NOW IS THE TIME TO BUY!
Cliché coming from a broker, no? Altho interest rates are a little higher than a year ago, the NYC and Miami markets are soft. The Manhattan market is going through a slight correction meaning prices have dropped a pinch. Additionally, we currently have more inventory than buyers.
In Manhattan, the last year + we’ve had hints that the luxury market was slowing down. What was dubbed “Billionaire’s Row”, W 57th Street, some these ultra-luxurious high-rise new developments with apartments garnishing $4,000-$8,000/SF started offering deep discounts, buyer concessions, and broker incentives to bring their buyers to move apartments. Actually, most new developments in the city started offering the same! At one time, you didn’t negotiate the prices of these new developments and buyers would pay all transfer taxes and attorney fees for both parties. That wasn’t the only indicator things were softening, but we also witnessed some of these ultra high-net worth cliental going into default; not just one, but TWO apartments went into foreclosure at the ultra-luxurious building ONE57 in 2017. But what about the more “attainable” market, 1-2 bedrooms under 1000 SF under $2M?
Simply put, if an apartment was priced well, they used to move fairly quickly… not so much anymore. This time last year anything under $2M usually wouldn’t sit unsold for too long. Today, that’s not necessarily true. You can price something very well, but with the influx in inventory, days on market seems to be higher than it was previously. Anything under a million however, yes there are those unicorns, are moving quick.
Personally, I feel as if buyers are getting overwhelmed with inventory options, that they are struggling to make purchasing decisions. That being said, seeing a 7-figure number, can easily freak out a buyer when they see so much sitting on the market untouched. Purchasing an apartment for under a million seems to be less intimidating for those said individuals. What are some things that could go through their minds?
If they’re an end user (plan on occupying the apartment) they could be wondering to themselves:
- Are there better options?
- Maybe something with an extra bathroom?
- Is there an option that needs less work?
- Maybe something closer to the subway?
- Maybe something with lower monthly carrying costs?
If they’re an investor (no intention of occupying the apartment) they could be wondering to themselves:
- Can I get something in a building that garnishes more monthly?
- Can I get something that has a live-in super?
- Can I get something with more amenities but similar carrying costs to the front runner?
So many options, not enough buyers. Thats the dilemma we’re currently in. Now for some eye candy, take a look at some of these awesome bathrooms NYC has to offer… yes bathrooms, I have a slight obsession with kitchen and bath designs.