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Housing Units Sold show Significant Increase Year over Year

According the New York State Association of REALTORS, Housing Unit sales for the 1st quarter of 2010 are up 17.7% as compared to the same period of time in 2009.  Additionally, the unit sales in the Greater Capital Region Association of Realtors show a 11.9% percent climb for the same area.  

New York Metro area is up over 24.5%, and with an increase in price by approx. 3.4% as well.  The only metro markets to out perform New York in both categories for the quarter are Pittsburgh, St. Louis, and Boston.

This seems to indicate that a change for the better is on the way, and perhaps we have reached the bottom of the curve and are on the doorstep of the housing recovery.  Let’s hope the trend continues for Q2.

Posted in Market News, Real Estate News.


Paulson: Housing Prices Could Climb 8-10% Nationwide in 2011

John Paulson, the hedge-fund manager famous for betting against mortgage securities, is now bullish on the U.S. housing market and the economy. During a conference call with investors April 21, Paulson said he was
concerned earlier this year about a potential double-dip recession. “I’m not concerned about that at all today,” he said. It’s more likely there could be a V-shaped recovery, Paulson elaborated. House prices have stabilized and could climb 8% to 10% nationwide in 2011, he added.

– “Paulson & Co. Turns Bullish on Housing, Economy,” by Alistair Barr, MarketWatch, April 21, 2010.

Posted in Market News, Real Estate News.


Let’s secure the future of Racing in NY – TODAY!

The economic impact of no action, or the possibility of the wrong direction on the issue of VLT’s and NY Thoroughbred racing is staggering.  Saratoga County and Washington County are filled with magnificent facilities that are designed to breed winning race horses.   This is a major part of our culture in upstate New York, and the lifeblood of industry in many small towns. 
There are horse farm owners heading for the hills, and this is not good for our region.  If we continue to allow this, the well known mantra that is on the signs which stand near the various gateways to our community and say “Health, History, Horses” will need to be modified to say just “Health”.  One could seriously read into the ironny in that!
 
Please read the following article published in the Post Star, and written by Drew Kerr:   Farm Sales Stagnate

Posted in Market News, Real Estate News.


C’mon NY politicians – Let’s get our act together on this one.

horseThere has been a lot of speculation as of late with regards to the future of thoroughbred racing.  The financial problems that NYRA (New York Racing Association) has laced the news creating fear and doubt with regards to the viability long term of it’s continuation.  

Thoroughbred racing is one of the more important tourism revenue streams for our state, and especially Saratoga Springs, NY where once a year for 6 weeks (7 weeks in 2010), this vibrant city is bustling with hundreds of thousands of visitors patronizing the countless shops and restaurants.   The Saratoga Race Track is a historic place, and allows visitors to experience a timeless journey into the world of the 1800’s as the venue is largely unchanged since it’s inception.  There is history, tradition, and most importantly an economy in this city because of this race track. 

It affects the entire quality of life in Saratoga, and has a significant impact on property values too.  The threat of closure is totally unacceptable, especially in light of the fact that there is a realistic and viable solution in play.    VLT’s (Video Lottery Terminals), which look like slot machines, are a natural compliment to this environment, and in a very short period of time, can balance the NYRA books.  The estimated revenue associated with this at the Acqueduct track in New York is a potential $1Million PER DAY!  

There is a debate in play regarding the likely operator of this VLT’s, but enough with the posturing and politics.   Every day that there is no decision, is $1Million in opportunity cost gone forever.  Make informed and swift decisions on this topic and let’s execute.

For more detail on this topic, please read the ESPN article by Bill Finley entitled “Will NY politicians, OTB Kill Racing”

Posted in Market News.


At Least New York isn’t on this List

In a recent article provided by Luke Mullins from US News, a discussion was laid out regarding America’s most under water cities.  In this article, the term “under water” is referring to negative equity situations – when your mortgage value is higher than the value of your home.   Obviously, this is a result of the horrific housing crisis that has been plagueing the US for the past 1.5 years.  

While New York does have it’s disadvantages as a place for primary residence – primarily taxes and out of control goverment costs, at least we did not make the list of America’s most underwater cities.  This just after New York was found to be the worth state in the entire union for taxation and cost of living.

