains throughout the year with what I believe are sustainable levels of activity. 2007 promises to be the fourth-best year on record.”

IN THE STATE, SALES OF EXISTING HOMES SLIPS FROM 2005 RECORD: Sales of existing single-family homes in New York state in 2006 surpassed the 100,000-unit mark for the third consecutive year despite a slowdown from the 2005 record, according to preliminary single-family sales data accumulated by the New York State Association of Realtors (NYSAR). The preliminary data showed a median sales price decrease of 2.8 percent compared with 2005. The 2006 statewide annual sales total of 101,131 represents a decrease of 6.3 percent from the 2005 record-setting total of 107,909. The 2006 statewide annual median selling price of $248,500 represents a 2.8-percent decrease from the 2005 statewide median of $255,675 - the third time the annual median has surpassed the $200,000-mark since NYSAR began tracking data in the 1980s. The New York housing market continued to slow down as the year drew to a close, with sales falling 19.2 percent in December 2006 compared with the same time period in 2005. The statewide median selling price dropped 14.2 percent in December 2006 in contrast to December 2005. “Clearly, there was no ‘bursting bubble’ in the New York housing market in 2006,” said Charles M. Staro, NYSAR chief executive officer. “The market stabilized as expected in 2006 with a slowdown in sales price and a return to balance between buyers and sellers. As evidenced by the third highest sales total on record, the New York housing market is healthy and we expect it to remain so as we proceed through 2007.”

This and That

U.S. HOME OWNERSHIP RATE REMAINS STABLE: It was roughly flat at 68.9 percent in the fourth quarter, compared with 69 percent in third-quarter 2006 and in fourth-quarter 2005, according to the U.S. Census Bureau. The home-ownership rate was 81.2 percent for those aged 65 and up, 80.7 percent for those 55-64, 76.4 percent for those 45-54, 68.9 percent for those 35-44, and 42.8 percent for those under 35. Among racial categories, the home-ownership rate for "non-Hispanic white" householders reporting a single race was highest at 76 percent. "All other races" householders was next at 60 percent, and "single-race black" householders was lowest with a rate of 48.2 percent, according to the report.

Out and About
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A Neighborhood in Transition

Spanish Harlem, also known as El Barrio or East Harlem, is a neighborhood in the northeastern part of Manhattan that is one of the largest predominantly Hispanic communities in New York City, notes Wikipedia. It formerly was known as Italian Harlem, but it has been dominated since the 1950s by residents of Puerto Rican descent, sometimes called Nuyoricans, the Web site says. In recent years, the neighborhood has also become home to many Mexican-American immigrants. Spanish Harlem extends from about East 96th Street to East 125th Street and is bound by the Upper East Side, East River, Harlem, and Central Park.

According to the East Harlem Board of Tourism, the area progressed from farmland and suburb to a welcoming destination for the burgeoning communities of African, Dutch, French, German, English, Irish, Italian and Puerto Rican settlers since the Dutch settled Manhattan.

The Wecksquaesgek Indians first settled in the East Harlem area attracted by the flat terrain, expansive meadows and abundant supply of game, the tourism organization continues. They later moved north as European settlers began to arrive. An excellent water and fish supply attracted the Dutch and French Huguenots during the 1600s, while the British invasion of 1664 brought the English settlers, who maintained the area as a suburban village. In the early 1800s as immigrants began their steady flow into New York, the community began to take on an expanded population that included black farmers relocating into the northern portion of the area. German and Irish settlers came to the area in an effort to escape the overcrowded conditions in other parts of the city. The anticipated number of settlers and immigrants prompted the construction of the railway along Fourth Avenue (Park Avenue) and a horse-drawn railway on Third Avenue.

A new wave of immigrants came in the late 1880s as Italians and Eastern Europeans migrated from the Lower East Side and from Europe, ultimately displacing the Germans and Irish who had settled in East Harlem and who often moved to areas of the Bronx and Queens.

The burgeoning Italian community grew to large numbers and with it came a record number of housing starts; upwards of 65,000 apartments were built between 1870 and 1910. In fact, in the early 1900s, East Harlem was home to the largest number of Italians in the country. (Think Rao’s.) The growing population cultivated the need for many markets and small businesses that took advantage of low-cost transportation, immigrant labor and resourcefulness.

