Happy #Valentine’sDay: Why #Housing is at the HEART of Your Economic Future

Posted on February 14, 2017 in Housing | Add Your Voice


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February 14, 2017

Happy Valentine’s Day: Why Housing is at the HEART of Your Economic Future


Americans are expected to spend a little less on roses, chocolates and dinner this Valentine’s Day.

National surveys shows on average we will spend about $136.57 this year compared to last year’s $146.84.

The Collingwood Chairman Tim Rood says, “Spending less on Valentine’s is a good thing, millennials need to keep this up day-in and day-out so they can buy into the American Dream and own a home.” 

A 2015 survey by The Collingwood Group found a majority of millennials willing to sacrifice modern day conveniences like cell phones, internet, cable and Starbucks in order to save for a down payment on a home. 65% of millennials polled were somewhat to very likely to give up on at least one of those to finance a home purchase.

“Giving up on expensive Valentine’s gifts and daily expensive lattes adds up,” says Rood.  “While it may take a while to come up with enough cash for a down payment, the little bit of suffering will be worth it in the end,” adds The Collingwood Group Chairman.

But, we might be fighting a battle that can’t be oin — instead of following in the footsteps of their parents who married, bought homes, and had kids, many millennials are renting everything from homes to bikes, phones, and software, perhaps signifying a cultural shift that is radically altering their relationship to ownership.

Still, says Collingwood’s Rood, “There is plenty of evidence that Millennials are drawn to the sharing economy – cars and shelter – out of convenience. What is less explored is how much of Millennials biases towards the sharing economy is due to economic necessities largely from a lack of ability to build savings.  Fundamentally, it’s hard to build wealth if you don’t own anything. And homeownership is one of the last legitimate wealth creation opportiunities for most Americans.”

Mnuchin Confirmed as Treasury Secretary

The Senate has confirmed Donald Trump’s nominee, Steven Mnuchin as Treasury Secretary.

The vote was along party lines, with only one Democrat joining with Republicans to vote for him.  Approval came despite complaints by Democrats that Mnuchin ran a “foreclosure machine” when he headed OneWest Bank.  Mnuchin was sworn in at about the same time that word came down that Michael Flynn had resigned as National Security Adviser.

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“I admire the way Mr. Mnuchin handled himself during confirmation hearings, says The Collingwood Group Chairman Tim Rood. “My key takeaway is that Steven Mnuchin is a world-class financier whose decades of experience with financial and monetary matters make him the ideal candidate to serve as US Treasury Secretary, President-elect Trump’s principal economic advisor. My secondary takeaway is that only the most committed public servant(s) would subject themselves to this gruesome confirmation process.”

Mnuchin, a former partner at Goldman Sachs, has helped finance more than 100 movies, according to The Hollywood Reporter. He’s had a hand in Oscar-contenders, like 2010’s best picture nominee “Black Swan” and the film that garnered Meryl Streep her 14th Oscar nomination, 2006’s “The Devil Wears Prada.”

“The LEGO Batman Movie,” on which Mnuchin served as an executive producer, topped the Box Office this weekend.

A Yellen on the Hill

Federal Reserve Chair Janet Yellen probably won’t drop a heavy hint on the timing of the next interest-rate increase when she speaks to Congress today and tomorrow, but expect her to defend post-crisis banking rules the Trump administration has sworn to undo.

Yellen’s semi-annual testimony to lawmakers in Washington on Tuesday and Wednesday will be her first such performance since Donald Trump became president, a shift in power that may expose the U.S. central bank to deep changes favored by some in his Republican party, which remains in control of both houses of Congress. The hearings could also serve to shed light on where the Senate Banking Committee’s new chair, Idaho Republican Michael Crapo, stands on proposed changes to the central bank’s authority and structure.

Bloomberg reports, on monetary policy, Yellen is expected to keep the Fed’s options open ahead of its next policy meeting. While few investors anticipate a move when officials gather in mid-March, several Fed policy makers have argued a rate increase should not be ruled out.

