Thursday, July 17, 2014

The New York and Brooklyn Q2 2014 Market Report is out now!

Good Morning!

High prices and low supply continued to be the story of the Manhattan real estate market in the second quarter. Though things have slowed down quite a bit from the torrid pace of the last year, we still saw the number of sales rise for the seventh straight quarter.  A few key themes in the market over the past 90 days are:

·         Low Inventory – supply remains low, but is improving
·         Sales Slowed – primarily due to high prices but also lower supply means there are less properties to sell
·         Luxury Apartments and Condos are Driving Prices – the bulk of sales are not in this segment, but a $70 million 5th Ave apartment and a $26 million doorman-less co-op in SoHo will skew numbers

According to New York Magazine, inventory was still a problem despite the number of listings increasing by 18 percent as the real number remains a relatively low 5,659 properties.  There still plenty of activity in the market, but there has been a little bit of a slowdown as activity is not increasing at the same rate that it was over the last year.

Buyers reportedly continue to struggle with bidding wars as 45.9 percent of listings found takers at or above the asking price, the largest market share in the past six years. 

But sales do look promising as supply continues to rise.  As more people put their homes on the market looking to fetch peak prices, costs will begin to go down as that supply goes up.  There is also the expected increase of luxury condos hitting the market at the same time in Midtown with approximately 750 units headed that way. However, for the time being, with the average home price currently at a record $1.7 million, buyers are showing some resistance and restraint when making purchases, especially when we look at properties in the $5-$10 million range.  There, we are seeing properties more stagnant and on the market for longer periods of time.  All factors that will contribute to reining in prices.

Crain’s New York Business had similar reports showing the pace of sales in the second quarter slowing significantly due to the sharp price increase. The median sale price of a Manhattan condo was $910,000 this quarter - a 5.2% increase since last year.

The condos that are being built are commonly luxury or ultra-luxury, affording developers the ability to make their money back at a steep price point- essentially causing the median average prices to climb.

According to the Wall Street Journal, condo prices have dropped below the record prices set during Q1 possibly due to a lull in new development completions. Brokers and developers fear the likelihood that buyers are beginning to resist the sky-high prices.  Prudence on the part of buyers can be seen in other portions of the market as well as typically tepid co-op numbers far outpaced condos in terms of the growth of both median sale price—which was $725,000 for the second quarter—and sales volume.


Thursday, April 17, 2014

The New York City Real Estate market remains ultra-competitive due to low inventory and low interest rates

Prices are up, inventory is low and the market is ultra-competitive

Limited inventory is the theme in the sales market this spring, particularly for those who can’t afford to spend $3 million and up, experts said.
If you’re looking to buy new property for under $2 million, Manhattan won’t have it.
“It’s definitely competitive,” Gary Malin, president of real estate group Citi Habitats, said of the spring sales market. “There’s lots of bidding wars going on, lots of best-and-final [offers] going on.”
In other words, few apartment hunters are getting their first choice these days.
Inventory in Manhattan in the first quarter of 2014 declined by 17% from the first quarter of 2013, according to a Citi Habitats sales market report; apartments priced between $2 million and $5 million made up 16% of total sales in the first quarter of this year, up 2% from the year before.

Read the full story here:

Tuesday, April 15, 2014

New York City Doorman Strike Averted

Union for New York City’s doormen, handymen gets contract, averts strike  

Service Employees International Union 32 BJ, or SEIU 32BJ, agreed to a tentative four-year deal that includes a 11.3% raise for doormen and handymen who work in residential buildings.

Published: Friday, April 11, 2014, 4:27 PM
Updated: Friday, April 11, 2014, 6:47 PM

NEW YORK - APRIL 14:  A doorman, who preferred not to be identified, stands outside of his building on the Upper East Side of Manhattan on April 14, 2010 in New York City. New York City doormen, handymen, porters, and other apartment workers are threatening to strike next Wednesday unless they get to keep all their health benefits and sick days. The union representing the doormen, SEIU 32BJ, says 3,200 apartment buildings could be affected by a strike.  (Photo by Spencer Platt/Getty Images)

The union representing doormen and handymen reached a tentative agreement Friday with the Realty Advisory Board, averting a possible strike that would have affected thousands of city residents.
Service Employees International Union 32 BJ agreed to a four-year deal that includes a 11.3% raise for doormen, supers, handymen and porters who work in residential buildings.

Read more:


Wednesday, March 19, 2014

44 Manhattan and Brooklyn new developments slated for Spring 2014

Just like the temperatures heading into spring, the real estate market tends to warm up. But this year, the sheer amount of action is white-hot, way ahead of the mercury on the thermometer. Why? A whopping 44 new developments are launching this spring—that's condos and rentals—in neighborhoods from Inwood to Williamsburg. Get ready for some big names (and pricey properties) at the Woolworth Building, Stella Tower, and 30 Park Place's Four Seasons Private Residences. Park Avenue South's Fortress of Glassitude is also, at long last, ready to roll. Meanwhile, there's TF Cornerstone's massive rental tower, the last of six it has erected along the Long Island City waterfront, and tons of smaller buildings in Brooklyn, some with just a handful of units. Know of any building we've missed? Please share in the comments or with the tipline, and we'll add it to the map. Take a look at the whirlwind of activity below, which brings one word to mind: Brace.

Read the full story here:

Wednesday, January 15, 2014

2013 New York Real Estate Year in Review

Good Morning and Happy New Year! 2013 roared to a close, with the Manhattan residential real estate market setting sales volume records, rising by 30 percent in the fourth quarter. Inventory dwindled to its lowest rate in 14 years, with approximately 4100 listings available at the close of the year. Observers agree that buyers both gained confidence in the economy and were spurred to action by the potential for continued rising interest rates. The median sales price for condos rose by a stunning 14.3 percent over 2012, reaching an all-time high of $1.32 million, according to Crain’s New York Business.

However, the condo median price increase was driven primarily by sharp rises for sales of luxury units, new developments, and larger units. In addition, foreign buyer interest continues to drive high-end condo sales. High-end condo sales represent only about five percent of the market, however. Co-op sales, about 60 percent of the market, had a modest median price increase of 4.6 percent in 2013, reaching approximately $680,000. A modest increase in the mid-range market is probably good news, according to some observers. It suggests there’s no market “bubble” and price increases are sustainable.

While the coming year looks good for sellers, they should nevertheless be wary of setting an unrealistically high price for their property just because prices overall are climbing. If you’re putting an older property on the market or a smaller or non-luxury unit, it’s probably not reasonable to expect it to fetch a double-digit price increase. Buyers are looking at continued tight inventory in 2014. They’ll probably have to spend more time looking for what suits their needs and should be ready to move quickly when a good option becomes available.

Overall, 2013 was a great year for Manhattan real estate and we expect 2014 to continue the upswing. I’d be happy to discuss Manhattan’s real estate picture in greater detail. Please email me to set up an appointment. I would also welcome the opportunity to discuss your real estate needs and plans.

Crain’s New York Business:
The Real Deal:
New York Times:
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