THE REAL ESTATE BOARD OF NEW YORK NUMBERS YOU NEED TO KNOW 2016
By Marc-Henri J. Kijner - Broker |
Published on August 4, 2016 at 12:00AM
NUMBERS YOU NEED TO KNOW
A REBNY RESEARCH NEWSLETTER
Mike Slattery, Senior Vice President at the Rebny Research Department, shared with industry wide professionals, some numbers that are important to know. By analyzing the first half of 2016 residential permits issuance, Mike was able to extrapolate several important housing trends in NYC that will impact both consumers and real estate professionals in the upcoming second half of 2016.
"The US Census Bureau recently released new housing unit permit numbers for June 2016. For the first half 2016, new housing units permitted totaled 5,984 citywide".
This is a significant drop from the first six months of last year when 42,088 new housing units were permitted. This decline was the result of projects accelerating their commencement to meet the 421a exemption program’s deadline at the end of 2015 and the current suspension of the 421a program that began in January 2016.
The last significant drop in first half of the year of new housing units permitted compared to the same period the year earlier was in 2009. In 2009, there were only 3,020 units permitted for in the first half of that year compared to 26,851 in the first half of 2008.
Likewise in 2008, there was a surge in new housing starts to vest exemption benefits under the then outgoing 421a program. The steep drop in 2009 was in part a result of this surge and the financial crisis in 2009 which virtually froze new housing starts in the first six months of that year.
The chart below shows new housing unit permits issued for the first six months of the year since 2000."
Kijner & Sons International Realty New York Inc. agrees that the housing trends shows similarities in numbers with pre-2008 area but the underlying reasons are different. First, the state of the US economy is much more robust than it was in 2008. Second, the rate of foreclosures and short sales that banks and financial institutions are undergoing are much less. Third and most importantly, the vast majority of transactions seen in NYC are resale units of condos and coops that are applying strict and rigorous application processes with their prospective buyers to ensure that they can carry on the financial responsibilities and lower the overall risk of default, differed maintenance and other encumbrances that may impact the quality of life of other co-owners or shareholders.
We firmly believe that it has never been a better time to purchase quality coops with well managed financials and strong reserves than today! For more information on our pocket listings portfolio please contact us.