East Harlem soon became the first stop for Puerto Ricans who came to New York in search of the American Dream. Returning Puerto Rican veterans remained in East Harlem, while many new arrivals came after World War II. The increasing Latino presence was most evident on 116th Street, where La Marqueta was modeled after earlier markets dating back to the early ‘20s, and small shops catering to the Puerto Rican community proliferated. Puerto Ricans later coined the term "El Barrio." Still others used the more generic term of East Harlem so as to describe its geographic location rather than ethnicity. The departure of many Italians continued a series of succession and dispersal patterns still prevalent today. African Americans and Puerto Ricans went on to become the primary residents of East Harlem.

The mid 1900s brought a thriving community to East Harlem, but the large number of residents placed a serious burden on housing resources, creating a political movement that resulted in the destruction of many low-rise buildings in an effort to build large public housing complexes. Mayor Fiorello LaGuardia and Congressman Vito Marcantonio spearheaded the effort to provide large housing tracts that would house the burgeoning community. However, the wholesale demolition of large tracts of property coupled with the reality that many existing residents were not eligible for public housing led to a political whirlwind that highlighted the displacement of lifelong residents. In a slow but progressive political fight, Italians, Puerto Ricans and African Americans fought to maintain their quality of life. This sustained political effort put a serious strain on community relations with the city and between the ethnic groups.

Today, East Harlem is rebuilding and focusing on maintaining its cultural identity in the face of a new wave of arrivals, the tourism board relates. New immigrants continue to come into the community from Mexico and other parts of South America, adding to the flavor of the neighborhood and its complexities.

Many former residents are returning to East Harlem as new housing and home ownership opportunities expand and the community strives to stabilize its economy. New and returning residents are purchasing small properties and restoring them from converted apartment buildings into family homes. Small businesses continue to be the backbone of East Harlem's economy, while several undeveloped areas are developed to provide modern day commercial spaces and much-needed jobs. Artists, musicians and other professionals are making East Harlem their home or base of works. Organizations such as the Taller Boricua, the Puerto Rican Traveling Theater, Palo Monte and Los Pleneros de la 21 are building networks designed to strengthen East Harlem's cultural ties to the past and present. Julia de Burgos Cultural Center, El Museo del Barrio and the Museum of the City of New York, among other institutions, maintain a presence as anchors for cultural activities and limited tourism.

The neighborhood also is home to one of the few major televisions studios north of midtown, Metropolis (106th St. and Park Ave.), where programs such as BET’s “106 & Park” and “The Chappelle Show” have been produced. The major medical care provider to both East Harlem and the Upper East Side is the Mount Sinai Hospital.

Despite the moniker of "Spanish Harlem" or "El Barrio," the region is now home to a new influx of immigrants from around the world, Wikipedia says. Yemeni merchants, for example, work in bodegas side by side with those from the Dominican Republic. Other merchants and local businessmen and neighbors may well be Korean, Chinese or Haitian in origin. Also, the rising price of living in Manhattan has caused increasing numbers of folks moving from other areas of Manhattan such as Yorkville and the Upper East Side.

Many see the neighborhood changing from the Puerto Rican enclave it has been for decades to a more heterogeneous neighborhood with a significant middle-class presence, luxury condominiums and a Home Depot, according to the New York Times, which says the changes represent a “familiar story” of gentrification in New York City.

East Harlem became the de facto center of Puerto Rican cultural life after large-scale displacement from Chelsea, Hell’s Kitchen, the Upper West Side, and more recently, Williamsburg and the Lower East Side. And it remains the place where people come to celebrate Three Kings Day and quinceañeras, to gather the night before the Puerto Rican Day Parade, and to play dominoes on weekends, the Times adds.

But in recent years, rising rents have caused many Puerto Ricans to leave for more affordable Hudson Valley towns, or for cities such as Allentown and Bethlehem in Pennsylvania and Stamford and Bridgeport in Connecticut. In 1980, there were 856,440 people of Puerto Rican descent living in New York City, compared with 787,046 in 2005, according to census data. In East Harlem, the number of Puerto Ricans has also been declining, to 37,878 in 2005, from 40,542 in 1990, according to the census. They now make up about 35.3 percent of the neighborhood’s population, down from 39.4 percent in 1990.

On the site of the former Washburn Wire Factory at 116th Street and the Franklin D. Roosevelt Drive, workers have dismantled the plant to make way for the $300 million East River Plaza shopping center, which will feature a Home Depot, a Best Buy and a Target store.

