It boggles the mind, but Realty Digest enters its eighth year of publication with this issue. The first issue, called Realty Update, began tentatively on March 1, 2003 (when Service You Can Trust was based in the Washington, D.C. region) with the admonition that the concept was evolving. Then, it was e-mailed weekly. However, in September of 2006, this newsletter went bi-weekly. A move back to New York City, the addition of a blog and 279 issues later, Realty Digest certainly has evolved. (If you're curious, you can have a look at a PDF of No. 1.) Thanks for subscribing and for a level of support that sustains the effort. LOOK FOR THE SILVER LINING The latest official data on inflation shows that rents on apartments and houses in all of New York City and the surrounding region rose at a slower pace in the past year than during any 12-month period since mid-1994, says the New York Times. Rents in the region rose just 0.1 percent in January and were up only 1.6 percent since January 2009, the federal Bureau of Labor Statistics reported. The cost of shelter has been the biggest factor in the rising cost of living in the region over the past quarter-century, according to the bureau's numbers. Housing costs have more than tripled since the early 1980s. Among broad categories of spending, only medical care has risen faster in cost than housing since the early 1980s. WALL STREET WON'T HAVE TO LOOK FAR FOR THAT SILVER Wall Street bonuses paid to New York City securities industry employees rose by 17 percent to $20.3 billion in 2009, according State Comptroller Thomas P. DiNapoli.Total compensation at the largest securities firms grew the most, and A GAP EXISTS BETWEEN CONDO ASKING AND CONTRACT PRICES Asking prices for new condos - the figures quoted in online listings and in advertisements - now have little to do with the final sale price, asserts the Real Deal. While developers are reluctant to lower their official prices, units are selling for 5-30 percent below the sticker price, brokers say. That's a huge change from just a few years ago, when the prices of new condos were considered nonnegotiable. Developers cannot raise and lower their prices at will: They first have to get permission from their lenders and amend the offering plan that has been filed with the attorney general's office. A NEW SITE DEMYSTIFIES CO-OPS, CONDOS, BUYING, SELLING Published by Ronald H. Gitter, a seasoned attorney, coopandcondo.com details virtually all the ins, outs, processes and pitfalls of purchasing or selling a co-op or condo in language that is crisp, clean and easily understood. As the site says, the information simplifies the complexities of such transactions. It's well worth a look. THEY MADE OUT LIKE BANDITS SELLING SAME PROPERTY TWICE Mavis Samuel, 41, and Carlyle Ebanks, 55, have been found guilty of selling the same Crown Heights building twice, to two different straw buyers, says the Brooklyn district attorney's office. They were convicted of grand larceny and other charges and face up to 15 years in prison when sentenced on April 13. The defendants first sold 1162 Pacific St. in Crown Heights in September 2004, paying a straw buyer $4,000 to buy the building. Although that buyer held the deed, Ebanks and Samuel maintained control of the building. While the buyer was recovering from a traumatic brain injury in spring 2005, Samuel convinced him to deed the property back to her. Then, in November 2006, Ebanks enlisted an apparently unwitting friend and inflated that person's income and savings account balance on a $1 million mortgage application to buy the property for that price. With that "sale", they paid off the mortgage on the original straw purchase, pocketed $300,000-400,000 and maintained ownership. In the time between the two sales, the building burned down. The case originated with an investigation into a string of suspected arsons in Crown Heights in early 2006. YOUR FUTURE NEIGHBORS MAY HAVE YOU CHECKED OUT It may seem like run-of-the-mill common sense, but background checks are an increasingly-crucial step for landlords and property managers, according to (the obviously self-interested) R.Q. Investigations private investigation company, says the Real Deal. More landlords and owners have begun delving into potential renters' and buyers' backgrounds before accepting offers. "During a bad economy, real estate investors and real estate professionals are being a lot more cautious when it comes to approving a rental agreement," the company discloses. "An individual with judgments, liens or bankruptcy is more likely to default on a home loan or rental agreement." MANHATTAN RENTS HAVE REACHED THE BOTTOM - OR NOT Manhattan's rental market continues to sit at what appears to be the bottom of its downturn, the Real Estate Group of New York speculates in its February report. Rents remain virtually flat in month-to-month comparisons, "up" on average 0.19 percent. But the gap between year-over-year figures is closing slightly, the brokerage says; rents were down only 2.99 percent vs. 2009. Doorman vacancies were off 9.65 percent and overall inventories, 3.02 percent. "Since February has historically been a slow month for the rental market, this decrease in inventories coupled with prices holding steady is a positive indicator that the market is gaining some strength," the company said. Even though Manhattan rents have stopped falling, it added, "The rebound is likely to be a much slower process than landlords anticipated." You'll find pretty charts and more information in the Service You Can Trust blog. MORE CONDOS FACE FORECLOSURE, BUT FEW ARE AUCTIONED Foreclosure filings for Manhattan condos more than doubled last year, to 725, from 2008, when there were only 322 filings, according to real estate data aggregator Property Shark, says the Real Deal. But only a few dozen of the total Manhattan filings in 2009 were auctions, the last stage in the state's notoriously long foreclosure process. Most were "lis pendens," the pre-foreclosure notice sent after an owner falls into arrears on common charges or is at least three months late paying the mortgage. Some homeowners intentionally fall into pre-foreclosure to encourage the bank to lower their interest rate. Several owners said they successfully used this tactic and are no longer technically "in foreclosure." But there is no public filing indicating that a lis pendens has been satisfied, so this trend, however widespread, is difficult to track. LONG ISLAND MEDIAN PRICE EXCEEDS ONE YEAR EARLIER For the first time in more than two years, the median closing price for Long Island homes shot past the same time last year, says the Multiple Listing Service of Long Island in its January report, according to Newsday. The $365,000 median price was up 4.3 percent from $350,000; indeed, more agents refer to "balance" and "moderation" in the housing market. Still, MLS President Frank Dell'Accio Jr. cautioned that one month might just be a fluke. He said the price jump was driven by Nassau, where the $417,500 median figure was 8.4 percent higher than the prior year, while Suffolk's went down 1.2 percent, to $317,000. In July 2007, the median closing price reached $455,000. Sales, too, were up in January – up 25 percent, according to the report, which also covers Queens. Inventory in January fell 14 percent from July to 33,417 listings. RESIDENTIAL CONSTRUCTION AT YEAR'S END WAS WORST EVER The fourth quarter of 2009 was the worst of the year for residential construction in New York City, according to the New York Building Congress' analysis of McGraw Hill Construction Dodge data, reports the Real Deal. There was only $410 million in projects, or 1,910 units, down from $935 million, or 3,391 units, in the first quarter. But activity in the last quarter of 2009 was up 51 percent from one year earlier, to $5.6 billion, and higher than either of the quarters immediately preceding it. Contributing to the rebound was public sector work, the Building Congress said. FIRST CLOSING OCCURS AT SECOND ‘NEW' PRE-WAR UWS BUILDING The new luxury condo building at 535 West End Ave. on the southwest corner of 86th St., which evokes 15 Central Park West in styling and pricing, has had its first closing, reports Curbed.com. The half- and full-floor units were originally listed between $8.75 million and $21 million. The asking price of the 3,744-square-foot Unit 7B, with its five bedrooms and four and a half baths, was $9.5 million. But it sold for "only" $7,113,600, a 25 percent drop, or $1,900 per square foot. Hidden behind an international law firm, the buyer's name was not disclosed. TRADER JOE'S TO OPEN NEW UWS STORE THIS FALL Although enduringly close-mouthed, Trader Joe's says it plans to open its new store at 200 West 72nd St. at Broadway in the fall, reports the Westside Independent. Assemblywoman Linda Rosenthal says Trader Joe's corporate folks told her that the store is to open in late September or early October. The company will start posting jobs a month or two beforehand, will also set up a table in the fall in the lobby of the building to take applications for part-time jobs and gird itself for mythically long lines. 2009 SALES DOWNTOWN WERE HALF OF PREVIOUS YEAR'S Sales volume in lower Manhattan plunged 52 percent primarily owing to a decrease in availability, reports the Alliance for Downtown New York in its review of 2009. Total sales actually outpaced additions to supply: More than 650 units were sold, while only 585 units went on the market. The organization attributed the decline also to a "dramatic reduction in compensation of potential buyers, increased difficulty securing mortgage financing and reduced consumer confidence." The median closing value of condos dipped below $1,000 per square foot for the first time since February 2007, and the year's average was $1,015, a 13 percent reduction from the prior year. The review also showed that the rental vacancy rate was stable, at about 2 percent, indicating a very tight rental market and consistent demand. The vacancy rate hovered slightly above the Manhattan average for most of the year, except during the first quarter, when that average jumped to 2.3 percent. ARCHITECTURE GROUP'S LOCAL CHAPTER LOVES NY DESIGNS The New York Chapter of the American Institute of Architects has named the 34 winners of this year's Design Awards. "Only" 21 of them were in the state, of which 17 were in the city. Divided into the categories of interiors, architecture, unbuilt work and urban design), the winners will be exhibited at the Center for Architecture, 536 LaGuardia Place, April 15-July 3. Among the city projects were Morphosis' new Cooper Union building and the High Line, the yet-to-be-built Korean Cultural Center by OBRA Architects, and the BQE Trench by dlandstudio. WALK ON PHYSICIAN'S BACK, FIND HIM WIFE, GET FREE STUDIO Those are some of the specs in a Craigslist ad posted by Harvard educated Lasek specialist Dr. Emil Chynn and spotted by Gawker.com. Forswearing "anything sexual," the long post offers a free studio apartment in the basement of his office building in exchange for services as a personal assistant. ("Women only!") Duties include spending an hour "either walking on my back... or if you are more than 115 [pounds], you can just give me a deep massage [sic]." Helping him tidy up his ski house, beach house "or my other beach house" is part of the job description in addition to finding him, yes, a girlfriend or a wife, for which there would be a $10,000 bonus. "Part of your assignment will probably be to reactivate my match.com profile and troll for dates for me, as I [sic. again] don't really have the time to do this properly," Chynn helpfully explains. The doctor will see you now . . . if creeps are to your taste. SQUARE FOOTAGE ALWAYS IS DEBATABLE (OR ACTIONABLE) It's extremely difficult to determine the true square footage of a Manhattan property, notes the Real Deal. "When it comes to square footage in New York City, it's the Wild West," concedes Bill Staniford, the CEO of real estate data Web site PropertyShark. "It's measured in so many different ways." In an apartment, it is determined by measuring the space between the interior walls, including bathrooms, closets and foyers, explains appraiser Jonathan Miller. But Manhattan apartments, especially prewar co-ops, often have hard-to-measure elements such as turrets, winding hallways and oddly shaped rooms. Worse, there often is little or inaccurate square footage data on file with the city. When buildings were converted to co-ops in the 1980s, they were not required to list in the offering plan the square footage of units. Condo offering plans are required to list square footage, but each developer measures it differently, a legal practice so long as they disclose their methods in the plan. "Many developers, in order to drive down the price per square foot, include portions of common hallways or elevators shafts," Miller notes. "Some include a percentage of outdoor space." Moreover, when units are combined or renovated, changes to the square footage frequently are not updated in the public record, he adds. Measuring tape, anyone? NEW SITE HELPS OBTAIN, ORGANIZE AND COORDINATE LISTINGS The brain behind SeatGuru.com has launched a new Web site that allows buyers to link to listings, sort them in numerous ways, have them automatically updated and share them with their brokers on a single page. BuyFolio.com founder Matt Daimler says his intention is to smooth out communication between buyers and brokers. Brokers can access their clients' pages, read which listings they like and add listings for their clients to review. Supported listing sites are StreetEasy, New York Times, Corcoran, Prudential Douglas Elliman, Brown Harris Stevens, Halstead, Citihabitats, OLR, Stribling, Sothebys, Trulia and Warburg. COMMERCIAL GAS RANGES CAN DAZZLE BUT DISAPPOINT Viking, Wolf, Dacor and other companies manufacture 36-inch home ranges starting at about $6,000, with models featuring double full-size ovens and up to eight burners reaching into five figures. "We've tested a lot of those ranges," Celia Kuperszmid Lehrman, deputy home editor at Consumer Reports, told the Washington Post. "They really haven't performed better than ranges that cost a fraction of the price. We're testing for boiling, simmer, broiling, baking - the things people really use these ranges for. We haven't