What’s New And Exciting?

As the fall season beings, everyone is asking “How’s the Market?” The stock market is steadily up this month and the Times on Sunday opined that real estate in New York has stabilized, even as real estate markets across the country continue to be threatened by lack of demand, ongoing foreclosures, and short sales. The National Bureau of Economic Research told us Monday that the recession ended in June, 2009, giving the Dow a 146 point lift. So I asked our agents how they are experiencing the market, and here is a summary of what they told me:

* Overall, price is still the key factor in determining the viability of a listing. Buyers are all doing their homework, either through their agents or on their own using sites like StreetEasy and PropertyShark. They know what has sold, they know for how much, and they don’t want to overpay.

* In most markets, buyers are more skittish than they were in the late winter and early spring. Even though most economists agree that there is little likelihood of a double dip recession, some buyers are still worried.

* At the same time, sellers are often pricing properties well ahead of the last sale in the building. While this year has seen some record breaking sales, and while a modest increase is usually OK, many sellers are adamant that these new higher prices are achievable, even after months on the market.

* Condition still sells. The better it looks, the easier it is to find a buyer for it. Many of my agents (and I am with them!) are advocating staging more strongly than ever before. First impressions really DO count with real estate.

* As the rental market has weakened slightly, smaller co-ops and condos are once again competing with rentals for potential first time buyers. The buy vs. rent equation does not seem so obvious to this constituency as rental prices soften a bit.

* Spacious prewar co-ops and condos of 6 to 10 rooms on the Upper East and Upper West Sides, if reasonably priced, are VERY much in demand. We are seeing some of these listings receiving very strong and even full price offers during their first few days on the market. But again, price matters. If the price is really out of whack people don’t even want to try.

* Finally, little by little the shadow inventory of new development units is making its way back to the market. These units are located all over town, from Harlem to the West 40s to the East 20s. They too are all about price. There is demand for these units if they are priced to sell. Otherwise, buyers seem to feel that there are plenty of other properties to look at.

Overall I predict that it is going to be quite a busy fall. I do not see big price gains any time soon, but as confidence improves in the coming weeks (barring any big setbacks) and sellers confront the possibility of higher capital gains taxes in 2011, both sides of the transaction will be motivated to come to terms. And brokers will be there doing what we do best, using our expertise to facilitate the conversation and bring the parties safely home.