WEBVTT - Miller: We've hit an afforadability threshold

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<v Speaker 1>This is Bloomberg Surveillance. Consolidation makes sense in a growing world,

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<v Speaker 1>but what we have right now is consolidations taking place

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<v Speaker 1>in a flat world, and that's more concerning. The big

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<v Speaker 1>issue is the role of government. That's where the differences are.

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<v Speaker 1>That's where the American public is conflicted. That's the key issue.

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<v Speaker 1>I think that this election is going to pivot on it.

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<v Speaker 1>You don't want to be out of bonds because you

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<v Speaker 1>want to be sure that you've got a less volatile portfolio.

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<v Speaker 1>So don't be out of fixed income, even though there's

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<v Speaker 1>rates are low, because fixed income plays a really important

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<v Speaker 1>role in your portfolio, especially in returning Bloomberg Surveillance your

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<v Speaker 1>link to the world of economics, finance and investment on

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<v Speaker 1>Bloomberg Radio. Good morning everyone, Michael McKay and Tom Kane.

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<v Speaker 1>Still to have you on board with the sunny economics, finance,

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<v Speaker 1>investment on international relations on the studio apartment. I can't

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<v Speaker 1>afford a midto, Mannette, and we'll do that here in

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<v Speaker 1>a bit and talk about real estate nationwide as well.

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<v Speaker 1>Bloomberg Surveillance. Watch you by Cone Resnick Accounting Tax Advisory

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<v Speaker 1>to sees opportunities in commercial real estate your business needs

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<v Speaker 1>market focus guidance from the industry leading experts at Cone Resnick.

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<v Speaker 1>Find out how at Cone Resnick dot com c O

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<v Speaker 1>h n R e z n I c K cone

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<v Speaker 1>Resnec dot com. On the day to front the yen,

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<v Speaker 1>what a dash to one oh seven this morning, we

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<v Speaker 1>didn't get there one oh wet eight right now still

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<v Speaker 1>very strong, uh yen. And I would note Mike also

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<v Speaker 1>German yields um lower this morning again. Yeah, I mean

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<v Speaker 1>it's just sort of a moving to the negative space.

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<v Speaker 1>Copper off as well. Four dollars in Chicago copper two

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<v Speaker 1>oh nine ninety futures to tier eight negative twelve dot

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<v Speaker 1>futures negative at ninety one. Why don't you start with

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<v Speaker 1>John Miller. We sat him over by you because I

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<v Speaker 1>want to punch him over what the price of real

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<v Speaker 1>estates doing. It's his flaw. Wow. Well it's good to

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<v Speaker 1>do this though, Tom. And in John's latest report, you

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<v Speaker 1>can't buy anything but my be able to rent something right.

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<v Speaker 1>Rents actually in Manhattan fell in the first quarter, yes

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<v Speaker 1>on a year on a year of a year basis.

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<v Speaker 1>The median rent is down for the first time in

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<v Speaker 1>twenty four after four consecutive months. My entire staff of

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<v Speaker 1>twenty five year olds is coming in here to take notes.

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<v Speaker 1>Why do you yet just fell off his chair. It

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<v Speaker 1>hasn't been it's been a long time since we've been

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<v Speaker 1>having this discussion. But but I don't know if I

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<v Speaker 1>would get your hopes up too high in the sense

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<v Speaker 1>that they're going to continue to fall, simply because the

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<v Speaker 1>rental market is sitting within a very vibrant local economy

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<v Speaker 1>in New York City is running on all cylinders right

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<v Speaker 1>now with record employment growth and uh above population growth.

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<v Speaker 1>So it's it's a unique time. What what about the

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<v Speaker 1>rest of the boroughs well so well before that, um,

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<v Speaker 1>just just as a comment, why they're declining, It really

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<v Speaker 1>is because the high around the upper half of the

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<v Speaker 1>market is where all the supply is, and that's softer,

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<v Speaker 1>but the lower end, sort of the the entry level

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<v Speaker 1>market is still The rents have been rising, um quite

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<v Speaker 1>a bit, but we've hit sort of an affordability threshold,

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<v Speaker 1>I think, and as a result, what we're seeing in

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<v Speaker 1>the outlying suburbs record sales activity. So those thirty million

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<v Speaker 1>dollar apartments in a hundred story building across the street,

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<v Speaker 1>here are our twenty five year olds will get a

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<v Speaker 1>break on those with things that they would normally live

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<v Speaker 1>not so much, right, So the stake stay where you are.