A second large development in the area was derailed by the Bloomberg administration last year after widespread opposition. The $1 billion project, known as Uptown New York, had called for retail space and 1,500 apartments in an area between 125th and 127th Streets and Second and Third avenues. Eighty percent of the apartments would have been rented or sold at market rates.
On a single block - 117th Street between First and Pleasant avenues - more than eight buildings are being renovated or constructed. One of them is a building with nine units of “luxury condominiums”. A one-bedroom penthouse there is on the market for $850,000.
“The Upper East Side is now the playground for the sophisticated bohemian,” reads the building’s Web site. “East Harlem will be known as the area that will feature SoHo-type lofts, with a NoHo sensibility, and a Village flair, without the hefty price tag.”

Time will tell, but developers are certainly proceeding as if the future is theirs. Consider some of the other East Harlem properties now on the market there:

• *On bustling Second Avenue, a 31-unit building has five apartments still seeking buyers. With oversize double-pane windows, marble baths, open kitchens that boast stainless appliances, granite countertops and maple cabinets, individual heating/cooling units, copious closet space and good-size rooms, these sleek co-ops two blocks from a subway line represent textbook examples of trading place for space. The most expensive two-bedroom, two-bath apartment is offered at $693,225 with $759 monthly maintenance; it has 1,027 square feet. The least costly unit of three seen since the last Realty Digest is $486,420, with $544 maintenance, and it also has two bedrooms and two baths but only 737 square feet. Not bad for the space and style, but the tradeoff in convenience, both for shopping and commuting, is considerable. The nearest U.S. Post Office is the Hell Gate station.
• A few blocks south and three blocks from the Lexington Avenue subway is a renovated one-bedroom condo in which the new kitchen at the entrance lacks any separation from the living room, thereby creating one big kitchen with a working fireplace. There is a single, albeit large, closet in the 625-sf apartment. Still, everything is new, including the washer/dryer tucked into the decent tiled bath, and there is plenty of light. Price: $455,000 with $187 in common charges.
• On the same block but across the street, an 850-sf condo with two small bedrooms, a grim narrow terrace in a canyon of buildings facing north, a single renovated bath, washer/dryer, a 70s kitchen with supergraphics painted on the wall, and far too much of the owner’s personality to find a buyer with ease. The building itself has dingy, confining hallways. But the asking price of $549,000 with $408 in common charges is not unrealistic.
• A pre-war condo in a converted public school that was built with high ceilings. Those ceilings now, unfortunately, have been sacrificed throughout all of the apartment but the living room to create loft space for an expansive bedroom, pleasant bath and a den. Enough light is not the problem with this space: Headroom is the issue. Among the 1,475-sf loft’s assets are a wall of glass bricks and stained glass windows in the bedroom overlooking the living room, the edgy steel staircase, the amount of sunlight in the unit, and the size of the kitchen. Perhaps only because of the décor, the loft feels dated, but much thought obviously went into the design some time ago. With $600 in common charges, the condo is listed at $950,000, a heady sum indeed.

Another World

Battery Park City is a mixed residential and commercial neighborhood within easy walking distance of the entire Downtown business district. The housing, which is part of a carefully planned and designed development built in the 1980s as a result of cooperation between the State and the City Governments and private developers. Battery Park City is a small city within the city, evoking suburbia with shops, restaurants and even a marina. Because of its location, views of New York Harbor and the downtown skyline can be spectacular. This is an ideal location for those wishing to walk to work on Wall Street. Which explains the relatively high prices asked for relatively mundane apartments. Below is a small sample of some of them now being marketed by several different brokers:

• A 721-sf duplex with one-bedroom loft and uncompromised views of the Hudson River and the Statue of Liberty. The condo has washer/dryer, one-and-a-half baths, a 17-foot cathedral ceiling, new hardwood floors, storage cleverly built beneath the stairs, dated kitchen with pass-through and lots of western light. It has been reduced from $939,500 and $919,000 to $900,000, with $1,053 in common charges. Huh?
• Down the hall from the unit above, an apartment that has the same layout, same double-height windows and same ceiling height plus a sitting room extended from the loft over the living room. The condo’s floors are older parquet and the extra storage is lacking, but the price of $799,000 with $1,095 monthly makes a lot more sense.
• A shabby one-bedroom, 707-sf apartment in another building with great views, oversized windows, popcorn ceilings and parquet floors. This unimproved 1988 unit is listed at $695,000, reduced from $750,000, with $687 in monthly common charges.
• *Perhaps the single most-overstuffed one-bedroom apartment in Manhattan. Think of the feeling of feather boas, Victorian lampshades and ornate gilded loveseats with little knee room between them in a 688-sf unit in which the omnipresent and talkative owner has sacrificed possibly half the bedroom for closet space. This unit- which has knick-knacks, elaborately framed photographs and all manner of clutter up to the high ceilings - is one hard sell at any price. On the market for more than two months, it is listed at $660,000 with $837 in common charges. That’ll be the day! This is a seller who may be more deserving of pity than disdain, however.
• A lovely one-bedroom, 750-sf apartment with well-proportioned rooms, original 1986 kitchen, nearby laundry room and good northern light. On the market since September, the condo hasn’t sold at $535,000 with $914 in common charges, perhaps because of the floor level, the amount of monthly charges and the no-pet policy in the building. But the unit shows well and, despite what the market is loudly saying, seems to represent good value.
• Stripped of its popcorn ceiling, flooring and almost everything else, a 654-sf condo awaiting the completion of renovation. With 11-foot ceilings, offputting bath and first-floor location, the 1986 apartment is said to have a “ton of potential.” That’s an understatement at best. The place is offered at $525,000, which is just too much, given the cost of necessary improvements. In the seller’s underestimation, they would run no more than $50,000. Common charges: $428.

The Middle Ground

Elsewhere in Manhattan, some of the properties offered for sale by other brokers and seen since the last issue:

• On the Upper East Side, a renovated Park Avenue post-war condo with two bedrooms, two baths, five closets in the foyer alone, through-the-wall air conditioning, and a new open kitchen with high-end appliances, granite countertops and a TV screen that displays on a mirror. Listed with or without furniture, which is so out of scale that it cramps the living/dining room, this apartment in a 77-unit white-glove building with extra storage and bike room has sunny exposures, good flow and an asking price of $2.65 million with the furniture or $2.55 million without. The monthly fee is $1,400 plus a special assessment of $831 for another year.
• A pleasant two-bedroom, one-bath pre-war condo on the Upper West Side. The owners have sacrificed part of the second bedroom to provide a more welcoming entry, and they have reorganized the decently modernized, spacious kitchen but paid the price of a refrigerator that is too far from the sink. Closet space is merely adequate, yet the room proportions are quite good in a building with live-in super, private storage, bike room and part-time doorman. Withal, the asking price of $1.1 million with $591 in common charges for this bright and well-maintained apartment is bit steep.
• *In the Carnegie Hill neighborhood, a lovely two-bedroom apartment with rooms of ample size, including a dining room that could be – but shouldn’t be – converted into a third bedroom. Both bathrooms could use a makeover, and the 10-year-old galley kitchen with laminate countertops and cherry cabinets also begs for improvement. With beamed ceilings, washer/dryer, good light and new yellow paint, this pre-war co-op is priced at $1.249 million with high maintenance of $2,000 monthly. It’s high by $30,000-50,000, but the apartment shows very well.
• A Greenwich Village penthouse with 2,950 interior square feet and 2,252 square feet of terraces with extraordinary views. Composed of two combined apartments on two floors, this condo toward the western edge of the neighborhood has three bedrooms, three and a half baths, handsome kitchen, modestly renovated baths and restored hardwood floors, the admittedly unusual property with stylish furnishings is, nonetheless, worth nothing like the $12.5 million being asked for the co-op, which carries $4,892 in monthly maintenance charges.
• *On the other, busier side of the Village within sight of Broadway, an even more expensive but more tasteful penthouse. This four-story post-war co-op has been artfully renovated and boasts: extraordinary views through soaring windows; dramatically high ceilings; a skylit well that floods each level with sun; four balconies; landscaped roof terrace; wood-burning fireplaces; clever pivoting doors; excellent flow; and a gorgeous kitchen with center island. According to the listing broker, the owner himself has set the price at $14.5 million, with maintenance of $5,798, a month. He can dream, can’t he?
• A well-renovated one-bedroom pre-war co-op on Carnegie Hill with 850 square feet; the possibility of creating a small second bedroom; appealing modern kitchen with black granite countertops, white cabinets and a big window; renovated dual-entry bath; original hardwood floors in wonderful condition; good closet space; no views worth mentioning; and many built-ins. At $639,000 with $859 in monthly maintenance, this apartment will sell quickly.