really found they are worth the extra money just for their cooking prowess." A lot of people wanted the big ones strictly for show," said Michael Robinson, director of communication at Factory Direct Appliance, making an obvious point. "A lot of home cooks don't use a 48- or 36-inch range when they can get by with a 30-inch range just fine. That high end has shriveled up quite a bit." Some kitchen-design professionals said stainless appliances are already looking a bit passé. Added Kuperszmid Lehrman. "Those pro-style ranges can be the Hummers of the kitchen." But stainless is still hot among many consumers. At Nebraska Furniture Mart, Katie Rager said her customers often consider how an appliance's appearance will fit in with the rest of their homes. "Stainless came on very strong, and it's still very steady," she said. But she, after all, is in Nebraska. MANY ROOMMATES THESE DAYS NEED READING GLASSES A growing number of adults are being forced to open up their homes to share their living spaces with complete strangers because of the sluggish economy, observes the New York Daily News. High housing costs and low entry-level salaries in industries such media, fashion and the arts practically dictate that two or more single people live together well into their 30s. But those in their 40s and beyond who have had to take in roommates either have lived on their own for decades or raised children. "You feel poor, pathetic and sad because at this point in my life I feel like I should be way beyond this," says Abby Ehmann, a 50-year-old writer who divides her time among Marin County, Calif., Nevada and New York and is getting a divorce. "But there's also kind of an ironic positive flip side. In other ways, it makes me feel like I'm a lot younger and that isn't all bad, either." Uh huh. IF ECOLOGY, NOT ENVY, MAKES YOU GREEN, DO YOUR KITCHEN RIGHT From cleaning products to composting and from lighting to legumes, the Washington Post just ran a piece that provides down-to-earth advice on everything related to your kitchen. You can have a look at the article here. MANUFACTURERS THINK YOUR FRIDGE IS A BIG DIRTY SECRET For its new fridge, reports the Wall Street Journal, Whirlpool spent months inventing a shelf with microscopic etching so it can hold a can of spilled soda. The technology is just one weapon against a dirty kitchen secret: Most Americans clean their fridges only once or twice a year. JUST STICK IT Your local hardware store may soon be offering an adhesive tape from an unlikely source: the gecko. Meantime, says the New York Times, there are plenty of conventional adhesives readily available now - among them, blue painter's tape, foil tape, gaffer tape, foam tape, Silicone X-Treme Tape by MOCAP and iron-on tapes, each with a different purpose. And don't even think about forgetting duct tape. Tim Nyberg, who has co-written seven (!) books on the subject, terms it a panacea: “It's easy to use, you can rip it with your bare hands, and it doesn't come with any instructions, so it doesn't limit creativity.” (He must know that old Mel Brooks-Carl Reiner routine in which the 2,000-year-old man hysterically celebrates Saran Wrap.) When fixing broken objects, keep in mind that tape is not always the best choice. Glues are better for repairing things than tapes, according to Dick Orloff, who has worked as a tape chemist at what is now a unit of the National Starch and Chemical Company. “You won't see the glue, and some porous surfaces like wood, ceramics and some metals are much better bonded with a liquid adhesive,” says he. If you haven't had enough of this, the Times has much, much, much more. NUMBER OF SIGNED CONTRACTS IN JANUARY DIVES 7.6% The National Association of Realtors (NAR) says not only were pending home sales down in January but it expects additional declines from abnormal weather conditions. The NAR's Pending Home Sales Index, a forward-looking indicator based on contracts signed, fell 7.6 percent from December and was 12.3 percent higher than January 2009. “January pending sales, though still higher than one year ago, remain much lower than expected given that a large number of potential buyers are eligible for the expanded home buyer tax credit,” said Chief Economist Lawrence Yun. “Moreover, the abnormally severe and prolonged winter weather, which affected large regions of the U.S., hampered shopping activity in February.” NEW-HOME SALES PLUNGE AND DISAPPOINT Sales of new single-family houses in January were at a seasonally adjusted annual rate of 309,000, HUD reported. The estimate was 11.2 percent below December, 6.1 percent below one year earlier and the lowest in nearly five decades. The median sales price was $203,500, the lowest in six years, and the average sales price was $254,500. The supply of homes – which does not include many condos, especially high-rises - was 9.1 months in contrast to 12.4 months in RE-SALES DROP IN JANUARY, CLIMB ABOVE YEAR EARLIER Sales of existing single-family, townhomes, condominiums and co-ops fell 7.2 percent in January below December but were 11.5 percent above January 2009, according to the National Association of Realtors (NAR). The median price for all housing types in January was unchanged from one year earlier at $164,700, in part because of the 38 percent of sales attributed to distressed homes. Chief Economist Lawrence Yun noted that is will take a couple of months for sales to close on contracts signed in November and December, after the home-buyer tax credit was extended. “Still, the latest monthly sales decline is not encouraging, and raises concern about the strength of a recovery,” he acknowledged. Housing inventory at the end of the month increased from a 7.2 percent supply in December to 7.8 months. CASE-SHILLER SEES WANING IMPROVEMENT IN THE MARKET Standard & Poor's Case-Shiller Home Price Indices - which exclude apartment sales and include whole Metropolitan Statistical Areas (MSAs) - show that U.S. prices fell in the fourth quarter. But the annual rate of return improved as compared with the third quarter. “As measured by prices, the housing market is definitely in better shape than it was this time last year,” said David M. Blitzer, S&P's chairman of the Index Committee. “However, the rate of improvement seen during the summer of 2009 has not been sustained. Prices fell 2.5 percent in the fourth quarter from a year earlier, while the annual rates of decline went from 19 percent in the first quarter, to 14.7 percent in the second and 8.7 percent in the third. In December, the 10-City and 20-City Composites recorded annual declines of 2.4 percent and 3.1 percent, respectively. The National Composite fell by 1.1 percent in the fourth quarter but climbed 1.6 percent on a seasonally-adjusted basis. Although fourth quarter values fell when compared with the third quarter, the decline in the annual rate of return has “significantly” improved, Case-Shiller said. All 20 metro areas and the two Composites saw improvement in their annual returns compared with November's data. The New York index dropped 0.7 percent between November and December last year, with a 6.3 percent decline year-over-year. Find much more on the Service You Can Trust