The real estate market in NYC is cyclical to say the least. But, one thing that seems to be a constant is that the price of renting an apartment consistently increases year after year.
The average rent for Manhattan apartments is on the rise again. According to reports out today, the average monthly rent was up 7.8% over the same period last year climbing to $3,332.
Studio apartment without a doorman averaged $1,348 per month and Soho came in with the most expensive rents averaging $7,909 for a two bedroom doorman unit.
The moral of the story is...if you can buy it always makes more sense. But if you cant, then rent now before prices go up any higher.
Jan 20, 2011
Jan 19, 2011
Step One Graduate College....Step Two......
....Move to Murray Hill.
According to the NY Times....The Fertile East Side Grazing land called Murray Hill has traditionally been known t o attract young Homo sapiens migrating to the region after abandoning their families and native lands and completing a four year maturation/sexual awakening spent in the company of their peers.
As a resident of "The Hill" and with children in the age group described above I can attest to the "Frat Like" atmosphere that engulfs the neighborhood. And, I have no complaints...its alive, its active, at times its loud but it helps to keep me young...
Its interesting how on this tiny little island called Manhattan that we have so many different "hoods" and how different each one is.
Stay tuned to this blog for reports from other distinct neighborhoods on this little island.
According to the NY Times....The Fertile East Side Grazing land called Murray Hill has traditionally been known t o attract young Homo sapiens migrating to the region after abandoning their families and native lands and completing a four year maturation/sexual awakening spent in the company of their peers.
As a resident of "The Hill" and with children in the age group described above I can attest to the "Frat Like" atmosphere that engulfs the neighborhood. And, I have no complaints...its alive, its active, at times its loud but it helps to keep me young...
Its interesting how on this tiny little island called Manhattan that we have so many different "hoods" and how different each one is.
Stay tuned to this blog for reports from other distinct neighborhoods on this little island.
Jan 18, 2011
Thinking about buying a new condo? Read This...
Nothing says Caveat emptor like new construction, which is why doing your homework can make the difference between happily-ever-after and a short sale two years later.
Here are some things you should know if you're buying new:
You must have a mortgage contingency which is a clause in the contract allowing you to get your deposit back in the event you can not get financing.
Look into the reputation and body of work of the sponsor (developer).
Closing costs can mount up to thousands of dollars. In today's market buyers should not hesitate to ask the seller to contribute to those costs.
Negotiate, Negotiate, Negotiate. Ask for the moon and don't be surprised if you get it. There is a glut of new construction on the market and developers with heavy construction loans are trying anything to move property.
Make sure that the developer has sold close to or more than 50% of the apartments. With out that, you cant close and there is no guarantee that the project will ever sell out.
Its a great time to buy and a great time to get some deals on brand new construction but...Caveat Emptor!!!
Here are some things you should know if you're buying new:
You must have a mortgage contingency which is a clause in the contract allowing you to get your deposit back in the event you can not get financing.
Look into the reputation and body of work of the sponsor (developer).
Closing costs can mount up to thousands of dollars. In today's market buyers should not hesitate to ask the seller to contribute to those costs.
Negotiate, Negotiate, Negotiate. Ask for the moon and don't be surprised if you get it. There is a glut of new construction on the market and developers with heavy construction loans are trying anything to move property.
Make sure that the developer has sold close to or more than 50% of the apartments. With out that, you cant close and there is no guarantee that the project will ever sell out.
Its a great time to buy and a great time to get some deals on brand new construction but...Caveat Emptor!!!
Jan 14, 2011
Your Next Apartment May cost More.
In 2008 there were permits filed with the NYC Building's Dept for the construction of 9,500 new apartments (both condos and rentals). In 2010 that number went down to 505 new apartments.
That hugely significant drop in the construction of new buildings will have a equally huge impact on inventory and ultimately on price.
Building, like everything else in the real estate business is cyclical and we tend to expect slowdowns when coming out of a recession. But, this time its as though someone slammed on the breaks.
This lack of new inventory is likely to cause a hike in prices, experts are predicting it may be by as much as 10%. Once again, another reason to buy now.
That hugely significant drop in the construction of new buildings will have a equally huge impact on inventory and ultimately on price.
Building, like everything else in the real estate business is cyclical and we tend to expect slowdowns when coming out of a recession. But, this time its as though someone slammed on the breaks.
This lack of new inventory is likely to cause a hike in prices, experts are predicting it may be by as much as 10%. Once again, another reason to buy now.
Jan 13, 2011
Still Wondering if now is the Time to Buy?
