[saucz]

Since this community has given me a ton of help, i've decided to help do the same in the only way I know. I will post up current information on the Manhattan real estate market for those that are curious or in the market and don't feel like talking to a broker for whatever reason.

Sales:
The real estate market has just changed to a buyers market. Up until last month or so, buying a property was very costly do to 1 reason. Bidding wars. If you wanted to purchase a home during the last couple months, every offer you put in was sure to be outbid by someone and not by just 1 party but 3-4 parties raising the price ridiculously. A studio condo apartment that was worth $400,000 would be bid up to $500,000 or even more. Bidding wars is now rare to non-existant. Anyone that is looking to sell a house right now NEEDS to sell right now would not be selling right now unless they had to therefore they are lowering their prices by the thousands. That doesn't mean that prices of the apartments are low. It just means that they won't be blown out of proportion by bidding wars. This is the amazing reality of the market right now. Sellers are still getting the most amount of money for their money but they are not getting more than their home is really worth (which was the case until last month)

Rentals:
Rentals have gone through the roof this past summer. Studio apartments for 1200-1500 almost non-existant and the ones that you do find for $1500 are about 250-300 square feet. Average prices for studios now range from $1600-1800. Aparments that were $1500 last April are now $1800. 1 Beds that were $2200 are now $2500. As the winter month roll around, landlords will definately be lowering their rent by $100 dollars, pay the brokers fee or give 1 month free rent so if you can wait another month or so be patient.

The last plot of vacant lot was sold in Manhattan last month. This is how crazy the market is right now. Developers are in a frenzy to buy up land and build highrise buildings. You can see it all over Manhattan if you walk through the streets. Chrystie Avalon, 325 Fifth, up and down Broadway and Central Park west are a few.

Hope this info has been helpful for those in the market. And ALWAYS do a ton of research on the web.
http://www.therealdeal.net/

[inkblue]

yuP, am renting ouT my studio, door man bldg, private park, next to NYU Medical, for about $1,300 (i SHOULD raise it to $1,600)... worth about 400K... right on the money saucz

[jhale]

thanks saucz,

do you care to make a prediction for a potential buyer in the next 4-6 months.

will the market calm down a bit more, or is there just no way of telling?

[joe]

Quote: Originally Posted by jhale thanks saucz, do you care to make a prediction for a potential buyer in the next 4-6 months. will the market calm down a bit more, or is there just no way of telling?

itll definatlley calm down, it is alreadyy calming down slowley
alot of my parents friends are in real estate and thaats whatt they all say. though everything avery were is being gentrified, things will calm down, maybe not significantlly in 4 months but probebley subtly.

[Melt]

i was speaking to a century21 realter ( good friend of mine) and he told me don't but anything now..because deal will start to be flying around because of the interest rate...banks will have to sell houses below value to get their money back...he also told me that people signing out house to other people to get out of they deal...

[saucz]

Manhattan real estate is one of the most fickle beasts out there. While it is REALLY uncertain what the market might be like because ANYTHING can change the market, it is pretty safe to say that the market will steadily taper off. Selling houses BELOW market value is something that I doubt will ever happen. House prices might go down but that does not mean that it is selling below market value. A 250-300 sq ft studio selling for $400,000 thousand cannot be said to be market value. The interest rate will fluctuate in the next couple months but how big of fluctuation it will be it's hard to tell. Manhattan real estate is calming down alot and by calming down, I mean that ridiculous price raises due to bidding wars probably won't be likely. But once again, that does not mean that people will sell homes for a ridiculously low value. The days of being able to purchase a LARGE 2 bed in a hot location for $600,000 will be unlikely. When you invest in Manhattan, even IF the market does go down, the chances of it shooting past what they were last summer is high. Developers are going insane to buy and build. Many neighborhoods that were not so great to live in a couple years ago are getting cleaned up, (ie. midtown west, stuyvesant town and even some parts of harlem). If you plan on purchasing within the next 4-6 months, keep on track. Unless you see some drastic change that will hint of the market going down which is highly unlikely, you should do your research and be confident in your choice. If you don't you will always be worried about market and never make a purchase. Remember, in Manhattan real estate, there are only 2 markets. The sellers and buyers, and right now, it looks like it's going the way of the latter.

[jhale]

thanks, good info.

[marrone]

I've been hearing this for years and years, the reality is Manhattan prices will always have high value and always be in demand, specially in prime areas. As for neighborhoods that weren't great in Manhattan well they've been clean up many years ago and not just now and people have already moved in to these places specially with the high rents in other area of the city.

[Reef Guy]

The question is...is it better to buy when home values are ^ and interest rates are V or when interest rates are ^ and home values are V

[marrone]

Considering you can always refinance when interest rates go down it's probably best to buy when home values are low and interest rates are high.