blog. FED SAYS SOFT MARKETS PERSIST IN MANY OF ITS DISTRICTS “Residential real estate markets improved in a number of Districts, remained weak or softened further in the New York, Atlanta, and Chicago Districts, was little changed in the San Francisco District, and characterized as mixed in the St. Louis District,” the Federal Reserve said in its latest Beige Book, which is compiled from anecdotal information. It said adverse weather conditions hampered home sales and construction in the New York, Philadelphia, Richmond and Atlanta Districts. “Most Districts attributed stronger home sales to the home-buyer tax credit, with several contacts apprehensive about future sales once the credit expires on April 30,” the report observed. Philadelphia, Cleveland, Kansas City, and Dallas reported that sales were strongest for low-priced and starter homes, while Dallas cited financing difficulties for high-end homes. Home construction was down or stagnant in most Districts, with the exception of the Minneapolis, Kansas City, and Dallas Districts. The Beige Book found “signs of improvement” in the Boston and San Francisco Districts. It quoted an unnamed real estate agent in a “relatively upscale area of the New York District” as saying that prices have continued to drift downward but that short sales were relatively rare and most transactions were still above the mortgage balance. SOME CITIES ARE BOUNCING OFF THE BUBBLE'S BOTTOM So says Forbes magazine, which asked Altos Research to examine data for the 8,000 cities with at least 100 homes on the market. Asking prices on single-family homes have increased as much as 36 percent from the previous year in some cities. That, says CEO Michael Simonsen of the market research firm, reflects "a bounce off the bottom of the bubble bursting." In cities such as Lexington, Mass., Poway, Calif. (a suburb of San Diego) and Allison Park, Pa. (outside Pittsburgh), prices have risen because lower-price homes are moving off the market more quickly than higher-price ones. The 10 cities with the biggest price increases from the previous year are Lexington, +36 percent; Bay Village, Ohio, +32 percent; Sunnyvale, Calif., +32 percent; Poway, +27 percent; University City, Mo., +28 percent; Ambler, Pa., +26 percent; Allison Park, Pa. , +25 percent; New Braunfels, Texas, +25 percent; Kemp, Texas, +24 percent; and Arcadia, Calif., +24 percent. FREDDIE MAC FINDS DECLINING 4th QUARTER SLIPPAGE IN PRICES Freddie Mac reported that its index of home prices registered a 0.4 percent decline from the fourth quarter of 2008 to the fourth quarter of 2009. That contrasts with the 9.5 percent drop in home prices in 2008. In the final quarter of 2009, the index was down 1.4 percent (-5.4 percent annualized) relative to the third quarter on a basis that was not seasonally adjusted. “Low rates coupled with the first-time homebuyer tax credit helped boost home sales to their highest level in two-and-a-half years, seasonally adjusted,” commented Chief Economist Frank Nothaft, who noted that "we normally see a seasonal effect in the fourth quarter price index that reduces its value.” THOUSANDS OF SMALL INVESTORS BECOME LANDLORDS Because real estate prices have fallen much faster than rents, the math of buying a rental has actually improved substantially in most parts of the country, reports the Wall Street Journal. Money invested in an apartment complex today typically generates annual returns of 7-8 percent right off the bat, up from less than 6 percent at the peak of the housing bubble in 2006. If your property appreciates in value or rents rise, you could end up with double-digit annualized returns when you sell it, the newspaper says. But higher returns usually come with higher risks. If you overpay for a rental property or you buy in the wrong market at the wrong time, you can lose a lot of money. Being a landlord now isn't easy. You need good credit and plenty of cash - as much as 50 percent of the purchase price. You also need extra cash for handling repairs and vacancies and must have the patience to deal with difficult renters. LOVE HIM OR HER, BUT LEAVE THAT PERSON OFF THE DEED So says a new Washington Post columnist, lawyer Harvey S. Jacobs. “It's a bad idea,” he proclaims. “Don't do it.” What you are doing, in effect, is taking your most valuable asset and giving half of it away - forever. Legally, once you add someone to the deed, you have put at least half of your home at risk. “If your loved one has a car accident or suffers a financial setback and cannot pay his bills or has a legal judgment entered against him, his creditors can come after your home to satisfy their monetary judgments,” he writes. In addition, adding a loved one's name to your deed embraces the assumption that your loved one will love you back always. Also, when you have a co-owner, you cannot refinance your home unless the other person agrees and signs the loan documents. The co-owner's credit score will also be an issue. “If it's low, you may have jeopardized your chances of obtaining a loan at a favorable interest rate or terms.” And if you want to sell, your co-owner would have to sign the listing agreement, sales contract and deed, among other papers. You could be stuck paying 100 percent of the mortgage but owning only 50 percent of the home. Adding someone's name to your deed also has serious and adverse tax consequences for both of you, Jacobs continues in a detailed column. JUST TRY TO FIND FORECLOSURE WHERE YOU'D LIVE OR INVEST Bargain hunters Las Vegas and in many other metropolitan areas say it is increasingly difficult to find foreclosed homes at attractive prices in desirable neighborhoods, according to the Wall Street Journal. Supply is shrinking largely because federal and state efforts to help millions of distressed homeowners avert foreclosure have delayed many likely foreclosures. Investors with cash have an advantage in that their offers aren't conditional on obtaining a loan, so banks often prefer selling to them than taking the risk that another offer will fall through. They are also often quick to react when bargains appear. While it is still relatively easy to find a home for a few thousand dollars in Detroit, few want to move there. In the more-desirable Orange County, Calif., bidding wars are the norm on foreclosed homes. HONG KONG BUBBLE FEARS INFLATE ONCE AGAIN Strong results in a Hong Kong government land auction are the latest sign that the city's real-estate market is surging higher after a brief lull, reports the Wall Street Journal. A blue-chip developer Sun Hung Kai Properties won the property with a bid equivalent to $434 million for the 130,000-sf site in suburban Hong Kong. The big purchase came just after Sun Hung Kai sold 900 apartment units in a major new residential complex over the weekend for a total of $541 million. Ranging from 400 to 1,400 square feet, the units sold for approximately $700 per square foot, a steep premium over other apartments in the area and an indication that the mass-residential market could be vulnerable to the speculation that led to a jump of 50 percent in Hong Kong's luxury-apartment prices last year. Around the region, including Singapore and