Streeteasty Report - Medians Decline Again (slightly)

I'm going to go let some air out of my tires so I can imagine what this market sounds like. I just don't know what will happen if I do that every week.

Looking at 2-3 bedrooms in Harlem for the past year and so few. .. almost none have sold. I see the same apartments on the market for months and months. Until the prices fall dramatically, these will never sell.

bb -- suggest you make a low offer at windows on 123 if you like it -- particularly on the 2nd building
the realtor seemed very keen to work a deal
They have 0 in contract which is a problem for considering the main building but the 2nd one has only 5 or 6 units so if they can be brought to a decent price they will go quickly. The construction quality and features seemed much nicer than many of the new developments.
we would have gone with it if we had not settled on a brownstone at a location we liked better

Joe,

Do you know the name of the development on Morningside and 121st? I've got my eye on that one. We are in no rush. Sold in 08 before the crash and now renting. And the rent has declined significantly this past year, so we are waiting it out. We prefer the area west of FDB closer to Morningside. Things are definitely going to continue to sink before they rise again in Harlem, in my opinion.

Joe,

What do you think the price per square foot should be in Harlem in the next 6 months to year?

i just took a look at tomorrow's open houses for three bedrooms in harlem. while i wasn't paying attention that market seems to have literally collapsed. wow.

It has. Anything for a million and above just will not sell today. . . or tomorrow for that matter no matter what the size or condition.

86 morningside -- developer is Horsford and Poteat -- apparently respectable and good feedback
I had no luck getting them to respond
not sure what prices will do -- we were not getting any real bargains on condos in my view -- lot of inventory but not much willingness to deal on any of the nicer places. Windows 123 guy seemed willing to deal, but given no sales looked risky. Also, we had the experience of seeing someone peeing standing in the middle of the road 3 consecutive times when we visited that block. Not encouraging

I havent checked so if AR says the market has collapsed then that is interesting. Kalahari and Graceline did reduce prices, but we did not like either of those for a variety of reasons so that did not enter the decision process. The huge lurking inventory portends a market collapse, but I think the city will step in to help. The prices above 125th st are in real collapse, but in the area below, especially near Columbia the drops are comparable to UWS above 96th, not more, may be less
The worst will be the brownstone condos -- they have nothing going for them at the prices they are asking -- e.g. the 128 w 111th, the ones on 117th by Lenox and the one on 113th between ACP and FD

Brownstones seem to be asking 2005-7 prices.Not much is selling

joe, it's not uniform. but it's definitely there. and it's difficult to put it into exact words. one unit may have the price phenomenally lowered, another may not have sold in a year despite what seems to be a reasonable price, a building may be showing extreme signs of distress, it just all starts to add up.

i agree with you that the areas closest to Columbia are different. but that was true years ago as well. a lot less "emerging" happened there than in the other areas of harlem.

Joe,

If they aren't willing to deal significantly now, then they will just sit and remain unsold. How will the city step in? I think 86 Morningside is at least a year away, but I'll take a look. Graceline most definitely had to reduce prices. . .it's a disaster in many ways. The Kalahari is the best of them and has been pretty much the only development to move anything in the past year because they have made deals and they offer decent amenities.

city step in:
they will offer the units through lottery at reduced prices to middle class (great deal for those who qualify -- we would not), and subsidize the developer at the same time -- our tax dollars at work

joe, i think it depends on the building. a number of these developments are on land that was already essentially given to the developers by the city. the city knows that the prices on the units can be lowered significantly without the developer going under. in other cases, where a building has not sold at all, particularly the 3-4 unit townhouse condos, i can see that occurring easily.

That would be a good thing, in my opinion even if it affects what I want to do.

i agree bronxboy. the real question is what will be done with 5th on the Park? such an ill-conceived project.

It's a blight on the neighborhood the way it is now, looming and vacant with no word on ever opening. It's getting to be time they do a fire sale on the apartments there for the good of everyone.

city step in:
they will offer the units through lottery at reduced prices to middle class (great deal for those who qualify -- we would not), and subsidize the developer at the same time -- our tax dollars at work

If this mayor does anything to keep prices from falling to the point where all of the middle class can afford housing -- not just those who win an apartment lottery -- it will be political suicide. I can't see the govt stepping in. Prices will fall till the market finds support. The govt only steps in to help when prices are going up so high that the middle class is shut out.