The year in review

You may have been hearing chatter in the news about home prices starting to rise. This could be the case  in some markets, particularly those that were hit the hardest like Nevada, Arizona, and Florida. In these markets home prices were so depressed there was no way to go but up. However I have not seen prices rising  in the New Bern area although they seem to be stabilizing and personally believe we are close to the bottom of the market. Homes are currently selling at around 1999-2000 price levels.

From 01-01-12 through 12-22-12 there have been 951 homes sold in Craven County. This compares to 930 during the same time frame in 2011. A little bump and certainly I welcome any positive news. During the same time period in 2011 there were 249 distressed properties, (bank owned, foreclosures, short sales), sold. In 2012 there have been 227 distressed properties sold, almost a 10% decrease. However, in Oct., Nov., Dec. 2012 saw a 17% increase in distressed property sales compared to the same time in 2011. It is impossible to have a housing recovery as long the rate of distressed properties sold is increasing. Lets hope the trend of the last 3 months ends soon.

In 2012 distress properties comprised 24% of the home sales in the Craven County market. Even though this is an improvement over 2011, (27%), in a healthy market this number probably would be in the 2-4% range. Nationwide distressed sales comprise about 25% of sales so were are not any worse than most areas if that makes you feel better. Lending guidelines were tightened up after the mortgage crash in 2008 and in the long run this will result in a decrease in foreclosures and ultimately help stabilize housing prices.

We have a long way to go, however, it appears we are moving in the right direction. We need for the economy to start improving and producing private sector jobs before we see home prices rise. Each year our population is growing and with that more folks are coming of the age to buy a home. There is undoubtedly a pent up demand for housing out there lurking and what is missing in a in a strong housing recovery are good jobs.

Homes sold in 2012 by price range,

$1000-$50000=97
$50001-$100000=183
$101000-$150000=245
$150100-$200000=258
$200100-$250000=134
$250100-$300000=53
$300100-$350000=20
$350100-$400000=19
$400100-$450000=8
$450100-$500000=3
$500100-$550000=4
$550100-$600000=3

For homes over $250,000 there is about a 21 month absorption rate. In other words, expect it to take 21 months to sell a home in this price range unless a home offers something unique. Retirees use to be a large portion of the buyers in this price range. Because they had to sell their homes at a reduced price to move here they are now buying less expensive homes. Active duty military officers  use to buy quite a few homes in this price range as well and now many now are opting to rent. All this makes for tough selling conditions for homes over $250,000.

If you have any questions about any particular price range or even sales in a particular subdivision let me know. I hope everyone has a blessed Christmas.

For more information on Real estate go to www.newbern-nc.info

What a year!

Steve and Jana Tyson would like to take this time to thank all of our customers we have had the opportunity to help this past year. We will close $15 million in Real Estate, or real close to that number, this year. This will put us in the top 5% of Realtors nationwide and we could not have done it without you. Thank each and every one of you for your business.

Have a great Christmas,

Real Estate Sales in Craven County for the past year

The following data shows a picture of the overall market in all of Craven County. My take is that it is still a strong buyers market. Combine that with unbelievable interest rates it is a great time to buy Real Estate. Not such a great time to sell, but homes are selling everyday.

• 830 homes currently for sale.
• 894 homes sold in the past year.
• 109 Commercial buildings and commercial lots for sale.
• 17   Commercial buildings and commercial lots sold in the past year.
• 463 Lots and or land for sale.
• 90   Lots and land parcels sold in the past year

I am hearing chatter about the Real Estate Market improving nationally, however the markets that seem to be improving are the markets that were hit the worst and just about had no where to go but up. My gut feeling is that we are bouncing along the bottom and where we go from here will depend on the amount of foreclosures dumped in the market and the stability of the job market.