elsewhere in China, easy credit and ample liquidity is fueling fears that real-estate prices may be rising to irrational levels. IS MIAMI'S CONDO MARKET COMING BACK The New York investment group that snapped up the construction loan on more than 90 units in Miami Beach's Caribbean condo development has resold the units at a 40 percent markup, reports CondoVultures.com, a local real estate consultancy, the Wall Street Journal says. The group - identified as 3737 Caribbean Group, New York's Melohn Properties and local investor Michael Konig - sold a combined 35 units in the 107-unit, double-tower complex for $31 million, or $584 per square foot. Many of the remaining 59 condos are said to be under contract. The buyers are foreigners and “Northeasterners who've been searching for deals,” says Peter Zalewski, a Condo Vultures principal. They may also be looking for early-bird specials. HIS APARTMENT ON MANHATTAN ISLAND FULFILLS A FANTASY Director Barry Sonnenfeld and his wife Susan Ringo have just sold for $1.8 million their 2,270-sf loft in the financial district, says the New York Times. The all-white condo is on a high floor at 25 Ann St. with 11-foot beamed ceiling. They put the sleek and contemporary two-bedroom, two-bath apartment on the market for $1.895 million in late September. It went into contract before Christmas and closed last month with one Gillian G. Larson, who had made her home in TriBeCa, as the buyer. Owning homes in Amagansett on Long Island and Telluride, Colo., the couple apparently used the apartment as a cozy pied-à-terre. HE SWINGS BUT DOESN'T QUITE HIT A HOME RUN It took Bobby Abreu, who left the New York Yankees for the Los Angeles Angels in late 2008, more than 20 months to unload the glass-walled condo he had used as his Manhattan home, reports the New York Times. He recently sold the apartment at One Beacon Court, the 58th Street tower with Central Park and East River views, for $5.1 million. The outfielder, who had lived in a two-bedroom, two-and-a-half bath apartment on the 37th floor, bought the aerie in 2005 for $3.8 million. After putting the condo on the market in May of 2008 for $7.9 million, he dropped the price to $6.9 million a year later and finally to $5.9 million in August. The buyer's name is hidden behind a limited liability corporation with a mailing address in Short Hills, N.J. HE HAS HAD TO CUT THE PRICE OF HIS ESTATE, NOT IN DALLAS Larry Hagman 78, and his wife Maj have trimmed the price of their Ojai, Calif., estate by 11 percent, to $9.5 million, reports the Wall Street Journal. On the 43-acre property, about 80 miles northwest of Los Angeles, the couple built a Mediterranean-style house with nine bedrooms and a large entertaining space that fits more than 200 guests with a lap pool and retractable roof in 1992. In 2003, Hagman equipped the estate with a giant solar-power system, bringing his annual electric bill to $13 from $37,000. APPARENTLY, HE COULDN'T CURB HIS ENTHUSIASM Richard Kind, known for his roles on sitcoms such as Mad About You, Spin City and Curb Your Enthusiasm, and his wife Dana have recently bought for $2.5 million a three-bedroom, two-bath apartment on the Upper West Side, at 250 West 82nd St., according to the Observer. The pre-war apartment has a 30-foot-long loft-like living room and three bedrooms. SOME BUYERS MIGHT BE WARY OF THIS APARTMENT Griffin Dunne, who starred in the cult film classics An American Werewolf in London and After Hours, is in the process of selling his Greenwich Village co-op, says the New York Times. The two-bedroom duplex in a classic pre-war building on East 10th Street has open views and a reduced asking price since November of $2.495 million. The corner living room, which provides beamed ceilings and a wood-burning fireplace, went into contract about a week ago. Dunne, who also owns a home in Dutchess County upstate, bought the duplex for $2.55 million in 2006 and put it on the market in September for $2.75 million. UNSURPRISINGLY, THEIR LOFT HAS A MODICUM OF STYLE Elie Tahari and his wife Rory (20 years his junior, the New York Post smirks) have quietly put their four-story, 9,600-sf trophy loft on the market. While the Prince Street co-op in SoHo isn't officially listed, sources told the Post that the Taharis could be close to a deal in the $22 million-plus range. In a building that was once a chocolate factory, the apartment currently is configured with three main bedrooms, three guest rooms, seven bathrooms, a screening room and an all-glass "sky room," where the fashion designer does yoga and would be ill-advised to throw stones. EVEN CUTTING PRICE IN HALF, SHE'S NOT LIKELY TO BE HURTING Unable to sell her 300-acre English country estate in Charlottesville, Va., philanthropist Patricia Kluge has reduced the price to $48 million from the original $100 million asking price in October, reports the Wall Street Journal. Kluge, 61, is the former wife of billionaire John Kluge, founder of the Metromedia broadcast and cellphone empire. The estate, near Thomas Jefferson's Monticello, represents the height of sacrifice: It includes a 45-room 1985 neo-Georgian manse of about 23,500 square feet with eight bedrooms, 13 baths, theater, spa and sauna. There's a pool, a log cabin, a greenhouse, three stocked ponds, a croquet lawn and several cottages for staff. The contents of the house, including antiques, art and English furniture, will be sold at auction. HE HAS GOOD REASON TO SAY, 'THANK YOU, AMERICA' Will Ferrell and his wife, the Swedish actress Viveca Paulin, are in contract to buy a three-bedroom loft at Hudson and West 13th streets. According to the Observer, the sale is set to close May 15 at a price as yet undisclosed. (The last sales price, in 2006), was $4.4 million. On the border of the West Village and the Meatpacking District, the loft has two "generously sized" bedrooms, according to the 2006 listing, as well as a "windowed open space" easily converted to a third bedroom for one of the Ferrells' three boys. The open floor plan shows high ceilings with original iron columns and exposed heavy timber beams, as well as hardwood maple floors and renovated kitchen and bathrooms. DID THE BOARD HAVE TO INTERVIEW A VAMPIRE David Geffen just purchased for $14.17 million a 17th-floor apartment with sweeping Central Park views at 785 Fifth Avenue, says the New York Times. He bought the 5,000-sf co-op from Robert A. Daly, former chairman of Warner Brothers Entertainment, who left the studio in 1999 and is now chairman of Save the Children. The limestone building, known as the Park Cinq, was built in 1964 and shares the block between 59th and 60th Streets with the Sherry Netherland hotel. WHETHER MISS PIGGY WILL BE A GUEST IS AN OPEN QUESTION Christopher W. D. Gould, who publishes Broadway plays and produced Prelude to a Kiss, said that he and his wife Joan Gould Dineen had been thinking that maybe their five-story town house on East 81st Street was too big now that one of their three children was no longer living there, reports the New York Times. Then, a broker knocked on the door and made them an offer they couldn't refuse. The broker was representing the family of Joan Ganz Cooney, a founder of the