Flurry of price reductions in 1M - 2.5M properties?

Have not see this on any decent apartments. Lots of price reductions on horrible apartments on york or absurd layouts, but not on decent apartments. Love to see examples. Also, even with price cuts, what is the ppsf?

Idea... check out the "examples" thread. Tons of examples of cuts, and selling prices below 2005 comps.

I'm sure those who don't want to see a decline will say that they are all exceptions, but the exceptions seem to be turning into the rule...

They were definitely not all york, and definitely not all absurd layouts.

That is not what RILEY is talking about. RILEY says that in the past week he has seen "a flurry of very large ($200 to 500K) price cuts on very nice properties" primarily on the UES within a certain price range. I don't think this is true since I've been following this market. I'd love to see examples since this is what I am looking for.

I am not very good at assembling links, but here are just two from midtown E. (UES Buyer, I had said both UES and midtown E; I will try to pull the ones i saw from UES next.) The first is a 200k drop and the second a 500k:

http://www.streeteasy.com/nyc/sale/357852-coop-45-sutton-place-south-19a-sutton-place-new-york

http://www.streeteasy.com/nyc/sale/196811-coop-450-east-52nd-street-beekman-new-york

Here's another, with $295K cut in the past few days: http://www.streeteasy.com/nyc/sale/354526-coop-14-sutton-place-south-sutton-place-new-york

Ok. I'm not really familiar with midtown east.

UES_Buyer: The floorplan on this one looks OK to me, and it's about as far from York as you can get:

http://www.streeteasy.com/nyc/sale/225913-coop-1025-fifth-avenue-upper-east-side-new-york

I realize it's a pretty terrible location, unless you want to live across the street from the Met and send your kids to one of the best public elementary schools in the city.

pulling out the attitude west81st, i like it

Two things that set me off:
1) Children who whine.
2) Adults who deny the obvious.

UES_Buyer,

The Streeeteasy search engine lets you look at price cuts for the last 2, 7, 30 and 60 days. For the Upper East Side, it shows 114 listings with a price cut of at least 5% in the last 7 days and 45 listings that dropped more than 10% in the last 7 days. Pretty stunning numbers when you think about the total number of December sales and contracts signed in in all of Manhattan. I sorted on newest and in fact 3 of the first 6 propoerties are on Park Avenue.

The second listing that came up is 650 Park avenue 9F 2,150 s.f. for $2.9mm a price cut from $3.2mm and it was only on the market for 11 days! Yes, Park Avenue not York.

And to answer your question that is $1,348 per s.f.

I also think the new lisitngs are coming on at much more realistic levels. You may not see the larger price chops on these but make no mistake they are being offered down.

West - I refuse to accept your reality. This is a Co-op and everyone knows that co-ops will retain their values because they are so discriminating. ;)

1) $1,338 per sf is no bargain so who cares if there was large price cut
2) 1025 Fifth requires 50% down so it appeals to smaller audience (more importantly for me, I don't have $1M in cash to buy it)
3) Yes, there are lots of price cuts, but I still haven't found anything exciting in the 2br/2bth category, west of 3rd, selling at what I think would be a good price today

Bottom line -- I think prices still have a long way to go down before we start seeing bargains. The stuff that is out there now that I have seen and that has been discounted suffers from some sort of issue -- either bad location, high maintenance, poor layout or requires super high down payment.

UES_Buyer: At some point, will you stop adding conditions? You keep moving the target.

Maybe we should get a few questions out of the way up front. Is it OK if an apartment is priced in dollars, or will you insist on paying Swedish Crowns? Are you comfortable with odd-numbered street addresses? Are you willing to close on a day of the week that ends with a "y"?

Its not a matter of adding conditions, and I hardly think I'm being unreasonable. All I said is that I still haven't been able to find many desireable apartments in the areas I've been looking at. 1025 Fifth looks fantastic, but obviously there are strings attached. I suspect that as more sellers become desperate to sell there will be more on the market, but right now, I just have not seen very many large 2 bedrooms west of third that I think are "bargains".

And are my conditions so unreasonable?? I'd like a decent location, reasonable maintenance, nice layout and 25-30% down. Seems pretty basic stuff. If I found all that, I'd probably be willing to pay in US$ and would suck it up and even live with an odd numbered street address. But in no event close on a day ending in "Y"...

Thanks for being a good sport. And good luck with the search.

UES_Buyer: I've been following that market, too, and am curious for more specifics. Would you be willing to post links to a few of the places you actually like so we can see what the current price is and venture some guesses as to how much movement there might be?

This was original asking 1.225 and went into contract at about 900k I think. I liked it but didn't love it. If I could find something similar a little higher up and further west I would be interested.

http://www.streeteasy.com/nyc/sale/356091-coop-310-east-70th-street-lenox-hill-new-york

I take it you prefer new construction to prewar? (I've been focusing on prewar). I agree with you--the asking prices, maintenance, and down payment requirements are prohibitive in many cases.

I think you guys are talking past each other. Riley and others are pointing out the chops and price declines. UES_Buyer says there is still nothing for prices he would consider bargains. The two statements are not at all contradictory. I happen to agree with both.

at 50% down, this small unit is worth $700,000 max

http://www.streeteasy.com/nyc/sale/225913-coop-1025-fifth-avenue-upper-east-side-new-york

I love the opening ask...LMAO...2.5Million. Still overpriced. hahahahahahahahahahahahahah.
Plaaaahese, get a grip. I hope they wait and wait and wait. Put it on the price choppers thread.

Classic chasing the market down. Overpriced, in my opinion, even if it didn't require 50% down. Can't see it going for more than $850k or so right now. Basically need 3/4 of a million sitting in cash to be able to buy this.

guys,

that apartment has a great layout, a totally over-the-top great renovation, and is right across the street from the met. i am not saying it will or should sell for this price, but 2.5 was not out of the question at the peak.

I have no opinion one way the other on the price (original or current). I was just answering the call for examples of huge reductions on nice apartments in good locations.

As for the downpayment issue, that's an interesting one. 1025 Fifth requires 50%. It required 50% before the run-up; it required 50% during the run-up; and it still requires 50% now. Nothing new there. If the apartment was vastly overpriced initially, that's one thing, but as Happyrenter says, $2.5MM wasn't that far out of line with the prevailing ask level at the time. So, why the big drop?

Tight money in itself shouldn't have much effect here, because almost anyone can get a mortgage with 50% down. Shouldn't a coop with a prohibitive downpayment hurdle be affected much less by a credit contraction than condos that allowed 90% financing?

Once of the things that baffled me about the boom was the extent to which buildings like this one followed highly-leveraged - but superficially comparable - condos to stratospheric price levels. To some extent, I think cash-rich buyers were suckered into bidding against themselves (and a small circle of peers), because soaring condo prices fueled by easy credit and foreign money made it look like the high-end CASH buyer pool was much deeper than it really was.

Just my impression. I don't have any good data to back it up.

Interesting point in the last paragraph.