Some of Manhattan's Latest Listings

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

300 E 54th St - 15F, NEW YORK, NY, 10022
$569000
Bedroom(s): 1
Bath(s): 1
Square Feet: 675
In the listing agent’s inimitable words: “Lovely one bedroom/one bath in good condition, new wood floors. West facing balcony with sunny city views. Closets galore. Full service building, indoor pool and health club on the 36th floor. Washer/dryer permitted. Garage and pet friendly. Apartment Features: West exposure, Balcony, Full city view, Floors - hardwood, Dishwasher Building Features: Courtyard, Roof deck, Terrace, Private storage, Central laundry room, Video security, Pool, Health club”
Listing #: 808200

1600 Broadway - 21F, NEW YORK, NY, 10019
$864000
Bedroom(s): 0
Bath(s): 1
Square Feet: 600
In the listing agent’s inimitable words: “The Ultimate Urban Living! Rare and unique residential opportunity at the gateway to Times Square and Rockefeller Center, in the heart of New York City. Spectacular views and Sunflooded!!! Brand new, never lived in studio apartment on 21st Floor. Open, state of the art EIK with granite countertops, full-height glass backsplashes, Sub-Zero refrigerator, Bosch and Miele appliances. Washer and Dryer in the apartment. Generous size bathroom with tub for 2 and soothing colors limestone walls and floors result in a warm and inviting space where you will feel comfortable lingering and relaxing. Enjoy the many world-class amenities offered at Club On The Square, including an entertainment lounge with billiards, putting green, virtual golf, fitness center and full-equipped conference center. Watch the city move from lounge chairs on the lawn, stargaze, or sunbathe, and take an outdoor shower on the expansive rooftop observatory deck. Also available for rent.”
Listing #: 808229

575 Park Ave - 404, NEW YORK, NY, 10021
$1150000
Bedroom(s): 2
Bath(s): 2
In the listing agent’s inimitable words: “Maintenance includes maid service, Monday through Friday, utilities, window washing. Apartment has storage space. Building has gym.”
Listing #: 806993

150 Columbus Ave - 22F, NEW YORK, NY, 10023
$2150000
Bedroom(s): 2
Bath(s): 2.5
Square Feet: 1609
In the listing agent’s inimitable words: “This beautiful and spacious 2Br/2.5 bath condo is in excellent condition. The apartment also features a large entry foyer, oversized windows with expansive city views, herringbone floors, marble baths, a new washer/dryer and a new convection oven/microwave. The master bedroom is outfitted with built-in storage units maximizing space efficiency. Situated in Lincoln Square, a prime Millennium building; shopping, transportation, Lincoln Center, and Central Park are only steps away! Discount is available at the Reebok gym. Apartment Features: East exposure, North exposure, West exposure, Full city view, Partial park view, Floors - hardwood, Light - excellent, Windows - oversized, Modern kitchen, Marble bath, Great closet space, Washer/dryer, Dishwasher Building Features: Health club”
Listing #: 807277

595 West End Ave - 2A, New York, NY, 10024
$2595000
Bedroom(s): 3
Bath(s): 2.5
Square Feet: 2010
In the listing agent’s inimitable words: “At 89th Street snuggled peacefully next to Riverside Park- This pre-war gem offers world chic within the heart and soul of the upper West side. An address with style, a design with vision and a community with heart. Designed by acclaimed designer Sean Johnson, these residences are being reinterpreted to preserve its old world style and classic elegance. Apartments feature Dark Walnut Stained Oak Hard Wood Flooring. New fixtures throughout. Granite Kitchens come complete with Stainless GE Profile Appliances. New marble baths with Chrome fixtures, 12 x 12 Bianca Carrerra Floors, and mosaic tile back-splash, Zuma soaking tub. Washer/Dryer in every unit. There will be individual storage bins (price to be determined by sponsor), bike racks and separate space for gym & playroom to be designed by board.”
Listing #: 1171291J

