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THE BIG CITY TEAM

The Cost of Building Materials Up Nearly 20% Year-Over-Year

5/17/2022

Photo by Mark Potterton

By Colin O'Leary
May 17th, 2022

The cost to construct new homes in America continues to rise. Faced with a combination of rising interest rates and shortage of listing inventory, the situation is only getting worse for home buyers. Rising mortgage costs hasn't put a damper on demand for new construction, at least not yet. The median sales price for a home in the United States continues to rise. The median sales price for a home in America is now $425,000 according to Redfin, up nearly 16% year-0ver-year. It's a challenging situation for home builders too, who are struggling to keep up with demand, while trying to turn a profit. Soaring inflation and supply chain issues hasn't helped the situation. The cost for building materials such as lumber, steel, and concrete continues to rise. According to a recent article from the National Association of Home Builders, the cost of building materials has risen 4.9% since the beginning of the year. Building materials prices are up nearly 20% year-over-year, and are up 35.6% since the start of the pandemic in 2020.

Read the full article here

5 Tips For Energy Efficient Home Renovations in NYC

5/11/2022

May 11th, 2022
Guest blog post

Is this the year that you will be renovating or updating your new or existing home? Even if you love your home as it is, there’s always room for some updates and refreshers. Over time, paint gets nicked and dirty from city soot and grime, and styles change and evolve. We have been cooped up 24/7 in our apartments working from home for almost 2 years, which has created an increase in wear and tear.

At the same time, there have been some amazing technological advances in the energy efficiency space, so why not incorporate those in your next renovation?

Energy efficiency creates some very substantial long-term savings; maybe not enough for that retirement home on the beach that you have been dreaming about, but who would say “no” to more money in their pocket at the end of every month? Making your home energy efficient is also good for the environment. For those who live in a coop or condo, making your apartment energy efficient will also help improving that D that is posted at the building’s entrance. Read more about that here

Making your home energy efficient and reducing your carbon output will also make you a hero to many and may inspire others to do the same!

Here are the top 5 tips for an energy efficient home renovation from our friends at The Folson Group:

Light fixtures: Replace undercabinet lights, puck lights, and recessed fixtures with the most recent technology. If you installed these when you moved in 20 years ago, the upgrade would greatly reduce your carbon output and electric charges. If you replaced these 5 years ago, the LED advances in the last few years have been so significant that it would still have a substantial impact both on the environment and in your wallet.
Light bulbs: Replace light bulbs in all decorative lights with LED bulbs. Common resistance is that they are cold and give light as if it was a hospital. This is no longer true. LED technology has come a long way and nowadays they give light very similar to incandescent bulbs, although the best way to select the desired LED color temperature is to test it. The warm temperatures are in the 2700K to 3500K range. The higher numbers, the cooler the color temperature. So, what many refer to as hospital-bright is probably over 5000K. Home Depot has a great LED color guide.
Air Conditioners: ACs are one of the worst energy suckers. Upgrade your ACs with EnergyStar Approved units. Have it professionally installed with adequate insulation and sealants. This will prevent leakage of air in the undesirable temperature both in the summer and in the winter. Instead of cranking the AC up, consider a ceiling fan if you like that look, or a portable fan as they use much less energy than ACs do. If your board allows you to install a heat pump for your unit, we highly recommend it!
Appliances: Kitchen appliances and laundry machines also use a lot of energy. We are seeing more and more boards requiring all sellers to upgrade their appliances with EnergyStar approved appliances before the board approves the sale. This is done through The Folson Group’s proprietary policy that they offer to all their clients.
Water: The largest drain of water comes from toilets, showers, and tubs. While the standard toilet tank used 3.5 gallons per flush in the 1990s, there are now toilets with tanks that are 0.8 GPF. These advanced toilets are also vacuum assist and do not have a flapper. According to the EPA, 6% of all water use is caused by leaks and much of that is caused by an old flapper!

If you live in a single-family home, as opposed to a coop or condo, the options are even wider. Some of the additional single-family home Energy Efficiency options include:

1. Hot Water System
2. Heating / Cooling
3. Insulation
4. Solar panels

We hope you found these tips useful and will help you make your home more energy efficient, save the planet, and maybe help you get that beach home!

If you are on your coop or condo board, feel free to reach out to The Folson Group directly as they always want to hear what boards and buildings are working on.

Their contact information is: www.thefolsongroup.com | email: info@thefolsongroup.com | (917) 648-8154

The Official 2022 New York City Guide | Is it worth visiting?

4/19/2022

How the Fed Steers Interest Rates to Guide the Entire Economy | WSJ

4/7/2022

Should I Buy a Condo or Co-op in NYC?

