First and foremost, I hope this note finds you healthy and safe. We will persevere!
Plain and simple, we need more information to make any conclusions on where we are right now.
We are all processing the shock of what seems like WWIII; in survival mode, everyone's making their best efforts to “carry on”. However, with all the typical systems disrupted, it has become a tall order to transact real estate. There are innumerable moving parts and people to coordinate making it a logistical matrix to efficiently close a deal. Consequently, everyone is bending over backwards to adapt.
Handfuls of sellers are regretting having not accepted prior offers, as some of those prices may not be seen for years. We are seeing some deals renegotiated and others where buyers are simply walking away. I believe the latter is in the minority, as transactions are indeed happening, albeit substantially fewer in number.
Here’s what we know and have experienced so far
:
Currently the majority of deals that are
closing
are ones that had already been in progress, contract signed and/or even board approved. New deals, although happening, are minimal and I expect will further slow down until we stabilize the system and can get back to some degree of normalcy, the ability to actually show properties being the most important factor.
Showings
and
open houses
were suspended as of March 20th.
Inventory
is contracting; sellers are pulling many listings off the market and new listings are being delayed.
Contract signings
have declined. Traditional
closings
at a table are not occurring. Optionally they are occurring virtually, meaning
the parties pre-sign documents and exchange funds by wire
.
Attorneys
are reading board minutes by use of cloud storage, whereby they are being given access to those documents temporarily.
Notaries
are happening virtually. Final walk-thru's are being done virtually and/or scheduled for afterward. Because of recording issues with the city registrar’s office, banks have exhibited a reluctance to transact.
______________________________
Always Here For You
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Prior to even getting to the closing table though are other factors. The processing of
purchase applications
must go through the managing agents, whose offices are closed. To alleviate traditional hard copies, PDF’s are being accepted; however, without access to offices, scanning such substantial documents is a challenge. Even
board interviews
are taking place virtually.
While
mortgage
rates have fallen and driven up refinance applications, the due-diligence has likewise been littered with obstacles. “Exterior-only” and “desktop
appraisals
” are increasingly being considered; consequently, accurate valuations are questionable. Buyer's employment status and security are increasingly a factor.
The $2.2 Trillion C.A.R.E.S. Act will help avoid a credit crisis in the near term. The government will also likely begin additional quantitative easing (QE). We are also likely to see additional fiscal stimulus. Of course, there are differing opinions on who will actually benefit most from all of these measures.
As first mentioned, until we have hard data, which lags by 3-5 months, it will be hard to understand the true impact. Seems like a lot of loose ends; regardless, we will eventually come out of this. Most need and should take a deep breath and wait for more information to filter through, while others who are already transacting, whether in contract or simply waiting to close, should try to get to the finish line. Likewise, there are tremendous opportunities for others who are better positioned to consider the risk/reward alternatives presented to them now. Everyone’s situation is unique and should be evaluated independently.
As the shock and hysteria moderates, people will acclimate with a better grasp of our new reality. This will bring the confidence we will need to indeed persevere.
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Pelosi proposes SALT rollback in next stimulus
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(Credit: Chip Somodevilla/Getty Images)
Ahead of another stimulus package to address the coronavirus pandemic, House Speaker Nancy Pelosi is reportedly considering a retroactive rollback of the state and local tax (SALT) deduction cap.
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A ‘startling’ number of Manhattan sellers yanked listings off the market last week
March 25, 2020
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Real estate sellers face plummeting sales activity with New Yorkers under instructions to stay in their homes and so they are pulling their listings off the market in big numbers.Even prior to Governor Andrew Cuomo’s March 22 ban on non-essential business, the early effects of the coronavirus pandemic can be felt. A new report from UrbanDigs
,
a Manhattan real estate analytics platform, looks at the impact on new listings on the Manhattan market, new contracts signed, and listings taken off the market as of last week.
Read more
.
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The current guidance from the State of New York on the Forbearance of Mortgages states that regulated institutions are required to make applications for forbearance of any payment due on a residential mortgage of a property located in New York for a period of 90 days.
Read the full regulation
here
. Note: some clarifications are still in progress.
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These are great local resources, especially at times like these. Here are some of the best and most comprehensive neighborhood blogs that are helping to keep us informed. Click on each.
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With
Patch
you can choose New York City; however, they also have more concentrated areas categorized as follows: Central Park, Upper West Side, Upper East Side, Midtown-Hell's Kitchen, Harlem, Astoria-Long Island City, Chelsea, Gramercy-Murray Hill, West Village and East Village.
