Saturday, December 15, 2018

$8M Chelsea Townhouse / Playwright Edward Albee's Tribeca $9M Pad / $43M Park Ave's Coops / Downtown Brooklyn...


Insert alt text here
Chelsea townhouse with 8 working fireplaces wants $8M
A red brick three-family townhouse along West 22nd Street, between Ninth and Tenth Avenues is asking $7.995 million. The 4,090-square-foot home spans five floors and offers a total of eight bedrooms, five bathrooms, and eight fireplaces throughout

Insert alt text here
Playwright Edward Albee’s longtime Tribeca apartment seeks $9M
The award-winning writer of plays like Who’s Afraid of Virginia Woolf? and A Delicate Balance moved to a loft in a converted cheese factory on Harrison Street in 1977, and kept the apartment until his death in 2016. Now, that apartment is hitting the market for the first time
Insert alt text here
Opulent Park Avenue co-ops seeking $43M can be recombined to former glory
Two grand Upper East Side co-ops are being put on the market in tandem with the hope that a buyer will nab both and return them to their unified duplex glory. The co-ops at the posh Rosario Candela-designed 720 Park Avenue, built as a single massive duplex, were formerly occupied by Jesse Isidor Straus, the heir of R.H. Macy & Co
Insert alt text here
Downtown Brooklyn tops StreetEasy’s list of 2019 neighborhoods to watchThe neighborhood’s access to transit and cushy amenity-laden buildings are winning North Brooklyn defectors over.

THINKING ABOUT SELLING AND/OR BUYING IN NYC?

CALL / EMAIL ME! I'M HERE FOR ALL YOUR REAL ESTATE NEEDS!

C: 212-321-0115
E: NYCTREALTY@GMAIL.COM

Fernando Branco, GRI, ABR, CNE
Lic. Assoc. Real Estate Broker
Residential Real Estate
Commercial Sales & Leasing 
Graduate Realtor Institute (GRI) 
Accredited Buyer Representative (ABR) 
Certified Negotiator Expert (CNE)
R New York
641 Lexington Ave, NY NY  10022

c: (212) 321-0115

Facebook Twitter LinkedIn Blogger Facebook Page Google Plus Google Plus Page 

Working by referral. Let me help you find a home too!!

Monday, December 10, 2018

Legal Line Question: FinCEN, GTO and "All Cash" Transactions

Legal Line Question: FinCEN, GTO and "All Cash" Transactions


Q: Can you please explain what FinCEN and GTO stand for and how they affect transactions where the purchaser is not using a lender, but rather is paying  “all cash” to purchase the property?
A: The Financial Crimes Enforcement Network (“FinCEN”) is a bureau of the U.S. Department of the Treasury.  It’s mission is, in part, to safeguard the U.S. financial systems from illicit use and to combat money laundering. 
FinCEN has the authority to issue orders that impose recordkeeping and reporting requirements on institutions in particular geographic areas.  These orders are referred to as Geographic Targeting Orders (“GTO”).
The most recent GTO (the “Revised GTO”) announced by FinCEN is a renewed and revised version of a GTO that requires title insurance companies to identify the persons behind entities that purchase residential real estate in certain geographic areas without a bank loan.  For example, a title company must complete a report that identifies the persons who are the beneficial owners of a Limited Liability Company (“LLC”) that purchases a property for $2,000,000 in Staten Island without a bank loan.
The Revised GTO covers transactions (“Covered Transactions”) in which: (1) residential real property is purchased by a “Legal Entity;” (2) the purchase price is $300,000 or more; (3) the real property is located in the Boroughs of Brooklyn, Queens, Bronx, Staten Island, or Manhattan (as well as other geographical locations across the United States); (4) the purchase is made without a bank loan; and (5) the purchase is made, at least in part, using currency or a cashier’s check, a certified check, a traveler’s check, a personal check, a business check, a money order, a funds transfer, or virtual currency. A “Legal Entity” is defined under the Revised GTO as a corporation, LLC, partnership or other similar business entity, whether formed under the laws of a state, or of the United States, or a foreign jurisdiction.  Included in the definition of residential real property are individual condominium units and cooperative apartments.
If a transaction is a Covered Transaction, the title insurance company must complete a Currency Transaction Report (“CTR”) and deliver it to FinCEN within thirty days (30) of the closing. The CTR will contain, among other things, the identity of the person primarily responsible for representing the Legal Entity (i.e. the person authorized to bind the Legal Entity), the identity of any beneficial owner who directly or indirectly owns more than 25% of the Legal Entity, the date of the closing , the address of the property and the total purchase price of the property.
Important Tip: The Revised GTO became effective on November 17, 2018 and ends on May 15, 2019.
The Legal Line Question by:
Neil B. Garfinkel
REBNY Broker Counsel

