Sherry, Home Buyer in

how is the real estate market in NYC?

Asked by Sherry, Fri Jul 27, 2007

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NYC is made up of 5 boroughs and 5 counties. Manhattan (New York County) is very different from Bronx, Queens, Brooklyn and Staten Island. However since your question is placed under West Village a very desirable neighborhood in Manhattan the market is quite strong. Greenwich Village, Manhattan's most famous neighborhood has always been a popular place to live. Greenwich Village is the city's largest historic district.... More info below
3 votes Thank Flag Link Sat Aug 4, 2007
Mitchell Hall, Real Estate Pro in New York, NY
MVP'08
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Condos are at the peak right now and coops have already fallen.

The recent credit and stock market meltdown, and more importantly, the bursting of the leveraged buyout bubble and collapsing hedge funds will significantly reduce the bonus pool this year.

Additionally, the weak Dollar is already strengthening due to unwinding carry trades resulting from risk aversion by fund managers. A strong Dollar is not good for foreign real estate buyers.

Condos have held up longer than coops because most foreigners don't purchase coops due to board regulations. So foreigners have been purchasing and selling these condos to each other, driving prices up.

However, with the strong Dollar, these foreigners will see their currency driven discounts diminish.

In other words, the Manhattan real estate market, which has been strong while the rest of the nation suffered, is about to get its first real dose of reality- with more to follow.

The nationwide real estate bust has impacted Wall Street, with ripple effect from the subprime fallout still working its way through the system. Wall Street has finally been affected, and the next to follow will be the economy's indicators. If one looks at the data, one will quickly realize that we have not reached the peak in terms of sub-prime and ARM resets- that is due later, and the current rate will increase until that point. In other words, the worst is not over, and if Wall Street dropping over 500 points in a week is any indication of what's to come, it would be prudent to wait and see what the effect Wall Street falling will do the this local market.

MMAfia
2 votes Thank Flag Link Sat Jul 28, 2007
Sherry,

Assuming you don't have a realtionship with an agent already, you might want to call and schedule appointments with several area real estate agents. You can, at that time, ask them about the market and get their thoughts, as well as get a feel for which one will represent your interests the best.

Good luck with your home purchase!
Web Reference: http://www.ChrisTesch.com
2 votes Thank Flag Link Fri Jul 27, 2007
The New York Times recently published an article exploring just this question. The article concluded that New York City should remain relatively sheltered from the drop in prices being experienced in other markets in the U.S. for a variety of reasons, many of them already stated (foreign real estate investment, a high concentration of wealth, the fact that New York remains a desirable place to live -- just to name three). If you're serious about finding out more, I'd suggest you look it up.
1 vote Thank Flag Link Tue Nov 6, 2007
Manhattan is one of the few markets in the US that has been apprciating. Sales in the Manhattan market are up an incredible 65% from this time last year. The overall average sales price has also gone up by 6%. The weak dollar is helping since a lot of foreign investors can get a lot more for their money now. Addtionally, Manhattan has become the safest city in NYC so we are seeing a lot of families moving back here.



We will probabl
Web Reference: http://www.BrachaGroup.com
1 vote Thank Flag Link Mon Oct 22, 2007
It's healthy and a wholly different animal than the rest of the country. NYC is international and buyers are international; every section of the city has new developments and a general rejuvenation is occurring. Last I read, the rental market was very tight - less than 1% . That said, it's hugely expensive to live here. Buyers and renters for coops (and now condos) face income requirements and board packages... If you want specifics, there are numerous internet resources you can read. I like the NY Sun, among others.
1 vote Thank Flag Link Sat Jul 28, 2007
In NYC, the market is Free to those who can afford it.

For the rest of Us, it's a little like laser surgery. Beware the optimists, beware Technology, walk the streets, walk the apartments, watch what sells and closes, and know the why. Work with a GREAT Agent (like myself) and Take your Time! No rushing!
0 votes Thank Flag Link Mon Aug 8, 2011
We're very fortunate in NYC, compared to the entire country we have a strong market. Although the prices have been adjusted throughout the city and listings have stayed on the market longer then in past markets. What makes this very challenging market special is, on the buyer's side sellers are "somewhat" more fleible and open minded then in the past. There are no fire side sales but there's a bit more of wiggle room then in the past. Mortgage rates are low which adds to the perfect storm for any smart buyer. Best of luck and feel free to contact me for your real estate needs.

