Using Veritas to Construct the "Per…

29-04-2017 Hits:87156 BoomBustBlog Reggie Middleton

Using Veritas to Construct the "Perfect" Digital Investment Portfolio" & How to Value "Hard to Value" tokens, Pt 1

The golden grail of investing is to find that investable asset that provides the greatest reward with the least risk. Alas, despite how commonsensical that precept seems to be, many...

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The Veritas 2017 Token Offering Summary …

15-04-2017 Hits:81086 BoomBustBlog Reggie Middleton

The Veritas 2017 Token Offering Summary Available For Download and Sharing

The Veritas Offering Summary is now available for download, which packs all the information about Veritas in a single page. A step by step guide to purchasing Veritas can be downloaded here.

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What Happens When the Fund Fee Fight Hit…

10-04-2017 Hits:80925 BoomBustBlog Reggie Middleton

What Happens When the Fund Fee Fight Hits the Blockchain

A hedge fund recently made news by securitizing its LP units as Ethereum-based tokens and selling them as tradeable (thereby liquid) assets. This brings technology to the VC industry that...

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Veritaseum: The ICO That's Ushering in t…

07-04-2017 Hits:85397 BoomBustBlog Reggie Middleton

Veritaseum: The ICO That's Ushering in the Era of P2P Capital Markets

Veritaseum is in the process of building peer-to-peer capital markets that enable financial and value market participants to deal directly with each other on a counterparty risk-free basis in lieu...

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This Is Ground Zero for the 2017 Veritas…

03-04-2017 Hits:81900 BoomBustBlog Reggie Middleton

This Is Ground Zero for the 2017 Veritas Offering. Are You Ready to Get Your Key to the P2P Capital Markets?

This is the link to the Veritas Crowdsale landing page. Here is where you will be able to buy the Veritas ICO when it is launched in mid-April. Below, please...

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What is the Value Proposition For Verita…

01-04-2017 Hits:84087 BoomBustBlog Reggie Middleton

What is the Value Proposition For Veritas, Veritaseum's Software Token?

 A YouTube commenter asked a very good question that we will like to take some time to answer. The question was, verbatim: I've watched your video and gone through the slides. The exchange...

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This Real Estate Bubble, Like Some Relat…

28-03-2017 Hits:55145 BoomBustBlog Reggie Middleton

This Real Estate Bubble, Like Some Relationships, Is Complicated...

CNBC reports US home prices rise 5.9 percent to 31-month high in January according to S&P CoreLogic Case-Shiller. This puts the 20 city index close to an all time high, including...

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Bloomberg Chimes In With My Warnings As …

28-03-2017 Hits:83338 BoomBustBlog Reggie Middleton

Bloomberg Chimes In With My Warnings As Landlords Offer First Time Ever Concessions to Retail Renters

Over the last quarter I've been warning about the significant weakness in retailers and the retail real estate that most occupy (links supplied below). Now, Bloomberg reports: Manhattan Landlords Are Offering...

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Our Apple Analysis This Week - This Comp…

27-03-2017 Hits:83083 BoomBustBlog Reggie Middleton

Our Apple Analysis This Week - This Company Is Not What Most Think It IS

We will releasing our Apple forensic analysis and valuation this week for subscribers (click here to subscribe - lowest tier is the same as a Netflix subscription). As can be...

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The Country's First Newly Elected Lame D…

27-03-2017 Hits:82975 BoomBustBlog Reggie Middleton

The Country's First Newly Elected Lame Duck President Will Cause Massive Reversal Of Speculative Gains

Note: Subscribers should reference  the paywall material here for stocks that should give a good risk/reward scenario for bearish trades. The Trump administration's legislative outlook is effectively a political desert, with...

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Sears Finally Throws In The Towel Exactl…

22-03-2017 Hits:89223 BoomBustBlog Reggie Middleton

Sears Finally Throws In The Towel Exactly When I Predicted "has ‘substantial doubt’ about its future"

My prediction of Sears collapsing once interest rates started ticking upwards was absolutely on point.

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The Transformation of Television in Amer…

21-03-2017 Hits:86945 BoomBustBlog Reggie Middleton

The Transformation of Television in America and Worldwide

TV has changed more in the past 10 years than it has since it's inception nearly 100 years ago This change is profound, and the primary benefactors look and act...