Aftermath of Sandy

Although the Grunt lost heat and power for a couple, I consider myself quite fortunate and very grateful. Even though subway service is almost fully restored, since yesterday  I have seen people boarding shuttle buses. In fact, the next couple of days is going to be a bit rough for anyone commuting to the point that a certain investment bank that likens itself as the "Jim Henson" of Wall Street" has teamed up with one of  "Father Barry's" former employers has chartered buses for their commuting employees coming in from Grand Central. In fact, the Grunt would not be surprised if many Wall Street firms were setting up transportation alternatives for all of their employees. There will be a return to normal but it will be a struggle.


You know what else is going to be up and running? DOS. So it appears that the broker's exam is still on. I am unsure how all of you studied for it this past week. I wish you all the best of luck

Scarsdale, often referred to as the jewel of Westchester has not fared very well at all. It has been reported that they will not have full power till November 11th. As of November 3, 2012, The high school and one elementary school have full power. Another elementary school has partial power which leaves the junior high aka middle school and three elementary schools with no power. As of November 1, 2012 schools plan on being opened on Monday November 5, 2012. With the caveat that scheduling is subject to change. The Grunt does not blame Con Edison for this situation because no pun intended, they were dealing with a perfect storm. The obvious is that Sandy was a storm that no one had ever seen before and pretty much laid waste to many areas including Staten Island. Among the factors that devastated that area was the lack of natural barriers. Since the economy imploded back in 2007, many industries implemented cutbacks, utilities were no different. Part of the reason why they are shipping in crews from California is because Con Edison either laid of much of their workforce or did not hire replacements for the members that were retiring. Therefore they had to make do with less and they had decide which areas needed their help most. Spock summed it up best.

October Home Sales

So how were October sales?

In October, 2012, there were a total of 102 homes sold in our MLS. Of those sold, 

1. $6000-$100,000=26

2. $201,000-$200,000=56

3. $201,000-$250,000=13

4. $251,000=$300,000=3

5. Over $300,000=4   Note-there are 269 homes over $300,000 for sale. 

Included in the total above were 13 New Home Sales

In October, 2011, there were a total of 86 homes sold in our MLS. Of those sold, 

1. $6000-$100,000=18

2. $201,000-$200,000=48

3. $201,000-$250,000=8

4. $251,000=$300,000=6

5. Over $300,000=6

Included in the total above were 18 New Home sales

Home affordability

Are we at or near the bottom of the market? I think so. I attended a national Keller Williams training a few weeks ago and speaking to Realtors in other markets I am starting to get the impression the worse is behind us. Some of the states that were hit the hardest seem to be on the rebound. 

While we won't know for certain when the market has hit its lowest point and starts moving up, most experts believe that interest rates can't go down much if any. That is a very important consideration to take into account. Lets say you are looking at a house currently listed at $200,000 and interest rates are 3.5 %. You think the market has not quite bottomed out and you are going to wait until it drops some more, say to $190,000. In the meantime interest rates tick up to 4.5%. You have cost yourself a lot of money with the increase in interest rates even f the price is reduced to $190,000.

When you consider interest rates, home affordability is at or near an all time low. What are you waiting for?

New Bern new home sales

The following shows new home sales in the New Bern market over the past several years.

2012 year to date New Home Sales
Total=202
Of these 14 sold for over $250,000.

2011 same time period New Home Sales
Total=192
Of these 14 sold for over $250,000.


2010 same time period New Home Sales
Total=254
Of these 13 sold for over $250,000.


2009 same time period New Home Sales
Total=256
Of these 32 sold for over $250,000.


2008 same time period New Home Sales
Total=303
Of these 64 sold for over $250,000.

Assorted Home sales for New Bern

The following information might suggest we are bouncing along the bottom in the current housing recession. I was at a national Keller Williams Convention 2 weeks ago and heard some encouraging comments from agents from other area of the country. One agent from Newark NJ said it was a Sellers Market there. Also heard Phoenix was moving in the right direction. It was one of the hardest areas in the nation.

