Spring Forward

Here’s my market update from the Warburg agents about what’s hot and what’s not in the current New York real estate environment:

·       There is no consistent “market.” Depending on the size, condition, and location of the property, there are a variety of submarkets which are behaving dissimilarly to one another. 

·       There are plenty of studios and one bedrooms, especially on the Upper East Side east of Third, going down through Midtown and Murray Hill all the way to 14th St. There is still a buyer’s market for these apartments. 

·       The house market in Brooklyn, especially in Park Slope, Windsor Terrace, and Prospect Heights, is incredibly hot. Everything sells immediately at the asking price or higher with multiple offers. $1 million does not buy you so much any more. The same thing is happening in Greenpoint and Williamsburg. Prices in Brooklyn Heights are astronomical. 

·       Three bedroom apartments, particularly those in great condition, sell right away all over town with lots of bids. The worse the condition, the slower the sale. And larger places, in the luxury and ultra luxury markets, are moving briskly, with layout, condition, and views driving this marketplace which doesn’t seem inhibited by buyer financial constraints.  

·       Generally speaking, Open House attendance declines fast after the first few weeks. A number of agents reported having 25 attendees the first week, 15 the second week, and 3 or 4 by the fourth week. This tends to reflect the pace of sales as well. If it doesn’t sell within the first few weeks, it may hang around for a while. 

·       The rental market is hot. One of my agents says there is less inventory, at higher prices, than ever before. 

·       Loan commitments have become slightly easier to obtain, although appraisals are once again an issue as values increase. And as of October 1, 2011, Fannie Mae is scaling back the limit on loans it will purchase in “high cost areas” from $729.500 to $625,500, thus further complicating the jumbo loan marketplace.

·       Condos all over Manhattan and Brooklyn have sprung back to life. While many of the current purchasers plan to live in these units, there is also a huge resurgence of interest in New York from foreigners looking for investment vehicles. We are seeing this from Harlem to the Battery. Buyers from Russia (and other former Soviet bloc states), Brazil, India, China, and Korea are particularly in evidence, But Europeans (especially southern Europeans) are active as well.

 

Overall, the market continues to show a quick pace for larger units while the smaller ones, and those in poorer condition, move much more languidly. The very rich are snapping up trophy properties and setting price records. Competitive bidding situations abound. Meanwhile, finding a rental seems as hard as it has ever been, and what IS out there costs a fortune. And we see very little new inventory feeding either the sale or the rental pipeline. It’s a busy market, and often a fast paced one.  We will see what the summer brings!  

 

 

 

Reset Password

Start an account to create alerts and save your searches and more...

Get notified when new listings match your saved searches.
Save listings and get updated of any changes in price, status and new open houses.
Hide listings that aren't for you so you don't have to see them over and over again.
Get recommendations and stay up-to-date with your dashboard.

Start an account to create alerts and save your searches and more...

Get notified when new listings match your saved searches.
Save listings and get updated of any changes in price, status and new open houses.
Hide listings that aren't for you so you don't have to see them over and over again.
Get recommendations and stay up-to-date with your dashboard.

Sign in instantly with Facebook or Google!

Or sign up the old fashioned way