Manhattan is home to 5 of America's priciest zip codes

Forbes has released its annual list of the 500 most expensive zip codes across country and New York City has even more zip codes in the top 20 than it did last year. With just three in the top 20 last year, that has jumped to eight with five of them making it to the top 10 this year.

Unsurprisingly, the Upper East Side has three of the priciest zip codes in the city. At the top of list, and sitting at the second position nationwide is 10075, which covers the upper East 70s in that neighborhood. The median price for a home in this area is $7.2 million, and this zip code has experienced a massive bump from last year when it was sitting at number 98 on the list.

Numbers 5 and 6 on the list are also from the Upper East Side. The fifth is 10065 which covers the Lenox Hill area. That zip was also on the list last year. The median price here is $6.935 million, and just jumped up 10 places on the list from 15 last year to 5 this year. At sixth place is 10028 which covers most of the East 80s. The median price here is $6.3 million.

Moving away from the Upper East Side, the priciest zip code after that is 10012 which includes parts of Greenwich Village, Soho, and Nolita. Last year, this zip topped the list in New York and was at number three nationwide. This year it’s sitting at number seven and the median price has taken a tumble from $7.3 million to $6.278 million.

Rounding out the top 10 is 10014 which covers most of the West Village and parts of Greenwich Village. Sitting at number nine on the list nationwide, the median price here is $5.785 million, and this area’s also come up significantly since last year moving from number 31 to its current ranking.
To check out the rest of list and continue to fret (or celebrate depending on how you feel) over the number of zip codes in this list head on over to Forbes. They analyzed 29,500 zip codes nationwide to create this list.

Source: Curbed New York

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What Will a Trump Presidency Mean for New York Real Estate?

Two months ago, Pierre E. Debbas, a partner at the boutique law firm Romer Debbas, was representing a couple buying a Manhattan condominium who wanted the option to back out of the deal if Donald J. Trump won the election. After Mr. Debbas explained that no seller would agree to such a contingency, they signed the contract and took their chances.

Other buyers and sellers have been skittish, too. By the morning after Mr. Trump’s upset victory, nerves were downright frayed, with buyers canceling viewings and delaying contracts, saying they needed to reassess, according to brokers, lawyers and developers.

“People don’t know what to make of the new situation,” said Stephen G. Kliegerman, the president of Halstead Property Development Marketing. “They don’t know if this is going to have a positive or negative effect on the economy.”

But even a few days can make a difference. By the end of the week, potential buyers were rescheduling appointments they had canceled on Wednesday, Mr. Kliegerman said. Others who had spent the summer cautiously eyeing apartments were finally signing contracts, relieved that the election was over. “The phone has been ringing a lot this week,” Mr. Debbas said. “People are realizing that the world’s not ending.”

And as for the clients who wanted a way out of their contract if Mr. Trump won, they are “going to proceed despite the election,” he said.

Mr. Trump’s candidacy divided the real estate industry, with the city’s dominant real estate families taking opposing sides. For example, Stephen M. Ross, the chairman of the Related Companies, said of Mr. Trump, “I don’t really see him as president of the United States,” while Steven Roth, the chairman of Vornado Realty Trust, advised his campaign. But now that Mr. Trump has emerged as the victor, some real estate executives are voicing their enthusiasm for an administration that they hope will be friendly to business.

“A lot of people want to jump on the winner’s bandwagon,” said Pamela Liebman, the president of the Corcoran Group. William C. Rudin, the chief executive of Rudin Management, supported Hillary Clinton’s candidacy, but a week after the election, he said: “I’m looking forward, not backwards.”

A Trump victory will likely improve the fortunes of some New Yorkers. Proposed tax breaks aimed at the wealthiest Americans could reinvigorate a flagging luxury housing market, looser government regulations could benefit business and infrastructure improvements could spur job growth.

Affordable housing advocates, however, worry that the most vulnerable Americans could suffer under policies that could be hostile to housing subsidies and fair housing rules. It’s also unclear what effect the policies of the new administration might have on foreign buyers. While Russians might feel welcome, given the admiration Mr. Trump has expressed toward that country’s president, protectionist policies and rhetoric could have a chilling effect on investors from China and Arab nations.

Predicting what might come in the years ahead is a little like reading tea leaves. Here are some of the postelection thoughts percolating in the real estate community.

