LandlordsNY Briefing for January 8th

The Washington Post asked several experts how the housing market will behave in 2019. Here were their responses:

  • The National Association of Realtors: Inventory shortages will continue to be an issue, while home sales and home prices will continue to increase at a significantly decelerated pace—1 percent and 3.1 percent, respectively.
  • Realtor.com: Home sales will decline 2 percent and growth in prices will decrease to just 2.2 percent. They also expect 30-year mortgages rates to average 5.3 percent for the year and to top out at 5.5 percent by the end of 2019.
  • Redfin: Prices increase will slow to about 3 percent, cities that have seen the biggest surge in prices recently will face the most significant slowdown, and mortgage rates will increase to around 5.5 percent.
  • Zillow: Mortgage rates will hit 5.8 percent and home values will grow by 3.79 percent.
  • National Association of Home Builders: The number of new homes sales in 2019 will be around 628,000, similar to the number in 2018. Single-family construction, meanwhile, will increase by close to 2 percent.
  • Mortgage Bankers Association: The 30-year fixed-rate mortgage will hit 5.1 percent.
  • Bankrate.com: The 30-year fixed-rate will top out at 5.25 percent before falling during the second half of the year. It will end 2019 around 4.35 percent.

The Washington Post has more.

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WeWork, the market leader in shared office space, is rebranding itself as The We Company. The company also announced that it will allow investors and employees to sell upwards of $1 billion in shares to SoftBank Group. SoftBank also plans to invest an additional $1 billion in primary capital.

The combined $2 billion investment by SoftBank is a significant step back from the $16 billion it had said it was considering investing in WeWork as of last year.

Crain’s New York has more.

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In a Landlords New York Minute – A (Very) Brief Look Around the World

A 20-year-old German hacker has been arrested after leaking the personal data of hundreds of German politicians and celebrities last week, the United States State Department downgraded the diplomatic status of the European Union last year without bothering to tell anyone, and Turkish President Recep Tayyip Erdogan snubbed national security adviser John Bolton after the latter placed conditions on the United States’ withdrawal from Syria that included protections for Kurdish militant groups currently fighting ISIS in Syria. President Donald Trump will make a prime-time address tonight about what is now the second-longest government shutdown in U.S. history. Some believe he may declare a national emergency to obtain the necessary resources for a border wall upon which he has been fixated, though it is not clear if such a move is legal because the parameters of what constitutes an emergency and what powers it affords the president are vague and a subject of debate. The U.S. and China are evidently making progress on trade talks currently taking place in Beijing. This is leading to optimism on Wall Street, though the gauge that measures market volatility (the VIX) is still quite high despite U.S. stocks’ rebound and small-business owners’ confidence in the U.S. economy fell for the fourth consecutive month. The rising costs of prescription drugs is due to the rising prices of existing drugs and not because pharmaceutical companies need to spend more on research and development, Mayor Bill de Blasio announced that he is working on a plan to guarantee healthcare to all New Yorkers, and former New York state Senate leader Dean Skelos will report to federal prison today. New York City’s ultra-luxury market is thriving, Buffalo’s East Side is seeing more than $250 million in redevelopment projects, Melrose in the Bronx has been listed as one of the city’s hottest neighborhoods, and labor leaders in the city are divided over the coming of Amazon’s HQ2 to Long Island City.

IBM has created the first standalone quantum computer, LG has unveiled the first rollable television, cancer deaths have declined 27 percent in the past quarter century, you can dial 911 from space, robots are making bread, and a Florida man caused a scene because his cheesesteak was served on a sesame seed bun. In other news, the Clemson Tigers defeated the Alabama Crimson Tide 44-16 in last night’s national championship game.

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