395 Riverside Drive #15B

Bramstar: Can't comment on that one here. Please feel free to e-mail me. Just put my screen name in front of "@gmail.com".

Let me attempt to read the psychology:

I think the people who are buying apartments now -- as opposed to the "fear trade" buyers of 2009 -- have a lot of money and are very, very worried about it. (As we used to say on Wall Street, "people are keeping their wallets in their pockets").

So they're underspending vs. where they would have a few years ago, and we're seeing bidding wars break out on apartments that are too "cheap" for what they would be buying in a more normalized world.

On the other end, things that are too "expensive" for what they would be buying in a more normalized world (in this instance, and essentially 2-BR apartment that breaks the $1 million/bedroom barrier) either sit forever, or go at fairly high prices because one person breaks out from the crowd and says, "hey, that's pretty, I want it."

In this scenario, the "relative bargains" would be apartments that are somewhat cookie-cutter, with no particular distinguishing characteristics and big footprints, but no one is buying them because they don't feel special enough on either the "cheap" or "expensive" end. (In other words, buyers don't perceive them as relative bargains, but as the worst of all possible worlds).

Because those apartments aren't trading, buyers look at the market, see the slackness, and say, "why should I spend my money? the market will come to me."

In other words, buyers are fighting tooth-and-claw over the new designer specials at H&M, and occasional buyers are popping into Barney's, but nobody wants to go to Bloomingdale's.

ali r.
DG Neary Realty

ali - I have read your "attempt" and simply do not have a clue - what are you trying to say?

front_porch....very astute observation

Ali - I am also a little confused. A $2,280,000 ESTATE condition classic six on 110th Street is "cheap for what they would be buying in a more normalized world"? Seriously? Are you really saying that someone would pay $2,700,000+ for that in a "more normalized world"?

Looking at SE's history of all sales in this bld, this was the most expensive sale since 7-2004. Looks overpriced to me, especially since it needs so much work.

110th street...even I would not consider buying there..

No, PH, I am saying this particular sale fits the third paragraph of my above post -- I consider this apartment more like a 2-BR than a 3, and at more than $1mm a bedroom, that trade was *expensive* for what someone would be paying in a more normalized world.

Still, whoever the purchaser was most probably got taken with the view, and could afford it.

The crowd -- you, bram, dwell -- is shocked at the price (although, Julia, 110th Street is very nice), but since one rich person broke out from the herd and made the transaction, that's now the market price.

To go back to my shopping metaphor, this sale was like someone seeing a designer something at Barney's and paying up for it because they thought it was fetching.

I was just trying to explain two data streams that seem to contradict each other, which is 1) a main current of generalized market weakness with 2) a number of outliers breaking out, not on the low side, but on the high side.

ali r.
DG Neary Realty

Julia--that stretch of RSD is beautiful and the Columbia nabe is great. Have you ever visited the area? If not, you should. You might just find that elusive studio you've been seeking, and with a stunning river view to boot :-)

Ali, 15B isn't 'more like' a 2-bed, it IS a 2-bed, with a very small second bedroom at that. Nothing '3' about 15B. But the views are amazing, with a clear stretch all the way up to the bridge from the north side of the unit.

Also remember, 355 RSD 10WN traded at $2.6 and change--a larger apartment, to be sure, and in better condition but still not terribly far off in relative value.

bramstar...i should open myself up to new areas..i thought 110th street is so far away from everything i know about the uws.

Nah--far away is Washington Heights. Riverdale. The Bronx. As a former Village resident I can definitely understand where you're coming from, though--before I moved to the UWS I used to consider anything north of 96th to be practically a different city :-b

I'm not "shocked" at the price, I just think they overpaid, especially if it needs so much work. Agree they probly fell in love with the view, although, for me, I wouldn't pay a premium to look at NJ.