The cities in the deepest Negative equity situation are as follows:

  1. Las Vegas, NV
  2. Merced, CA
  3. Phoenix, AZ
  4. Orlando, FL
  5. Greeley, CO
  6. Bend, OR
  7. Minneapolis – St. Paul, MN
  8. Memphis, TN
  9. Cleveland, OH
  10. Grand Rapids, MI

In New York, we fortunately have the largest economic engine in the world within our boundries in NYC, and beautiful vacation land and resort destinations.   But the real prop for maintaining housing values is (ironicly) is the large government (largest employer by far) which props the steady maintenance of jobs, and more importantly the positive, large scale economic development projects that are underway in Upstate New York, namely Global Foundries.  With projects such as Global Foundries, and hopefully more of them, Upstate New York can emmerge as a economic center itself, and what a gift, so close to the majestic Adirondack Park.

Great job NY for staying of one of the lists of negativity!

Posted in Market News.


What Recession? Sotheby’s London sets world record

l_homme-qui-marche-iWhile the economy is battered and beaten, and real estate values are in the midst of a worldwide correction, it seems that collectors of fine art, are resetting market barriers themselves.   It is clear that SCARCITY is the common denominator between all things of value, and the recent Sotheby’s Impressionist and Modern Art sale in London, certainly demonstrates this.

In a historic sale at Sotheby’s, Alberto Giacometti’s L’homme qui marche I (Walking Man I) set a world record for a work of art at auction when it sold for $104,327,006 . The sale of that work was swiftly followed by that of Gustav Klimt’s Kirche in Cassone, which made  $43,208,606 – a new record price for a landscape by the artist. These two works headlined a sale that realised a record-breaking total of $235,659,502  – making it the highest value sale ever staged in London.

More Details, Click Here

Posted in Market News.


Rough Economy forces consolidation in Non-Profits

The past few years, I have been involved in a few non-profits with great purpose and mission.   It has become increasingly difficult to raise money due to the competitive nature of the non-profit industry, and because of the drasticly receding economy as a whole.     Fortunately, the non-profits I’m involved in are totally volunteer, and nearly all the monies raised go directly into the core mission.

According to a recent article in the Wall Street Journal, there is a growing trend of non-profit closures and consolidations.  This is more prevelant among the charities with staff and overhead to content with, but non-the-less, the trend is now upon us, and our economy / society will be faced with an everchanging and evolving landscape in this regard.

It is only natural that all industry sectors follow suit and move into consolidation stages as well, as it is primarily the most logical step towards financial recovery and economies of scale.   2010 should be a year filled with major changes and developments worldwide and throughout all industry sectors.

To read the Wall Street Journal article entitled:  ”
Once-Robust Charity Sector Hit With Mergers, Closings”, CLICK HERE

Posted in Market News.


Chance for development stokes debate in Malta

By EMILY DONOHUE, The Saratogian

MALTA — Malta “needs to decide what it’s going to be when it grows up,” says Anthony Tozzi, the town’s building and planning coordinator.

With the largest construction project in the country happening in their backyard, town officials and residents are embroiled in a debate about what development in Malta’s downtown — the 1.8-mile strip centered on Route 9 between Knabner and Cramer Roads — should look like in the future.

Many business owners and residents say all new businesses should be encouraged. Others, including Supervisor Paul Sausville, believe growth needs to be curbed to preserve the town’s rural character.

Matt Little, whose family has owned and operated Just Meats deli in the town for 30 years, said he is “fine with Malta being opened up to every kind of business.”

Just Meats moved two years ago to a new location on Route 9 because new roundabouts near their old location made traffic too hectic for their customers. The roundabouts along that stretch of road were part of extensive infrastructure improvements that have accompanied the GlobalFoundries chip plant that’s under construction.

“I would hate to see our small business or other family businesses pushed out, but I think we have a great client base,” Little said. He added that the deli has already seen an increased lunch crowd since construction began at GlobalFoundries.

Malta’s master plan, adopted in 2005, lays out a vision for the downtown with a “dense development pattern … attractive streetscape and pedestrian access.” The document, which Tozzi calls a “guiding instrument” for his department, also states that “each successful business will improve the quality of downtown, add to the economic viability of the town and create a place where Malta residents can work and live.”

Sausville plans to propose several changes to the portion of the master plan that relates to downtown during rezoning workshops this week. One of those changes is deleting the text referring to a “dense development pattern.”

