Page 21 - NY Cooperator Expo April 2019

COOPERATOR.COM THE COOPERATOR — APRIL 2019 21 Making a Difference. Every Day. Contact me to learn how we can apply our proven solutions to maximize your investment and provide an exceptional quality of life for your residents. Dan Wurtzel, President (212) 324-9944 contactus.ny@fsresidential.com www.fsresidential.com Providing Superior Management Solutions to Residential Properties Across New York City for 30 Years Only FirstService Residential offers these exclusive value-added services and solutions: FirstService Residential provides full-service property management to over 500 New York City condos, co-ops and rental properties—25 percent of which we have proudly managed for a decade or longer. Our managers deliver the personalized, responsive service that boards, owners and residents deserve, backed by the resources and experience of North America’s leading property management company. u Discounted rates on electricity & natural gas u Incentive funding and financing for energy efficiency projects u Reduced fees on Local Law 87 energy audit & retro- commissioning services u Discounted tax certiorari attorney fees u Increased reserve fund interest rates u Customized energy management plans u In-house project management specialists u Lower costs and better terms on property and general liability insurance u Workers’ compensation discounts & dividends u Amenity management solutions u Sales and leasing expertise and no bidding wars. What I’m seeing right now is that competition is beginning to re- turn. I’m seeing positive reports about the pending decline in the Chicago residential things a bit di erently. Regarding the con- economy, consumer con dence is better, market include outmigration, property tax- and interest rates were down at the begin- ning of the year. So even at the lower end of J.B. Pritzker’s new state tax structure, and Gail Spreen, Senior Vice President of Sales the market, things appear to be picking up. the still-resonating impact of the change in at Jameson Sotheby’s International Re- e truth is that interest rates – even small federal income tax- increments like a quarter point – a ect the es in 2017. Illinois market. Two-bedroom units seem to be the in general – and most competitive right now. ere are even Chicago in particu- multiple bidding situations. Essentially, lar – is one of only things look positive.” Chicago “Chicago isn’t one of the cool kids any- more,” according to an article in Crain’s Chicago Business from last October. e tion last year. Windy City is ranked 49th of 79 markets in the ‘Emerging Trends in Real Estate’ sur- vey, down from 42nd last year. e overall cording to IllinoisPolicy.org, and that has ing year. ings must be priced right to sell. she says. ere was little new construction feeling is one of caution. “Wherever they a ected home a ordability for many. Com- put their money, survey respondents were bined with the reduction in deductibility not there to be pushed. It’s generally more of ers overreached again, “so much so that cautious about the direction of the broad- er market,” said the article, “wondering has had an increasingly dampening e ect how much longer the good times will last. on the market. Another tax issue is the re- ey’re not bracing for a bust, but they can’t cent increase in state income taxes by the Chicago’s markets. “People are re-evaluat- see the market going much higher, either.” According to IllinoisPolicy.org, the rea- sons behind the stagnation and possible im- es, and income taxes—including both Gov. Chicago and surrounding neighborhoods, 10 of the largest metro areas in the U.S. to experience a decline in popula- Property taxes have also skyrocketed in recent years, ac- for state and local taxes, local tax burden a buyer’s market.” new governor. Conversely, some of those ghting the the change in tax laws.” Downtown seems to good ght in the eld every day may see still be the biggest draw, though, and there dominium and co-op market in downtown the West Loop. alty, says: “2018 signi cant demand from South America – was a reason- ably good year, according to Bisnow.com. In 2019 local in- though a bit dustry pros expect to see the return of de- at. It really de- pended on the at, plus shrinking inventory, should cre- neighborhood. ate a very robust year for condo sales in the Projections are Sunshine State. that 2019 will be similar. We see a in Aventura, Florida, eshes out Bisnow’s 2- to 4-percent comments. When it comes to overbuilding, increase in prices and volume in the com- You can’t really push the market, because it’s a er the bubble burst, then the develop- Spreen also mentions other trends that where. e current oversupply of units has re ect the concerns described above about been keeping prices down. e market is ing the own versus rent equations in light of are healthy sub-markets in River North and Florida Luxury condos in Miami have sold strongly in the last three years without mostly as a result of the strong U.S. dollar, mand from Brazil, Mexico, and Colombia. Denise Rubin, a real estate broker based “no one learned the lesson of 2006-2007,” it’s mind boggling. ere are cranes every- like a roller coaster, and it’s at the bottom “Markets are not dictated by what you want as the seller, but rather what peo- ple are willing to spend.” —Joanna May eld Marks continued on page 45