Year to Date-Entire MLS Homes sold.

2012=985
2011=947
2010=970
2009=922

Year to Date-Entire MLS Homes Bank Owned sold.


2012=183
2011=189
2010=126
2009=56

Still way to many Bank Owned Properties being sold. I hope the worst of this is nearly behind us on REO and Short Sales. What is lacking in our country is a real economic recovery with jobs being created  and an expanding economy. Lets hope this process will begin soon.

Fairfield Harbour Home Sales

Fairfield Harbour, a local golf and boating community was beat up pretty bad in the housing recession. Looks like they may be poised for a comeback of sorts. Currently there is only one new home for sale in Fairfield.


In the last year there were 62 homes that sold in FFH. Click the link below to see what sold.
http://www.easternncmls.com/new/maildoc/roscoe_1348574119-Sep-25-2012-7_55_19am.html
I believe a new home in the $175, 000 range, 1800-2000 feet, $20,000 lot would sell. There is only 1 new home for sale in FFH and it is $250,000. And right now I have the only sewer tap. Another plus is that there is no competition.
Other sales in the last year in areas where retirees often locate.
1.Riverbend-55
2.Greenbrier-32
3.Taberna-25
4.Trent Woods-58
5.Carolina Colours-11

New Bern Real Estate Update

Steve Tyson’s Real Estate Update

Neuse Harbour  Active homes for sale by price range Current number of homes on the market=9 Pending sales=3 Active homes for sale by price range $209,000-$250,000=2 $319,000=1 $,660,000-$1,225,000=6 There was 18 home that sold and closed in Neuse Harbour in the last 12 months. The most expensive house sold was $399,000.	Stately Pines Current homes on the market=6 Pending sales=0 Active homes for sale by price range $139,000-$200,000=4 $649,000-$699,000=2 There were 9 homes that sold and closed in Stately Pines in the last 12 months. The most expensive house sold was $244,000.
Carolina Pines Current homes on the market=13 Pending sales=4 Active homes for sale by price range $119,000-$$200,000=6 $212,000-$279,000=7 There were 19 homes that sold and closed in Carolina Pines in the last 12 months. The highest priced home sold was $281,000.	Tucker Creek Current homes on the market=3 Pending sales=2 Active homes for sale by price range $165,000=1 $259,000=1 $260,000=$1 There were 10 homes that sold and closed in Tucker Creek in the last 12 months. The highest priced home sold was $229,000.

Total homes sold January 1-Sept  22 2006 =1848

Total homes sold January 1-Sept  22 2007 =1552

Total homes sold January 1-Sept  22 2008=1170

Total homes sold January 1-Sept  22 2009=876

Total homes sold January 1-Sept  22  2010=924

Total homes sold January 1-Sept  22  2011=915

Total homes sold January 1-Sept  22 2012=939

There are currently 1374 homes listed for sale in our multiple listing service. We are selling homes at a rate of about 107 a month. .

Feel free to call or email me if you would like to have a customized absorption rate or a Comparable Market Analysis for your property. Home sales in each neighborhood can vary greatly.

Any suggestions to make this article better would be welcomed. I can be reached at SteveTyson@NCmove.com  And remember you can always visit me online at www.NewBern-NC.Info

                                      

Realtor Steve Tyson
The Tyson Group Realtors

11 years ago

We will never forget.

Proven methods to sell your house

1. Home Warranty Policies

The thing that is most attractive to buyers is a home warranty policy. The good news is that this is also the most cost-effective incentive option for sellers, too.
Sellers can assure buyers that any unexpected repairs that fall under the warranty policy will be covered. A home warranty typically costs only a few hundred dollars for the seller and can offer the buyer a tremendous amount of peace of mind. There are a number of home warranty providers out there, so make sure you do your research to find the best provider for the home in question.