Optimism

 

Mr. Trump is more of a branding expert and reality television star than a traditional real estate developer, yet he knows the industry, as does his son-in-law and close adviser, Jared Kushner.

So some developers are optimistic about having one of their own at 1600 Pennsylvania Avenue. “There is someone in the White House who at least understands the challenges of the development community,” said John H. Banks III, the president of the Real Estate Board of New York. “It could just be a very positive opportunity.”

Mr. Trump promises to not only cut taxes and regulations, but also to invest in infrastructure and jobs, a potential boon for business. “Once you start creating jobs, development follows,” Mr. Rudin said.

The stock market plunged on election night but recovered the next day, a sign that investors are confident in the future, business leaders said. “When you get behind all the babble and all the buffoonery, you have to ask yourself, what are his instincts and what is he about?” said Joshua Stein, a commercial real estate lawyer. Mr. Trump’s business instincts “are probably good for the economy and good for real estate.”

Uncertainty

 

Wealthy Americans can expect deep tax cuts from the Trump administration, “and they buy luxury apartments,” said Jonathan J. Miller, the president of the real estate appraisal firm Miller Samuel. Such a shopping spree could reduce the glut of luxury apartments languishing on the market, but other changes to the housing market are on the horizon.

If Mr. Trump dismantles the Dodd-Frank financial reforms enacted after the subprime mortgage crisis, home buyers could find it easier to get a mortgage. But a lack of oversight could have other consequences. “Maybe we’ll have another 2008,” Mr. Miller said, referring to the financial crisis. “Human beings have a tragic flaw, we tend to screw things up over time.”

Republican lawmakers have been pushing to privatize or even eliminate Fannie Mae and Freddie Mac, the government-controlled mortgage giants. Either Fannie or Freddie backs most American mortgages, making it easier for less affluent families to buy homes. Changes to how those companies operate “might adversely affect those that have been underserved by the mortgage market,” said Ralph B. McLaughlin, the chief economist for Trulia.

And interest rates could fluctuate. “Rates are likely to be quite volatile,” Mr. McLaughlin said. “It’s likely to be a day-to-day, week-to-week phenomenon driven by statements that the administration makes.”

Worry

 

Affordable housing advocates worry that Mr. Trump’s policies could endanger federal programs like Section 8 housing vouchers or legal services that help the poorest Americans find and keep housing. “We have millions of people who rely on federal support for housing,” said Harvey Epstein, the director of the community development project at the Urban Justice Center.

The Fair Housing Act, which protects people from discrimination, is also vulnerable, say housing advocates. Mr. Trump’s management company was sued by the Justice Department in 1973 for discriminating against minorities. “Enforcement of that is discretionary,” said Samuel J. Himmelstein, a lawyer who represents tenants. “They don’t have to go after people” who violate the statute.

The future of the Department of Housing and Urban Development is also in question. Among the names floated to lead the agency is Westchester County Executive Robert P. Astorino, who has sparred with the agency in the past. “If they got rid of HUD, that would be a catastrophic event,” Mr. Epstein said.

Wait and See

 

By 3 a.m. on Nov. 9, text messages from Russia were arriving on Edward Mermelstein’s cellphone, as the world realized Mr. Trump had won. Mr. Mermelstein, an international real estate lawyer, fielded jubilant calls from Russian clients hopeful that Mr. Trump’s victory would improve ties between their country and the United states. His Chinese clients, though, expressed concern about the prospect of a protectionist American administration. “It’s hard to tell what it’s going to look like a year from now,” Mr. Mermelstein said.

Mr. Trump’s calls for mass deportations of undocumented immigrants and barring Muslims could harm the housing market, too, if foreigners no longer see the United States as a welcoming destination. “The housing market relies on housing formation,” said Mr. McLaughlin of Trulia. “And a portion of that relies on new immigrants.”

Developers, however, are confident that foreign investors will continue to see the New York market as a safe haven. “I have not seen or heard any nervousness or skittishness from foreign buyers,” said Ms. Liebman of Corcoran.

Despite the rhetoric, a Trump administration could be a boon for foreign investors. Mr. Banks of the real estate board hopes to see the administration roll back a Treasury Department policy that identifies and tracks secret buyers of high-end properties. It could also bolster immigration programs that favor foreign investors, like the EB-5 visa program.

