Archives for October 2020

New York Real Estate Market: Prices & Updated Forecast

October 30, 2020 by Marco Santarelli

We'll be discussing the current state of the NYC real estate market, and also for the state of New York. As New York continues to fight the pandemic, Governor Cuomo has extended the state’s moratorium on COVID-related residential property evictions until January 1, 2021, through Executive Order. Additionally, previous Executive Orders have prohibited charges or fees for late rent payments, and tenants facing financial hardship can still use their security deposit as payment and repay their security deposit over time.

The New York real estate market (statewide) continued to be hot in September 2020 with both sales and prices increasing by double digits as compared to last year. The closed sales in September increased by 12.2% (YTY) while pending sales surged by +49.3%.

However, due to extreme disruptions caused by the pandemic, year-to-date sales (closed) are still behind last year by 11.6%. The statewide median sold price in New York climbed increased by 17.5% (YTY) to $324,900. The average sold price also jumped by double-digits (+ 18.2%) to $432,547. The price growth can be attributed to stronger buyer activity and an insufficient amount of homes available for sale.

On the other hand, the New York City housing prices trends have shifted from their normal course of trending up. After remaining firmly steady throughout the pandemic, July presented a whole new picture. July’s $680,000 median sale price represented a 13% year-over-year drop, according to PropertyShark.com.

This trend followed in August as well. August 2020 was marked by the lowest median sale price of the year and sales dropped 19% below July levels. The prices plunged again, from $680,000 to $665,000, declining 2% as compared to July and 1% as compared to last year. Real estate sales across the four boroughs of NYC were down 45% compared to last year's August, representing the sharpest year-over-year rate of contraction in three months. [Read more…]

Los Angeles Real Estate Market & Investment Overview

October 29, 2020 by Marco Santarelli

We will discuss the latest Los Angeles housing market prices and trends. Due to coronavirus home sales dropped over the past couple of months but prices remained high and in June, we saw the first rebound in home sales. In September, all the six counties of the Southern California houisng market saw an increase in sales as compared to the previous year, with Los Angeles county recording a YTY sales growth of 16.4%.

The Metro Los Angeles housing market posted a year-over-year increase of 23.2% in single-family home sales. Compared to August 2020, sales increased by 5.8%. The median home price of the Los Angeles metropolitan region rose to $630,000, up 15.6% from last year. Compared to August 2020, the median price increased by 2.4%.

The rise in home prices and sales have shifted the market conditions to a balanced one. The inventory still remains tight. The Unsold Inventory in Los Angeles Metro Area is 2.2 months.

The September 2020 report by Realtor.com also shows that Los Angeles is a balanced real estate market, which means there is a healthy balance of buyers and sellers in the market. The low inventory level seemed to have equaled the low buyer turnout keeping the market temperature neutral — Sale-to-List Price Ratio: 100%.

[Read more…]

California Real Estate Market: Trends & Updated Forecast

October 29, 2020 by Marco Santarelli

The latest California housing market trends and forecast — all point to the fact — that the market will continue its recovery from the economic shock led by the coronavirus pandemic.

Sales are expected to continue to improve for the remainder of 2020 and increase modestly again in 2021. Interest rates will remain low, giving buyers purchasing power and home prices a boost. Buyer demand remains robust and that has already pushed California’s median price above $700,000. However, inventory is expected to remain a challenge that will keep sales growth in the single digits next year, as reported by C.A.R.

CAR's latest weekly California housing data (October 11 – 19) shows that after remaining unseasonably strong through September, closed transactions continue to drop. An average of 785 daily closed transactions was reported in the past week. That is down 13.0% from the previous week and was led by double-digit declines in almost every part of the state.

[Read more…]

How to Calculate Net Operating Income

October 24, 2020 by Marco Santarelli

You can calculate net operating income (NOI) for your real estate investment by using the generally accepted net operating income formula, which is your potential rental income plus any additional property-related income minus vacancy losses minus total operating expenses.

Keep in mind the net operating income formula can vary depending on who calculates it.

For example, most investors separate potential rental income and other income, but sometimes you will see them combined. Regardless, the generally accepted net operating income formula is your potential rental income plus any additional property-related income minus vacancy losses minus total operating expenses.

[Read more…]

Dallas Real Estate Market Overview & Forecast

October 22, 2020 by Marco Santarelli

The Dallas housing market has recovered from the impact of the pandemic. Before this ongoing crisis, Dallas was a balanced real estate market. It was doing pretty well. But in May, residential sales in Dallas County had fallen 35 percent from their level in May 2019 and the median sales price was down 4 percent. The double-digit decline in April and May led to an overall decline year-to-date compared to 2019.

The recovery of sales began from July onwards when sales rose by 20% year over year. As of September 2020, the Dallas housing market is a seller’s market, which means there are roughly more buyers than there are active homes for sale. Mortgage rates have hit another record low putting many homebuyers in the buying mood.

Sellers are just not putting their homes on the market which has left the available houses for sale at a historically low level. The market is expected to remain hot for the remainder of 2020. Supply is tightest at the lower end of the pricing spectrum. That’s because there are more house hunters and buyers on the more affordable end as compared to the higher end.

In Septemberer, the median list price of homes in Dallas on Realtor.com was $418.5K — trending up 4.6% year-over-year. The median listing price per square foot was $215. On average, homes in Dallas, Texas sell after 58 days on the market. The trend for median days on market has gone up since last month, and slightly down since last year.

[Read more…]