Ask Annie: Edition 1
I hope you had a great holiday and are enjoying the start of summer. To kick off the season, I am thrilled to welcome you to the first edition of my new newsletter, Ask Annie!
My goal is simple: to provide you with answers that explain the latest news and trends in the NYC real estate market, and why to consider a particular part of the City if you’re thinking about making a move. Since I believe loving your neighborhood is as important as loving your home, I will focus on a different neighborhood with each edition.
Please feel free to pass this along to anyone else who might find the information helpful! And as always, don’t hesitate to reach out with questions or for assistance with any real estate needs.
Sincerely, Annie
Summer upon us and negotiation is the name of the game in the NYC real estate market. This is because supply is outpacing demand. There is a glut of unsold properties, especially in the numerous new large developments recently completed across the City. Many of these buildings have 40% or more apartments unsold. In addition, there will be over 8,000 apartments coming to the market in 2019 in even more newly constructed buildings.
Because of all the available inventory (both new and resold), apartments are sitting for longer (38% longer as compared to last year), and 21% of listings have had to drop their prices to close the sale. The average discount was 6.5% off the original asking price.
This is the case for condos, coops and townhouses. In the new buildings, developers are also offering a wide range of incentives to entice buyers. Sellers must also be willing to negotiate on as overpriced properties are just sitting.
On the bright side, now is the perfect time to buy your dream apartment. However, if you first need to sell your current apartment, remember, a professional assessment by an experienced agent will help you price your home appropriately based on the current market, and get it sold fast! Comparable sales data from 2 years ago is no longer relevant in our real estate climate now, but a well-priced property will still sell.
As you may have heard, the New York State Senate and Assembly recently passed new revenue legislation that increases state transfer tax and New York City mansion tax on real estate transfers above $2 million.
This new sliding tax rate increases based on the sale price of the property: sales on a $2 million property will pay a 1.25% tax, $5 million properties will see a 2.25% tax, on up to a 3.9% tax on properties over $25 million. Transfer taxes have also increased on properties over $3 million, from .4% to .65%.
To learn more about how these new tax laws impact New York City, click here to read Warburg CEO Frederick Peters’ Forbes column on the topic.
Known for its quiet vibe and family-oriented feel, the Upper East Side has seen a boom in young residents, as prices in traditionally affordable neighborhoods downtown have increased.
This has made the area more vibrant and lively, but still appealing to all ages. The Upper East Side is also home to many of New York’s top private and public schools, as well as after-school programs and cultural centers. With Fairway and Whole Foods now located in the area, the Upper East Side offers a wide variety of food and shopping options, not to mention most the city’s museums on Museum Mile and beyond.
Because of the proliferation of new construction inventory in the neighborhood, there are excellent deals to be had in both boutique and larger developments on the Upper East Side.
Here is a sampling of what’s available now and coming soon:
This 12-story building with only 19 units will be known as The Armani Building featuring Armani/Casa-designed interiors. Mr. Armani plans to live in the building too, and an Armani boutique is planned to open its retail space.
This 19-story tower rising on the corner of 81st Street and Second Avenue will house just 28 apartments (with only one or two per floor) and feature a private a roof deck for residents.
760 Madison Avenue, Credit: COOKFOX
Designed by Robert A.M. Stern, this new building on 89th Street will have only 15 residences that will each average about 3,460 square feet. Most units will offer Central Park and West Side views. Amenities will include a fitness center, an event room, bike storage, and outdoor terraces on many floors.
New construction on Fifth Avenue is rare. This 14-story building located on 63rd Street will feature 7 duplex apartments in total, right across from Central Park.
Located on 63rd Street, this new tower will rise 32 floors with 37 residences featuring wrap-around terraces, views of Central Park, and many duplexes with 16′ ceilings. The 18th floor will have a lounge, terrace, gym, pool and spa.
1059 Third Avenue. Credit: Dattner Architects
The larger sister building to 301 East 81st Street, this tower will feature 63 units and include a fitness center, yoga studio, boxing studio, basketball court, game room, children’s playroom, and a bike room.
Located right at the new 96th Street Q train stop, this 21-story building will feature 48 apartments with floor-to-ceiling windows, some with private terraces, plus a rooftop sundeck, on-site parking, bike storage, and concierge services.
This new Gaudi-inspired 32-floor tower will be the tallest in Carnegie Hill. It offers 48 units with soaring ceilings, over-sized windows, and an impressive 8 floors of amenities that include a fitness center, athletic court, game room, children’s playroom, lounge with catering kitchen, and a wine room.
The Hayworth at 1289 Lexington Avenue
Constructed just above the 86th Street 4,5,6 subway station, this 21-story building will feature 61 two- to five-bedroom units with amenities that include a screening room, lounge, children’s playroom, and a landscaped roof deck. The building will also offer residents priority access to events at the 92nd Street Y.
If you would like to learn more about some of the new properties available (or soon to be) on the Upper East Side, please contact me! I also work with buyers and sellers across the City, and have recently closed on properties in the West Village, Chelsea and in the Downtown/Wall Street area. I can also provide the most professional, accurate and trustworthy service to help you sell your current apartment in this changing market.
Please feel free to contact me with any questions.
Sincerely,
Annie