4/5/2022

By Colin O'Leary
April 5th, 2022

If you are in the market to buy a home in NYC, there are a few things you should know before you start the home buying process. Unlike most parts of the country, New York City is dominated by the condo and co-op market. For this reason, it's important to understand the difference between the two. There are pros and cons for each. Both offer different forms of ownership. One may work better for you than the other depending on your lifestyle and goals.

First, if you are planning to buy in NYC as an investment property, then condos are typically the best way to go. Condos are best suited for investors. Co-ops on the other hand are better suited for end-users. This is because co-op buildings are much more restrictive with rules and regulations. For example, let's say you want to live in the unit you just purchased for a few years, and then rent it out down the road, then a condo might be a better option for you. If you purchase a co-op and then have to move for whatever reason, you might be forced to sell eventually because of the restrictive subletting policies.

Co-ops typically have a higher owner-occupancy rate compared to condos. Some people prefer to purchase in co-op buildings because the buildings are less transient, and you are more likely to know your neighbors. Most co-op buildings allow for some form of subletting, but typically only after a few years of living in the space, and then only temporarily. Some co-op buildings don't allow for subletting at all. Most co-ops don't allow any form of short-term subletting or AirBnB. If you purchase a condo, on the other hand, you can rent it out to anyone you like, for however long you prefer. You can rent it out for a week, month, or year. This is why condos are more suited for investors. Co-op buildings are also typically less pet friendly compared to condos, often coming with restrictions on cats and dogs.

Another difference between the two is that condos are typically more expensive. For example, a buyer might pay $900,000 for a one-bedroom condo in NYC, while a similar size unit in a co-op building could go for $700,000. One of the main reasons for this is because of the smaller pool of potential buyers in the co-op market. The condo market on the other hand is full of both investors and end-users. Co-ops typically require a larger down-payment of 20% or more. Condos can be purchased with a 10% down payment or less in some situations.

Another thing to know is that condos are typically quicker and easier resell. Co-op sales typically take longer because of the lengthy co-op board application. It also costs more to resell a co-op. For example, in addition to the typical broker, attorney, and transfer tax fees, most co-op buildings also charge sellers something known as a "flip tax," which is a percentage of the sale price, usual anywhere from 1-3% or more. Condos don't typically charge a flip tax when selling.

Another difference between the two is the ownership structure. Buying a co-op is sort of like buying stock in a corporation. The owners of co-op units are more like tenants or shareholders than owners of real property. Co-op owners are assigned a certain number of shares when purchasing in the building. The number of shares assigned depends on the particular unit purchased in the building. For example, a larger unit on a higher floor would have more shares assigned than a smaller unit on a lower floor. Co-ops typically require buyers to purchase as a primary residence or pied-a-terre, while condos have no such restriction.

Another major difference between a condo and a co-op in NYC is the application process. Co-op buildings have a much more extensive application process compared to condos. If you purchase in a co-op in NYC you will have to go through a tedious board approval process that requires an in-person interview with the co-op board (sometimes on Zoom now). This application process includes revealing extensive financial and personal information. Co-op boards hold tremendous power over unit owners and potential buyers. Condos have a somewhat similar purchase application, but it's much less extensive. When you purchase a condo, you are buying the actual space, and not shares in the building.

Another thing you should know about condos and co-ops in NYC is that you will be required to pay a monthly fee to help maintain the building. This is another cost in addition to the monthly mortgage cost. This monthly fee is used for things like ongoing building maintenance, employee salaries, gas, water, electricity, and insurance. Condo buildings typically refer to this monthly fee as the "common charge," while co-op buildings refer to this as the "maintenance fee." The monthly maintenance fee in a co-op building is determined by the number of shares assigned to each unit. Common charges in a condo building are calculated by taking each unit's percentage of common interests and multiplying it by the total operating costs of the building. One of the big differences between condos and co-ops is that property taxes are included in the monthly fee at co-op buildings, while condo owners pay property taxes directly to the government.

To conclude, its important to do your research before you start your home search. There are pros and cons to each property type. One may work better than the other for you depending on your particular situation. If you have any questions about buying or selling a co-op or condo in NYC, please email us at thebigcityteam@bhhsnyp.com or call 646-300-2012.

What The Queens Real Estate Market Looks Like Right Now

3/31/2022

Queens, NY: Photo by Harry Gillen

By Colin O'Leary
March 31st, 2022

The housing market in Queens is continuing its hot streak into 2022. Queens County, the second largest borough in NYC by population size, has a population of over 2,405,000 according to the 2020 census. That's up from around 2,200,000 people in 2010. Only Brooklyn (Kings County) has more people than Queens. To put things in perspective, if Queens were its own city, it would rank on the list of the top five largest cities in America.

