Happy New Year and may you have a prosperous and healthy 2011. Is that the smell of roasted chestnuts? Think again, with mortgage rates and home prices still low, talk of a rebound in the housing market permeates every street corner and party in New York. This year could potentially be stronger for home sales than 2010. Although we can safely say that the market has not recovered, there has been an increase in sales activity. We have to monitor the early months of 2011 and hope to see a more consistent increase in home purchases.
According to the National Association of Realtors, executed contracts to purchase homes in the northeast increased 22.1% since June 2010. The signing index, which has been tracking this data since 2001, reports that June had the lowest number of signings since tracking began. Most sales are being attributed to sellers positioning their properties based on market activity. The low mortgage rates also created a blip of activity in November in the wake of a slow October due the homebuyer tax credit ending.
Mortgage rates may have bottomed out. The average rate for a 30 year fixed product increased in December 2010 to the highest point in seven months. Freddie Mac reports that the average rate increased to 4.86% from its historic 40 year low of 4.17% in November 2010. 15 year products increased to 4.2% from 3.57% in November, the lowest since 1991. You may want to contact your mortgage broker to refinance or if making a purchase, lock in the rate.
Mouths of the Manhattan elite fell agape in 2010 when the estate of Brooke Astor accepted a low offer for the sprawling property which consists of the 15th and 16th floors at 778 Park Avenue. Originally listed in 2007 for $46 million, then reduced to $24.9 million, the accepted offer is said to be in the high teens. The estate is encouraging additional offers and hopes to land in the low $20 million range. Now is the time to contact your mortgage broker and make magic happen. As a historic notable, Mrs. Astor's husband, Vincent Astor, was the oldest son of John Jacob Astor who perished in the Titanic disaster of 1912. Celebrity drag queen RuPaul sold her 1490 square foot West Village apartment at 296 West 10th Street for $2.4 million in 2010. The "supermodel to the world" purchased the condo in 1998 for $1.095 million.
Have a safe and happy start to the new year. Closing Table NYC will be updated later this month with the final calculation of 2010 sales activity in New York City.
Data obtained from The Real Deal, New York Times and Prudential Douglas Elliman Real Estate.
No comments:
Post a Comment