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<v Speaker 1>But as far as the outer borrows go for we're

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<v Speaker 1>still seeing rent growth in Brooklyn. Brooklyn is still the

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<v Speaker 1>outlier of the boroughs, both in the sales market and

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<v Speaker 1>the rental market seems to be leading the way. Um,

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<v Speaker 1>and we're seeing softness and queens. So I think the

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<v Speaker 1>region itself is seeing weaker rents on average, but it

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<v Speaker 1>really is. Uh you have to look under the hood

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<v Speaker 1>to see where it's actually changing. Is it uh pause? Uh,

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<v Speaker 1>you know when when we've over build or is it

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<v Speaker 1>going to start coming back again as the weather gets warmer? Uh? No,

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<v Speaker 1>I mean, you know, we're we're taking into consideration a

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<v Speaker 1>seasonal It really what it is. And it's whether you're

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<v Speaker 1>talking about the sales market or the rental market in

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<v Speaker 1>the New York metro area, whether whatever we're talking burrows

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<v Speaker 1>or suburbs. The way to characterize the market in general

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<v Speaker 1>is soft at the top and firmer in the middle

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<v Speaker 1>and lower sections segments of the market. And that has

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<v Speaker 1>been the developing phenomenon over the last year. I saw

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<v Speaker 1>you quoted in a story. You're talking about those hundred

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<v Speaker 1>story um safe deposit boxes on billion what they call

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<v Speaker 1>billion billionaires, Like one of them has been now postponed

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<v Speaker 1>or something like that. Yeah, one eleven West fifty seven,

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<v Speaker 1>which was has a very small footprint. It's it's one

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<v Speaker 1>of those supertalls, as the British like to call them. Uh,

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<v Speaker 1>they're gonna delay hardcore sales effort for at least a

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<v Speaker 1>year just to get a sense, just to see if

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<v Speaker 1>the you know, the market starts to sort of restart

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<v Speaker 1>from there. The Jonathan Miller with this, folks, you're the

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<v Speaker 1>expert on this. I get this nationwide all the time,

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<v Speaker 1>particularly in New York and Boston and in Washington. On

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<v Speaker 1>the properties that we see in the New York Times magazine.

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<v Speaker 1>What are the taxes on those properties or is it

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<v Speaker 1>such a scam that they're paying a lot less then

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<v Speaker 1>we think they should. Well, it really depends on the property.

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<v Speaker 1>So if you're talking about a uh modest twenty million

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<v Speaker 1>dollar town house, you might be talking about real estate

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<v Speaker 1>taxes of seventy five hundred thousand a year. Uh So,

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<v Speaker 1>I guess are they paying their fair share twenty million

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<v Speaker 1>or even the the starter that Mike McKee is looking

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<v Speaker 1>at a four million forget that up, Thomas leading a

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<v Speaker 1>protest effort here. I get this all. No, I mean

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<v Speaker 1>I think on the so when you when you think

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<v Speaker 1>about the way the real estate taxes are calculated, certainly

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<v Speaker 1>on the condo market, uh proportionally versus single family that

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<v Speaker 1>there's less taxes paid on a condo. Yes, okay, fine,

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<v Speaker 1>But are the fat cats paying their fair share? Is

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<v Speaker 1>they park their non investment analysis CA jillions in our property? Well,

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<v Speaker 1>first of all, I want to I want to disclaim

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<v Speaker 1>that I don't know any fat cats. So come on,

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<v Speaker 1>they're lined up ten deep in four zip codes. They

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<v Speaker 1>don't care what the prices, they just put the money there.

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<v Speaker 1>Are they paying their fair share of taxes? It's the

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<v Speaker 1>number three questions I get. Well, I don't know about

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<v Speaker 1>fair share, but if you compare it by property type,

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<v Speaker 1>there's definitely disparities within the taxes and for residential real

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<v Speaker 1>estate in New York and it's been that way for

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<v Speaker 1>a long time. Um, it becomes more exaggerated when you're

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<v Speaker 1>talking about price points that are, you know, at levels

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<v Speaker 1>that we've never seen before. Uh million dollars, Mike, I'm

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<v Speaker 1>looking at a chart from metro Cosm, and this is

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<v Speaker 1>the kind of stuff that's out in the media, and

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<v Speaker 1>it shows fifteen Central Park West, which is I know

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<v Speaker 1>that's a starter place for you. You're such a hitter, Jonathan.

