The Calm Before the Storm???
My phones are beginning to ring with more frequency and although this is merely anecdotal, I am seeing and hearing evidence that activity may pick up considerably this fall. I and many of my colleagues are receiving inquiries from possible sellers who are considering a sale in the coming months. The phones are also busier with inquisitive buyers, patient indeed, but more numerous. Both sides seem to be willing to wait until summer's end to see in what direction the Manhattan real estate market will move.
Here's my two cents:
I think we are going to see a modest increase in inventory over the coming months but still not enough to greatly effect market conditions. That said, tight lending standards will continue to thin the pool of qualified buyers and a relatively stable, give and take market will continue into 2009. As I stated in yesterday's post, patience is indeed an important virtue for sellers and buyers alike. Properly priced homes with some outstanding quality will continue to be the first to be snapped up while others will take considerably more marketing effort and time to sell. I also suspect that prices may come down slightly but for the record, I have been saying that for 3 years...eventually I will be right.
Lastly, I think this more challenging market environment will prove too much for many of the more novice real estate agents as sellers demand experience and/or marketing sophistication. This will likely result in a thinning of the ranks among real estate professionals.
Now I could be wrong of course on absolutely all counts but I thought I would go "half way" out on a limb for a change and make some "vague" predictions. Let's see what happens.
Regarding your comment on homes with outstanding quality finishes getting snapped up... I'm thinking about putting my apartment (1 bedroom apt in post war doorman coop, not really a unique apt) on the market. It would need renovations, eiher by me or the buyer. Do you suggest I renovate it with "outstanding quality" finishes to ensure a speedy sale? I was thinking more of a run of the mill updating to bring it to a move in condition, nothing too high end. Thanks for your suggestions.
I'm definitely against over-renovating. Particularly in the case of a 1BR post war co-op. I don't know what neighborhood you're in but just an FYI that there are 77 1BR co-ops available today on the Upper West Side. If you really need/want to sell you're best bet is a very attractive price relative to comps. Forget about putting more money into the place as there is a very real possibility that you won't get it out.
Hope that helps.
