How much will upper east side coop sale prices which are now in the 1.75-2.5M range be affected by the

Asked by Upper East Sider, 10021 Sun Apr 13, 2008

economy as we go forward? It seems that pending Wall Street job losses will decrease buyers for this segment. Should I wait to buy so that I can get more for my money?

Help the community by answering this question:

+ web reference
Web reference:

Answers

8
Zack, , Westchester County, NY
Fri Apr 25, 2008
Wow, Alen. "This is a very simple answer. Smart investors do not lose money on Real Estate..." Apparently every company that has had a writedown in the past year+ is run by stupid investors. Almost anyone who bought a house in california in 02-05, morons. Purchased in the rust belt, utter fool.

What prices went up 3%? Median? Mean? What about sales volume? I feel a strong case of picking and choosing our stats coming in reply.
2 votes
Mitchell Hall, Agent, New York, NY
Tue Apr 15, 2008
No one can really time the market or predict the future. The best time to buy is when you really need to and want to and can afford to buy. It should be based on personal reasons and conditions not market conditions.

If you don't need to move now you can wait and see what happens. Markets change gradually and it's impossible to know when it bottoms or tops. If you're planning on living there for at least 5 - 10 years it won't make that much of a difference what the "short-term" market is when you buy.
Web Reference:  http://nycBLOGestate.com
2 votes
Alen Moshkov…, Agent, New York, NY
Sun Apr 27, 2008
I don't believe that Coop prices will significantly drop at all. The reason why you seen such a high jump in #' of Condo sales is due to buildings starting to close contracts on the units. There were many new developments that were released and all of these contracts from last year started to close in 2008 1st quarter. Foreign buyers almost have no chance to purchase a Coop Unit, unless its a sponsor sale. For everyone else who can't afford a Condo seeks out Coop buildings. On average similar square footage betwee a coop and a condo difference in prices can go to over $100-200K.
As of now, not much is changing in our market. If you like, shoot me an email so I can have your contact info, and if there is any change in the market in the next month, or if we hear anything on near future changes I will notify you.

Best Regards
0 votes
Upper East S…, , 10021
Sat Apr 26, 2008
First quarter 2008 sales volume decreased much more for coops (43% compared to 1st quarter '07 and 22% compared to 4th quarter '07) compared to condos (34% and 9% respectively), according to Miller Samuel. The difference is quite striking and seems to indicate that coop sales have been much more adversely affected compared to the condo market which is propped up by foreign buyers. Does this mean that coop will prices drop significantly?
0 votes
Alen Moshkov…, Agent, New York, NY
Sat Apr 26, 2008
Zack I am not talking about California I am talking about Manhattan, you can't compare the two markets, even though we are told that California market is slowly picking up again. People who bought homes in California for 2 Million dollars when they could only afford a million "WERE PROBABLY NOT INVESTORS".
You also have to agree that in 1986 people were not making the insane amount of money they are making these days. If we are talking about Wall Street that is only 5% of our buyers here in the City. And unlike California and other states, we have a very large number of foreing investors shopping for properties in NY. Nobody can tell for sure where this Market Trend is going, but you and I both know that eventually Real Estate always goes up in Prime Areas. I never said that if you buy today and flip in a year or two you will come out on top, most likely you will lose money on that transaction. If you ahve an option to buy a property and hang on to it for at-least 5 years, you will come out on top. We have a shortage of availability here in the city, this is why our market remains strong and because majority of our buildings are Coops which require higher standards from potential buyers.
% of sales has dropped 9% from 1st quarter last year to 1st quarter this year. Right now average price pers square foot is $1,289 compare to last year $1,180.
0 votes
Zack, , Westchester County, NY
Fri Apr 25, 2008
Also, the avg price per sq ft hit $500 in manhattan in 1986, then fell for 6 straight years and did not break $500 again until 2000. It would take 14 years to make a nominal gain in that time frame which doesn't even consider the beating inflation had given you. And leading up to 1986 there was not nearly the runup in prices we've had recently.
0 votes
Alen Moshkov…, Agent, New York, NY
Fri Apr 25, 2008
This is a very simple answer. Smart investors do not lose money on Real Estate, yes our markets are cyclical but in due time Real Estate in Manhattan always appreciates. And whatever you buy now, because prices are very fair, five years from now it will be a steal. If you seen a property that you already like, I would suggest you go ahead and put in an offer, you can always negotiate down if it's priced over market. If you are expecting prices to drop by half, it just wont happen in the City, 1st quarter of 2008 prices went up over 3%, if you include 15CPW and The Plaza they went up over 13%.

Let me know if you have other questions or concerns, and I'll get you answers.

Best Regards
Alen
0 votes
Fred, Home Buyer, New York, NY
Wed Apr 16, 2008
have you compared the cost to buy versus just putting the same equity into high grade bonds or munis? take note of the difference after two or three years in the value of your equity. even if the market stabilizes and appreciates, you'll have profit on the bonds to put towards your real estate - but truth is equity is negative now and you are buying at the top, so the probability of losing money buying now versus waiting is much higher and if it tanks in the near term, you will be completely illiquid. jmo.
0 votes
Search Advice
Search
Ask our community a question

Email me when…

Learn more