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<v Speaker 1>But in the seven forty Park Avenue, the Ris Carlton

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<v Speaker 1>blah blah blah blah blah, and they're paying way less.

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<v Speaker 1>Somebody with a three bedroom in Queens trying to figure

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<v Speaker 1>out if the number seven works today, Right, there's clearly

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<v Speaker 1>a disparity in the tax system between I didn't I

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<v Speaker 1>didn't write it, I didn't negotiate it. I don't know.

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<v Speaker 1>It's just that's the way it's always been, and it's

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<v Speaker 1>been that way, and there's clear disparity between single family

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<v Speaker 1>tax classifications and multifamily. Just that's the way it's set up.

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<v Speaker 1>And I don't mind the condo might help me here.

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<v Speaker 1>I don't mind the condo single family home thing. I

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<v Speaker 1>get that. But what I don't get is the perception

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<v Speaker 1>I hear from viewers. Thank you and listeners, thank you

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<v Speaker 1>so much for enjoying Bloomberg surveillance. That the guy you

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<v Speaker 1>named the name the borough, who's there. Let's say they're

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<v Speaker 1>making two fifty two forty all and three people working

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<v Speaker 1>whatever they got a tax bill? Great? And the fat

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<v Speaker 1>cats and I don't mean one fifty seven they all

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<v Speaker 1>pick on that monstrosity. I mean some fancy pants condo

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<v Speaker 1>in downtown. Are they paying the same in that seven

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<v Speaker 1>story condo downtown? Uh? You know, the valuation is set

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<v Speaker 1>up based on the assessment. It's the rate that is different.

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<v Speaker 1>So there are sus differently as the issue. Uh there,

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<v Speaker 1>Now it's it's the it's the tax rate for each

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<v Speaker 1>classification is different. So the tax classification of what what

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<v Speaker 1>a condo would fall in is at a lower rate

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<v Speaker 1>than that single family. I know that, but I this

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<v Speaker 1>I guess it is it is proportional to value. So

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<v Speaker 1>if you look at a condo in you know that's

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<v Speaker 1>selling for ten million and a condo that's selling for

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<v Speaker 1>two million, proportionally, they're fairly consistent, assuming there's no tax abatement.

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<v Speaker 1>Uh is it's Is it the same kind of complicated

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<v Speaker 1>story in a place like San Francisco. I mean we're

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<v Speaker 1>we're looking at the Good York real state is terrible.

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<v Speaker 1>San Francisco prices are terrible. They have the same issues.

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<v Speaker 1>Oh absolutely, Uh, one of the disadvantages they have over

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<v Speaker 1>us is that they can't expand outward and they can't

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<v Speaker 1>go higher because of earthquake country. Uh. Here we seem

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<v Speaker 1>to have figured out a way to go higher. And

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<v Speaker 1>in in Atlanta, you you spread outward like your departments

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<v Speaker 1>here seven forty Park, Avenue, number twelve and number thirteen.

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<v Speaker 1>You combine those, didn't you write? They say this article

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<v Speaker 1>says their actual valuations should be fifty they should fift

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<v Speaker 1>a million, and the value of the property taxes like

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<v Speaker 1>under four. Well, actually, in the case of seven forty Park,

0:10:04.600 --> 0:10:07.319
<v Speaker 1>which is a co op. Uh and actually there was

0:10:07.320 --> 0:10:11.360
<v Speaker 1>a fire in that building yesterday. Uh that the um

0:10:12.320 --> 0:10:14.920
<v Speaker 1>the taxes for co ops by the city are actually

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<v Speaker 1>calculated as if it were a rental, which is which

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<v Speaker 1>is a matter. I'm just telling you that I get more.

0:10:22.840 --> 0:10:26.000
<v Speaker 1>I get almost as many questions on this as I do.

0:10:26.240 --> 0:10:30.480
<v Speaker 1>There's no inflation drives our listeners nuts when economists say

0:10:30.480 --> 0:10:33.640
<v Speaker 1>there's no inflation, right right. I don't mean to beat

0:10:33.679 --> 0:10:35.840
<v Speaker 1>you to death. We want you to come back, but

0:10:36.080 --> 0:10:38.840
<v Speaker 1>this is a huge issue for people. As long as

0:10:39.120 --> 0:10:41.480
<v Speaker 1>I'm happy to come back, as long as they don't

0:10:41.520 --> 0:10:43.360
<v Speaker 1>think that I hang out with Okay, we gotta come back.