Queens is one of the most culturally diverse places in the United States, with a foreign-born population of nearly 50%. With easy access to critical infrastructures such as highways, bridges, airports (JFK & LaGuardia), hospitals, schools, parks, beaches, and public transportation, it's no surprise people are choosing to live in Queens. The close proximity to Manhattan makes it a great place to live for the bridge & tunnel crowd. The property tax burden is also less for homeowners in Queens compared to nearby Nassau County making it a more affordable option.

The pandemic barely made a dent in the hot housing market in Queens. Many people escaped more densely populated areas of the city to find space in more suburban parts of Queens. Like most parts of the city, home prices in Queens have risen drastically over the past decade. For example, the typical value of a home in Queens was around $460,000 in April of 2012, according to Zillow Home Value Price Index. Today the typical value of a home in Queens is closer to $750,000. That's a sizable 38% increase over the past decade.

Queens is a large county that encompasses over 178 square miles. Homes tend to sell for more in the western part of the county which is closer to Manhattan. The architecture in Queens is just as diverse as the people. Queens has densely populated urban neighborhoods with large residential towers like Long Island City. It also has more suburban neighborhoods like Bayside and beachfront communities like the Rockaways.

Some of the hottest neighborhoods in Queens right now are Long Island City, Astoria, Jackson Heights, Elmhurst, Ridgewood, Forest Hills, and Flushing. The market shows no signs of slowing down in Queens, where supply continues to be outpaced by fierce demand for homes, often leading to bidding wars on properties. Will rising interest rates, inflation, and the war in Ukraine eventually put a damper on the demand for homes in Queens? Only time will tell.

7 Fun Things To Do Outdoors In NYC This Spring

3/29/2022

By Colin O'Leary
March 29th, 2022

It was a long and cold winter but the springtime is finally here. Thankfully warmer days are ahead of us. There's no place like NYC in the springtime. It's is a time for renewal. A time for growth. It's when this city starts to come alive again. It's a time to explore the big city and all that it has to offer. There are a lot of fun places to explore in NYC in the springtime. We've put together a list for you of a few fun things to do during the springtime in NYC. Enjoy!

1. Visit Central Park

Central Park: Photo by Harry Gillen

Lets start the list with the most obvious choice. Central Park is a massive 843-acre oasis in the heart of Manhattan. It's full of nature trails, trees, rocks, lawns, animals, and birds. It's a natures lovers paradise. Head to Central Park this spring to escape the hustle and bustle of everyday city life. The landscaped architecture and views will leave you feeling inspired. Springtime is when the park really comes to life. It's a great place to relax, soak up some sun, exercise, play sports, or just meetup with your friends. No list would be complete without Central Park. Do yourself a favor this springtime and head to Central Park!

2. Walk the Brooklyn Bridge

The Brooklyn Bridge: Photo by Matthew Schwartz

Have you ever walked across the entire Brooklyn Bridge? If not then this is a must do this springtime. The Brooklyn Bridge is one of NYC's most iconic and recognizable structures. It was built in the late 1800's to connect the boroughs of Manhattan and Brooklyn. Prior to its construction the only way to get across was by ferry. Designed by John Roebling, the bridge is 1.1 miles of pure NYC architectural history. Walking the Brooklyn Bridge is a great way to spend a morning, afternoon, or evening. It's a great way to get some epic pictures for your Instagram account too, while also getting some exercise and fresh air. You can walk from the Manhattan side to Brooklyn, or you could walk from Brooklyn side to Manhattan. It's totally up to you. If you haven't walked across the Brooklyn Bridge, then make sure to add this to your springtime to-do list. You won't be disappointed!

3. Escape to Prospect Park in Brooklyn

Prospect Park:

If your looking for a park that's similar to Central Park but without the massive crowds, then head on over to Prospect Park in Brooklyn. If you haven't been there, Prospect Park is basically the Central Park of Brooklyn. It's a 526-oasis of trees, grass, nature trails, hills, lakes, streams, waterfalls, and historic landscape architecture. The park was designed by the same man who designed Central Park in Manhattan, Frederick Law Olmstead. You will find a lot of similarities bewtween the two parks. Both have great lawns for relaxing, sports fields, bandshells, nature trails, lakes, and zoo's. Both have beautiful landscaped architecture. It will take you multiple visits to explore this massive park in Brooklyn. There is so much to see in Prospect Park. Make sure to add it to your springtime to-do list!