2. Assistance With Closing Costs

The economic and lending environments have created a situation in which many prospective buyers don’t have the cash required to cover their closing costs. Many times, the difference between a buyer being able to buy a home or having to pass it up can lie in the closing costs.
Sellers who are willing to contribute to the closing costs stand a much greater chance of attracting a larger pool of buyers. Sellers can decide how much they want to offer based on what makes financial sense for them and the prospective buyers. While this might be a bit more costly option than the home warranty, it can be equally as effective in sealing a deal.

3. Remodeling/Repair Credit

If your listing has a feature or flaw that repels buyers, consider offering a credit towards repairs or remodeling. If you are receiving feedback that buyers consistently don’t like a particular aspect of the floor plan or condition of a listing, then consider a credit. This gives you and your client a way to overcome a potential objection right up front. The more objections you can remove, the closer you get to a sale.
These were the top 3 most attractive incentives in according to people who actually purchased homes in 2011. For more, download this great handout on attractive buyer incentives.
The next time you are trying to sweeten the pot for a prospective buyer, consider these options with your sellers. These just might be the incentives you need to land that perfect buyer and close the deal.

Mad Dash

Back in 2007 I wrote a piece about how brokers needed to take advantage of the wealth in China. A Better Tomorrow It looks like someone was reading my article Why Brokers Study Chinese The article profiles Kevin Brown and Nikki Field in the efforts overseas to find more buyers. They have gone as far as learning Mandarin and making trips to China to hunt for buyers. They do have their detractors which include notable real estate figures Dolly Lenz and Janet Wang. I have to agree with them. Kevin and Nikki have the right idea but their execution is the issue. Because of the complexities of doing business in China requires a lifetime of experience, what they should have done is hired a power broker to make introductions for them into these circles of wealth. The DIY approach is not recommended. One could say they have been successful, according to the article out of 37 clients, 9 either closed or signed contracts for properties. With the amount time, money and effort needed to just learn the language and culture, one could argue that this was all one big sunk cost. If they had hired a power broker, they may have been able to close all 37 clients, maybe even more. Brown and Field's strategy would have been better executed if they had actually had begun preparations at least 10 years and not when the s**t the fan. If their focus was on developing relations rather than making deals the yield would have been far more impressive. This mad dash to China is not something that everyone wants to be a part of. The article mentions that invitations were extended to Wang to go on these trips to China which has turned down. And honestly, I would have done the same thing too because these banks and organizations will treat her like a lead generator. And why should she make money for them? China's heyday is ending soon. For the last couple of years there has been chatter that the sleeping giant that awaken would be suffering from a major hangover. It appears that will come to pass very soon. China, Big Slowdown Is Tied to Slow Construction

Real estate Update

Steve Tyson’s Real Estate Update for 4 Subdivisions

Neuse Harbour  Active homes for sale by price range Current number of homes on the market=10 Pending sales=1 Active homes for sale by price range $190,000-$250,000=3 $295,000-$320,000=2 $,660,000-$1,095,000=5 There was 18 home that sold and closed in Neuse Harbour in the last 12 months. The most expensive house sold was $399,000.	Stately Pines Current homes on the market=6 Pending sales=0 Active homes for sale by price range $139,000-$200,000=4 $270,000-$699,000=3 There were 12 homes that sold and closed in Stately Pines in the last 12 months. The most expensive house sold was $244,000.
Carolina Pines Current homes on the market=15 Pending sales=3 Active homes for sale by price range $119,000-$$150,000=5 $169,000-$200,000=3 $200,000-262,000=6 $305,000=1 There were 20 homes that sold and closed in Carolina Pines in the last 12 months. The highest priced home sold was $255,000.	Tucker Creek Current homes on the market=3 Pending sales=2 Active homes for sale by price range $165,000=1 $259,000 $260,000 There were 10 homes that sold and closed in Tucker Creek in the last 12 months. The highest priced home sold was $229,000.

