There are so many real estate articles out there — and so little time! For busy investors looking to take a quick reading break, look no further than our list of recommended reading for the week. From advice and investment tips to market reviews, we’re highlighting the stuff that’s really worth your time.
So sit back, and take a break. These were the 5 Must-Read Real Estate Articles of The Past Week:
By Clayton Browne via Value Walk
One of the best real estate deals ever made went down in May of 1626, when Dutch West Indies trader Peter Minuit bought the island of Manhattan from the local Lenape indian tribe for 60 guilders worth of iron kettles, axes, hoes, small musical instruments and drilling awls (enabling the chief to boost the manufacture of wampum, the shell-beads which were the local currency). While it’s hard to estimate precisely, the 60 guilders worth of goods paid for the entirety of Manhattan real estate would probably be worth no more than a few hundred dollars today. The original purchase price for Manhattan Island is so small its almost ironic to talk about Manhattan real estate prices in 2015, where the average price for an apartment on the island today is just a hair under $2 million.
By Zoe Rosenberg via Curbed New York
Within hours of word spreading that Governor Andrew Cuomo was poised to announce a radical plan for the renovation of Penn Station, that plan has arrived. On Wednesday, Cuomo announced a forthcoming Request For Proposals that will be issued by Empire State Development, Amtrak, and the MTA later this week for the renovation of Penn Station, as well as the remaking of the neighboring Farley Post Office, into the Empire Station Complex at a total cost of $3 billion. The $2 billion redevelopment of Penn Station may entail razing Madison Square Garden’s Paramount Theater and adding new entrances on Seventh Avenue or 33rd Street and a glass wall and entrances along Eighth Avenue, the Times reports. Whichever developer’s proposal is chosen will control all the retail in Penn Station, and that’s huge.
By Robert Frank via CNBC
Luxury prices for the world’s major cities are expected to slow by nearly half this year, from 3 percent in 2015 to 1.7 percent in 2016, according to the latest Knight Frank Prime Cities Forecast. The report said China’s economic slowdown is mainly to blame, although rising rates in the U.S. and a slowdown in other emerging markets will also add to the headwinds. Knight Frank defines the “prime” or “luxury” real estate market as the most expensive 5 percent of homes in each city. “We’re moving into a different environment where you won’t see the level of wealth creation in China that you’ve seen in recent years,” said Liam Bailey, global head of research for Knight Frank, the London based real estate firm. China’s slowdown is expected to hit its domestic housing market hard — as well as nearby markets in Asia favored by wealthy Chinese buyers.
By Ely Razin via Fortune
There has been much talk recently about what the Federal Reserve’s first interest rate hike since 2006 means for the U.S. economy as a whole. Here we take a look at the impact of rate hikes (current and future) on commercial real estate, examining first the prospective disadvantages and then the potential benefits. Figuring this out isn’t straightforward, as interest rate changes have multiple impacts on commercial real estate (CRE). Further, the very causes of the Fed decision to raise interest rates may signal that other economic factors are at play, and these, too, may impact CRE. Further complicating things, the timing of the rate hike coincides with the “maturity wall” of commercial mortgage-backed securities that need to be refinanced within the next two years.
By Patrick Clarck via Bloomberg
Real estate agents are known for employing euphemisms to make an outdated house seem charming, or a cramped apartment feel cozy. Here are some other buzzwords: “bargain,” “under-valued,” and “deal.” In nearly half the largest 100 U.S. metros, those phrases probably mean absolutely nothing. So says fresh research from Trulia, which compares the listing prices for homes marketed as good deals to the prices for homes of similar size, age, and location. In San Francisco, Atlanta, and 43 other metropolitan areas, homes listed as good values weren’t any cheaper, on average, than similar homes whose listings didn’t promise a deal. In some cities, you may have more luck taking bargain-shilling brokers at their word. Homes advertised as bargains in Dayton, Ohio, were, on average, 20 percent cheaper than homes in the same zip code after controlling for the number of bedrooms, bathrooms, square footage, and lot size.
Did you like these articles? What were your favorite articles this week?