Sale at 179 East 79th Street #11A

It's a big 2 bedroom/2 bath in apparently great condition - and it's zoned for P.S. 6. Doesn't seem high to me.

I am with Rhino86. Don't see what about that apartment makes it worth over $1MM. Of course, your question is relevant for a whole lot of listings.

Well 2 bed / 2 baths have not weakened as much as 2 bed / 1 baths yet. So I can see why is over a million. However, it should be prices around $1.1mm in my view and is bound to go there. This is priced at May 2008 level. As such its easily 15% higher than the level that would draw any buyer interest.

I've only been looking at 3 BRs - is the 2 BR market that bad? $1325k for 1320 s.f. and a 1.5x maint/sf ratio would be ok for a 3 BR. Are 2 BRs really clearing for 750/sf?

the 2 bedroom market is not that bad. I know, that's what I'm following. It may get there, but prices haven't gone down. That said, the stuff out there is just sitting. I would love to see 750 psf for anything that doesn't need to be gutted.

I guess it depends on what you want. I should've been clearer - nothing about that apartment that makes it worth more than $1MM for me. If I am getting over 1300SF, I'd want a 3rd bedroom, which you can't make here. And I don't value the location as much as some.

For someone who likes a huge master bedroom, plus values the kitchen/dining and location, it looks like a pretty nice place.

Configuration aside, I don't think that part of 79th Street is going to trade at $1000/sqft. I think they are asking price basis alone 15% too high.

In the pantheon of overpriced apartments this is hardly the most egregious, folks. It looks pretty nice to me, although too expensive.

Starfish/others,

Do you think that properties zoned for PS 6 (or other similarly highly regarded public schools in Manhattan) will maintain their prices better than other properties over this downturn? I didn't notice much difference when the market/economy were strong and most people were assuming they'd send their kids to private school, but now that public school is a more likely possibility, I'd think that saving $30k/yr per kid would make these apartments comparatively sought-after. On the other hand, as the stock/commodity/bond markets have shown, we are in a storm that sinks all ships equally.

Frankly, I think apartments are still expensive in the absolute sense, and what is attractive is to move out to the suburbs where prices have already corrected more meaningfully, and send your kid to New Canaan high school. At a point, what you can buy here for $1.3mm vs. what you can afford in a nice burb for $1.3mm is too nice to ignore. Further, this trend can accelerate as we see crime creeping up in Manhattan.

All this said, yes, historically great neighborhoods (part of which is the school system) hold up better in percentage terms in the down cycle. In the upcycle shit flies up and trades closer to the good stuff, because people are anxious to a fault to "get in the game" of owning real estate.

Yes, I do think an apt. in what is considered one of the top few school zones is a significant positive at this point, as paying $30k a pop right now is pretty tough (although I doubt people will be fighting to buy apts. in P.S. 6 if they think $30/60K will make or break them). I bet rentals in P.S.6 do o.k.

As for Rhino86, it has always been the case that you get more in the burbs than you do in the city. I doubt that will ever change. What also won't change much soon is the fact that you will spend at least 3 hours a day commuting between New Canann to most of Manhattan. Lots of people don't think it is worth losing 2 hours a day (assuming your city commute each day is an hour total) in family time to be in a bigger home (and before anyone tells me to zip bc I don;t know any better, we left the city for Westchester in 2004 and moved back 6 months later, so I am speaking from my experience and not just guessing for what it's worth.)

Its always been the case, but we haven't seen crime get worse in the city since the 1980s. I see your point. Yes it's an hour each way, but the fallacy often times is that in Manhattan you step out of your apartment and you are beamed instantly to work. Every situation is different. My only point is when crime perks up in Manhattan, this "PS 6" or similar premium may be less and less important. Further as the suburbs lead the downturn, the gap between a 2 bed apartment and a 4 bedroom house can "move" the incremental buyer.

I agree with starfish - you've always gotten tons more space for your $ in the suburbs than the city. I could draw an argument that the city will become relatively more attractive as a place to live b/c the recent trend of well-educated women to leave the workforce will reverse itself as their families need the extra income, and so the short commute aspect of city living will have greater appeal.
Also, if there is an upcoming uptick in crime, what makes you think that the suburbs will be immune to it? NYC is hardly the only municipality with looming financial problems, but I would confidently say that at this point it has better political leadership in place to deal with those upcoming problems. Also, we don't know what impact this latest 10yr run of gentrification will have on the city vs. the suburbs. It is very simplistic, and likely wrong, to simply assume that what happened in the 70s will repeat itself.
My original question came down more to what starfish answered - is saving $30k/yr per child for schooling enough to impact property prices?

I've seen this apartment and the 2nd bedroom is not a true "bedroom" - its a den off the living room. This apt is over priced

peanut - I haven't seen the apartment, but going from the floorplan (they don't give a picture of the 2nd BR) an 11' x 16' room with closets and windows is a bedroom and not a den. Was it different than this when you saw it in person?

does anyone think the maintenence is a bit high as well? i wonder if the building could have reserve fund issues or other problems.

interesting that you should bring this back up, peanut. this is now priced at early 2006-late 2005 prices, asking. and i agree with waverly, evidence to the contrary if it presents like the floorplan, it's a two bedroom.

shirsch, i don't know the building but my guess is, looking at the listing history, smallish building, around 60 units, that's full service. the maintenance on its own is midish high, but not so much for that kind of building. you'd want to check financials very carefully, but you'd want to do that anywhere.

it looks lovely.

Thanks AR....always good to head into the weekend knowing that somebody agrees with me about something!

I also think the maintenance is only a touch high for this type of apartment/building/neighborhood, but one big increase in January could change that, so like AR said, check the financials.

peanut, i haven't seen the apartment. there are no pictures of bathrooms posted. how do they look?

for what it's worth, i udnerstand that there is a large uninsured lawsuit against this building...

they were in good, renovated condition