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And we’re off….a new year, a new decade. Open house activity is brisk and deals are certainly being made, as demand seems to be outpacing supply, for January at least. We will have to wait for more data before we can indeed conclude this is a sustained trend.
After so much market malaise, buyers are increasingly grasping the conditions and learning what it takes to get deals done. Maturing millennials makeup a growing number of those buyers and affordability is the name of their game. Likewise, sellers who sincerely intend to sell are beginning to get their properties sold. They have studied the data and have accepted the rendezvous point of the supply and demand curves for their sector in the marketplace.
As a whole Manhattan prices are down approximately 4% since last year with sellers having to negotiate approximately 6% off their asking prices. Note: every property fits into a micro-market whether it is a 2 bedroom 2 bathroom condo downtown, a pied-a-terre on the Upper East Side, a townhouse on the Upper West Side, an investment condo on the Lower East Side etc….the list of categories is infinite. Meaning, each sub-market should be studied independently.
For those sellers wanting to do just that….sell, now could be the time. It is highly likely the most activity will happen in the first half of the year. Being an election year, Manhattan notoriously slows from summer through November/December. Meaning the next most appealing selling season would be a year from now. So for those who need to sell, now is the time; but pricing needs to be accurate .
Likewise, if any sellers are actually looking to upgrade, now is also the time, as you will be able to arbitrage this trade forward and capture tremendous value, far more than in years past. Interest rates are extremely low, so purchasing power is substantial. These low rates benefit both buyers and sellers. Buyers can afford more; consequently, satisfying sellers all the same. Transactions should be easy right now, as long as people recognize how not to stand in their own way.
As I always ask:
Are you prepared to dive in? You should always know what you are in a position to buy or sell at all times. If you don’t know, reacquaint yourself with the marketplace. What is your property worth? What can you afford to buy? Anyone interested in buying or selling, should be rolling up their sleeves to determine whether the time is right to sell or if there’s a home or investment property out there for them.
Roberto Cabrera
Licensed Real Estate Broker
Brown Harris Stevens
212.906.0554
Your City, Your Broker…
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