It’s been two months, and the casino is settling in. The anticipation, and now reality, of having a full scale gambling and extended entertainment venue in Sullivan County, NY is beginning to take shape along many fronts. Read the extended article and listen to the podcast for a fuller understanding of the what Resorts World Catskills is doing and how it is effecting the local economy and infrastructure.
For 2017, home sales in Sullivan County NY increased by 2.2 percent with end of year total accounting for 590 home purchases. Median prices rose from $128,000 to $135,000 accounting for a 5.5 % increase from 2016 levels. Medium pricing is defined by 50 percent of homes sold fall above $135,000 with the remaining 50% falling below that number. (See Local Realtors: Pace of home sales largely returning to prerecession levels)
Local Sullivan County brokers anticipate stronger sales for 2018 with many more showings occurring in the usually slower winter months. The “Casino Effect” has shaped the Monticello, NY market to some extent by creating excitement and new motivation for home buyers to consider buying while commercial investors continue to eye the area to determine long term investment potential.
Overall, realtors® are optimistic 2018 will continue the upward trend with m.)ore buyers and somewhat higher pricing due to stronger demand. The rental market is being driven by the new casino housing demands while other businesses continue to expand job opportunity creating a better return on investment for rental property.
Posted Feb. 18, 2016 at 12:55 PM
Updated Feb 18, 2016 at 1:04 PM
Read The Associated Press article here. Then, consider the following implications for the Montreign Resort and Casino at Adelaar.
If casinos are built in Northern Jersey and perhaps Manhattan, the Sullivan resort scheduled to open in early 2018 could be in serious trouble. The article makes the “over saturation” and “slice of the pie” arguments. There is a limited number of gambling folks thus the proliferation of casinos within a short driving radius of the NYS Metro area will simply dilute the customer base.
Goodbye jobs, major development, economic bounce-back, etc for Sullivan County. This is a nasty prognostication few in our Sullivan Catskill Community welcome. There is no input to render as to how New Jersey, and the New York State Gaming Commission will react; nor are the cards dealt regarding the business consortiums who make the decisions to build or pass on a casino development.
The implications for investors, as mentioned in my previous blog on this subject, is substantial. And, that is why a “wait and see” attitude concerning property purchases has been adopted by those who follow casino/business news. Based on the uncertainly of the Montreign’s ultimate success, residential sellers should be very cautious about pricing and believing there is now a seller’s market underway in Monticello, or for that matter, Sullivan County, NY in the entirety.
Steve Israel is a veteran reporter for the Times Herald Record daily newspaper. He’s been reporting on casino issues in Sullivan County for many a year and knows his facts. Here is his recently published article entitled “Sellers galore, but few buyers for property near Sullivan casino site”.
Sellers believe they’ve found the golden goose and are holding out for prices many investors and developers have passed on this far into the speculation arena. Just as the California Gold Rush produced great wealth, so too will properties surrounding the Montreign Resort/Casino at Adelaar.
Several or more factors, however, will determine just what the agreed to price tag will be for properties in the immediate casino area. There is an economic debate among casino business aficionados as to the ultimate success of the Monticello Casino. Major competition may be on the horizon in Northern New Jersey, Atlantic City will continue to draw, Indian owned properties maintain some market share, the Pennsylvania Pocono casinos are close by, road infrastructure concerns about traffic from New York City are being discussed, and the general sense the gambling scene is over saturated all contribute to the wait and see attitude taken by a more cautious investor mind set.
Residential sellers should be mindful of the message. A casino may be coming to town, but home values may remain static. Pricing within the current comparables is prudent for the time being. Supposing you’ve got the goose and raising your price based on what you believe is common sense, may not be the right approach. If you need or want to sell, forget the casino hype and call me for comps before you count the goslings who have not yet hatched.
It’s full speed ahead in the Sullivan County, NY Catskills. New York State has granted the required gaming license permitting the Adelaar Casino, at the Montreign Resort, to operate a full scale, Las Vegas/Atlantic City type gaming complex.
The local excitement and enthusiasm surrounding the build out is palpable with business meet-ups, rejuvenated Chambers of Commerce events, and county level, municipal planning sessions evident.
EPR has sponsored two recent job and contractor events in both Sullivan and Orange County and is the lead company responsible for resort development. According to the Wikipedia: “Empire Resorts is a company that owns the Monticello Raceway racino in the Catskill Mountains 90 miles from New York City. Headquartered in Monticello, New York, Empire is 78.6% owned by Kien Huat Realty Sdn Bhd of Kuala Lumpur, Malaysia.
Local projects envision an influx of tourist dollars to be generated by the renewed interest in Sullivan County. This former tourist, destination fallen on hard times over the last fifty years, is making a come back. Investors and speculators are measuring up potential opportunities as the infrastructure revs up for the billion dollar Montreign Resort.
Look for continued commercial real estate sales to burgeon with residential rental inventory tightening. Working men and women need solid housing and in the short run, Sullivan doesn’t have near enough to accommodate the influx of temporary workers.
The rental market will continue to grow based on the new jobs created by the resort project. Expected to be completed in early 2018, two thousand plus jobs will drive the need for comfortable and affordable housing.
Residential real estate will also enjoy a boost driven by the Sullivan County revival. Still a buyer’s market right now, sellers can look forward to a more even market where fair value eventually returns to par.
All in all, prospects are brighter than ever for Sullivan County. Second home owners still have the rarefied back road byways, commercial interests will seize routes 42, 52, 55 and I86/Route 17 corridor leading to Monticello.
Look for real estate price improvement and be sure to contact me for current information about Sullivan, Ulster, Orange County.