0:10:43.440 --> 0:10:47.440
<v Speaker 1>Jonathan Miller with Miller Samuel futures at negative eleven. Down

0:10:47.440 --> 0:10:52.760
<v Speaker 1>future is a negative eight. All right, let's check it

0:10:52.840 --> 0:10:55.040
<v Speaker 1>with like a bar. Now I'll get the latest nationals

0:10:55.480 --> 0:10:57.960
<v Speaker 1>national headlines. Mike Ton, thank you very much. The head

0:10:57.960 --> 0:11:01.000
<v Speaker 1>of a UN counter terrorism task WORSE has opened a

0:11:01.040 --> 0:11:03.720
<v Speaker 1>first of its kind conference in Geneva by declaring that

0:11:04.200 --> 0:11:06.880
<v Speaker 1>there is no quick fix, There is no magic wand

0:11:07.200 --> 0:11:10.679
<v Speaker 1>with which to confront violent extremism. The two day conference

0:11:10.679 --> 0:11:15.880
<v Speaker 1>includes government envoys, civil society advocates, social media gurus, and

0:11:16.080 --> 0:11:19.800
<v Speaker 1>UN officials. It's part of UN Secretary General Banki Moon's

0:11:19.800 --> 0:11:22.880
<v Speaker 1>efforts to address the root causes of terrorism. A local

0:11:22.880 --> 0:11:26.640
<v Speaker 1>officials says dozens of insurgents are dead after a pre

0:11:26.880 --> 0:11:30.440
<v Speaker 1>dawn attack on a Pakistani security post along the Afghan

0:11:30.480 --> 0:11:34.760
<v Speaker 1>border that's sparked an hours long gun battle. Firefighters are

0:11:34.800 --> 0:11:38.040
<v Speaker 1>setting backfires to try to corral a wildfire that jumped

0:11:38.080 --> 0:11:41.880
<v Speaker 1>the Colorado River from Arizona into California. Global News twenty

0:11:41.920 --> 0:11:44.840
<v Speaker 1>four hours a day, powered by our two hundred journalists

0:11:45.040 --> 0:11:47.000
<v Speaker 1>and more than a hundred fifty news bureaus from around

0:11:47.000 --> 0:11:49.800
<v Speaker 1>the world. I like Michael bar thanks so much coming back.

0:11:49.840 --> 0:11:53.320
<v Speaker 1>I promise I'll be civil to Jonathan Miller. Viller Samuel

0:11:53.320 --> 0:11:56.720
<v Speaker 1>will have a civil conversation on the uncivil business known

0:11:56.720 --> 0:12:06.640
<v Speaker 1>as your next property Bloomberg Surveillance. The news update brought

0:12:06.679 --> 0:12:08.640
<v Speaker 1>to you by a Flushing Bank. Open a complete business

0:12:08.679 --> 0:12:10.640
<v Speaker 1>checking account with fifteen thousand dollars a more and get

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<v Speaker 1>a free sixteen gig WiFi tablets a Flushing Bank dot com.

0:12:13.520 --> 0:12:22.920
<v Speaker 1>For details member ft I, see Equal Housing, Lenar Global

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<v Speaker 1>Business News twenty four hours a day at Bloomberg dot com,

0:12:26.600 --> 0:12:29.439
<v Speaker 1>the Radio plus Mobile Act and on your radio. This

0:12:29.840 --> 0:12:33.560
<v Speaker 1>is a Bloomberg Business Flash and I'm Karen Moscow US

0:12:33.600 --> 0:12:36.280
<v Speaker 1>dot indise. Future is moving lower this morning. Let's go

0:12:36.320 --> 0:12:39.320
<v Speaker 1>to the first Word Breaking news desk for today's morning call.

0:12:39.440 --> 0:12:43.160
<v Speaker 1>And here's Vince Signarella. Good morning, Vince, Good morning, Karen.