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When the residential real estate market falls hard, it falls. New York (Manhattan, too) is different from many other regions because it is denser, harder to build new supply, and has a generally richer demographic. Alas, buildings are still buildings, people are still people, and money is still money - Yes, even in NYC. Manhattan and Brooklyn have been on a tear during the boom. So much so that many actually began to believe that NY was somehow magically immune to real asset cycles. Developers have found a way around the supply issue as well. Just convert everything that stands into condos (NYC use to be a coop market). Those with short term memory must have forgotten the 90's, the 80's, and the '70s. NY residential real estate cycles reliably every ten years or so, give or take. Guess what. It's about ten years, and we have a free credit, cheap money, gentrification housing boom to make this cycle a doozy, both on the way up and the way down.

More on Short Term Memory

Prudential Douglas Elliman, a prominent NYC luxury real estate broker produces a monthly study as a marketing aid that recaps very recent property transactions. Now, if you follow the National Association of Realtors economists and reports, you should realize that those in the industry tend to run a bit, ahem, optimistic. Keeping that in mind, let me run down a highlight of the report for the month of September. Please keep in mind that the way things work in NY is akin to the following:

  1. marketing time increase to point of sale (product stays on market longer to sell)
  2. volume of sale decreases, as sellers refuse to lower prices to meet buyer demand
  3. concessions are given that usually do not show up in public record (seller's concession, private paper held back, furniture/antiques included in sale, etc.)
  4. publicly recorded prices finally drop.

By the time we get to point 4 above, the market has actually been slowing down and effectively dropping in price from an economic perspective from point 1, usually at least a year before. These facts are not reflected in statistics, and it will be hard to get realtors to admit it.

 

Low end luxury: Smaller units where luxury is not compromised, priced between $1 and $2 million.
  • # of properties sold: 218 SIGNED IN AUGUST, 59 SIGNED IN SEPTEMBER (73% decrease, down sharply in September)
  • Average price: $1,443m ($1,119/sf ….SLIGHTLY DOWN compared to previous report)
  • Average Size: 1,277sf

Mid level luxury:

  • # of properties sold: 115 SIGNED IN AUGUST, 34 SIGNED IN SEPTEMBER (70.4% decrease, DOWN SHARPLY IN SEPTEMBER)
  • Average price: $2,634 million ($1,436/sf… DOWN compared to previous month)
  • Average Size: 1,842sf (DOWN compared to previous month)

High end luxury:

Mid-sized luxury properties, priced between $2million and $4million – Larger, luxurious properties priced between $4 million and $5 million. Sales volume down, pricing even.

  • # of properties sold: 7 SIGNED IN AUGUST, 3 SIGNED IN SEPTEMBER (DOWN 57%)
  • Average price: $ 4,524million ($1,554/sf, EVEN)
  • Average size: 2,940sf (DOWN slightly compared to previous month)

MEGA luxury

  • # of properties: 13 SIGNED IN AUGUST, 8 SIGNED IN SEPTEMBER (Down 39%)
  • Average price: $8,470 million ($ 1,674/sf. DOWN compared to previous month)
  • Average size: 5,489sf (DOWN compared to previous month)

HOUSE luxury

  • # of properties: 18 IN AUGUST, 9 IN SEPTEMBER (DOWN compared to previous month)
  • Average price: $6,41 million (DOWN compared to previous month)
  • Average width: 23 feet
    • OUR ANALYSIS: It is too early to tell if the downturn in sales in September is a trend or isolated. Judging by the rest of the market and lengthening of marketing cycles I'd call it the beginning of a trend.
    • * The lethargic numbers follow several months of spectacular numbers: Either the market is taking a breather, or it has run out of steam.
    • * There is still a shortage of single family houses…..a $ 10million Village house is currently experiencing multiple bidders.
Larger, Single family townhouses are a rare breed in the Downtown market. This why you can't use popularly quoted house price indices like the Case Shiller index for markets like Manhattan. NYC proper is mostly condos and coops, with a mere smattering of single family homes.
Large, exceptional properties, priced over $ 5million mostly with outdoor space