On my way to work today in our New York City office, I was listening to Bloomberg Surveillance on 1130 with Tom Keene and Ken Prewitt as I usually do. I got excited when I heard they would be having my friend, top NYC appraiser and all around great guy Jonathan Miller from Miller Samuel, the Matrix blog, Soapbox blog and the new Housing Helix podcast on the show. It was a great conversation about the nuances of the current state of the New York City housing market.
Listen to the entire Jonathan Miller Bloomberg Surveillance podcast here
Here are some screen shots from Twitter that I LIVE Tweeted [LIVE notes of what was being said]:
I tweeted that Jonathan Miller would be talking with Tom Keene on
Bloomberg 1130 at 9am EST and Tom asked Jonathan if it was a good time
to buyâ€¦..Sadly, I missed the 1st few minutes of the conversation as I just entered the Holland Tunnel
- A $1,000,000 property would be approx 25% less today than a year ago
- Inventory is up 25% in NYC
Whatâ€™s the lag in assessment?
At least 2-3 years
75% of housing is Co-opâ€™s and 2/3rdâ€™s of sales
Foreclosures less likely in Co-opâ€™s - strict board guidelines
Market trying to find itself after September tipping point
Read Jonathanâ€™s entire Q1 Manhattan market report here.
Co-op Fees on the Rise in Manhattan
According to the New York Times,
â€œCO-OPS across the city have raised their maintenance charges by as
much as 15 percent in recent months, and one of the main causes is
rising property taxes.â€
One reason is that the 7% homeowner tax cut was eliminated at the
beginning of 2009. Another reason is that many multi-family properties
have seen the assessed values of their properties go up. The rise in
taxes means many Co-op building will pass those costs directly on to
their shareholders in the form of assessments.
Traditionally, Co-op buildings have have numerous sources of revenue
to help offset rises in operating costs such as direct revenue from
commercial tenants in their building and from flip taxes paid by
sellers or buyers. A flip tax is like a transfer tax where the seller
or buyer [depends on the building] pays a % of the sales price or on
the profit to the Co-op board. These funds are added to the buildings
reserve fund which helps in building upkeep and operating costs. When
either of these sources start to dry up, the reserve fund starts to
deplete the Co-op board may implement what is known as an assessment to
all of itâ€™s shareholders to cover the costs.
â€œRetail tenants are all hurting,â€ said Richard Siegler, a lawyer who
represents about 150 co-ops, â€œand theyâ€™re all coming to boards and
asking for relief. If the economy improves, then a lot of this will go
by the by, but if not, then boards will have to contemplate losing
tenants, even though theyâ€™d rather not have a vacancy.â€
In this economy, as sales slow and inventory rises, even some of
Manhattanâ€™s most prime Co-op buildings are starting to feel the pinchâ€¦â€¦.
Apthrop Condo Price Drop - Largest Since the Fall
The Real Deal reports that the Apthrop Condominium has slashed itâ€™s prices per square foot from $3,000 to approximately $1,950 from last Juneâ€¦â€¦
â€œThe price chop is the largest across-the-board reduction for a new
condo or conversion project since the Wall Street meltdown this fall,
said Jonathan Miller, president of appraisal firm Miller Samuel. The
closest contender was a recent price cut at Northside Piers in
Williamsburg that averaged 20 percent.â€
Click the image to see the Apthorp using Truliaâ€™s ComprareIt!
390 West End Avenue #10A, New York NY 10024
390 West End Avenue #9DN, New York NY 10024
390 West End Avenue #10G, New York NY 10024
390 West End Avenue #9E, New York NY 10024
I would love to hear more about what New York City real estate agents and tenants are seeing and experiencing themselvesâ€¦â€¦.