Tag Archives: Marketconditions

Luxury, Marketreports, New Developments, Rentals

24 luxury contracts signed last week

24 Luxury contracts were signed last week for property $4mm and above in Manhattan. Discounts drove the action as the average discount from the listing price is over 10%. It’s not unusual that property owners who purchased in the last 3 years are selling at a loss in order to liquidate.

In other reports, rents are still trending down with concessions like free month’s rent and owner paid broker fees fueling activity especially in new developments where 90% of the apartments were rented with concessions. Just under half (44%) of the new leases signed in Manhattan in April included concessions.

Does it make sense for a Manhattan owner to pay the broker fee?

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.

Buying tips for your NYC apartment, Marketreports, Real estate

Current Manhattan residential market conditions

As days on the market increases for most residential real estate, the consensus is that the Manhattan residential market is in buyer’s market. New realities are setting in for sellers and not just in the luxury market but in all price ranges including starter homes. In 19 years of selling residential real estate, I have seen this cycle a few times already. The last time through, the market forces were accelerated by the financial crisis. This time around perhaps the winds behind the sails may be the tech bubble as well as the Tax Reforms and Jobs Act and rising interest rates.

But in any case, a buyer’s market tends to not last too long so while some buyers are waiting it out and deciding to rent instead, now maybe the time to make that purchase, knowing that finding the absolute perfect time to buy may be like trying to catch the bottom of the stock market. One thing is for sure is that with a little patience and good negotiation, a purchase now can lead to serious appreciation once the buyer’s market turns again into a seller’s market.

Also I think understanding that the Manhattan property values are not decreasing across all asset classes. Townhouses in Harlem continue to see steady sales and modest appreciation. Also, try finding a 6-12 family property for sale uptown with upside potential. There is very little for sale. In these markets both investors and end users are pouring in and there is a lack of inventory. Recently, I had a 8 family for sale at 313 W 138th street and there was a high level of interest and the property went to contract at over asking price within 1 month of listing.

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.

Buying tips for your NYC apartment, Upperwestside

What does $4 million buy you on the Upper West side?

Let’s say you are ready to purchase an apartment on the Upper West side with at least 3 bedrooms. Inventory is still on the low side. After doing a few searches on listing site streeteasy.com I came up with the below numbers. All of the below numbers indicate at least 3 bedrooms except where noted and the price range selected was between $3 – $4.5 million.

19 condos in the Lincoln Square section of the Upper West side
11 more listings in the UWS

8 listings with at least 4 bedrooms on the UWS

15 co-ops in Lincoln Square
9 co-ops UWS
5 co-ops on the UWS of which have at least 4 bedrooms

The range of offerings was from the luxury buildings on Riverside boulevard in Lincoln Square with tons of amenities to the Lincoln Towers co-op complex where your dollar goes further.

Only about 25% of the apartments in either co-op or condo segment up to $4.5 million had at least 4 bedrooms. Most new construction or recent conversions starts a little bit above this range.

Buying tips for your NYC apartment

Is now the right time to buy a Manhattan apartment?

Certainly with all of the news of late about the slowing of the real estate market, what do you do if you are about to purchase a Manhattan apartment right now? I think it is wise to take a look at a number of factors within your personal situation.

1- How long will you stay in the apartment?
2- Will you be able to rent it out if you have an opportunity/need to move away due to work etc?
3- Will the additional monthly payment offset by tax advantages be more affordable than continuing to rent?
4- What price range are you in?

If you are leaving NYC in 2 years due to anticipated job transfer, purchase if you like, but best to stay away form a co-op due to the restrictions in renting. Typically, Manhattan co-ops will allow you to rent for 2 of 5 years. After that, you will need to move back or sell. Condos on the other hand allow for unlimited subletting. So if the resale value decreases on your recent purchase then you can rent it out. As sales prices go down, rents normally rise.

It has been well documented that the luxury market is experiencing a glut. So if you are going to buy that $15 mm townhouse, have your real estate broker do an analysis to make sure that it is worth the offering price. Recently, I had one potential client that brought to me a listing that was for a townhouse in Chelsea. I just didn’t believe that it was worth the ask and in fact it seemed like the price will probably go down in the future so I told him so.

At the other end of the market spectrum, if you are looking under $3 million that market is still moving  notwithstanding overpriced listings. So be prepared to compete at that level especially for 2 or 3 bedroom apartments which sell due to so many families staying in Manhattan and empty nesters whose dream may be a classic 6 on Central Park west or a 2 bedroom in the West Village.

Two other factors to consider are interest rates and the effect of Brexit. Interest rates are extremely low and even if prices level off slightly, interest rates will rise so the savings may be negated.

Brexit, most agree, may end up being a boon for the Manhattan real estate market, due to investors and buyers looking for a safe haven for their money.

In conclusion, you really need to do an analysis of what your personal situation is and if you decide to go forward with a purchase in a segment of the market that is peaking now, just make sure it’s a long term investment and not something that you need to get out of in 3-5 years.

Architecture, Buying tips for your NYC apartment, Real estate

Starter apartments in Manhattan low inventory

The newspapers and online blogs mostly cover the ultra luxury market and their supposed glut or balanced inventory depending on which report you believe. However, the starter apartment market is very low on inventory right now and there isn’t any relief in site. The only exception is apartments with very high carrying charges. Typically, first time buyers are more concerned with monthly payments than the more affluent neighbors. Continue reading Starter apartments in Manhattan low inventory →