0:12:43.200 --> 0:12:46.240
<v Speaker 1>As you say, US futures are lower. Down is down eight, one,

0:12:46.520 --> 0:12:51.000
<v Speaker 1>SMP down eleven, NASA dick down twenty. The tenure yield

0:12:51.040 --> 0:12:53.760
<v Speaker 1>is slightly lower at one point seven three. Dollar is

0:12:53.840 --> 0:12:57.040
<v Speaker 1>mostly higher, with the one glaring exception of dollar yen,

0:12:57.440 --> 0:12:59.280
<v Speaker 1>which is off. It's one o eight oh two lows

0:12:59.280 --> 0:13:02.440
<v Speaker 1>training at one of thirty five on the US economic front.

0:13:02.520 --> 0:13:05.400
<v Speaker 1>At e thirty we have initial jobless claims. Ten thirty

0:13:05.440 --> 0:13:08.960
<v Speaker 1>e I A natural guests storage change. At three pm

0:13:09.000 --> 0:13:12.440
<v Speaker 1>Consumer Credit After the bell, FED share Janet Yelling takes

0:13:12.480 --> 0:13:15.400
<v Speaker 1>part in a discussion with former FED chiefs Ben Bernankey,

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<v Speaker 1>Allan Greenspan, and Paul Voker. In some of today's top news.

0:13:18.960 --> 0:13:22.160
<v Speaker 1>JP Morgan shareholders proposing that Jamie Diamond no longer hold

0:13:22.480 --> 0:13:25.600
<v Speaker 1>dual role as chairman and CEO. Mon Santos says it's

0:13:25.600 --> 0:13:28.000
<v Speaker 1>no longer sees large scale M and A as a strategy.

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<v Speaker 1>The US bracing for first quarter company earnings expected to

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<v Speaker 1>show the deepest, the steepest drop in six and a

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<v Speaker 1>half years, led by the energy sector. Live from the

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<v Speaker 1>First Word Breaking News desk. I'm Vincent Signarella, Karen very

0:13:42.160 --> 0:13:44.920
<v Speaker 1>thanks Vincent to hear live breaking news of your Bloomberg tape.

0:13:44.920 --> 0:13:47.280
<v Speaker 1>Squawk to go on your terminal. Let's ask you a

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<v Speaker 1>w K go. That's a Bloomberg business flash, Tom and Mike.

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<v Speaker 1>Karen thinks so much great, We appreciate that. Good morning everybody.

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<v Speaker 1>Bloomberg surveillance this morning. And as Karen mentioned, negative ten

0:14:00.400 --> 0:14:05.360
<v Speaker 1>and it's mentioned negative seventies seven on the dough is well.

0:14:06.440 --> 0:14:09.000
<v Speaker 1>Lots to talk about with John Miller first though Bloomberg

0:14:09.080 --> 0:14:12.600
<v Speaker 1>Surveillance brought you by Investco. Factor based strategies can help

0:14:12.640 --> 0:14:16.360
<v Speaker 1>investors focus on high quality, low volatility and more. Learn

0:14:16.400 --> 0:14:21.480
<v Speaker 1>more at investco dot com Slash High Conviction. Investco dot

0:14:21.520 --> 0:14:25.920
<v Speaker 1>com slash High Conviction. Jonathan Miller with US with Miller Samuel.

0:14:25.960 --> 0:14:28.000
<v Speaker 1>For all of our listeners Nation where we get a

0:14:28.080 --> 0:14:30.800
<v Speaker 1>huge response when you're on it's sick, how much down

0:14:30.800 --> 0:14:34.360
<v Speaker 1>payment do I need? Well, for the most part, it's

0:14:35.280 --> 0:14:37.240
<v Speaker 1>unless you go through f h A and then you

0:14:37.240 --> 0:14:39.200
<v Speaker 1>can get three and a half. It's like twelve people

0:14:39.320 --> 0:14:42.640
<v Speaker 1>right in the country. It is one of the reasons

0:14:42.680 --> 0:14:47.160
<v Speaker 1>why bank lenders credit conditions remain fairly tight on that

0:14:47.280 --> 0:14:52.280
<v Speaker 1>side of the lending circle. And um, that's one of

0:14:52.280 --> 0:14:55.440
<v Speaker 1>the reasons why we're seeing, you know, rising prices across

0:14:55.520 --> 0:14:58.600
<v Speaker 1>the U S. It's sort of choking off inventory still

0:14:58.680 --> 0:15:00.720
<v Speaker 1>to this day, and this has been going on for

