LandlordsNY Briefing for October 3rd

Manhattan luxury apartment sales have been sputtering since at least the end of 2017, but the rest of the residential market has been far more resilient to the factors depressing sale prices. Unfortunately for sellers, the third quarter of 2018 reveals that this trend has ended and non-luxury sellers are having to make concessions. The median sales price for a Manhattan apartment fell 4.5 percent, to $1.1 million, during this past quarter, and sales volume dropped by 11 percent during the same period when the two were compared to data from the third quarter of 2017.

Analysts points to the fact that there has been a sharp increase in inventory. Overall inventory saw a 23 percent increase from this time last year, while the number of one-bedrooms on the market jumped 21 percent and the number of studios on the market saw a 15.5 percent increase.

The silver lining is that the increase in inventory and the declines in median sales price and sales volume appear to be part of a correction instead of a major downturn. Sales volume remains 9.5 percent above the 10-year average and median sales price is well above where it was even during 2014 or 2015.

The New York Times has more.

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The City Fighting Homelessness & Eviction Prevention Supplement program will roll out on October 29. The program, which perhaps could have a better name, will streamline the city's numerous rental assistance programs into one centralized agency. Officials believe that it will make the usage of these vouchers easier for tenants and landlords. Consequently, the city believes landlords will be more enthusiastic about accepting the vouchers, which they are required by law to accept.

Crain’s New York has more.

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

Brazil’s upcoming presidential election this Sunday could be one of the most significant in decades due to the nation’s mounting debt as a share of G.D.P. (currently around 80 percent), the inflation rate in Turkey has soared to near record highs, Indonesia is still reeling from a combination of an earthquake and a tsunami that have left over 1,400 residents of Sulawesi Island dead, Chinese tariffs are hurting many of the farming communities in the American Midwest, suburban communities (like this one in central Michigan and this one in suburban Detroit) that have leaned Republican in previous elections appear to be shifting left despite a healthy economy, 230,000 jobs were added to the U.S. economy in September, investors appear to be somewhat ambivalent about gold and other haven assets, shopping mall vacancies are at their highest levels in seven years, so-called “trash bonds” are performing extremely well, and very wealthy people have elaborate means of not paying taxes. The North American Free Trade Agreement will be rebranded the United States-Mexico-Canada Agreement and likely ratified sometime next year, Honda has invested $2.75 billion in General Motors’ self-driving division (known as Cruise), Staten Island is distinct from the rest of the city for numerous reasons including the number of drivers on the island, the New York City Housing Authority may end up allowing the private development of underutilized land to pay for the $32 billion the agency needs to maintain the 185,000 apartments it oversees, Oxford Properties Group has released renderings of its St John’s Terminal development, the New York City Council appears to be hellbent on hastily changing lead paint laws, more landlords are being hit with class action lawsuits due to J-51 tax break abuses, and there is an interactive map that tracks the threat of displacement throughout the five boroughs.

Astronomers may have witnessed the birth of a neutron star following a supernova in the middle of a galaxy 77 million light-years away, astronomers say there is mounting evidence that a very large and icy planet exists beyond the Kuiper belt, Donna Strickland won the Nobel Prize in Physics for her work with lasers, the Nobel Prize in Chemistry was awarded to three scientists (Frances Arnold, George Smith, and Gregory Winter) who used evolutionary biology to manipulate molecules, and Trinity College Dublin awarded Caitriona Lally the Rooney Prize for Irish Literature last week for her work, Eggshells. Ms. Lally is one of the esteemed institution’s janitors.

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