The residential market in New York City is currently facing a correction like it has not seen in a decade. Between the second quarter of 2017 and the second quarter of 2018 there was an 8 percent decrease in overall transaction value. It was also the fourth consecutive quarter of declines. Prices and transaction value also slid. Home sales fell by 4 percent during the second quarter, to 12,262, and the average sales price across the five boroughs fell by 5 percent to around $1 million (a more detailed look reveals that prices fell in Brooklyn and Manhattan, but rose in Queens, the Bronx, and Staten Island).
While it is true that volumes and values, as well as prices, are down, the slight downturn comes after several years of red-hot growth. Despite the downturn, the market remains in a solid place. How long this correction will last is anyone’s guess, but it does not show signs of becoming more severe even as loads of units continue to exit the pipeline and enter the market.
The Real Deal has more.
Wednesday’s City Council vote on the Inwood rezoning plan followed a familiar script in that the plan passed because it had the support of the councilmember who represents the district affected by the rezoning, Ydanis Rodriguez. However, these plans tend to get the universal support of all councilmembers in attendance. This was not the case on Wednesday.
City Councilmember Francisco Moya (D-Dist. 21) voted against the plan and called upon Mayor Bill de Blasio to create a task force to study how rezoning plans will impact local communities. Mr. Moya, who sits on the Committee on Land Use and is the chair of the Subcommittee on Zoning and Franchises, said he will not negotiate any further with the de Blasio administration on matters pertaining to neighborhood rezonings until such a task force in place. (This does not apply to spot rezonings of specific plots, Mr. Moya clarified in a letter.)
It is unclear if the councilmember actually has the power to stop the negotiations.
The Times Ledger has more.
In a Landlords New York Minute – A (Very) Brief Look Around the World
Canadian job creation surged in July, car exports to China are boosting the European and Japanese auto industries, North Korea has expressed indignation over continued United States sanctions, the Turkish lira is spiraling downward due to inner turmoil and a growing dispute with the United States, a major drought and heat wave is continuing to punish Scandinavia and Central Europe, and an agreement for the North Atlantic Treaty Organization survived last month because of behind the scenes work by senior national security officials led by national security adviser John Bolton. Vice President Mike Pence yesterday announced the plan to spend $8 billion over five years to create an entire wing of the military in space called, appropriately, Space Force. Meanwhile, the cost of the Abraj Al Bait Towers in Mecca cost $15 billion, the cost of the Apollo program was $25.4 billion (which is around $145 billion when adjusted for inflation), and the amount the U.S. military currently spends on the Air Force is $161.8 billion. U.S. core inflation is rising at a rate not seen since 2008, U.S. consumer prices were up 0.2% in July, a parts shortage is exacerbating U.S. factories’ struggles to meet demand, Education Secretary Betsy DeVos is pushing to eliminate regulations that cut funding to low-performing for-profit schools, a survey conducted by the Koch brothers found that a majority of Americans want free college and universal health care, and West Virginia’s entire Supreme Court could be impeached for a litany of offenses. S&P Global Ratings has downgraded the credit rating of the Metropolitan Transit Authority from A+ to A, the Clark Street 2/3 train station in Brooklyn Heights can be accessed only by elevator and all elevators to the platform are currently out of commission, Paul Manafort was renting his Soho apartment on Airbnb for $800 per day, and hundreds of preservationists in Prospect Heights want a historic district to ensure that their neighborhood is enshrined and protected from the ordeal of having to deal with the housing crisis.
Scientists have created nanobots that can kill off cancerous tumors, black hat hackers warn that satellite antennas could be turned into weapons that operate like microwave ovens, stasis fields continue to be science fiction, a squirrel in Vermont knocked out several state-run websites, a German man called police because he was being menaced by a baby squirrel, worms may age because they cannibalize their own intestines, and gentrification is threatening garden gnomes in Germany because gentrification is now a catchall for any kind of change that takes place anywhere for any reason and is perceived as negative.