The town will host three workshops this week to consider rezoning areas of the downtown district. The workshops — set for 6:30 p.m. Tuesday, Wednesday and Friday at Malta Town Hall, 2540 Route 9 — are open to the pubic, but public comment will be limited to the end of the meetings.

Any way you slice it, changes are in store for Malta, particularly for its Route 9 corridor and downtown area.

GlobalFoundries broke ground last summer on a long-awaited microchip foundry located in Malta’s Luther Forest Technology Campus (LFTC). The $4.2 billion project is anticipated to bring 1,400 jobs; local leaders hope ancillary businesses will contribute another 5,000 new jobs to the region. Hudson Valley Community College recently opened a satellite campus adjacent to LFTC called TEC-SMART with a focus on training for careers in the nanotechnology and alternative-energy fields.

With that influx of financial investment and people headed toward Malta in the coming years, the town’s officials and residents want to encourage growth while discouraging sprawl. But striking the right balance and developing a clear vision have not been an easy process.

Earlier this month, Sausville proposed a building moratorium for the town while these possible zoning and master plan changes are considered, but he ultimately backed away from the proposal when developers, real estate agents and other residents said it could have a detrimental effect on the town’s economy.

“I didn’t want builders to continue to invest in a city-like vision when (that vision) might change,” he said in a recent interview.

Sausville said the goal of his proposed changes to the master plan is to reduce ambiguity in the existing document. His proposed changes also include increasing the distance buildings must be set back from the street and reducing the allowable height for new buildings from three to five stories to one to two stories.

Tozzi, the building and planning coordinator, said the current downtown zoning is designed to “create a town center and aggregate population in the town center and concentrate services to keep the outlying and more rural areas the same.”

“The zoning goes further to say development should be good for the town, create walk-ability and a sense of place,” he said.

Sausville campaigned for re-election in the fall on a platform of maintaining Malta’s rural character and controlling development. While campaigning, he distributed surveys with questions about how residents would like to see Malta grow, and he received about 140 completed surveys back.

Though far from a scientific survey, Sausville said the data he collected is “the best we have.” He says respondents overwhelmingly supported what he calls “hamlet-style” development with one- and two-story buildings, a departure from the town’s current master plan.

“It would be disrespectful of me to go out and ask people for their opinions …  and then not honor them,” Sausville said. “I have to operate on the basis of what people tell me.”

To that end, he is proposing adding language to the master plan that would codify the “hamlet-style” idea. He wants to include a sentence stating that Malta should be “hamlet-like with one- and two-story buildings with green space and sidewalks in front.”

Bill Parker, a spokesperson for Malta Concerned Citizens, questions whether Sausville’s surveys are at all representative of the views of the majority of residents.

“We’re very concerned about the town supervisor and just a few constituents trying to … turn back the clock,” Parker said. “We want to see our current zoning stay the way it is and allow our town to develop.”

The town’s downtown is currently zoned to allow “high-intensity development.”

Sausville said he feels Malta needs to consider its future in a regional context. “Why would we want to create an urban environment right in the middle of three urban environments that already exist?” he asked, referring to Saratoga Springs, Ballston Spa and Mechanicville.

Malta’s Town Board has already taken steps to control the town’s growth. Tozzi said one of the most unique aspects of Malta’s development is the use of Planned Development Districts, or PDDs. The PDD process requires developers to go before the Town Board twice and allows the town to require developers to include something that would benefit the town, like a park.

There are 53 separate PDDs in Malta, compared to about a dozen in neighboring Clifton Park. “I think it’s a cultural thing in Malta,” Tozzi said.

The Luther Forest Technology Campus is one example of a PDD — the developers made large payments to Malta to fulfill their requirement to benefit the town. The State Farm Insurance building and Shops of Malta shopping center are also PDDs.

The PDD process “requires the Town Board to be accountable for growth,” Sausville said, adding that it has “worked very well for Malta.”

Parker is not so sure: “By virtue of the PDD process, we have squelched or killed projects,” he said.

The process is “lengthy and cumbersome and more expensive” for developers, he said, and discourages some good projects from locating in Malta.

Parker said many Malta Concerned Citizens members plan to attend the workshops this week to voice their opposition to changing the master plan.