Partner-in-charge of real estate and banking practices at Abrams Garfinkel Margolis Bergson, LLP


THINKING ABOUT SELLING AND/OR BUYING IN NYC?

CALL / EMAIL ME! I'M HERE FOR ALL YOUR REAL ESTATE NEEDS!

C: 212-321-0115
E: NYCTREALTY@GMAIL.COM

Fernando Branco, GRI, ABR, CNE
Lic. Assoc. Real Estate Broker
Residential Real Estate
Commercial Sales & Leasing 
Graduate Realtor Institute (GRI) 
Accredited Buyer Representative (ABR) 
Certified Negotiator Expert (CNE)
R New York
641 Lexington Ave, NY NY  10022

c: (212) 321-0115

Facebook Twitter LinkedIn Blogger Facebook Page Google Plus Google Plus Page 

Working by referral. Let me help you find a home too!!

Keeping Current: Forecast Roundup Projections from major real estate organizations by WellsFargo

After backtracking in 2018, total home sales are forecast to grow in 2019 and 2020
Slowing home sales in recent months have caused the four major real estate organizations tracked in this report to rein in their projections for home sales this year. Total homes sales for 2018 are, on average, expected to decline 2.0% from last year. That’s a reversal from just six months ago, when total home sales were expected to rise 2.8% this year.
  • In 2017, total home sales rose 1.9% to 6.13 million units, its highest annual level since the Great Recession ten years ago. Existing homes sales were up 1.1% for the year, and new home sales climbed 10.0% relative to 2016.1,2
  • Total home sales through the first ten months of 2018 are running 1.6% lower than the same period last year. Existing home sales are 2.1% below their 2017 YTD units, while new home sales are up 2.9% so far this year. 1,2
  • The current forecasts for 2018 range from 6.02 million units sold to 5.97 million units sold, or between a 1.6% to a 2.7% drop in sales relative to 2017.
  • Growth returns in 2019, according to the forecasts, with projections ranging from 6.00 million units sold to 6.24 million units sold, and an average projection of 6.09 million units. On a percentage basis, that’s an average gain of 2.0%, with a range of 0.6% to 3.6% over 2018 sales
  • Total home sales are expected to grow in 2020. The forecast average is 6.24 million units, a gain of 2.4% over 2019. The individual estimates of the increase in 2020 range from 0.8% to 4.3%.
Home prices have fully recovered from the Great Recession, with more growth expected
  • In the first quarter of 2016, the U.S. House Price Index surpassed its pre-recession peak levels. The HPI measures the level of prices of homes sold that used agency financing across the country. 3
  • Through the third quarter of 2018, the US HPI stood 17.4% above the 2007 peak. 3
  • The HPI indicates that U.S. home prices increased at an annual rate of 6.3% in the year ending in the third quarter of 2018. That’s a deceleration from the year-ago changes of 7.4% and 6.8% recorded in the first two quarters of 2018. 3
  • Home prices rose over the past year in all but one of the nation’s 100 largest metro areas. Ten MSAs saw home price appreciation at or above 10%, with Boise City and Las Vegas leading with gains of 19.9% and 18.2%, respectively. Home prices in Honolulu dropped 5.1% in the past year. 3
  • The median price of existing homes sold rose 5.1% in 2017 and is projected to rise 4.9% this year, according to the average of the three home price forecasts. In 2019 and 2020, the median price of existing homes sold is expected to rise 4.6% and 2.9%, respectively.
  • After increasing 4.9% in 2017, the median price of new homes sold will edge down 0.1% in 2018, according to the average of the three home price forecasts. In 2019 and 2020, the average forecast shows gains of 3.7% and 2.1%, respectively, in the median price of new homes sold.
Economic growth to moderate toward the expansion’s average through 2019 – but slow further in 2020
  • The economy grew at a 3.5% annualized rate during the third quarter of 2018. 4
  • Each of the four organizations expects economic growth to moderate but continue at least through 2020. The quarterly projections through the end of 2019 are very similar, with growth rates nearing the current expansion’s average annual rate of 2.3%.
  • If that happens, the current expansion will become the longest on record, beating the 120-month expansion that began in March 1991 and ended exactly 10 years later, in March 2001. The current expansion began in June 2009. 5
  • All four organizations project economic growth of less than 2% in 2020. The growth rates for the year range between 1.3% and 1.8%.
 Home SalesMedian PricesEconomic Growth Forecasts
Home SalesMedian PricesEconomic Growth Forecasts

