Category Archives: Townhouse

Harlem townhouse August market report

In the month of August the Central Harlem,Hamilton Heights market was quiet with only 4 new listings coming to the market.

Among the 4 new listings, there is an SRO sold without the certificate of no harassment for $2.1 million looking for cash buyers according to the listing which is the least expensive listing. Also listed this month is a home at 210 W 122nd street which appears to be renovated though the DOB records indicate SRO as well asking $3.995 million. Rounding out the new listings are an 8 unit for sale near Fifth avenue and a 3 family with side yard at 517 W 152nd street which was listed previously.

On the sale side(see table below), there were 5 sales and some properties went to contract or were removed from the market which resulted in a decrease of inventory from 82 available listings in July to 70 in August. This led to a corresponding decrease in inventory levels to only 14 months from 21 months in July.

Sold properties for August
Sale Price # Units
160 W 130 ST $2,400,000 8
37 W 126 ST $2,544,000 4
127 W 120 ST $3,451,000 3
106 W 120 ST $3,375,000 3
17 W 120 ST $3,750,000 6
# Active listings Inventory (months)
70 14
<$2mm 5
$2mm-$2.99mm 33
$3mm-$3.99 mm 25
$4mm + 8

July Harlem townhouse report

June Harlem townhouse report

The Author-  Brian Silvestry , a licensed real estate broker, has been selling residential and commercial real estate since 1999. He has sold in every neighborhood from Battery Park City to Washington Heights.

361 West 116 street in contract

361 West 116th, an SRO building sold occupied without the certificate of no harassment has entered contract. The last asking price was $1,699,000 for this South Harlem townhouse. It had a renovated ground and 1st floor and 4 total bathrooms.

The Author-  Brian Silvestry , a licensed real estate broker, has been selling residential and commercial real estate since 1999. He has sold in every neighborhood from Battery Park City to Washington Heights.

Harlem townhouse shortage below $2 millon

According to the July Harlem townhouse report, not one townhouse below $2 million was listed for sale. In July,  2 of the 4 sales recorded in the Central Harlem,Hamilton Heights townhouse market, were below $2 million. That brings the number of available properties below $2mm to only 6 out of over 80 listings. I am seeing a little bit of a tug of war as sellers priced at around $2.3-2.6 now begin to see the market may not sustain these prices for their Harlem properties  and probably not for 4 family homes above 125th street.

The Author-  Brian Silvestry , a licensed real estate broker, has been selling residential and commercial real estate since 1999. He has sold in every neighborhood from Battery Park City to Washington Heights.

July Harlem townhouse market report

The July market saw 13 new townhouse listings come on the market in the Central Harlem, Hamilton Heights area. The first table shows the number of new listings by price on the left side and the prices of the 4 sales on the right.

The 2nd  table shows the amount of active listings which has stayed steady the last several months and the amount of time it would take to sell the existing inventory.

The last table shows the current active listings by price range. 40% of the listings are in the $2-3 mm range and very few listings are less than $2 million.

average  $       3,225,000 4 sales
6 $2-3 mm 3,175,000
5 $3-4 mm 3,350,000
2 >$4mm 1,625,000
1,800,000
# active Inventory
82 21 months
Listings by price
<$2mm 6
$2mm-$2.99mm 33
$3mm-$3-99mm 26
$4mm + 17

June Harlem townhouse report

Harlem townhouse May report

The Author-  Brian Silvestry , a licensed real estate broker, has been selling residential and commercial real estate since 1999. He has sold in every neighborhood from Battery Park City to Washington Heights.

Thinking of buying a Harlem townhouse around $2 million?

Though inventory has increased in the Harlem townhouse market in the last few months, the under $ 2 million range is still experiencing  a shortage of inventory. Currently, there are 12 townhouses priced at $2.25 million or less but all but 4 of them are SROs. The four houses that are not SROs are all 4 family homes and the two that are priced at $2.25 million and $2 million  are excellent values. One of the other 4 family homes has a contract out and the other one has a rent controlled tenant in place in one unit paying $200.

At the next level of price, between $2.25 million and $2.5 million you will find 11 townhouses for sale and only one with major issues. The rest are more or less intact townhouses close to move in condition but in most cases not renovated. As days on the market increases the lower tier of the price may become more crowded as some of prices are lowered over the next few months.

June Harlem townhouse report

July mid month Harlem townhouse report

The Author-  Brian Silvestry , a licensed real estate broker, has been selling residential and commercial real estate since 1999. He has sold in every Manhattan market from Battery Park City to Washington Heights.