Despite some opposition, Sausville said he feels his changes represent the will of the people, as evidenced by the results of his surveys.

“The aspirations and the vision of the town belong with the people,” he said.

Posted in GlobalFoundries News.


GlobalFoundries inks deal with Qualcomm

Source:  Business Review, by Pam Allen

GlobalFoundries Inc. has landed Qualcomm Inc. as its fourth and latest customer.

Terms of the deal were not disclosed.

GlobalFoundries is the Sunnyvale, Calif.-based chip maker building a $4.2 billion computer chip factory about 25 miles north of Albany in Malta, Saratoga County. The plant, called Fab 2, is scheduled to begin operations in 2012.

Qualcomm (Nasdaq: QCOM) is among the largest semiconductor companies in the world. The San Diego, Calif. company said it expects to submit designs for it chips later this year at GlobalFoundries’ manufacturing plant in Dresden, Germany. Qualcomm is a fabless chip maker that designs semiconductors for handheld and wireless devices; its foundry partners include IBM Corp. (NYSE: IBM), Samsung, Semiconductor Manufacturing International Corp. of Shanghai and Taiwan Semiconductor Manufacturing Co.

GlobalFoundries secured its second customer—Geneva, Switzerland-based STMicroelectronics, in July 2009, and its third, U.K.-based Advanced RISC Machines, in October 2009. STMicro (NYSE: ATM) is the fifth largest semiconductor company in the world. Chip production for those companies also will be done at GlobalFoundries’ Dresden facilities. Before then, GlobalFoundries’ only customer was Advanced Micro Devices Inc. (NYSE: AMD).

AMD spun off GlobalFoundries in February 2009 as part of its move to adopt a “fabless” business model, a growing trend in the semiconductor industry. The Dresden plants, formerly owned by AMD, now by GlobalFoundries, already manufacture AMD’s products. Sunnyvale, Calif.-based AMD has a 34-percent stake in GlobalFoundries; Advanced Technology Investment Co., an investment fund owned by the Abu Dhabi government, owns the remaining 66 percent.

GlobalFoundries spokesman Travis Bullard said it was too early to tell if production of Qualcomm’s designs would impact operations at the Saratoga County plant.

Posted in GlobalFoundries News.


What NOT to buy in 2010

I recently read a very interesting article on SMARTMoney.com entitled “10 Things Not to Buy in 2010″. Here is the list:

  • DVD’s
  • Home Telephone Service
  • External Hard Drives
  • Smartphone also rans
  • Compact Digital Cameras
  • Newspaper Subscriptions
  • CD’s
  • New College Textbooks
  • Gas Guzzling Cars
  • Non-energy effecient Homes and Appliances

Some of these where pretty obvious like CD’s, DVD’s, Gas guzzling cars.  Newspaper subscriptions we have already seen the significant deteriations of these markets in the last 2 years.   Advertisers are significantly cutting back because there is no easy way to measure effectiveness, and in todays fast paced world by the time the newspaper prints, the news is old and has already been out on the internet and handheld information gathering devices, so consumers are less likely to subscribe anymore.  I get calls every couple of weeks with subscription offers that are ridiculously low, probably so that they have a reason to run the printing press, but I still tell them I’m only interested if it’s free.  In a waste conscious world, the weekly pile up of unread newspapers or newspapers that people are finished with is mindblowing.  Today you can get all the same information faster, with zero waste!  Although there is something to be said for the sound of the crinckle in the AM will sipping a cup of coffee.  Reminds me of  a time gone by.

The one I found most interesting was Home Telephone Service.  I certainly knew this was coming because most people have a cell phone, but for some reason (self included), people still always seem to identify with the phone number “at the house”.  Not sure why we are stuck on this, but it’s true.  Perhaps this is the decade where we ”cut the cord”.  I certainly plan on trying out the MagicJack with a single annual payment to solve the house phone need.  I think that is a great solution provided that they solve the problem of being able to “Port your home number”, which the website claims they are working on. 

Of course the question one always asks when reading an article like this:  Does the publishing of this article speed the reduction in these markets, or are they just reporting on what is already happening.  I think it’s probably a combination of both.

Here is the link if you want to read the full story: http://www.smartmoney.com/spending/budgeting/10-things-not-to-buy-in-2010/

Posted in Market News.