Tony Lara
Licensed Real Estate Salesperson
Rutenberg Realty
tlara@crrnyc.com
0 votes Thank Flag Link Sat Apr 9, 2011
according to brokers = good
according to reality = poor
0 votes Thank Flag Link Thu Apr 16, 2009
I find it to be quite vibrant, many properties having recently gone into contract and not many bargains available..Perhaps that is because of the recent stock market upheaval or because of the relative stability of the New York Market compared to the rest of the country..
Web Reference: http://joliemuss.com
0 votes Thank Flag Link Thu Nov 20, 2008
"How is the market?" is a question best answered with another question, which is "Are you a buyer, a seller, an investor or a renter?" The answer is different for each. What is your particular situation?
0 votes Thank Flag Link Mon Nov 17, 2008
Here's an addition to my answer below... I hadn't taken into account the foreclosures that will occur next year.

Many of us work on bonus' and commissions. Wall Streeters make most of their income on their yearly bonus. What do they do with their cash? Keep it in the market... what do they live on? CREDIT. Whether it's credit cards, or home equity lines of credit.

How many of them have second homes? So, now that their investments aren't worth what they were, their mortgages are adjusting, the taxes are due in two months, etc, etc. The money to pay all of this just isn't there... and it won't pick up in time to avert the crisis.

You know, it's easy to predict doom and gloom for the future. I really don't know how long this will last, but the last time this happened, in the late eighties, the height of the real estate market occured in 1991. It took about five years for the market to pick up again. And what's the real sign of the market picking up? It's when the bottom feeders start to buy.
0 votes Thank Flag Link Fri Nov 14, 2008
The answer to whether or not Manhattan's real estate market will continue to be healthy is really: it's too early to tell. Having experienced the Manhattan real estate crash of the late 80s/early 90s, there was a definite lag time between the 87 stock market crash and the real estate crash. The fall out from the troubles on Wall Street has only begun. There are anticipations of further layoffs in the New Year. And we haven't seen the end of this shake out by any means. Plus, the poor economy is impacting other New York industries. For example, the advertising industry has seen some layoffs recently and the trades report that it's just the tip of the iceberg.
0 votes Thank Flag Link Thu Nov 13, 2008
Sang answered this question on August 28th, (see below) before the stock market debacle and elections. Not only is the Manhattan Real Estate market at a virtual standstill, but asking prices have been lowering steadily. The dollar is stronger now, not great for foreign inverstors, as Sang predicted. European economy is suffering, also not good for the foreign buyers, who for a long time were our saving grace. Wall Street bonus' are 65-75% down from last year. Layoffs are rampant everywhere.

So, the sellers who have to sell, will. The sellers who don't have to sell, won't. Selling prices (per square foot) will decrease steadily. Sales of apartments will decrease also. Lots of new inventory will come on the market for rent, as properties that haven't sold will be offered for rent. Rents will come down also.

But the biggest problem will be the "wait and see" attitude. Everything will be in a holding pattern for awhile. The only thing that will junpstart the real estate market in New York and elsewhere, will be the sense that we've hit the bottom of the pricing, and credit (mortgages) freeing up.

I think we're in for a long wait, perhaps a couple of years. There will be a lot of attrition in amongst the real estate brokerage community. Or at least a lot of brokers having to supplement their income somehow.
Pessimistic? No. Reality Check? Yes. But there's a light at the end of the tunnel, and this is just a normal occurance that has taken an abnormal amount of time to occur.
0 votes Thank Flag Link Tue Nov 11, 2008
I am an agent in Westchester county right outside NYC. The doom and gloom projection by Sang makes little sense. Employment is strong in NY and a weak dollar helps foreigners invest in Manhattan. The stock market had a CORRECTION not a crash - the market is up today and was up significantly yesterday and bonuses are expected to be better than ever this year. The ripple effect is seen in Westchester where people who are priced out of NYC come. Westchester is expensive, but not nearly so much as Manhattan.

NYC is a different animal from the rest of the country and needs to be viewed as such. The bad news is that no matter where you go proximal to NYC - its expensive will remain so.
0 votes Thank Flag Link Thu Aug 2, 2007
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