Notes:
The Home Sales chart shows the number of home sales by year from 2013 through 2017, plus the highest and lowest forecasts projected in the past month for 2018 and 2019 from four major real estate organizations:Fannie MaeFreddie Mac, the Mortgage Bankers Association, and the National Association of Realtors®. Each forecast is publicly available without charge from the organization’s website.
The Median Prices – New Homes Sold chart shows the median price for 2013-17 plus the highest and lowest forecasts projected in the past month for 2018 and 2019 from Fannie Mae, the Mortgage Bankers Association, and the National Association of Realtors.
The Economic Growth chart shows the highest and lowest projected changes in GDP for 2018, 2019, and 2020 from the four organizations. Growth is measured on a Q4-over-Q4 basis.
None of these forecasts necessarily represents a projection from Wells Fargo. Economic commentary and projections from the Wells Fargo Economics Group are presented here.
JOHN LUNDHOLM

Private Mortgage Banker
NMLSR ID 481248

Wells Fargo Home Mortgage | 150 E 42nd St, 32nd Floor | New York, NY 10017
MAC J0161-320
Tel 212-214-7784 | Cell 917-727-2504 | Fax 866-705-4795

John.Lundholm@wellsfargo.com | www.johnlundholm.com


1. “Existing-Home Sales Increase…,” National Association of Realtors®, November 21, 2018. www.nar.realtor/newsroom/existing-home-sales-increase-for-the-first-time-in-six-months.
2.“Monthly New Residential Sales, October 2018,” Census Bureau, November 28, 2018. www.census.gov/construction/nrs/pdf/newressales_201810.pdf
3.Federal Housing Finance Agency, House Price Index, November 27, 2018. All figures quoted are based on the sales prices of properties sold that had been using agency financing. www.fhfa.gov/DataTools/Downloads/Pages/House-Price-Index-Datasets.aspx.
4. “National Income and Product Accounts – GDP Third Quarter 2018 (Second Estimate),” Bureau of Economic Analysis, Department of Commerce, November 28, 2018. All data reported are seasonally adjusted. http://www.bea.gov/news/2018/gross-domestic-product-third-quarter-2018-second-estimate-corporate-profits-third-quarter.
5. “US Business Cycle Expansions and Contractions,” National Bureau of Economic Research. www.nber.org/cycles/cyclesmain.html
Keeping Current is produced by the Sales & Service Systems Office of Wells Fargo Home Mortgage.

Tuesday, November 27, 2018

Manhattan Buyer's, Rejoice: Manhattan Home Prices See Largest Drop Since the Financial Crisis

Manhattan Buyers, Rejoice
Last quarter, prices in Manhattan dropped substantially,
while inventory levels soared. Translation:
The market looks favorable to buyers.
Click below for the full report.
   Manhattan Home Prices Drop   