4. Be a Foodie at Smorgasborg

Smorgasburg in Brooklyn

If walking around parks or bridges is not exactly your thing, but food is, then Smorgsburg might be more for you. Smorgasburg is a massive food bazaar hosted in different locations in NYC each year. It's a culinary extravaganza spotlighting local food vendors from across the city. Smorgsburg is planning to setup its food bazaar in four spots this year, including the two usual sites in Brooklyn, in Williamsburg and Prospect Park. They are also planning to host events at the World Trade Center in Lower Manhattan, and also on the other side of the Hudson in Jersey City. If food is your thing, then make sure to add this to your to-do list this spring!

5. Head to the Cherry Blossom Festival

Photo by Tatiana Rodriguez

Springtime in NYC is a season of rebirth. There's no better place to experience the springtime in NYC than at the 52-acres Brooklyn Botanic Garden. It's a great place to visit any time of the year. The Brooklyn Botanic Garden is located next to Prospect Park. The park is open year round. It's filled with exotic species of plants and trees from around the world. The Brooklyn Botanic Garden hosts an annual Cherry Blossom Festival each year at the end of April. If you have never been to the annual event then this is a must do. The Instagram-worthy festival will leave you in awe!

6. Head to a Baseball Game

Yankee Stadium in the Bronx: Photo by @jgregoryd

One of the most New York things you can do this spring is head to a baseball game at Citi Field or Yankee Stadium. If you have never been to a baseball game in NYC then this is definitely a must do. Going to baseball games is a rite of passage for New Yorkers. Even if you don't like baseball, you will still enjoy going to a game at Citi Field or Yankee Stadium with your friends. You can hop on the 7-train and head to Citi Field in Queens, or you could take the 4-train to Yankee Stadium in the Bronx. It only takes about 20-30 minutes from Manhattan. It's a great way to spend a beautiful spring day!

7. Explore Flushing Meadows-Corona Park

Flushing Meadows Corana-Park: Photo by Emma Angel

Just south of Citi Field in Queens, at the same subway station on the 7-line, is the entrance to Flushing Meadows-Corona Park. The massive 897-acre park is best known for hosting the 1964 World's Fair. It's the biggest and best park in Queens. The park is home to the Billie Jean King National Tennis Center, which hosts the annual US Open tennis tournament each summer. It's also home to the iconic Unisphere as well (see above). The park has so much more to offer though. There's also a museum, theatre, botanic garden, indoor ice rink, walking trails, and a zoo. If you have never been to Flushing Meadows-Corona Park, make sure to add this to your to-do list this spring!

We hope you enjoyed the list! Let us know what your favorite thing to do in the springtime in NYC in the comment section below. Now get outside and explore the city!

Stunning Color Film of the Empire State Building under construction

3/18/2022

Rare Color Film of NYC in the 1960's

3/4/2022

U.S. Home Prices Surge with Record Year in 2021

2/22/2022

Photo by Avi Waxman

By Colin O'Leary
February 22nd, 2022

The average price of a home in the U.S. soared by 18.8% in 2021, according to a report from the S&P CoreLogic Case-Shiller National Home Price Index. The S&P CoreLogic Case-Shiller National Home Price Index tracks average home prices in major metropolitan areas across the country. The yearly increase in home prices was the highest since the index began tracking home prices in 1987. Data over at Zillow shows similar numbers. The Zillow Home Value Index tracks home values in the United States. Zillow says the typical value of a home in the United States is currently around $325,000, an increase of 19.9% year over year. Zillow is bullish on the real estate market for 2022. They are predicting home values to climb towards $380,000 by the end of the year.

Last year was one of the busiest in recent history for home sales in the U.S. The total number of homes sold in the United States climbed to a 15-year high in 2021, according to the National Association of Realtors. Existing home sales totaled 6.12 million – an increase of 8.5% from 2020 and the highest annual level since 2006. This figure does not include new construction. Low inventory and fierce demand from first time home buyers and investors led to a record year for the housing market. Sparked by the global covid-19 pandemic, buyers took advantage of record low interests rates in search of larger spaces where they could work from home in one of the busiest years since the U.S. recession in 2008.

First time homebuyers continue to struggle to compete against cash buyers and investors in a market faced with rising interest rates and record low inventory. The shortage of homes has sparked many bidding wars, pushing prices even higher than usual. The Phoenix Metropolitan area had the fastest home-price growth in the country, at 32.5%. The Tampa Bay Metropolitan area posted the second-fastest growth, at 29.4%.

The Big City Team
Berkshire Hathaway HomeServices
590 Madison Avenue, 40th floor
New York, New York 10022
Team Leader: Colin O'Leary
Email: thebigcityteam@bhhsnyp.com
Phone: 646-300-2012

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