While interest rates remain low, they have begun to inch up from their historic lows of 2010. Prices of Coops and Condos are still below the highs of 2007 but they too have begun to inch up. And, while transactions are on the rise as more and more buyers decide now is the time to buy, there are still a large number of "Fence Sitters" out there convinced that things have not bottomed out.
Today's New York Post reports that NY home sales are expected to rise 8% in 2011 and interest rates are showing no indication of heading anyplace but up.
So, ATTENTION FENCE SITTERS.....NOW is the time to buy!!!!!
Today's New York Post reports that NY home sales are expected to rise 8% in 2011 and interest rates are showing no indication of heading anyplace but up.
So, ATTENTION FENCE SITTERS.....NOW is the time to buy!!!!!
Jan 12, 2011
Just when you think you've heard it all....
...Luxury condo brings in Saks Consultants.
Yoga studios, golf simulators, roof decks and film screening rooms are commonplace nowadays in Manhattan's new lucury apartments. But how many buildings pair residents with Saks Fifth Avenue style consultants who will give them closet evaluations?
There is only one...so far...The Sheffield.
Give the developers of the Sheffield credit, this is truly thinking outside of the box...or the closet if you will.
It goes to show that in this highly competitive market with a large inventory of luxury properties for sale, its those that can come up with something unique and clever and that can create a buzz that will be able to attract the most buyers.
No one knows what the next great idea will be but this one is very cool.
Yoga studios, golf simulators, roof decks and film screening rooms are commonplace nowadays in Manhattan's new lucury apartments. But how many buildings pair residents with Saks Fifth Avenue style consultants who will give them closet evaluations?
There is only one...so far...The Sheffield.
Give the developers of the Sheffield credit, this is truly thinking outside of the box...or the closet if you will.
It goes to show that in this highly competitive market with a large inventory of luxury properties for sale, its those that can come up with something unique and clever and that can create a buzz that will be able to attract the most buyers.
No one knows what the next great idea will be but this one is very cool.
Jan 11, 2011
What Did Renters Learn in 2010 AND.....
....what do they need to know in 2011?
- Its no longer a renters market, inventory is down, concessions are gone and landlords are back in the driver's seat.
- Inventory talks...so long as our vacancy rate is less then 1% through out the city prices will be going no place but up.
- Luxury Costs...in the past you had to buy in order to have the finest of the finest. Now, rental properties that fall into the ultra luxury category have sprung up and rented quite quickly, thank you very much.
- Easy shares are a thing of the past. Landlords are no longer anxious or even agreable to having walls built or allowing shares in smaller apartments.
- Bed Bugs dont discrimate. Every neighborhood and every price point has been effected. At least new laws mandate full disclosure.
- You CAN avoid Craiglist scams. Using a reputable, ethical and honest Real Estate Broker (yes they do exist) will let you sleep well at night.
- Count your blessings. Rents have jumped up in price since 2008/2009. If you signed a lease back then, thank your lucky stars.
Jan 10, 2011
5 Real Estate Resolutions for 2011
When it comes to New Year's Resolutions, financial goals like paying off credit cards and doing a better job of saving rank at the very top of most people's lists, right up there with the perennial goal to take off a few pounds.
Whether you rent or you own, here are 5 key real estate resolutions to consider setting for 2011...
1) Owners: Accelerate paying your mortgage off. Making one extra mortgage payment a year can cut many years and huge amounts of interest off your home loan.
2) Renters: Renegotiate your rent. Since your rent is no doubt your larges expense of the month, being able to chop a few dollars off the price tag can improve your households bottom line dramatically. Speak to your landlord, he will most likely prefer to lower your rent a little than to have you move and sit with an empty apartment. Of course, you need to be sure that you dont live in a building or a neighborhood with a very low occupancy rate or the landlord may just offer to help you pack.
3) Sellers: Create urgency for buyers to get your home sold. If your home lingered on the market in 2010, you may need to take the bull by the horns to get it sold in 2011. Cut your price to a level slightly below the recently sold comparables: even if you've cut the price before, this can create a pricing "Sweet Spot" where buyers recognize the value and swoop in with offers.
4) Buyers: Qualify for a mortgage to buy a home. This one is plain and simple, interest rates are low, inventory is high, prices have hit bottom...now is the time to buy. Walking into a seller's home with a pre-approval letter from the bank will put you in a very favorable position.
5) Owners: Pay off your property taxes. One of the casualties of the recession is that in order to stay current with their mortgage and living expenses many owners have fallen behind with their property taxes. Before the interest and penalties begin to pile up and before the sheriff begins sending threatening notices, get those property taxes paid off.
Resolutions are tough to keep but these five will help you sleep at night.