Total homes sold January 1-August  23 2007=1377

Total homes sold January 1-August  23 2008=1033

Total homes sold January 1-August  23 2009=751

Total homes sold January 1-August  23 2010=828

Total homes sold January 1-August  23.  2011=822

Total homes sold January 1-August  23 2012=835

There are currently 1360 homes listed for sale in our multiple listing service. We are selling homes at a rate of about 107 a month. .

Feel free to call or email me if you would like to have a customized absorption rate or a Comparable Market Analysis for your property. Home sales in each neighborhood can vary greatly.

Any suggestions to make this article better would be welcomed. I can be reached at SteveTyson@NCmove.com  And remember you can always visit me online at www.NewBern-NC.Info

                                      

Realtor Steve Tyson
The Tyson Group Realtors

Real Estate News

I would like to say the Real Estate Market is improving but to do so would not be accurate. In July there were 117 total sales in our MLS. Sales ranged from $27,000-$532,000. All this adds up to about a one year absorption rate, still a buyers market.

However, I am feeling some resistance to further decreases in prices. Seems like things were in somewhat of a free fall for several years and I think in many price ranges today prices are close to the bottom. Only time will tell.

With prices reasonable for the most part, and interest rates at historic lows, with a modest down payment you can buy a home cheaper than you can rent a home.

When will home prices start improving?

This question comes up quite often in my conversations with real estate prospects. My answer is always the same.
Real Estate prices will start improving when the economy starts growing and jobs are being created. The population of the US is growing and the growing population will require additional housing. Sooner or later, hopefully sooner, the demand of the additional growth in the population will put upward pressure on prices. But first, we need jobs and a growing economy.

The Food and Real Estate Connection

There have been some changes on Blogger and I am still adapting to them. Please excuse the current format. Three years ago, I blogged about a controversial landlord who had sold his portfolio of buildings right before the real estate market imploded, leaving the new owners holding the bag. Harlem tenants put landlord on notice - New York Daily News 'Worst landlord' puts bldgs. - & violations - on the block - New York So what has he been up to? Two years ago he was launching a new real estate fund.He was flipping real estate in his hometown. And even bought one of his sons an apartment Other than that there has been no reports of any real estate deals. What is interesting is that one of his sons has gone into the frozen yogurt business. So proud of this venture, he claims it is the first self service yogurt shop of its kind. Yogoberry 16 Handles , Red Mango and other self service frozen yogurt chains would beg to differ. But besides this inaccuracy, what’s the big deal about his child opening up a frozen yogurt shop? First of all self service frozen yogurt is a great business since and the markups are huge on the product itself and platform allows a lower overhead since it reduces labor costs significantly because the customer is doing most of the work. The son has been rather aggressive in opening up shops from Westchester to as far as Connecticut and Massachusetts. And the son is well versed in the real estate business so he has probably been able to get some sick deals on the rent. But there is no way he could do this on his own so it is very likely his father is fronting the money. Perhaps this a case of looking too hard at something but when a real estate investor has 200 million dollars burning a hole in their pocket, they are usually not looking to invest in a chain of self-service frozen yogurt shops. My theory why he is abstaining from the market, is that he has decided to sit on his cash because the real estate market has not spawned the deals that he seeks. At the same time, he's got to eat and so does his kids. The yogurt shops are just another revenue stream for the son to tide him over when things get better. He is also not alone Real Estate Agents With a Lot on Their Plates Restaurants and real estate go hand in hand since restaurant usually requires the services a very skilled broker to find the appropriate space. The real estate agent has replaced the waiter as the primary job for artistic professionals. The hours are just as flexible and although there is no salary, a good real estate agent can make more in a month than a waiter. Artists, particularly actors are ready made for sales. Although the overall tone of this article is quite hopeful for these real estate restauranteur, yet there is a very hidden yet ominous message in this article. It is not uncommon for real estate brokers or anyone to invest in any particular type of business. But what makes restaurants appealing to real estate brokers is the cash flow. A real estate broker gets paid on commission and even though those commissions can get very fat, they may have to wait months maybe years to close a deal. In the meantime they need another source of income, and currently I do not know of any firms giving out draws to their brokers at this time. A good restaurant is a license to print money and in these times all real estate brokers want that license. 2012 near the end, but it is still enough time for the Mayans to prove themselves right. So real estate brokers are hustling have no choice but to diversify their revenue streams.

