Q1 is over. What are people's actual observations on the market? For the area I'm familiar with (UES, 3br+), the market seems more efficient, with fairly priced (albeit expensive) properties selling, and greedy units sitting. For example: Brompton: 13GH, 12CD, THA - all of these have been on an off the market since 2013 - none have been sold at crazy asks of over $2000/sq ft. 12CD, THA seller's... [more]
Q1 is over. What are people's actual observations on the market? For the area I'm familiar with (UES, 3br+), the market seems more efficient, with fairly priced (albeit expensive) properties selling, and greedy units sitting. For example:
Brompton:
13GH, 12CD, THA - all of these have been on an off the market since 2013 - none have been sold at crazy asks of over $2000/sq ft. 12CD, THA seller's gave up for now. 13GH just re-listed (still over 2100/sq ft)
Lucida:
9D, 9G and 19G have seem lingering on the market since Oct 2013 or so for 19G. All asking over $2000/sq ft, with no taker so far.
Wellington:
18AB - sitting around as the seller seeks 1700/sq ft in a building where the larger penthouse sold 6 months ago for 1410/sq ft. Good luck.
Oxford (the one near the hospital on 72nd)
28/29C - been on and off the market for 3 years now. Seller decided to raise the price on this baby since it worked out so well.
28A/B - just 2 years on the market here. no price cuts.
Park Avenue Court:
P6AK - actually just went into contract around of 1700/sq ft after sitting since Oct 2013. Great building, issue is this unit is a tomb with no light.
In contrast, more fairly prices units sell quickly:
50 E 89th Street - 4br, sold in 1 day around 1800/sq ft. mint condition, PS6 schools
Georgica - 9D - sold in a week or so - 1800/sq ft
What are other seeing out there?
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So are prices for low end places, that are more like 1st time home buyer properties...are those also increasing?
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Response by RealEstateNY
almost 12 years ago
Posts: 772
Member since: Aug 2009
From today's NY Times, and it's not an April Fool's joke.
"The Manhattan real estate market got off to a robust start in the first three months of the year, as signed contracts for ultraluxury apartments in new developments began to close, many with multimillion-dollar price tags, according to reports to be released by major brokerages on Tuesday.
The flurry of activity at the top pushed the number of sales to a seven-year high for the quarter and sent the average price per square foot soaring to a record $1,363, according to a report by the Douglas Elliman brokerage firm. Low inventory, high demand and a shift toward larger units in new luxury developments contributed to higher prices. The median price of a condominium jumped 13.4 percent during the first quarter from the same period last year, setting a record at $1,355,000, according to the Elliman report.
“This is the first time that we’ve seen this spike in price,” said Diane M. Ramirez, the chief executive of Halstead Property, which reported that the average price for an apartment in Manhattan set a record at $1,715,741 during the first quarter, up 30 percent compared with a year ago.
Over all, the median sales price rose 18.5 percent to $972,428 in the first quarter compared with the same time last year, which is about 5 percent below the 2008 peak."
yes scaredgal..they are as no new studio one bedroom inventory is being developed. Also some are starting to combine apts.
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Response by arden
almost 12 years ago
Posts: 12
Member since: Mar 2011
the deal and NY times articles reference studies that don't really give a true picture of the "NYC residents market" IMO. Yes, ridiculous prices continue to be paid in the upper end of the market ($10M+), often by foreigners or other non-full time residents. As noted in those articles, over half of new condo buildings are being bought by foreigners, and the numbers approach 75+% when you include non-full time residents. Those buyers aren't as price or location sensitive for example (e.g. is the middle of 57th street a great location for a full time resident??) My question is really about what is going on for people who actually work and live in NYC? My experience this year is that buyers are being more selective, even given the low inventory, though prices continue to climb. Unrealistic sellers aren't being successful, which wasn't the case last year (when just about anything 3+br sold). Just my observation based on the evidence above. I'm curious if others have seen similar patterns or not.
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Response by rb345
almost 12 years ago
Posts: 1273
Member since: Jun 2009
Arden:
The Real Deal, Crain's and NYT articles are likely to goose the market and lead
more buyers to bid and to bid more aggressively, and could very well lead to
another set of rapid price spikes
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Response by scarednycgal
almost 12 years ago
Posts: 170
Member since: Mar 2013
Are appraisals coming in at the ask prices?
