According to a recent Douglas Elliman Real Estate Report the average sales price of a home in the borough of Manhattan is now at around $1.1 million dollars. This represents an increase of about 17% over last year. This statistic would have you believe that the housing market, especially the luxury one is doing well when the opposite is in fact true. To understand this one must delve a little deeper into the figures to understand that the market is now inflated in Manhattan.
The housing market saw a frenzy of newly constructed and available units under contract during the first quarter of 2016 which includes the months of January, February and March. This provided the first artificial boost to the Manhattan luxury real estate market. The second artificial boost was provided by contracts that were agreed upon and written as far back as 2015 and even 2014 that would begin in 2016. Take away the first boost which was new units being quickly snatched up, and the second boost which are old contracts maturing now and you will see that the sales market for new luxury developments is starting to level off.
Another figure which highlights that sales are tapering off is that the fact that newly constructed apartment listings fell by a total of 44% when compared to last year. This is despite the fact that a total of 5,500 new apartment units were constructed in Manhattan last year. Agents are now purposely keeping units of the market now, as they realize that the real estate market is now sluggish and bloated. The resale market in Manhattan however continues to remain strong and see growth. For more information on the cooling of the luxury housing market in New York check out this article on Crain’s New York Business.
Andrew Heiberger of Town Residential has the following to say about the inflated market right now. “Smart sellers have already made adjustments to their listing to reflect the real price of units on the market now.” The CEO goes on to say “that more developers and real estate agents will begin to follow suit and lower prices when they realize that the market has been inflated for some time now.”
Town Residential is a real estate firm that specializes in luxury housing in New York City. The firm has a total of four offices in Manhattan and teams that offer expertise on a neighborhood by neighborhood basis. Town Residential has recently been lauded as one of the top luxury real estate firms in New York City due to its outstanding services and approach.
DEVCO, a non-profit urban real estate development corporation and developer of the Heldrich Project was questioned about repayment on a loan provided by Casino Reinvestment Development Authority (CRDA). The $120 million project was financed by CRDA, tax-exempt bond financing, State of New Jersey Grants, private equity, and New Jersey Redevelopment Authority Loan. CDRA contributed $20 million to the Heldrich project fund and hasn’t received payments in the amount of $1 million, according to the Press of Atlantic City (February 29, 2016). Middlesex County Improvement Authority failed to make payments, including interest and principle. Christopher Paladino, the President of Devco responded to questions, providing reasonable facts about the economy and loan repayment.
Middlesex County Improvement Authority neglected to pay approximately $7 million for five years. Paladino is aware of the repayment arrearage and assures the Press of Atlantic City the loan will be paid within two years. He directed the corporation and organized the
$20 million loan to help finance the Heldrich project. Middlesex County owns the Heldrich Hotel and hasn’t generated enough revenue to pay on the loan. When the hotel opened its doors to the general public in 2007, it was during the beginning of an economic downturn in the United States.
Now that the Heldrich Hotel is completed and operating in New Brunswick Development Corporation, Paladino is sure the hotel will eventually pay all its debts. He said that economic influences had an enormous effect on the hotel inability to pay on the loan. Heldrich Hotel was obligated to pay its unionized employees, real estate taxes, and maintain the property for quests. Some of the most recent projects Devco developed are Heldrich, Rutgers Public Safety Building, Gateway Transit Village, and Child Health Institute of New Jersey.
The journey from everyday person to human rights activist is usually a hard road. Most of the impetus to move the cause forward has to do with the experiences that one had to endure their self. From the salt marches in India to the march to Selma in the US, the movement to stop the progress towards betterment for all people is difficult at best. Some people throughout the ages, like Ghandi and Dr. King referenced here, are responsible for arousing the giant love that humans have for one another. Sometimes it just takes the right person to get the message across to the masses.
This is seen online nowadays as well of course, with websites like New York Times. This is a site aimed at stopping the human trafficking epidemic that is facing many areas of the world. It is also one of the many atrocities happening in North Korea today.
This is a fact that a young woman named Yeonmi Park knows all to well. A defector from North Korea, Park has made it her life mission to get the message out about the horrible conditions people suffer through in her country. She has experienced more in her tender youth than most of us ever will in our lifetime. She has become a sensation on YouTube. Yeonmi Park has a new book on Amazon about her tribulations with her family called ‘In Order To Live.’ The book goes into great detail about the horrendous conditions in North Korea that are commonplace to her. There are still many who suffer through these conditions daily.
This is the very thing that young Park hopes to be the voice against. The oppressive and brutal dictatorship that is her native land.