Buyers on the Upper East Side of Manhattan have been waiting.  They have been waiting for prices to come down and now the wait is over.  It is a great time to buy! 

Although the last few months have seen fewer sales, we think that the coming months will be stronger. There is an opportunity right now for anyone who wants a good deal.  That’s not to say that prices have dropped dramatically.  They haven’t.  The good news for buyers is that prices are lower right now.  We got used to coop and condo prices increasing with every sale.  Not only has that stopped, but decreases are quite common.  With the current uncertainty of the economy, the best investment for many people is real estate. 

While many owners are reluctant to sell right now, the timing might just be right.  With limited property on the market, buyer activity for a good apartment will be surprising.  The right apartment with a realistic price will sell right now on the Upper East Side.  Sellers can also expect relatively fast closings; based on recent experience we see that qualified buyers are still able to get competitive financing from major banks. 

This past summer saw a decent amount of transactions conducted on the Upper West Side.  It was not a record breaking time, but sales continued.

Most of the transactions were spread fairly evenly across the board of all price ranges.

The good thing about the Manhattan market is that there are so many different groups of buyers that if one isn’t active, there is sure to be interest from another group. Meaning, we saw studios in the $300Ks go to first-time buyers and high-end new construction to some foreign investors.

September ended with buyers in a “pause” mode -- pausing because they are being prudent while they evaluate the market.

Buyers are asking, "Are the prices going down?” “Have we hit bottom and is now the time to buy before the market strengthens?”

We certainly don’t have the answers to these questions, but we do know that of the transactions that have been done, the buyer has gotten very fair prices compared to last year’s ranges.  And the mortgage interest rates are still historically low.

Sellers who have their homes on the market now are serious sellers.  If the right offer comes along they are seriously considering each and every one. So buyers, this is your market!

 

Message to Buyers....

This is the time you've been waiting for! 

For those of you who've been waiting for a price correction, now is your time to jump off the fence and start looking at the new and revised home prices.  Bad economic news is great news for those of you waiting for a window of opportunity. It's never easy to step up to the plate in uncertain times, but history shows that the best deals are made under difficult circumstances.  You will find that sellers will be more negotiable than in the past.  You are finally in the driver’s seat.

Message to Sellers....

You were smart enough to buy a home instead of renting and had the good fortune of watching your investment grow, in some cases, by many multiples.  Now you are moving.  Do not expect to get the same high price that your neighbor got last year, but feel good knowing that you bought low and will now sell high. If you are buying a new place, you will get a better deal than you would have gotten last year. The cost of jumping to the new place is favorable.  Your mortgage amount will be lower and rates are as good as they get. 

Regardless of which side you are on, the market will keep shifting, and it is nearly impossible to time the market. Shop carefully, find an agent you trust to help you through the process and do your homework.  We all have to live somewhere!   

The market is tentative and jittery! Buyers are holding back on decisions because of uncertainty about the general economy and both rate and price trends. The headlines about housing, banking and the stock markets have not inspired buyers.  Surprisingly, the market in Manhattan has not really seen a dramatic price drop, but the buyers are very picky about the properties they are moving forward on.  If a property does not show well and is not priced right...it sits. 

Bottom line...IT IS NOW A BUYER’S MARKET.

I suspect that the total volume of transactions will remain below that seen over the last few years.  Buyers will have an increasing, but still limited inventory to choose from. We are now in the storm -- yet way off, looking thru the mist, I see the clear blue sea.

Manhattan real estate is as good an asset class to own as any alternative investment. The tax savings and current interest rates are still super-positive for the residential market.  As I view it, an excellent time to purchase is quickly approaching!

We might see a 5-10% adjustment in prices, but longer term, the up-trend is one of unbelievable strength.  I do not see anything in view that is more than a short-term storm. The sun is surely going to shine in the morning.

Buyer activity has slowed while buyers and sellers both wait and see what happens in the financial markets and the employment levels in NYC.  By no means have the deals stopped; there are still smart buyers out there who realize that now may present their "window of opportunity" to get a really good deal.

Once the election passes and there is a new president-elect, and we have a better idea of how the current financial upheaval will play out, buyers will get back to the business of home buying.  Real estate may start looking like a safe investment again, particularly in New York City.  It always has been a safe investment for the long term.

Surprisingly, our average negotiability for the second quarter is below 5 percent.  What this says is that since deals are still being done close to the asking prices, sellers are realizing the need to lower their asking prices to get their properties sold. 

Sellers who are unrealistic about the value of their apartments are simply taking them off the market and waiting.  This will help to keep inventory lower than it would be otherwise.  The fact that these sellers are lucky enough to be able to just wait is another strength in the New York City market.