Manhattan Real Estate

[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 :afro:

 

[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]

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.

 

[saucz]

As morrone said, Manhattan real estate will be more expensive per sq ft than anywhere in the US. Also, in Manhattan, your investment will always appreciate. Even if there is a drop in the market it will always pick itself back up.

As far as when to buy, it all depends on 2 things. Is it a buyers market (where you have the power to negotiate the price as a buyer) and do you have cash to purchase the home straight out or not. If you have the cash to purchase the home straight out, you should definately buy when the interest rates are high and the prices are low (common sense). But it gets trickier if you plan on financing a majority of the home. (When an interest jumps up 2% it can mean the difference of a couple tens of thousands or dollars). This is when you have to consider things like how long you plan on keeping the home for, and what you think the market is going to be like for the duration of your ownage. But this is what I always tell my clients, are you more worried about this home as an investment or a place for your new memories and big events. So many people get caught up in this "bubble" and the "market" that most can't make up their mind and end up never purchasing always wondering whether they should have bought or not.

But of course, people will always worry.
and i would probably too... LOL

 

[inkblue]

...am Looking for a 2-bedRoom now, maybe in Tudor City [cross-finGers]

 

[saucz]

For all that are caught up in this idea of the bubble bursting and market crashing

http://www.therealdeal.net/issues/NOVEMBER_2005/1130898441.php

http://www.washingtonpost.com/wp-dyn/content/article/2005/10/26/AR2005102602255_pf.html

just doin my best to clear things up for those in the market now....

 

[Josh]

How does this affect renovations? I am in the process of planning a completely new kitchen (mostly for investment purposes, we rarely cook).

Any ideas?

 

[saucz]

renovations are always a good thing. Unless you're doing major gut renovations, you should renovate according to your taste because a good sized apartment in a good location for a good price will sell no matter what. You can charge a bit more for the renovations but if it's just for the kitchen it won't be that influential. (Unless your kitchen is just that horrible). :tongue1: Like i said, you're living in it. Don't think too much about your home in aspects to the market. Think of the home in aspect to what you like. The market you cannot control. How happy you are about your home, you can.

 

[realhiphop]

I just found this thread. I'm in the market to rent and I was curious if anyone knew what I should expect to pay for a rental in Gramercy/Murray Hill for a studio? What neighborhoods could I potentially pay $1200 for a studio?

 

[suntzu]

Here's an interesting article that my friend sent me:

http://www.nytimes.com/2005/12/25/b...tml?ex=1137646800&en=0141dd4818109ad7&ei=5070

I currently live with my parents in a two family house and pay them rent. I was thinking about buying a while back but now, I have decided to just wait and see how the market plays out in this year.

 

[jhale]

I read that article. I just don't see that happening here, it's just a gut feeling though.
About the only recent time NY realestate took a real plunge was right after 9/11 and that was just the downtown area.

It would be nice if the price of a studio or one bedroom would not be more expensive than a large home somewhere else, but NY realestate is in it's own world it seems.

realhiphop; I think for a studio in most areas you might have to bump the cost up to $1500 from the $1200 in your budget

 

[herman]

One word: foreclosure
There are plenty of people who no longer can afford what they started. You get good deals.

 

[realhiphop]

How do you find places that have been foreclosed? I guess a studio is simply out of my reach right now. I've heard you can find studios in that range on the UES in the 70's but they are hard to find.