Co-op Sales Spark Market Worry

PMG, this is an article about the ultra-high-end of the market. Is your condo an eight-figure property?

ali r.
DG Neary Realty

No, Ali, but I read on many posts that say the real risk is condos, and in particular studio apartments. This is the farthest from that. Last week a 3 bedroom closed in my building for cash at a record price for a mid floor conventional layout. The article may be about an eight figure co-op but it is still a co-op.

PMG
Record high or record low?

Despite the $50M connection to your studio, which is telling in so many ways, oversupply remains your worst enemy. If only you could just tap into that buyer pool though.

spin, I made no connection to any studio other than a comparison that the luxury market co=op was performing a lot worse from peak compared to condos. Many on this board have said co-ops with their board and financial vetting are safer investments. Many have said the deep pocketed luxury market is more insulated because the wealthy don't have to sell. And in fact lowly studio and one bedroom apartments seem to be selling better in this down market. That is not what some of the experts on this board predicted when they reflected on the early 90s downturn and what they expected this time.

Falco, Last week a three bedroom on a midfloor in my condo sold for $1684 psf. The last sale in that line, a few floors lower, sold in very late 2006 for $1447 psf.

Ali, the ultra luxury 15 CPW or even the underperforming Plaza, both condos, are not performing like this fifth avenue co-op. Besides picking on me for making an off-hand observation for comic effect, why don't you perform an actual comparable analysis? Why, because it may prove my point.

why dont you provide an actual comparable analysis, instead of this worthless dog food/filet mignon comp?

PMG - Genuine curiosity regarding the example you gave from your building; You mentioned a mid-level floor versus one below from 2006. Where do building lines come in? Where there any other substantial differences like a renovation? Do you live in one of the particular neighborhoods whose image has improved in recent years?

the data points themselves are intriguing, but only if any adjustments have already been made for any other qualitative changes.

For ex: West81st has already shown an example of a co-op that sold for a similar price of a same-line comp that sold at the peak, but the recent sale cleared the building line by several floors and the prior sale did not. (probably worth 20% diff right there in a prime apartment).

W, because I was making the point that the dog food was down 15% and the filet mignon was off 50%. However, if you take your filet mignon in the form of a condo, rather than a co-op, its not off; it may have in fact appreciated. That's my point.

Av, The 3 bedroom exposures are south and west. The western fronts riverside drive, the park and the river, so there a significant difference between the floors. The southern fronts a ten story building, backed by a sixteen story building, so you go from feeling near the roof line on the lower floor, to having lateral river views on the upper floor. While that is a quality difference, they are both view apartments, and I would expect a similar premium if they sold at the same time.

Wow! A 'my ship isn't sinking as quickly as your piece of turd contest!'

Exceeeeellllllleeent.

Now it seems to me the key is who is worse off in life by a 30 to 50% off their 2001-2008 in price. The 1bdrm condo or 6bdrm coop? Who 'feels' the pain more?

w67 understands the point, thank you.

my response was to w67's first post. LOL

What's amusing about this is that if the article was about a high end co-op that fetched an even higher price than the bubble, you would no doubt hear screaming from the interviewed brokers that this was a clear signal that the market was back. But since it's actually negative, they are busy spinning away why this is an outlier. Priceless.