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<v Speaker 1>so The rising prices on a microeconomic basis is because

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<v Speaker 1>there's nothing out there for sale. Correct, It's it's not

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<v Speaker 1>about wage growth, uh, you know recently, Um, and uh,

0:15:12.000 --> 0:15:14.600
<v Speaker 1>it really that's been the driver In fact, if you

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<v Speaker 1>look at n a RS existing homesale numbers, just over

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<v Speaker 1>the last two years, the year over year patterns for

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<v Speaker 1>inventory have either been negative or flat. Uh. And that

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<v Speaker 1>is correlated with rising home prices. Well, you know, as

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<v Speaker 1>an economist, you'd say, then markets will clear, they will

0:15:33.320 --> 0:15:35.880
<v Speaker 1>build more houses. But why why are they not meeting

0:15:35.920 --> 0:15:38.480
<v Speaker 1>the demand? Well, part there's a there's a lot of

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<v Speaker 1>moving parts. One of them is the emphasis on building

0:15:41.600 --> 0:15:45.720
<v Speaker 1>over the last uh few years has been skewed towards

0:15:45.760 --> 0:15:47.480
<v Speaker 1>the higher end of the market. And part of that

0:15:47.560 --> 0:15:52.360
<v Speaker 1>is because land sales uh have been remained stubbornly high.

0:15:52.640 --> 0:15:55.960
<v Speaker 1>And so as a result, um, when you have higher

0:15:56.000 --> 0:15:58.840
<v Speaker 1>going in costs, you have to create housing that's skewed

0:15:58.880 --> 0:16:01.720
<v Speaker 1>to the high end. So the supply at they'll say

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<v Speaker 1>the lower half of the lower third of the market

0:16:04.560 --> 0:16:09.040
<v Speaker 1>doesn't get additional product and that keeps it tight. And

0:16:09.120 --> 0:16:13.120
<v Speaker 1>that's why there's this pattern of sort of you know,

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<v Speaker 1>weak at the top. I'd like to say it's like

0:16:16.120 --> 0:16:18.120
<v Speaker 1>an ice cream cone, sort of soft at the top

0:16:18.200 --> 0:16:22.720
<v Speaker 1>and firm everywhere else, but that's probably a bad analogy. Um.

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<v Speaker 1>And and this is pervasive, uh, not just in urban markets.

0:16:26.680 --> 0:16:30.080
<v Speaker 1>But in suburban markets, outlying suburbs, the high end markets

0:16:30.520 --> 0:16:33.920
<v Speaker 1>tend to be the softest. Maybe it's a timing issue

0:16:34.240 --> 0:16:38.440
<v Speaker 1>where the high end markets sort of peaked first and

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<v Speaker 1>now we're looking at the rest of it. Is there,

0:16:41.680 --> 0:16:46.360
<v Speaker 1>what's the what's the hottest market in America? Oh? Yeah,

0:16:46.360 --> 0:16:50.200
<v Speaker 1>within two blocks on the Upper west Side. Well, you

0:16:50.240 --> 0:16:52.800
<v Speaker 1>know the way, Uh, First of all, I don't use

0:16:52.840 --> 0:16:55.920
<v Speaker 1>the word hot because then I'd be like it would

0:16:55.920 --> 0:16:58.920
<v Speaker 1>would be uncomfortable saying hot. But but but the way

0:16:58.920 --> 0:17:02.240
<v Speaker 1>I look at it is, uh, you know, we have

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<v Speaker 1>just in the New York metro area, we have pretty

0:17:05.280 --> 0:17:09.359
<v Speaker 1>brisk activity. Um, the outlying suburbs. Brisk, folks, can I

0:17:09.440 --> 0:17:16.240
<v Speaker 1>transfer Jonathan Miller talk, brisk means you can't afford it? Uh.

0:17:16.440 --> 0:17:21.560
<v Speaker 1>The the the brisk translation means that the pace of absorption,

0:17:21.680 --> 0:17:24.480
<v Speaker 1>meaning the number of months it would take to sell

0:17:24.520 --> 0:17:27.080
<v Speaker 1>all the inventory at the current rate of sales in

0:17:27.119 --> 0:17:30.760
<v Speaker 1>the outlying suburban markets and in some of the boroughs

0:17:30.760 --> 0:17:35.520
<v Speaker 1>like Brooklyn, are extremely low, four or five months, whereas

0:17:35.920 --> 0:17:40.040
<v Speaker 1>you know, something more balanced might be six, seven, eight months. Um.