New Bern Waterfront Homes

Waterfront Homes for Sale

In the past year I have sold 18 waterfront homes and believe we are starting to see some signs that waterfront home prices are starting to stabilize and could start tracking up. When you combine prices and interest rates owning a waterfront home has never been more affordable. If you are on the sideline, you better get in the hunt or you might wait to long. So call the New Bern waterfront expert today to help you find the best waterfront property for you.

New Bern and area home sales

Currently, there are 1387 homes listed for sale in our MLS System. Of these 90 are listed as Bank Owned, and 48 are listed as Short Sales.

During the past year there were 1214 homes sold in our MLS.  This equates to a little over a year absorption rate, not good news if you are a seller. However each price range varies in days on the market before a sale takes place and list price to sells price ratios. If you happen to be in a good price range you could expect to sell in under 120 days. When a house is priced to sell, buyers and buyers agents realize this, and will often make an offer closer to the asking price.

Although the number of bank owned properties is about as high as I have seen it, it is relatively low compared to the market as a whole, about 6%. Interestingly enough, bank owned properties accounted for about 16% of sales in the last year. This probably indicates that banks will get aggressive on their sales price especially when they are not sold in a reasonable time frame.

Year to date home sales are about the same as last year volume wise. Total dollar volume is however down 3%. I am not sure, but believe, this is due to home prices still sliding south.

New Home Sales


There are 154 new homes listed for sale in our MLS. In the last 365 days  237 new homes sold. Of these new home sales, 107 were priced from $150,000-$200,000 This compares to 282 new home sales in the year prior and 330 the year before that. Why are sales down 50% from 2 years ago? I believe this is largely due to banks being very cautious about construction loan lending, more folks looking at renting instead of buying, and attractive existing home prices.

I have read some words of encouragement regarding some housing markets, especially those that were hit the hardest. However, I believe the market will improve when the economy starts to create jobs, and I am not real confident the current President knows how to do this.

Dealing with the unknown

The Grunt is feeling a little tense right now. It is not because of the market or the economy. It is because the Grunt is expecting a new next door neighbor.

Back in 2009, the Grunt wrote about another noisy neighbor.

A letter to another 800lbs gorilla

That year management put their foot down and I never heard from them again. However, I got some cold stares from them and others associated with them but it was worth the peace and quiet.

I suspected something was up back in the fall of 2011  when I spotted the Gorilla's significant other being congratulated. I assumed it was because he proposed to her.

It was far more worse. She was pregnant.

Around February of 2012, the baby was born. And it was bliss. The only noise I heard were the cries of a baby.

But I knew the clock was ticking. The apartment they lived in was adequate for two but for three people, even with just a baby, it was too small. And soon they were gone.

I took certain steps to protect myself when new neighbors moved in but they resulted in failure. 

Recently, I smelled the odor of paint permeating from next door and I began to get concerned. The next day my worst fears were confirmed. There would be new tenants moving in.

I am not out of options yet. But I would rather not exercise them.

My state of mind in is rather odd. It is business as usual but I am aware that very soon I may have trouble on my hands. If that is the case. Then it means I have to start process all over again. Which I am not looking forward to.

Of course I might be overreacting. The new tenants may be people who despise loud music as much as I do. So all of this hand wringing might be moot. But in all honesty, I am expecting to deal with the tenants of hell.

Lack of inventory? It depends on which market.