Whether you rent or you own, here are 5 key real estate resolutions to consider setting for 2011...
1) Owners: Accelerate paying your mortgage off. Making one extra mortgage payment a year can cut many years and huge amounts of interest off your home loan.
2) Renters: Renegotiate your rent. Since your rent is no doubt your larges expense of the month, being able to chop a few dollars off the price tag can improve your households bottom line dramatically. Speak to your landlord, he will most likely prefer to lower your rent a little than to have you move and sit with an empty apartment. Of course, you need to be sure that you dont live in a building or a neighborhood with a very low occupancy rate or the landlord may just offer to help you pack.
3) Sellers: Create urgency for buyers to get your home sold. If your home lingered on the market in 2010, you may need to take the bull by the horns to get it sold in 2011. Cut your price to a level slightly below the recently sold comparables: even if you've cut the price before, this can create a pricing "Sweet Spot" where buyers recognize the value and swoop in with offers.
4) Buyers: Qualify for a mortgage to buy a home. This one is plain and simple, interest rates are low, inventory is high, prices have hit bottom...now is the time to buy. Walking into a seller's home with a pre-approval letter from the bank will put you in a very favorable position.
5) Owners: Pay off your property taxes. One of the casualties of the recession is that in order to stay current with their mortgage and living expenses many owners have fallen behind with their property taxes. Before the interest and penalties begin to pile up and before the sheriff begins sending threatening notices, get those property taxes paid off.
Resolutions are tough to keep but these five will help you sleep at night.
Jan 7, 2011
What Did Sellers Learn in 2010?
Here are the top 7 lessons learned by Sellers in 2010...
1. New York is not Miami, NY is different. While Miami and many other placed dealt with 50% price drops, NYC hit bottom at only A 20% drop.
2. Renovations sell, fixer uppers don't. Only contractors enjoy doing work, everyone else just wants to move in.
3. Proper Pricing works. All the properties that sold had one thing in common...they were priced where the market felt there was value.
4. Renting is a real option. With rental inventory low and some sellers on the fence about now being the time to sell, some sellers chose to become landlords for the time being.
5. Cash is still king. All cash offer went right to the top of the list and negotiations were most brisk with when financing was off the table.
6. Appraisals matter. No matter how much you may have been lucky enough to see your home for, if it doesn't appraise you will have to renegotiate.
7. Sometimes its the building. Many mortgage turn downs this year were not about the buyer but rather, about the building. Be sure to know if there are issues in advance.
1. New York is not Miami, NY is different. While Miami and many other placed dealt with 50% price drops, NYC hit bottom at only A 20% drop.
2. Renovations sell, fixer uppers don't. Only contractors enjoy doing work, everyone else just wants to move in.
3. Proper Pricing works. All the properties that sold had one thing in common...they were priced where the market felt there was value.
4. Renting is a real option. With rental inventory low and some sellers on the fence about now being the time to sell, some sellers chose to become landlords for the time being.
5. Cash is still king. All cash offer went right to the top of the list and negotiations were most brisk with when financing was off the table.
6. Appraisals matter. No matter how much you may have been lucky enough to see your home for, if it doesn't appraise you will have to renegotiate.
7. Sometimes its the building. Many mortgage turn downs this year were not about the buyer but rather, about the building. Be sure to know if there are issues in advance.
Jan 5, 2011
The Luxury Market Re-Appears
Suddenly, after sitting on the market for months and months, high end luxury apartments are selling...and selling fast.
The sudden movement is not a fluke. Brokers say they've seen a spike in activity at the very top end of Manhattan's market. The surge comes at a time when the rest of the market has slowed down for the winter, amid high unemployment and fears of double dip recession.
One of the reasons that the high end market has returned is that the "taboo" of buying luxury items after the collapse of Lehman has deteriorated and folks are feeling better.
International interest is also helping to fuel the luxury market, in particular, buyers from Russia and South America.
What ever the reason and from where ever they come, one thing is undeniable...multi million dollar homes are selling again and we in the brokerage community are very happy about it.
The sudden movement is not a fluke. Brokers say they've seen a spike in activity at the very top end of Manhattan's market. The surge comes at a time when the rest of the market has slowed down for the winter, amid high unemployment and fears of double dip recession.
One of the reasons that the high end market has returned is that the "taboo" of buying luxury items after the collapse of Lehman has deteriorated and folks are feeling better.
International interest is also helping to fuel the luxury market, in particular, buyers from Russia and South America.
What ever the reason and from where ever they come, one thing is undeniable...multi million dollar homes are selling again and we in the brokerage community are very happy about it.
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