Manhattan Home Prices See Largest Drop Since the Financial Crisis

image of q3 2018 market reports
The Q3 2018 StreetEasy Market Reports show a historic drop in Manhattan home prices.
As summer came to a close, dynamics in the NYC real estate market continued to pivot in favor of buyers, particularly in Manhattan. The StreetEasy Manhattan Price Index [i] dropped to $1,142,742 in the third quarter of 2018, a decrease of 1.8 percent, or $20,597, since last year — marking the largest annual dip in prices since the financial crisis [ii], according to the Q3 2018 StreetEasy Market Reports [iii].
In addition to the decline in prices, for-sale inventory in Manhattan remained close to post-crisis highs, with nearly 5,000 new homes listed in the third quarter — a 7.8 percent increase from last year. Manhattan homes lingered on the market for a median of 96 days, the longest period since 2012 and eight days longer than in the third quarter of 2017.
Despite the increase in homes on the market, the number of homes sold decreased. Recorded sales [iv] in Manhattan dropped 16.9 percent year-over-year, with Brooklyn and Queens not far behind, falling 15.7 percent and 12.1 percent, respectively. This quarter also marked the lowest number of third-quarter sales since recovery from the financial crisis began in 2012.
“There’s a palpable shift in the market happening right now that’s mostly in favor of buyers, and we’re not done yet. Winter is typically the slowest home shopping season, and we’re already seeing a lot of homes lingering on the market,” says StreetEasy Senior Economist Grant Long. “Sellers that have priced their homes aggressively will likely have to offer some substantial price cuts, or risk spending several more months trying to find the right buyer. If they don’t strike a deal soon, they’ll be forced to compete with yet another wave of new homes hitting the market in the spring, making their chances of attracting a buyer even tougher.”
See below for additional rental and sales market trends across Manhattan, Brooklyn and Queens.
Q3 2018 Key Findings — Manhattan
  • Sales prices dropped. The StreetEasy Manhattan Price Index dipped 1.8 percent year-over-year to $1,142,742.
  • Nearly 5,000 new homes came onto the market. New sales inventory increased 7.8 percent, with an additional 4,921 new units listed since last year.
  • More than 1 in 5 homes had their prices cut. The share of homes with a price cut rose 12.6 percentage points year-over-year, following an influx of new inventory. Buyers were most likely to find price cuts in the Upper West Side [v], where 24.3 percent of homes received one — up 25.6 percentage points since last year.
  • Rents rose in Manhattan, and rose the most in the Upper East Side. The StreetEasy Manhattan Rent Index [vi]reached an all-time high of $3,247, a 2.2 percent increase over the third quarter in 2017. Rents rose the most in the Upper East Side [vii], up 2.7 percent to an all-time high of $2,985.
  • The share of rentals with a price cut dropped. The share of rentals that had their prices cut fell to 21.9 percent in the third quarter, a decrease of 6.4 percentage points from last year.
Q3 2018 Key Findings — Brooklyn
  • Home prices stagnated since last year. The StreetEasy Brooklyn Price Index remained unchanged at $721,918. North Brooklyn [viii] and Prospect Park [ix] saw the largest increases in the borough, up 3.8 and 3.6 percent, to $1,190,797 and $1,041,163, respectively.
  • Inventory rose across the borough, except in North Brooklyn. Sales inventory increased 16.4 percent annually. North Brooklyn was the only submarket where inventory dipped, down 1.7 percent compared to last year.
  • Recorded sales fell. The number of recorded sales dropped 15.7 percent in Brooklyn. In North Brooklyn, sales were down 44 percent since last year.
  • Rents rose across the borough, except in North Brooklyn. The StreetEasy Brooklyn Rent Index rose 1.5 percent from last year to $2,604. In North Brooklyn, rents dipped 1.9 percent to $3,041 ahead of the April 2019 L train shutdown.
  • The share of rent cuts dropped. The share of rentals with a price cut dipped 5.7 percentage points to 17.7 percent in the borough. The share of rent cuts decreased the most in North Brooklyn, at 7.7 percentage points, but renters were still most likely to find price cuts there with 23 percent of rental units discounted.
Q3 2018 Key Findings — Queens
  • Sale prices increased. The StreetEasy Queens Price Index rose 4.9 percent to $534,754. The Rockaways [x] experienced the largest annual increase, with prices up 13.5 percent to reach $500,939.
