Still Trying to Make Sense of Manhattan Real Estate
Oh what a difference a few weeks makes...
On September 29th I posted Making Sense of Manhattan Real Estate and described how incredibly busy I was on the day the Bailout Package was originally rejected. Well it has been 3 weeks, the Bailout Plan was approved, the stock market is experiencing volatility not seen since the Great Depression, and although I remain busy, I feel that it would be misleading of me to not update those "deals" that I was working on 3 weeks ago. So here goes:
- Accepted offer for 148 West 23rd Street, 11H. UPDATE: This deal has fallen through as Doctor is not confident that he can sell his current studio for enough money to make the move.
- Multiple offers being negotiated for 88 Jane Street, 3W after 3 days on market. UPDATE: Only one of the multiple offers remains and it is too low for the seller to consider. A counter was submitted however and many buyers continue to hover and watch.
- 35 people showed for open house yesterday at 215 West 75th Street, 9C after 10% price drop and offers expected today. Price indeed overcomes all objections! UPDATE: Contract finally going out today after unbelievably extensive negotiating points and contingencies. Should be signed tomorrow.
- Phones ringing with appointment requests for other exclusive properties that I'm representing. UPDATE: This is indeed still the case and activity seems to be picking up a bit of steam but with fewer offers being submitted. Prospective buyers are circling and being patient. Negotiations are taking place but at a pace much more palatable to buyers than in the past decade.
- Appointments being scheduled for buyer property tours later in the week. UPDATE: One of these buyers has an accepted offer and should be signing a contract in the next couple of days. Another is bidding on something today. The rest continue to wait for the "right" property at the "right" price to hit the market.
So today's Manhattan real estate market is not without its challenges mostly due to tight credit and buyer psychology. The real estate agent's job has become increasingly more tedious and time consuming in an effort to bring a meeting of the minds during such a period of uncertainty. Those who can stomach the turmoil and make sense of what is going on for their clients will become an even greater asset to their clients and the buying/selling process.
For your prospective buyers who "continue to wait for the 'right' property at the 'right' price to hit the market."
In case any of them are in the market for a 2BR, this listing is VERY competitive for a doorman coop half a block from the park in Carnegie Hill. Send them along . . .
http://www.stribling.com/propinfo.asp?webid=1086154&type=SALE
$899K would be VERY competitive. Buyers today need to really sense that they are getting value.
OK - call it quite competitive. Very few if any 2BR's in Carnegie Hill doorman bldgs are going for ~$820/ sq ft. This place had 2 offers at $1.1 million and $1.18 million in July (prev. list of $1.2 million), and the one that went to contract fell through b/c of the difficult financing environment. Of course it's a different world now, but still a strong value in a good neighborhood.
I'd say that competitive would be 2003 prices adjusted for 3-4% annual appreciation. Anything over that is way overpriced. NYC properties are still too high to afford, and after the January bonus bloodbath there will be few buyers left and lot's of sellers coming on the market.
The Manhattan market I believe is still solid but may have been correcting itself.
When I mean correction, I am not saying that prices are necessarily going to go down, but don't expect a massive price appreciation in some areas.
Just as Doug correctly pointed out that manhattan is a mini-market, so are some of the areas in manhattan. No doubt the up and coming neighboorhoods may have asking prices drop in the lower east side and elsewhere.
Sometimes it isn't that the market is slowing rather in great economic times, real estate can be hyped. Areas such as park and 5th ave are doing very well though.
This is great, though not just for buyers but for people wanting to buy, just think why would you want to overpay for a property in a neighboorhood that is hasn't gentrified completely yet only to have it drop dramatically the next day.
The market is pricing properties right where they belong. That's good for everybody except speculators.
What would you say is a "good deal" on a park avenue apartment in the 80s/low 90s a sq foot?
Jennifer,
A vague question that can't be answered without in depth analysis of the individual property as it relates to the rest of the market. Something that you're agent should be providing.