0:17:40.119 --> 0:17:42.600
<v Speaker 1>So it's very fast, and it's very fast because you

0:17:42.680 --> 0:17:47.479
<v Speaker 1>have elevated sales activity, despite the problems with credit, in

0:17:47.520 --> 0:17:52.880
<v Speaker 1>addition to chronically low inventory except at the very high end,

0:17:53.320 --> 0:17:57.040
<v Speaker 1>right the super the super tall sort of phenomena we've

0:17:57.040 --> 0:18:00.920
<v Speaker 1>had in New York. That's that's where the activity has

0:18:02.359 --> 0:18:06.320
<v Speaker 1>one thousand, like one thousand, five hundred dollars per square foot,

0:18:06.359 --> 0:18:09.440
<v Speaker 1>two bedrooms to bath. It's a tiny place, it's got

0:18:09.520 --> 0:18:13.240
<v Speaker 1>zero charm. It's on the upper east Side, a great address.

0:18:13.880 --> 0:18:18.160
<v Speaker 1>Two point four million dollars. What's the taxes on that? Puppy?

0:18:20.640 --> 0:18:24.359
<v Speaker 1>Is there any hot neighborhood in New York? Now? So?

0:18:24.840 --> 0:18:29.800
<v Speaker 1>So right now, is that a co op? I don't know, Yeah, condo,

0:18:30.320 --> 0:18:33.200
<v Speaker 1>it's a condo. It's been it's been listed for six days,

0:18:33.240 --> 0:18:36.720
<v Speaker 1>so it's probably already gone. Yeah, you know. The way

0:18:36.720 --> 0:18:39.680
<v Speaker 1>to think of it right now, sort of, the average

0:18:40.359 --> 0:18:45.200
<v Speaker 1>monthly monthly counter charges, real estate taxes and common charges

0:18:45.240 --> 0:18:49.119
<v Speaker 1>together is is about a buck between a buck eighty

0:18:49.160 --> 0:18:51.040
<v Speaker 1>and two dollars a foot per month. So if you

0:18:51.040 --> 0:18:56.560
<v Speaker 1>have fifteen hundred feet the averages somewhere, that's right. Everybody

0:18:56.640 --> 0:18:59.639
<v Speaker 1>drove off the road outside a hundred mile radios New

0:18:59.680 --> 0:19:03.600
<v Speaker 1>York and last three thousand a month, and that that's

0:19:03.640 --> 0:19:06.560
<v Speaker 1>just the monthly carry. Yeah, that's that's but part of

0:19:06.560 --> 0:19:10.560
<v Speaker 1>that seductible if you're real estate taxes. But but but

0:19:10.640 --> 0:19:15.120
<v Speaker 1>that's the number of killing me, helping Mike. I can't.

0:19:15.480 --> 0:19:20.800
<v Speaker 1>Once again, I'm speechless, so combative, John. They're on line,

0:19:20.880 --> 0:19:25.280
<v Speaker 1>I kid you not. They're lying up outside my building

0:19:25.840 --> 0:19:29.240
<v Speaker 1>looking at proper Tom. Nobody speaks English, and they're all

0:19:29.320 --> 0:19:33.640
<v Speaker 1>carrying very expensive briefcase. In the first quarter of two

0:19:33.640 --> 0:19:38.159
<v Speaker 1>thousand and sixteen, our research showed that of the transactions

0:19:38.160 --> 0:19:42.600
<v Speaker 1>that closed in Manhattan sold at or above list price,

0:19:43.440 --> 0:19:47.280
<v Speaker 1>and so obviously above list prices a bidding war and

0:19:47.520 --> 0:19:51.200
<v Speaker 1>uh at list prices, probably half of that is a

0:19:51.200 --> 0:19:55.400
<v Speaker 1>bidding war. So that ends up getting you, like the Tans.

0:19:55.520 --> 0:19:58.200
<v Speaker 1>Don't be a stranger, come buy more off Jonathan Miller

0:19:58.280 --> 0:20:03.240
<v Speaker 1>with our briefing on real estate. It's Bloomberg surveillance. I

0:20:03.320 --> 0:20:07.160
<v Speaker 1>need I need medication. Covering up there. With all due respect,

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