  • Homes with a price cut rose the most in Queens. The share of for-sale homes offering price cuts rose 3.9 percentage points, reaching 18.2 percent.
  • The number of recorded sales fell. The number of recorded sales was down 12.1 percent in Queens. Northwest Queens [xi]  saw the largest decrease — down 27.7 percent from the third quarter of 2017.
  • Rents stagnated. Queens rents remained mostly unchanged, rising 0.7 percent in the third quarter to $2,163.
  • The share of rent cuts dropped. Just 4 percent of rentals in Queens had their prices cut in the third quarter, a decrease of 3.8 percentage points from this time last year. Renters were most likely to find discounts in Northeast Queens [xii], where 18.6 percent of units had their rent prices cut.
The complete StreetEasy Market Reports for Manhattan, Brooklyn and Queens, with additional neighborhood data and graphics, can be viewed here. Definitions of StreetEasy’s metrics and monthly data from each report are available here.
[i] The StreetEasy Price Indices track changes in resale prices of condo, co-op, and townhouse units. Each index uses a repeat-sales method of comparing the sales prices of the same properties since January 1995 in Manhattan and January 2007 in Brooklyn and Queens. Given this methodology, each index accurately captures the change in home prices by controlling for the varying composition of homes sold in a given month. Levels of the StreetEasy Price Indices reflect average values of homes on the market. Data on the sale of homes is sourced from the New York City Department of Finance. Full methodology here.
[ii] The drop in the StreetEasy Manhattan Price Index in the third quarter of 2018 was the largest annual drop since May 2010.
[iii] The StreetEasy Market Reports are a monthly overview of the Manhattan, Brooklyn and Queens sales and rental markets. Every three months, a quarterly analysis is published. The report data is aggregated from public recorded sales and listings data from real estate brokerages that provide comprehensive coverage of Manhattan, Brooklyn and Queens, with more than a decade of history for most metrics. The reports are compiled by the StreetEasy Research team. For more information, visit https://streeteasy.com/blog/research/market-reports/. StreetEasy tracks data for all five boroughs within New York City, but currently only produces reports for Manhattan, Brooklyn and Queens.
[iv] Recorded sales are projected for the period based upon 1) data received from the New York City Department of FInance through the final day of the period and 2) historical seasonal trends.
[v] The Upper West Side submarket includes Lincoln Square, Upper West Side, Manhattan Valley and Morningside Heights.
[vi] The StreetEasy Rent Indices are monthly indices that track changes in rent for all housing types and are currently available from January 2007 in Manhattan, January 2010 in Brooklyn and January 2012 in Queens. Each index uses a repeat-sales method similar that used to calculate the StreetEasy Price Indices. The repeat method evaluates rental price growth based on homes in a given geography that have listed for rent more than once. More details on methodology here.
[vii] The Upper East Side submarket includes Upper East Side, Lenox Hill, Yorkville, Carnegie Hill and Upper Carnegie Hill.
[viii] The North Brooklyn submarket includes Greenpoint, Williamsburg and East Williamsburg.
[ix] The Prospect Park submarket includes Park Slope, Windsor Terrace, Prospect Heights, Prospect Lefferts Gardens and Prospect Park South.
[x] The Rockaways submarket includes Far Rockaway, Broad Channel, Arverne, Rockaway Park, Bayswater, Belle Harbor, Breezy Point, Neponsit, Edgemere and Hammels.
[xi] The Northwest Queens submarket includes Astoria, Long Island City, Sunnyside and Ditmars-Steinway.
[xii] The Northeast Queens submarket includes Flushing, Whitestone, College Point, Fresh Meadows, Kew Gardens Hills, Kew Gardens, Bayside, Douglaston, Little Neck, Auburndale, Glen Oaks, Floral Park, Bellerose, Briarwood, New Hyde Park, Oakland Gardens, Hillcrest, Pomonok, Utopia, Bowne Park, Clearview, Alley Park and Queensboro Hill.

THINKING ABOUT SELLING AND/OR BUYING IN NYC?

CALL / EMAIL ME! I'M HERE FOR ALL YOUR REAL ESTATE NEEDS!

C: 212-321-0115
E: NYCTREALTY@GMAIL.COM

Fernando Branco, GRI, ABR, CNE
Lic. Assoc. Real Estate Broker
Residential Real Estate
Commercial Sales & Leasing 
Graduate Realtor Institute (GRI) 
Accredited Buyer Representative (ABR) 
Certified Negotiator Expert (CNE)
R New York
641 Lexington Ave, NY NY  10022

c: (212) 321-0115

Facebook Twitter LinkedIn Blogger Facebook Page Google Plus Google Plus Page 

Working by referral. Let me help you find a home too!!