True Gotham

Current market conditions have prevented me from blogging as regularly as I like to as negotiations are taking considerably more effort than they have in the past and relationships with sellers are requiring more hand holding and regular in depth conversations regarding asking prices and marketing strategies.  Go figure, my job is preventing me from blogging.  That said, I'm working on some scheduling issues that should free up some time for me to start blogging daily again...I hope!

Going forward through the summer no one is quite sure where the Manhattan real estate market is headed.  With mortgage rates up 3/4 of a point in the past 4 weeks and some speculation that they may go higher, some buyers wait in the wings for further (yes I said "further" as prices in many areas are definitely off their peaks) price softening and others have already taken the leap to lock in a lower rate and lower monthly payment.  As buyers either take their time or play wait and see, sellers who are making lateral moves for a change in neighborhood or those who are upgrading to a larger apartment have become more flexible with asking prices as they realize that they will likely have more negotiating power on their purchases as well.

All in all it is a very active real estate market with buyers and sellers playing a lengthy and fair game of give and take in order to come to a meeting of the minds. 

I guess you can just sum up the post in two words: "Falling Prices" :)

Actually a serious question is whether you are seeing a lot of foreign demand?

With property price declines in England, Ireland and Spain and the worsening economies in those countries, there are plenty of opportunities on the other side of the ocean and less buyers capable of paying NY prices.

Indeed prices are declining in many areas of the city while some remain stable. The increase in inventory has been mostly in the sub $2M market so properties over that threshold remain mostly stable.

I can't speak for the entire industry regarding foreign demand but I have personally had fewer requests from Brits, Irish and Spaniards having sold to all three groups in the recent past. Other countries however remain quite interested in manhattan real estate with Russians still leading the pack...I think? Germans, Austrians, Dutch and French still seem intrigued by our local market as well as those from other Eurpoean countries. And let's not forget China! The Chinese are buying up Manhattan at a pace close to the Russians. So despite some tanking markets across the globe, NYC remains very attractive to many.

Doug,
You mention declines in some parts of Manhattan. Which neighborhoods have remained stable in terms of pricing in the 1BR market?

1BR inventory has increased considerably across the city so most areas have become more negotiable or adjusted prices according to rise in inventory.

Crystal ball question: We have a 3BR (2000 square feet) at 86th and York. Should we try to sell now, or do you think the market might be better in January (after bonuses)?

I don't foresee a marked improvement over current market conditions in january. In fact, I think 2009 bonus season will be weaker than 2008. I would sell sooner rather than later with the understanding that prices jhave already softened in some of the city's markets by 10-15%.