75 East End Ave - 2E, NEW YORK, NY, 10028
$2750000
Bedroom(s): 4
Bath(s): 4
In the listing agent’s inimitable words: “New on Market! Unique sprawling Family home in Full Service building on East End Ave. Ideal for a growing family. The apartment boasts 4 large bedrooms and 4 baths plus a double size family room--could be 5 or 6 bedrooms--tons of closets and storage,FDR, large windowed eat-in-kitchen, laundry, wash/dryer,south/east exposures. Truly extraordinary space in wonderful family building, with storage space, Garage and state of the art Gym. Steps from Carl Schurz park. PS158 school district and private schools. GREAT VALUE !!!”
Listing #: 807563

1 River Terr - 5H, NEW YORK, NY, 10282
$2825000
Bedroom(s): 3
Bath(s): 4
In the listing agent’s inimitable words: “New development in Battery Park City, green building by renowned architect David Rockwell- features landscaped courtyard, terrace, childrens playroom, digital news café, fitness center with swimming pool, billiards room, treehouse getaway, garage and dog spa. For more info, visit www.the-riverhouse.com.”
Listing #: 807972

186 Riverside Dr - 14E, NEW YORK, NY, 10024
$2995000
Bedroom(s): 2
Bath(s): 3
Square Feet: 1750
In the listing agent’s inimitable words: “This superb prewar (1929) home is in a much sought after Riverside Drive building. In addition to a gracious layout of rooms this home features beautiful panoramic views of Riverside Park and the Hudson River. The entry gallery leads to the large West facing living room with parquet floors, beam ceilings and an impressive wall of bookshelves, cabinetry and magnificent views. The formal dining room measures 13X22 and will accommodate both family and formal entertaining. The master bedroom with both West and North exposures is highlighted with spectacular views along the Hudson. There is a windowed bath ensuite. A full size second bedroom also contains a bath ensuite. The delightful eat in renovated kitchen contains a washing machine, a dryer can be added. There is a maids room with bath to complete this classic six room home. This is a pet friendly building and a home to treasure.”
Listing #: 807139

401 E 60th St - 12CD, NEW YORK, NY, 10022
$3500000
Bedroom(s): 3
Bath(s): 3.5
Square Feet: 2660
In the listing agent’s inimitable words: “Sprawling loft-like condo with 11' ceilings offers an oversized gallery and living room, dining area, 2/3 bedrooms, 3.5 marble baths, great-room, study/maid's room. This sun-drenched home has 3 exposures thru floor-to-ceiling windows, the kitchens feature stainless steel appliances and granite finishes, there’s central-air throughout, washer/dryer. Full-service luxury building boasts 24-hour doorman, concierge, gym, common outdoor terrace, children's playroom, garage within and is pet-friendly”
Listing #: 389459J

17 E 16th St - 7FL, New York, NY, 10003
$5950000
Bedroom(s): 4
Bath(s): 3.5
Square Feet: 4000
In the listing agent’s inimitable words: “Full floor in prime 50 wide loft building on the best UNION SQUARE block. Impeccably renovated with every amenity. Beautifully detailed throughout, it has an expansive open living-dining area with bright south facing floor-to-ceiling window wall, custom eat-in kitchen, high ceilings, enormous master suite, 3 additional bedrooms, 3.5 baths. Separate library or guest room and home office. Laundry room, central AC, large-keyed passenger and freight elevator. Building dimensions of 50x92 offers layout perfectly separating living and sleeping.”
Listing #: 806909

502 Park Ave - 3A, NEW YORK, NY, 10022
$11100000
Bedroom(s): 4
Bath(s): 5.5
Square Feet: 5473
In the listing agent’s inimitable words: “This sunny and special 4 bedroom, with 5 and 1/2 baths, is located in a top white glove condominium. With ceilings over 10 feet, this grand corner apartment features picturesque Park Avenue tree-top views and is ideal for casual and formal entertaining. The chefs kitchen faces south to the street and opens to a fabulous country sized family room. A wood paneled home office can be left as is or altered to make a servants room and bath. There is a beautiful master suite as well as 3 additional bedrooms. A small private terrace is just the perfect amount of outdoor space. Trump Park Avenue is one of New Yorks premiere full service buildings with full time doormen, concierge, valet services and a private gym with state-of-the-art equipment. With a highly sought after location and exceptional staff, Trump Park Avenue is the perfect place to live.”
Listing #: 807558

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.

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