But if investors no longer see the United States as a safe bet, they might sink their money elsewhere. “It’s not about economic factors, it’s about safety,” Mr. Kliegerman of Halstead said. “If they see civil disobedience, fine; if they see civil unrest, those buyers will pull back.”

Source: The New York Times

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Latest Real Estate News I Market Update Manhattan – 3rd Quarter 2016

CONDOS & CO-OPS OVERVIEW:

The third quarter of 2016 concluded with a strong gain in the overall average sale price and median sale price. However, there is a palpable sense that these indicators are lagging and not representative of the current, softening market trend. With inventory rising, sales volume declining, buyers having pre-election jitters and a general anxiety about economic conditions - the market has transitioned away from the sustained, rising price trend witnessed over the last few years.

The clear advantage held by sellers over the last few years appears to have dissipated. With 3,242 closed sales in the third quarter of 2016, there were 18% fewer closing than prior year. Although the overall average sale price was $2,077,000, posting a 19% increase over the prior year, much of the increase in the average sale price can be attributed to a spate of new construction closings.

For all properties sold under $3 mil, where 83% of activity falls, the average sale price was essentially at and the median price rose just 1%. This is the strongest sign of softening market conditions as prior periods posted much higher gains in this price segment.

In the $3 million to $10 million price bracket, prices were also at with an average sale price of $4,931,000, nearly equal with prior quarter. In the top price tier segment, units sold over $10mil, the average sale price rose 12% while the median sale price increased a modest 4% than prior year.

Noting that luxury buyers are showing some hesitancy, there is a shift in the market to increasingly bene t buyers. There is now more inventory for the buyer to choose from and the price acceleration seen over the last few quarters is leveling off.

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New Yorkers’ Wealth Surges

One factor that has a huge effect a country’s economy and the standard of living of individuals within it is wealth. This has become evident among New Yorkers, whose level of wealth has grown to the point of affecting the price of real estate market in Manhattan. In the past, high prices of real estate were attributed to foreign investors. More recently however, New Yorkers, with an average yearly income of one million dollars, have really started to impact the city’s real estate market. So while foreign investors are curtailing investment in NYC real estate because of the global economic crisis, New York City residents are stepping up to fill the void.

Data collected from tax payments reveal that the number of New York residents earning a million dollar or more per year has risen significantly since 2012. Not only has the number increased, it is far greater than the income of residents of neighboring cities. In fact, New York City is home to more than half of the millionaires in the state, which is even more impressive given that New York State is ranked second among US states with 12 percent of the entire country’s millionaires. Only California has a greater share at 15 percent of these earners.

One effect of this increase in the wealth of city residents has been a tremendous boost to the local economy, increasing transactions for both services and products. Another effect has been the push it has given the prices of median condos, which are now at record levels. 

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A New Dawn for New York Thanks to Brexit

For decades, investors have been attempting to choose between London and New York as the best location to invest their resources, with each city being one of the strongest real estate markets in the world. It has often been a toss-up between Canary Wharf or Wall Street, Islington or Brooklyn Heights, Kensington or the Upper East Side. But now, thanks to Brexit, the balance has tipped in favor of New York City, which is now seen as more stable compared to London due to the uncertainties surrounding the British economy.

The superrich tend to keep well informed regarding world affairs in order to be sure their money is in safe hands. Ever since Britons began agitating for an exit from the EU, investors have been looking for investment alternatives to London real estate. Various brokers and lawyers in the residential real estate industry have been receiving calls from billionaire investors in countries all over the world who are planning to shift their focus from London to New York. Some who already had expensive real estate in London have been selling off those residential estates and buying new ones in New York.

In the past, both cities have been in sharp competition in the real estate market. Investors are now seeing uncertainty surrounding Britain’s economy, and many are perceiving New York to have an edge over London, as there is no safer place than New York right now - the wealthy have been investing there for decades and understand the market perfectly. New York has been experiencing a slowdown in the luxury real estate market recently due to an oversupply of high end residences and things have been going badly enough for developers here that some have had to attach promotions in order to sell their new condo properties. But with the current situation in Britain, London is sure going to lose ground to New York as a prime location for property investment as Brexit is leading to predictions of a 5 to 15 percent drop in London real estate prices in the next few months. The departure of Britain from the European Union is a blessing in disguise for New York City real estate and for those who are ready to take advantage of it.

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