Children's Television Workshop. Cooney and her husband, Peter G. Peterson, a founder of the Blackstone Group, created a family trust to buy the house, which will be used by one of Peterson's children, either as an investment or a residence. The trust paid $10.65 million for the property, which was built in 1899 and has a garage on the ground floor. Gould said that he and his wife were in contract to buy a smaller house, also on the Upper East Side. FOR THIS SUCCESS STORY, ART IS NOT ONLY FOR ITS OWN SAKE Jeff Koons, famed for his giant balloon-animal sculptures, has snatched up a $20 million palatial Upper East Side townhouse from a Rockefeller, the New York Post exclaims. The 10,000-sf mansion at 13 E. 67th St. was the longtime home - with 19-foot ceilings, a squash court and a pool - of the late Barbara "Bobo" Rockefeller. The home has been vacant since 2005 and is in complete disrepair, sources said. "It looked like a very 'Gray Gardens' type of place," someone who recently has been inside revealed. "It's a great place, but very run down." Koons, 55, whose works have sold for tens of millions of dollars, already owns the townhouse next door, which he bought last year for $12 million. VIOLET WHO DOESN'T SHRINK BUYS VILLAGE APARTMENT Isaac Mizrahi recently purchased a $1.1 million apartment at 59 West 12th St. in Greenwich Village, according to city records, says the Observer. The quaint one-bedroom in the 1931 Emery Roth & Sons-designed building has a capacious walk-in closet that is significantly bigger than the kitchen corridor, a dining gallery that opens into an oversize living room with a wood-burning fireplace and tree-lined southern exposure. Mizrahi is known to live in the West Village with his partner Arnold and their dog, Harry. The Observer speculated that the unit sounds like an expansion or a purchase for a friend or family member. FROM ONE EXTREME (ABOVE) TO THE OTHER (HEREWITH) Rush Limbaugh has put his Fifth Avenue apartment on the market for $13.95 million, according to Gawker.com. Photos of the unsurprisingly over-the-top decor have to be seen to be believed. Limbaugh promised last March that he'd sell his apartment after the administration of Gov. David Paterson proposed raising taxes on New York residents who make more than $500,000 a year. The 20th-floor penthouse is at1049 Fifth Ave. HIS APARTMENT APPARENTLY WAS A DIAMOND IN THE SMOOTH Tiki Barber and his wife Ginny have sold their sprawling co-op at 333 East 69th St. for the original October listing price $3.495 million to David Fortunoff of, yes, that family, reports the Observer. The 3,000-sf apartment has at least four bedrooms and a maid's room. The open loft-like floor plan includes a children's wing, four marbled bathrooms and large California closets as well as a terrace. HIS HOUSE DID NOT GO PLATINUM After 19 months on the market, a house owned by Aerosmith drummer Joey Kramer on the South Shore of Massachusetts has sold for $2.7 million, 27 percent less than its most recent asking price and way below the original $5 million that he and his ex-wife, April, sought in July 2008, according to the Wall Street Journal. The gated 17-acre compound is in Marshfield Hills, Mass., a coastal town about 20 miles south of Boston. Overlooking the Atlantic Ocean and the North River, the 6,200-sf shingled dwelling has four bedrooms and a recording studio. There's a carriage house for guests, a pool, a Koi pond and three stand-alone garages, where Kramer kept his car collection. The 59-year-old musician, a founding member of the band, combined two properties and built the house in 2003. RATES DRIFT DOWN AGAIN The 30-year fixed-rate mortgage (FRM) dipped to 4.97 percent this week from last week's 5.05 percent and 5.15 percent last year at this time, reports Freddie Mac. The 15-year FRM this week slipped to 4.33 percent from 4.40 percent a week ago and 4.72 percent a year ago. The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 4.11 percent, down from 4.16 percent; it was 5.08 percent 12 months earlier. The one-year Treasury-indexed ARM went up to 4.27 percent from 4.15 percent the prior week and but was well below 4.86 percent a year ago. DELINQUENCY RATES SUGGEST AN END IN SIGHT The delinquency rate for mortgage loans on one-to-four-unit residential properties fell to a seasonally adjusted rate of 9.47 percent of all loans outstanding as of the end of the fourth quarter of 2009, down 0.17 points from the third quarter of 2009 and up 159 points from one year ago, according to the Mortgage Bankers Association. Although the percentages of loans 90 days or more past due and loans in foreclosure set new record highs, the percentage 30 days late is still below the record set in the second quarter of 1985. “We are likely seeing the beginning of the end of the unprecedented wave of mortgage delinquencies and foreclosures,” commented Jay Brinkmann, MBA's chief economist. “The continued and sizable drop in the 30-day delinquency rate is a concrete sign that the end may be in sight.” Noting that there was no year-end spike in short-term mortgage delinquencies, Brinkman added that 30-day delinquencies actually fell by 16 points. “It . . . gives us growing confidence that the size of the problem now is about as bad as it will get, he said. “The other apparent good sign is a drop in the rate of new foreclosures started.” A QUARTER OF HOMEOWNERS ARE DROWNING Nearly one in four U.S. homeowners with a mortgage owed more than their homes were worth at the end of 2009, according to a new report in the Wall Street Journal. Some 11.3 million households had negative equity at the end of the fourth quarter, says First American CoreLogic, a real-estate information company, up from 10.7 million at the end of the third quarter. "Negative equity is a long-term problem for us," says Chief Economist Mark Fleming. "Some of these markets have lost from their peak 50 percent of their value. How many years at 5 percent growth would it take to bring it back?" A separate study last year by researchers at credit-reporter Experian and consultants Oliver Wyman Group estimates that 588,000 U.S. mortgage borrowers defaulted strategically in 2008, more than double the year-earlier total. The researchers identified strategically defaulting borrowers as those with perfect payment histories who suddenly stopped making mortgage payments and made no attempt to become current, even as they paid other bills. MORTGAGE GROUP PROJECTS 6% RATE BY END OF YEAR Consistent with other forecasters, the Mortgage Bankers Association (MBA) says it expects that mortgage rates will rise by about a percentage point by the end of the year to a little more than 6 percent. The organization projects that mortgage originations will fall to $1.3 trillion in 2010 from an estimated $2.1 trillion in 2009. “Purchase originations will be essentially flat at $745 billion, as home prices stabilize and home sales increase,” according to the MBA. “Refinance originations will fall by more than 60 percent to $529 billion as mortgage rates rise through the year.” LOAN ACTIVITY BOUNCES BACK AFTER STORMY PRIOR WEEK The Mortgage Bankers Association (MBA) says mortgage loan application volume for the week ending