Condominium sales are on the rise as investors eager to take advantage of the rental market in New York, are buying up units to gain passive income. The only issue here is that the inventory is so low that reports actually show a decrease in selling activity for condominiums. Sellers of condominiums in all price ranges are holding firm to their expectations. Although prices have not increased yet, if the activity continues, we may see it in the near future.
Developers in Lower Manhattan/ Battery Park who filled their buildings with renters a few years back, have determined the climate is right for liquidation. They cleared the building of tenants and are selling the apartments as condominiums. The inventory is moving. Recent transactions which I brokered in Battery Park, Upper West Side and Murray Hill, saw some sellers counter generous cash offers with the listed price, firm and final. In other words, some condominium owners have a "take it or leave it" attitude. This is reminiscent of 2005 real estate. We'll keep tuned in and see where this goes.
It is a great time to buy a co-op in New York. That is, in my opinion, if you are looking for a primary home. Co-op sellers are more open to negotiating than their condo owner counterparts. The inventory presents many opportunities for buyers who plan to stay in New York for at least five years. This segment of the real estate market in New York may present the best avenue for those seeking long term housing, shared liability and more square feet for the price.
The rental market in New York has gone crazy. The vacancy rate is under 1% (.69%), the lowest in five years. Long lines at open houses, multiple bids and jockeying for a good position with property managers are now back in vogue. If you are renting in the big apple, be prepared to write a check when you see what you like. If you have a "wait and come back tomorrow" attitude, you will be left scrambling for a place that may be less suited to your taste. The average rent right now is $3,353 per month, just 1.2% less than the peak rental year of 2007. This segment of the market is strong.
The New York Times reported that although there is still a feeling of insecurity with the overall economy, nine out of ten Americans feel that owning a home does hold value and is an important part of the American dream. This is a drastic difference from the sentiment one year ago. Additional findings from this NYTimes/CBS News poll found that Americans were almost divided when questioned if the government should help troubled homeowners out of upside down mortgages.
Have a safe and happy Fourth of July Weekend. ClosingTableNYC will report first half and second quarter activity in a few weeks.