Condos at Kushner’s Puck Having Luck as Rentals Instead

Amid the chilly luxury condominium market, Kushner Companies, yes the company tied to Trump-son-in-Law Jared,  has quietly rented several of its unsold Puck Penthouses.

Penthouse III, one of six units atop the landmark building at 293 Lafayette Street, was the most recent to be snapped up after asking $57,000 a month. The three-bedroom unit was previously listed for sale, asking $19.95 million.

The Corcoran Group’s Deborah Grubman had the listing. Douglas Elliman’s Oren and Tal Alexander brought the renter, according to the brothers’ Instagram accounts.

Along with Penthouse III, two other condos have rental tenants in place: Penthouse V and Penthouse I, which is the building’s most expensive penthouse. The pad was originally listed for $66 million, but failed to find a buyer even after the price was dropped last year to $58.5 million.

Kushner Companies declined to comment. But sources said the sprawling top penthouse is being rented by a hedge fund executive for as much as $150,000 a month.

read more: https://therealdeal.com/2017/02/10/condos-at-puck-having-luck-as-rentals-instead/

NYC Wealthiest Zip Codes

Thanks to their eye-popping real estate prices, neighborhoods such as Tribeca and SoHo would seem to be among New York City’s wealthiest.

But when measured by average net worth and household income, it turns out that several of New York’s richest ZIP codes lie far from glittering Manhattan, in the urban periphery of Queens and Staten Island.

>Top 10 wealthiest ZIP codes in New York are:

  1. 11363 – Little Neck, Queens
  2. 11697 – Breezy Point, Queens
  3. 10022 – Midtown East, Manhattan
  4. 11005 – Glen Oak, Queens
  5. 10021 – Upper East Side, Manhattan
  6. 10028 – Upper East Side, Manhattan
  7. 11362 – Little Neck, Queens
  8. 10312 – Annadale, Staten Island
  9. 10069 – Upper West Side, Manhattan
  10. 10280 – Battery Park, Manhattan

read more: http://www.bizjournals.com/newyork/news/2017/02/07/here-are-new-york-citys-wealthiest-zips.html

Urban Institute: Despite Reports, Tougher than ever to get Mortgage

The traditional way to measure mortgage credit availability suggests that it’s easier to get a mortgage now than it was before the housing crisis, but the Urban Institutes says that is not the case. The group says introduced a new way to measure denial rates in 2014 that confirms that it’s harder to get a mortgage today than it was before the crisis. They say their “real” denial rate also exposes an important truth behind these numbers: mortgage denial rates have decreased slightly in recent years only because lower-credit applicants are choosing not to apply for mortgages.

Researchers and policymakers have used the mortgage denial rate to measure mortgage credit availability for more than three decades. The Institute’s new way of measuring the denial rate it says offers a more accurate barometer of credit accessibility by eliminating borrowers with perfect credit from the denial calculation, because these borrowers will never be denied credit.

The Urban Institute’s report concludes:

  • The traditional way of measuring mortgage denial rates significantly underestimates denial rates
  • Gaps in denial rates between whites and minorities with less-than-perfect credit have narrowed since 2007 and remain narrow
  • It remains easier to qualify for a Federal Housing Administration loan than a conventional, government-sponsored enterprise loan

How Many Lattes Do You Need to Sell to Afford This

Howard Schultz is marking the relinquishment of his Starbucks CEO position in a major way.

He reportedly dropped a cool $40 million on a glassy duplex penthouse at New York’s Greenwich Lane development, sources told The Real Deal.

The property was described as a “jewel box in the sky” by the listing, and it had originally listed for $45 million. The apartment went into contract in February 2015, but the sale just recently closed via an anonymous LLC.

Schultz is expected to step down from his leadership position on April 3, and he will focus on Starbucks’ higher-end Reserve line and the company’s social initiatives.

>Still Ahead:


Valentines Day Forget it at your peril!

MBA’s National Mortgage Servicing Conference & Exp in Dallas (thru Friday)


National Association of Home Builders Housing Market Index, 10 a.m. ET


Bloomberg Consumer Comfort Index, 9:45 a.m. ET


Fannie Mae’s Q4 Earnings Report

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Have a prosperous day and a great week.

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