Feb. 26 jumped 14.6 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the increase was 15.5 percent. Refinance activity went grew by 17.2 percent, pulling up the average, as purchase volume climbed 9.0 percent, seasonally adjusted. Unadjusted, purchase volume rose 11.7 percent but was 9.8 percent lower than the same week one year ago. The refinance share of mortgage activity increased to 69.1 percent of total applications from 68.1 percent the previous week, and the adjustable-rate mortgage (ARM) share inched up to 4.8 percent from 4.7 percent. BUT YOU CAN ALWAYS FIND ONE WHEN YOU NEED ONE The total number of retail bank branches in the U.S. is on pace to decline this year for the first time since at least 2002, according to SNL Financial, a research firm that tracks branch data filed with banking regulators, says the Wall Street Journal. According to SNL, there are 98,913 bank branches in the U.S., a decline of about 300, or 0.3 percent, since June 2009. The overall count still is 15 percent higher than in 2002, but analysts say the relentless expansion of retail-branch networks fueled by flush profits and the lure of potential customers eager to borrow money has sputtered. "It's just not a popular strategy right now to be building a lot of branches," says Kris Niswander, an associate director in SNL's financial institutions group. Except, it seems, in Manhattan. BROKERS ARE MORE CONFIDENT ABOUT PRESENT THAN FUTURE Point2 Technologies, an Internet listings provider, says its February survey of brokers reflects a more favorable current environment and improved sentiment among U.S. brokers than in January. But fundamental economic concerns depressed their long term outlook and put pressure on the overall index rating. Forward looking sentiment dropped by 2.26 percent to 5.63 on a scale of one to 10 (one being “bad” and 10 being “good”). The gauge of optimism/pessimism for the next three to six months declined 2.89 percent to 5.71, from 5.88 in January. But current sentiment rose by 1.04 percent, to 4.87. Key concerns highlighted by the February survey results include the looming April 30 deadline for the home buyer tax credit, employment and expiration of the tax credit, while declining inventory heartened respondents. IF YOU WANT TO GET WIRED, HEAD TO RALEIGH Raleigh has soared to the No. 1 spot on Forbes' Most Wired Cities list. It ranked higher overall than any other U.S. city in three measures: broadband penetration, broadband access and plentiful wi-fi hot spots. The combination of a highly educated and relatively higher-income population is "fertile ground" for high broadband demand and usage, said Brooks Raiford, head of the North Carolina Technology Association trade group. Last year's No. 1, Seattle, ranked No. 3 this year, while Atlanta, the most wired city from 2008, was No. 2. Raleigh's elevation from No. 15 last year to No. 1 represented the greatest year-over-year improvement in the list. Miami, which dropped from No. 6 to No. 17, accounted for the steepest fall, mostly because of a lower rate of broadband usage this year. Drop-offs included New York, Los Angeles, Cincinnati, Cleveland, Honolulu, Milwaukee, Minneapolis, Nashville, Philadelphia, Phoenix, Pittsburgh, Sacramento and Tampa. STUDY CONFIRMS THAT ‘ZESTIMATES' ARE FAULTY Zillow overestimated value by at least 1 percent for approximately 80 percent of the Arlington, Tex. houses in a sample of them studied by three University of Texas professors. Published in Appraisal Journal, a report by the researchers found that 59 percent of the Zillow estimates (“Zestimates”) fell within plus or minus 10 percent of the sale price. Only 0.88 percent of values were underestimated by more than 10 percent. The average overestimation was 11.66 percent, or $13,576, with a median of $9,717, or 7.92 percent. “The use of Zillow.com to provide an estimate of housing value does not appear to be as accurate as owners' estimates of value that several studies have documented,” according to the report by professors Daniel R. Hollas, Ronald C. Rutherford and Thomas A. Thompson. “Given these results, homeowners can make good use of Zillow's Zestimates, but in most cases Zillow should not be relied on to provide an accurate estimate of value.” They added that homeowner motivation and factors other than housing characteristics may make it difficult to obtain accurate prices. SAN FRANCISCO FED PRESIDENT SEES HOUSING STABILIZATION Janet Yellen, president of the Federal Reserve Bank of San Francisco, says in "The Outlook for the Economy and Monetary Policy" that "the housing sector appears to have stabilized." Yet, she adds that she doesn't see "any signs of a sharp turnaround." New-home sales and construction finally stopped falling last year and have been reasonably stable, albeit at very low levels, for several months, Yellen remarks. Existing home sales surged late last year in response to the homebuyer tax credit. But the credit expires this spring, so this source of support won't be around much longer. The housing sector also has been benefiting from the Fed's policy of buying mortgage-backed securities, Yellen continues. These purchases appear to have helped keep home finance rates low. But the Fed is now in the process of tapering off these purchases and plans to stop them at the end of March. "As support from Federal Reserve and other government programs phases out, there is a risk that the housing market could weaken again," the Fed bank president asserts. FREDDIE MAC CEO ALSO DETECTS 'EARLY SIGNS OF STABILIZATION' "We start 2010 with some early signs of stabilization in the housing market, with house prices and home sales likely nearing the bottom sometime in 2010," said Freddie Mac CEO Charles E. Haldeman, Jr. "We expect that low mortgage rates, relatively high affordability and the homebuyer tax credit will help continue to fuel the recovery. Still, the housing recovery remains fragile, with significant downside risk posed by high unemployment and a potential large wave of foreclosures." ECONOMISTS PREDICT HIGHER MORTGAGE RATES IN LATE MARCH Economists are generally predicting that mortgage rates will begin to edge up in late March, settling at about 5.5 percent, possibly as high as 6 percent, for a 30-year fixed-rate loan, according to the New York Times and reports in previous issues of Realty Digest. IN BUFFET'S VIEW, REAL ESTATE DOLDRUMS WILL END BY 2011 Warren Buffett said the U.S. residential real estate slump will end by about 2011, according to Bloomberg.com. He predicted that it will take that long for demand for homes to catch up with the supply. “Within a year or so, residential housing problems should largely be behind us,” Buffett wrote in his annual letter to the shareholders of his Berkshire Hathaway Inc. “Prices will remain far below ‘bubble' levels, of course, but for every seller or lender hurt by this there will be a buyer who benefits.” He noted that housing starts had been running about 2 million annually and added, “But household formations - the demand side - only amounted to about 1.2 million.” Buffet, who has had his share of fallibility, wrote that high-value houses and those in certain localities where overbuilding