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One of a Kind
THE BRENTMORE
88 Central Park West, #11S
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Secluded grandeur...views...location...your own private elevator...
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West 70s Gem & Perfect Pied-a-terre
102 West 75th Street, #42
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Large Upper West Side one bedroom, one bath home with views of tree-lined West 75th Street. This home offers a large windowed Eat-In Kitchen and high-ceilings. This is all in the exquisite Del Monte.
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* MORTGAGE & INTEREST RATES *
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Mortgage rates drop as the Fed moves to stabilize the economy
The average U.S. rate for a 30-year fixed mortgage falls to 3.5%
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Excerpt:
The average U.S. fixed rate for a 30-year mortgage fell to 3.5% this week, representing the first decline in three weeks, according to Freddie Mac.
The rate is 15 basis points below
last week’s level
of 3.65% and is more than half a percentage point lower than the 4.06% of the same week a year ago.
In addition to a drop in the 30-year fixed-rate, the 15-year fixed rate averaged 2.92%, down from 3.06% last week. However, the five-year Treasury-indexed hybrid adjustable-rate mortgage averaged 3.34%, up from last week’s rate of 3.11%.
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Purchasing Power
This Year vs. 18 months ago
Interest Rates
:
Example below reflects today's 30 year fixed rate of 3.125% vs. rates of 4.625%, just over a year ago.
$1M borrowed at 3.125% = $4,284/month
$1M borrowed at 4.625% = $5,141/month
That is a difference of $857/month or $10,284/year.
Alternatively,
we could look at it this way:
At 3.125%, $4,284/month will afford you a $1M mortgage.
At 4.625%, $4,284/month only afforded you a $833,430 mortgage.
That is virtually
20% more purchasing power
than 18 months ago, just because of interest rates.
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The Latest Market Reports - Sales
:
Interactive Rent vs. Buy Calculator:
Other Markets:
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Support New York City
Troop 3845
, as they raise money for local charities.
My personal favorites are the
Somoas
...crisp cookies with carmel, coconut and dark chocolaty stripes. I mean seriously? Delicious!
But, which is your favorite?
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Edward Hopper's
Early Sunday Morning
speaks loudly right now. It depicts the emptiness and silence on New York’s Seventh Avenue just after sunrise in 1930.
Here's How to Whitney From Home
Even in uncertain times, there are no limits to the creative spirit. It’s what makes us human.
So while our physical Museum is temporarily closed to the public, know that the spirit of the Whitney is open to all—and we're committed to connecting you to inspiration, knowledge, and a sense of community through art.
We've laid out some of the best ways to explore American art of the twentieth century to today across our website and social media channels. Start with a journey through our online collection, revisit some of your favorite Whitney exhibitions, and relax with an array of video and audio content that will bring you closer to the stories behind the art and artists that we at the Whitney hold so dear.
Link.
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Make Your Kitchen
The Hottest Restaurant in Manhattan Right Now
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For the Dad's who now have to cook dinner...Here's your Guide:
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The Food Humorist©, is a Manhattan born man-about- town who writes, produces and hosts programs about food. I highly recommend his new book for Dads like myself. There is a new kind of dad, and he's doing far more domestic duty than at any time in history, including cooking. Although it's written with a sense of humor, this book is a serious resource for dads and anyone else interested in upping their game to make great tasting foo d bat home, even if they have never used a chef's knife or a roasting pan before.
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New York City * The Hamptons * Palm Beach * Miami
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With Partnering Worldwide, Brown Harris Stevens continues to leverage its very productive relationships with top brokerages nationally and internationally by inviting partners to high- light key properties in their respective markets on BrownHarrisStevens.com, and to feature our important properties on their sites.
Learn more
.
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- Recognized by New York Magazine & Five Star Professional as one of the "most accomplished real estate professionals in New York City."
- Ranked nationally by REAL Trends as one of "America's Best Real Estate Agents" for avg. sales price of $4.350M.
- Recognized member of the 2016 "TOWN Elite" class
- Sold a single family Townhouse faster than any other on the Upper West Side over $10M to date. (StreetEasy)
- Certified Negotiation Expert (CNE)
- Trivia: Won the 2015 New York Times NCAA Basketball Pool.
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Roberto Cabrera
Licensed Associate Real Estate Broker
New York City * The Hamptons * Palm Beach * Miami
rcabrera@bhsusa.com
o: 212-906-0554
m: 917-701-3907
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Brown Harris Stevens
130 Fifth Avenue, 2nd Floor,
New York, NY 10011
(917) 701 3907
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