Real estate market for 2014: Optimistically cautious

By Eliezer Rodriguez At a recent meeting of my board of governors, a member reported that the general public has returned to consumerism and that he is optimistic about the real estate market for 2014. A January market report released by the New York State Association of Realtors (NYSAR), supports that optimism. The report states the sale of single-family homes increased 12.6% in 2013, a six year high, and the annual medium sale increased by 5.6%, the highest since 2008. Moreover, governor Cuomo recently made some proposals that may further enhance the existing optimism. In his State of the State address, the governor proposed to: freeze property taxes for two years; phase in a property tax reduction for families that make less than $200,000; and give renters who make less than $100,000 a refundable personal income tax credit. The refunded credit will depend on the size of the family. Last week, governor Cuomo proposed to reduce the upfront costs of buying a home. New York State leads the nation in highest total closing costs. This is a definite plus for those seeking the American dream of homeownership. In response to governor Cuomo's proposals, my friend, Duncan MacKenzie, chief executive officer of NYSAR said, "New York State's obscenely high property taxes are shameful and can create an insurmountable barrier to homeownership for hardworking families. Governor Cuomo's plan strikes at the heart of this issue - this is ultimately a spending problem more than a taxing problem. New York's Realtors believe consolidations and shared services are key components of a long-term solution to the property tax crisis." Although the real estate market is looking good for 2014, we must not forget that there was a significant turnover in our city council. As a result, we have to begin from square one with our lobbing efforts to address the many outstanding proposed legislation that may affect our trade. So, if you support "broker rebates," or the registering of "team names" with the Department of State, or "transparency and disclosure in cooperative housing," or "increasing the threshold for the mansion tax," or "exemption of mortgage tax for first time homeowners; then, you ought to think about investing with our Realtor Political Action Committee (RPAC). RPAC serves an invaluable role in fighting to protect the interests of Realtors. I want to remind our members and friends to take a few minutes and browse the NYSAR web page. If you do, go to the foundation and committee and learn about the funds that are available to Realtors wishing to advance their real estate careers through education. You will find opportunities that are available to assist families and individuals in overcoming the obstacles of homeownership. If you are an appraiser, you might find the information under appraisal committee interesting. Young real estate professionals are also encouraged to visit the site as there is something for you as well. Before I close, here is my public service announcement. If in the course of your business you screen prospective tenants on behalf of a landlord, then you must provide certain disclosures to the tenant. The Tenant Screening Law applies to brokers and all of their associated licensees. A few days ago, a member called my office because he received a violation from the New York City Department of Consumer Affairs for not having the required signage. Go to the NYSAR.com website and make sure that you are in compliance. I will be attending the 2014 Mid-Winter Meetings from February 10th - 13th. If you are planning to go, please take a moment to say hello. And to my friend and immediate past president of the Manhattan Association of Realtors, Robb Pair, you owe me a dinner and congratulations to their newly installed president, Zhann Jochinke. Eliezer Rodriguez is the association executive of BMAR, Bronx, N.Y.