Like in any market, the prices are determined by what buyers are willing to pay for a property. This is dependent on the comparable prices with other properties that have sold in the building, and then checking to compare with how much money apartments have sold similar buildings in the area. This is exactly the type of information a Licensed NY State Real Estate Broker would do research about, in order to help their clients.
I wish I could say that Real Estate Brokers had a significant influence over prices, but in reality, the market determines the prices. That being said, I strongly believe that prices have been lowering in units that were for the most part, overpriced. However the question you are asking is really much more complicated than you may have originally believed. This is because even though there might be an average price per square foot that prices have fallen, to get the answer that applies to the type of property you are interested in getting information about, you would really need to be able to identify which buildings are similar in the neighborhood as far as time when it was constructed, building amenities, location to public transportation, etc., etc. Again, a Licensed Real Estate Agent will be able to help you figure all this out.
My best recommendation is whatever you decide to do, you should know that if you plan on looking on your own, when you answer ads for apartments for sale, you are responding to ads that are placed by the Seller's Brokers'. These people are hired by the sellers to get the highest price possible for the apartments they represent. Since a commission is going to be paid by the seller anyway, and it costs you absolutely nothing, you should have your own representation, in the form of a Buyer's Agent.
Senior Real Estate Sale Associate
Keep in mid the Times doesn't always update listings and their information is often not accurate or current. Streeteasy is a little better.
Interest rates are at all time lows, rental vacancy rates are at all time lows (less than 1%) and average rent prices in Manhattan have risen to all time highs. $1000/month now gets you a loan of around $220,000, just 5 years ago in 2006 it would get you a loan of $150,00.
This makes buying very appealing particularly studios and 1 bedroooms because buying can be less expensive than renting.
I've recently been able to negotiate fair prices for my buyers on so-called "overpriced listings" A good listing broker and a good buyer's broker that both know the real value of the apartment can usually get a deal done regardless of the asking price.
The Corcoran Group
Currently there are three active listings on UES below 110th street between $179K and $199K
One of the $200K sales was listed at $225K. Closings occur 8-12 weeks after a contract is signed. Reported sales data trails actual market conditions. Each market segment and neighborhood has it's own nuances. Data can be skewed and should be used primarily for market trends not for individual transactions or pricing.
Mitchell Hall, Associate Broker
The Corcoran Group
This is a great time to buy. New York City is a bubble and the market has actually gone up a bit.
Licensed Real Estate Agent
RE/Action International, Inc.
I do not want to believe that the difference between asking prices and selling prices are a trend. I do think that the difference will depend on a performance of a broker working in your behalf and the particular situations of the apartment and the deal. On the other side, the seller would expect to receive nothing less than a market price and a good agent representing him/her will negotiate the price to that.
Do not hesitate to contact me if you decide to have representation in your home search!
Licensed Real Estate Salesperson
Since you are considering not renewing in 7 months, did you know it will take at least 6 months to purchase a place? Figure a couple months to find an apartment that you like, 1 week to negotiate, 2 weeks to contract signing, if a co-op, 1 month to a package (shorter with a speedy agent), 2 weeks to 1 month for an interview, 2-3 weeks to close after approval. So with that in mind, you may want to negotiate a lease extension into Jan or so of the next year. Note that a lot of landlords may fight that as Nov/Dec/Jan/Feb are not great times to rent...it is when prices are the cheapest and there are not a lot of people looking to move. So, I would have some sort of rental renewal strategy keeping this in mind.
Bond New York,
Manhattan, Queens, Brooklyn
That is a great question. Rather than quote you a statistic, I'd rather answer in a more meaningful way. What you should pay for any particular apartment should not be based on a formula of a certain percentage off the asking price. Your agent, and I certainly hope you are using a good buyer's agent, will be able to tell you what you should pay for any particular unit you decide upon based on comps. If an apartment is overpriced, and the current closed comps indicate that, you should pay less. If the current closed comps say it is priced very fairly, then you may have to pay at or very close to ask. If it is priced very low, you may find yourself in a competitive bidding situation.
A good broker will be able to negotiate a good and fair price for you. I recommend that you begin the process of your home search in January or February. You should first get pre-approved for a mortgage so you know how much you can spend on the apartment. If you need it, I can recommend a good mortgage broker to you who got my last buyer a rate below 4%. He is paid by the lender so is free to work with as well. In the meantime, please feel free to email me with any questions you have about the home-buying process, which can be really fun and exciting!
Across the market, regardles of the size of property 1mm and below, the current prevading buyer phychology is that they are not even putting in offers for apartments unless there is very little difference between sold price and last list price. This is forcing sellers to move prices down. If you are looking to sell, this means that sold pricing and in-contract pricing is critical. Sold to know where you will probably end up, and in-contract as that is trigger point for offers. Looking at current list price is not the best way to judge the market at this stage in our housing recovery.
Now, on your specific reference, I would always say if it looks to good to be true it is. Most likely these need 50-100k of work.
Bond New York
In general, apartments are now selling at 3% below the listing price if it is priced correctly. That said, many apartments on the market are overpriced. A seller can list an apartment at any price they wish to ask. It does not mean the apartment will sell at that price. Some sellers are not that motivated and just want to "test the market." It is a misconception that sellers or their brokers set the price of an apartment. In actuality, the market determines the price. If an apartment has been on the market for more than 8 weeks, it is overpriced and the seller should drop the price if they want to sell.
If you are thinking of selling your apartment and would like a free market analysis of what it is worth, I would be happy to meet with you and provide you with one.
Or if you are thinking about buying an apartment, I would happy to assist you. Sellers pay the broker's commission so it is free to work with me.
Licensed Real Estate Agent
BOND New York