How to minimize the taxes on the sale of your Manhattan property

One of the easiest way to save money on the sale of your Manhattan investment property is to do a 1031 exchange also known as a like kind exchange. The gist is you sell an investment property, and purchase a property of similar value. The property must close within 6 months of the sale of the first property and you need to identify it within 45 days of the closing of the sale.

Let’s take a look at an example.

You have an investment condo worth $2 million that you have owned for 20 years that you bought for $500,000. Instead of paying tax on the profit, you buy another property worth $2 million and roll over the gain. The purchase can be another condo, multi-family, vacant land etc… When you close the sale of the condo, you have 45 days to identify potential purchases and 6 months to close or you lose the opportunity to do the 1031 exchange. Speak to your CPA and attorney for details on how to execute this process. But once you execute the purchase, you trade one property for the other and have deferred the taxes. With the typical Manhattan condo investment property returning 2-3%, you can probably buy another property either in New York or another statement that will return two to three times the net cash flow. In addition, if you have owned an asset for a number of years, it is likely you have depreciated it possibly even to the max. By starting over, you can begin depreciating anew. Again, speak to your CPA.

Keep in mind that a 1031 exchange is not for your primary residence but rather a property that you have rented it as an investment with one exception. The 1031 exchange can be used for your primary residence if you own a townhouse where you live it but rent other apartments. So in the case of a 3 family, your primary residence is the unit you live in and if you rent the other two units, the 1031 exchange can be applied to the rental portion of the building.

The Author-  Brian Silvestry , a licensed real estate broker, has been selling residential and commercial real estate since 1999. He has sold in every Manhattan market from Battery Park City to Washington Heights.

Why does a Harlem 2 family sell for more than a 4 family?

If you examine listings on the market in Harlem, you see a price difference between a 4 family and a 2 family.  Why is that?

One reason is that the buyer for a 2 family is typically look at the purchase to gain more space and perhaps live on 3 floors and rent the garden level apartment. In a 4 family, the most common layout is a floor thru and that might be a 1 or 2 bedroom which is not going to address the space needs of a primary residence buyer. It is going to be an interesting offering for an investor or someone who wants to buy instead of renting. But these are not need based buyers so they will shop for a better price.

Another reason is that a 4 family may have been converted from SRO or some other use and the historic details that make a Harlem townhouse so appealing may not be present. Certainly, that is not always the case but many times it is. For example, I evaluated a solid 4 family townhouse in Hamilton Heights for an owner and it was 4 well maintained 1 bedrooms with a value of around $2 million more or less. A similar 2 family home in the same area that has many original details in place but in inferior condition is asking $2.3 million, or 15% more.

The Author-  Brian Silvestry , a licensed real estate broker, has been selling residential and commercial real estate since 1999. He has sold in every neighborhood from Battery Park City to Washington Heights.

 

Take a look inside a Harlem renovated townhouse

The Baker family bought their townhouse in 2015 and it was a four family home. Their design team turned it into a 1 family home with floor to ceiling windows at their rear and exposed steel beams, duct work and sprinkler systems. The renovation created a lofty home with plenty of light and a guest room at the garden level. Their architect was Opera studio.

Curbed coverage

Only 7 new Harlem townhouse listings for sale so far this month

With only 1 week left in the month, only 7 new listings for Central Harlem and Hamilton Heights townhouses have been brought to the market in June, so far. Two of those listings were for under $2 million.

The most expensive June listings are two Hamilton Heights homes which have the same price tag of $4 million each. This is in stark contrast to the months of April and May where there were nearly 20 new listings each month and very few contracts. Full report coming next week.

May Harlem townhouse market report

Harlem townhouses price reductions becoming more frequent

According to the latest data, there are 85 active listings in the market on the listings website streeteasy in Central Harlem and Hamilton Heights. 36 of these listings have at one point or another been reduced from their original asking prices and some more than once. This data shows that seller’s expectations were not in line with the current market and as a result, adjustments have been made to price sometimes not once but twice. In this market, buyers are even more hesitant to get involved with buildings that have issues or are expecting more of a discount to do so.

Between April and May we saw approximately 40 new townhouse listings and few contracts. Halfway through June, only 4 Harlem townhouses have been brought to the market.

Harlem townhouse May report

Harlem townhouse April report

 

The Author-  Brian Silvestry , a licensed real estate broker, has been selling residential and commercial real estate since 1999. He has sold in every neighborhood from Battery Park City to Washington Heights.