was “particularly egregious” will take longer to recover. “He's very deeply invested in this,” said Tom Russo, partner at Gardner Russo & Gardner, which holds Berkshire stock. “Across his industrial companies, he's massively poised to gain” from a housing recovery. BARCLAYS ANALYSTS FORECAST FLAT PRICES FOR A WHILE Housing prices are unlikely to fall much farther, but nor are they going to rise, at least for several years, analysts for Barclays Capital predict in its Residential Credit Strategy report, according to Property Wire in Realtor magazine. Barclays blames government programs that have slowed foreclosures. “The overhang of distressed inventory is a huge negative technical. It suggests that any price rise will probably be met by increased distressed sales,” the report says. It further concludes that home prices are less expensive than rents and incomes suggest they should be, “but not extremely so.” Where is the devil? Why, in the details, of course! Everyone knows that. Another concern must be electrical service. Not only should there be enough amperage into the apartment and, preferably, circuit breakers, but be certain there are sufficient outlets. As for the windows, can you hear street noise readily? Are they well insulated from the elements? If you plan to replace them, learn whether there are requirements in the building that will prevent you from making the sort of improvement you plan. Also find out whether there is a requirement for a new owner to have new windows of a particular type installed. Since no apartment exists outside of a building, what's inside the building as a whole also bears scrutiny. You can learn a great deal about maintenance simply by walking up or down a couple of flights of stairs used for service. There and elsewhere, do you detect unpleasant odors? If a bike or storage room is important, a big question also is whether there is enough space for you. Is the storage area common or is an individual area made up of chicken wire or, instead, a metal bin? If there are lobby personnel, you'll want to note their attitude and appearance. The foregoing items do not likely surprise you (and the list of them is hardly exhaustive). Many of them register on an unconscious level but must be raised up. Other of these suggestions may not occur to buyers as they waltz through the apartment of their dreams, perhaps nearly swooning at the eat-in kitchen, the well-proportioned rooms, the plentitude of closet space, the updated bath, the original pre-war details. Almost without exception, the property for which purchasers seek to make an offer is that one in which they fall in love, at least figuratively. Nothing else they've seen before or after measures up in their minds. That's why a second or third look is never a waste of time. That's when defects and quirks tend to come to the fore. It's a bit like having many dates before moving in with someone. Indeed, falling in love with a property is something like falling in love with a person. What you like may never fade, but those aspects that annoy you and tend to gloss over at the beginning are like thorns that dig deeper over time. You would be ill-advised to ignore them at the risk of having your dream home become, if not a nightmare, an irritation that just won't quit. Such are thoughts that have recurred during recent visits to the properties below that have been listed by various brokers:
Some of Manhattan's Latest Listings Please click here to view a sampling of properties newly listed by various brokers. To see more of them or to obtain more information, please don't hesitate to be in touch. Click Here to Sign Up For Your Free Issue of Realty Digest!
©
2010 Service You Can Trust |
||
|
Now, appliance makers are responding with a host of new features including souped-up shelves, bacteria-killing devices and better lighting. General Electric, for example, says it is rolling out new refrigerators in May with 10 lighting sources inside instead of its usual three - so food that might be forgotten in a corner and spoil will be easier to spot. The new GE models sell for $1,599, or $1,799 for stainless steel. At least one manufacturer is rolling out bacteria-killing technology: Viking Range released a built-in model (priced from $6,600 to $8,800) that contains Sharp Electronics Corp.'s Plasmacluster Ion Air Purifier. The device, located at the top of the fridge, generates positive and negative ions that break down bacteria, mold and mildew. Even the most high-tech solutions can be thwarted by consumers. Jennifer Smith of Bronxville, N.Y., says her husband has tried to salvage everything from moldy cheese to old salad dressing. "I have to go behind his back and look at some of the condiments and throw them out," says she. Luckily, he doesn't notice.
January 2009. As CalculatedRisk.com notes, 21,000 homes found buyers, fewer than the previous record low of 24,000 that occurred one year earlier. “We thought it was going to kick in and boost sales,” Patrick Newport, a housing economist for IHS Global Insight, told the New York Times in reference to the home-buyer tax credit. “It's a little bit of a shocker.” Although economists generally do not give too much weight to new-home sales data, the Times added, analysts said declines for three months in a row represented a troubling trend. “When one considers the billions and trillions of dollars that have been spent to prop up the housing market, that the best we could muster is a new low in sales is incredibly worrisome,” wrote Dan Greenhaus, chief economic strategist for Miller Tabak. "No sugarcoating these numbers," Mike Larson, an analyst at Weiss Research, wrote in a note to clients, according to the Washington Post. "They stink." Chief Executive Bob Toll of Toll Bros. said. “We believe the housing market is still in choppy waters, but the seas are getting calmer.” Analyst Josh Levin of Citi weighed in, too, saying that “disharmony” between the data and home builder commentary bears a “striking similarity” to the events of a year ago. Deeper into ‘09, new-home sales trended up and the stocks followed. “We expect a similar pattern this year,” Levin said.
(The rate this week is below 5 percent.) They also expect that the inventory of foreclosed homes will grow through the summer, saturating the market with cheap properties and keeping overall prices low, the Times adds. “I wouldn't rush,” said Mark Zandi, the chief economist at Moody's Economy.com, “but if I found a house I was excited about, I wouldn't wait. You might not be buying at the very bottom, but you'll still get a great rate, and if you stay for more than a few years, you'll be rewarded.” By that time, he continues, home values will have appreciated. Both Zandi and Jay Brinkmann, chief economist for the Mortgage Bankers Association, are predicting that rates will not exceed 5.5 percent this year. If they should rise beyond that level, Brinkmann speculates, the federal government would very likely resume its subsidies rather than risk damaging the real estate market. But Cameron Findlay, the chief economist for LendingTree.com, predicts that rates could go as high as 6 percent without any government intervention. 