For the past couple of months the real estate media has been screaming about the lack of inventory on the market. However, all information has been tangled up in a lot of broker speak and dramatic hand wringing. My objective is to shake out the pertinent facts of the current state of the two markets which are rentals and sales. There is a strong connection between the two, however they are often treated as one in the same, which is incorrect because they are actually quite different.

First all I proclaim the following: THERE IS NO LACK OF RENTAL INVENTORY.

When you do a search on Streeteasy for rentals in the downtown area, you will find 2,927 listings currently available for rent. Assuming that Streeteasy is accurate and these listings are still current, which it usually is, there seems to be an ample amount of rental inventory on the market. It appears there is a lack of affordable apartments. There is a certain price point that renters are not willing to go over. As the articles below indicate that will not change anytime soon because landlords are jacking up rent as high as they can.
 The City of Sky-High Rent
The Lease Is Up, and Now, So Is the Rent

The end result is that people are trying to get more bang for their buck by getting out of Manhattan. As this article from the Real Estate Weekly has shown that a significant number of young professionals are looking for alternatives outside of Manhattan yet easily and quickly accessible to through public transportation. Developers are aware of this and are building up inventory to take advantage of it.

This lack of rental inventory in Manhattan is a complete illusion. The rentals are out there. They are just not affordable.

The second thing I am proclaiming is: THERE IS A LACK OF RESIDENTIAL SALES INVENTORY.
I would like to defer to the Great Jonathan Miller for his analysis. Condo Inventory At Low Tide In Sea of Bad Analogies

Back in 2004, an announcement was made at the Grunt's company that there was a huge lack of residential sales inventory on the market. Instead of selling, owners were taking advantage of low interest rates and turning their homes in ATM machines by engaging in a cycle of refinancing. This lack of inventory created a bottleneck even though it was a seller's market. Besides the fact that owners had no interest in moving, owners pondering a move realized they would be facing the same quagmire of low inventory and high demand that buyers were struggling with. Which is why seller's demanded such exorbitant prices because they knew buyers would be paying an arm and a leg for an apartment. In fact if a bidding war broke out, it was not uncommon for a seller back then to jack up the price to see who would be the last buyer standing. The factors may have changed but one thing sellers have in common with the previous and current market is dealing with the unknown.

It is the same old song but it is being played by a different band.

This lack of inventory has also effected the commercial market and is the reason why this building is listed for 25 million dollars. Back in 2007 when everything was imploding it was all about cash and getting as liquid as possible. 2012 is all about cash flow. People want returns on their money and the Facebook IPO debacle has shown that stocks are completely unreliable in that department. And right now a monthly check from a tenant is quite tantalizing. Investors are not looking for the hottest thing on the market, all they want is a place to park their cash and get a decent return. With the European economy speeding on a collision course with God knows what on the FUBAR highway, there is a vast amount uncertainty around us.

But let's focus on the obvious. The cost of living in Manhattan is going up and most likely going to get higher because Albany has no plans on extending the property tax abatement program. As I stated before in regards to the illusion of the lack of rental inventory, if this drought of renters continues, there is a possibility that that condo investors will scream uncle and get the hell out of the market. Why keep an asset that has become a liability especially in this economy? No cash flow? Than cash out.

If you are thinking of selling, this is your window of opportunity due to the lack of sales inventory and high demand. And there are plenty of all cash buyers out there so take advantage of this opportunity now. There is a strong possibility that there will be an influx of condo inventory coming onto the market this year so whatever leverage you have now will have greatly diminished.

What we all should be encouraged is that New York City, particularly Manhattan has currently shown to be the destination of choice for the flight of quality. Everyone wants to dump their money here. Let us hope that continues.

On a side note, as you all may have noticed I haven't blogged in quite sometime. In fact this is my first entry of the year. Like many of you, I have been going through my own trials and tribulations. Nothing serious, thank God. But these issues required my attention and I had to put blogging on the back burner. So for now, I am going to be blogging when I can. I just want to say to all the readers out there, I appreciate you checking in on me.