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Response by rb345
almost 12 years ago
Posts: 1273
Member since: Jun 2009
scaredgal:
1. each appraiser treats time/price adjustments in accordance with his/her own beliefs
2. markets which spike sharply in short periods of time are harder for them to vakue
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Response by rb345
almost 12 years ago
Posts: 1273
Member since: Jun 2009
scaredgal:
1. each appraiser treats time/price adjustments in accordance with his/her own beliefs
2. markets which spike sharply in short periods of time are harder for them to vakue
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Response by scarednycgal
almost 12 years ago
Posts: 170
Member since: Mar 2013
So I bet many deals that involve a mortgage will fall through because appraisal did not come in at the contracted price.
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Response by steveF
almost 12 years ago
Posts: 2319
Member since: Mar 2008
scared....The cycle of cash buyers come in and they increase price comparables so the next mortgage buyers qualify. Also banks reluctant to lose business because of appraisals from 6 months ago.
http://therealdeal.com/blog/2014/04/01/residential-prices-shoot-through-roof/
Answer to question is: NO
So are prices for low end places, that are more like 1st time home buyer properties...are those also increasing?
From today's NY Times, and it's not an April Fool's joke.
"The Manhattan real estate market got off to a robust start in the first three months of the year, as signed contracts for ultraluxury apartments in new developments began to close, many with multimillion-dollar price tags, according to reports to be released by major brokerages on Tuesday.
The flurry of activity at the top pushed the number of sales to a seven-year high for the quarter and sent the average price per square foot soaring to a record $1,363, according to a report by the Douglas Elliman brokerage firm. Low inventory, high demand and a shift toward larger units in new luxury developments contributed to higher prices. The median price of a condominium jumped 13.4 percent during the first quarter from the same period last year, setting a record at $1,355,000, according to the Elliman report.
“This is the first time that we’ve seen this spike in price,” said Diane M. Ramirez, the chief executive of Halstead Property, which reported that the average price for an apartment in Manhattan set a record at $1,715,741 during the first quarter, up 30 percent compared with a year ago.
Over all, the median sales price rose 18.5 percent to $972,428 in the first quarter compared with the same time last year, which is about 5 percent below the 2008 peak."
http://www.nytimes.com/2014/04/01/nyregion/ultraluxury-apartment-sales-drive-records-in-manhattan-real-estate.html?ref=realestate&_r=0
yes scaredgal..they are as no new studio one bedroom inventory is being developed. Also some are starting to combine apts.
the deal and NY times articles reference studies that don't really give a true picture of the "NYC residents market" IMO. Yes, ridiculous prices continue to be paid in the upper end of the market ($10M+), often by foreigners or other non-full time residents. As noted in those articles, over half of new condo buildings are being bought by foreigners, and the numbers approach 75+% when you include non-full time residents. Those buyers aren't as price or location sensitive for example (e.g. is the middle of 57th street a great location for a full time resident??) My question is really about what is going on for people who actually work and live in NYC? My experience this year is that buyers are being more selective, even given the low inventory, though prices continue to climb. Unrealistic sellers aren't being successful, which wasn't the case last year (when just about anything 3+br sold). Just my observation based on the evidence above. I'm curious if others have seen similar patterns or not.
Arden:
The Real Deal, Crain's and NYT articles are likely to goose the market and lead
more buyers to bid and to bid more aggressively, and could very well lead to
another set of rapid price spikes
Are appraisals coming in at the ask prices?
scaredgal:
1. each appraiser treats time/price adjustments in accordance with his/her own beliefs
2. markets which spike sharply in short periods of time are harder for them to vakue
scaredgal:
1. each appraiser treats time/price adjustments in accordance with his/her own beliefs
2. markets which spike sharply in short periods of time are harder for them to vakue
So I bet many deals that involve a mortgage will fall through because appraisal did not come in at the contracted price.
scared....The cycle of cash buyers come in and they increase price comparables so the next mortgage buyers qualify. Also banks reluctant to lose business because of appraisals from 6 months ago.