Tag Archives: Manhattan Real Estate

Manhattan Home Sales Tumble Most Since 2009 as Buyers Walk

Home sales in Manhattan plunged by the most since the recession as buyers at all price levels drove hard bargains and were in no rush to close deals.

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  • Haggling gets more aggressive for listings at all price points
  • ‘People are very anxious about overpaying,’ brokerage CEO says

Sales of all condos and co-ops fell 25 percent in the first quarter from a year earlier to 2,180, according to a report Tuesday by appraiser Miller Samuel Inc. and brokerage Douglas Elliman Real Estate. It was the biggest annual decline since the second quarter of 2009, when Manhattan’s property market froze in the wake of Lehman Brothers Holdings Inc.’s bankruptcy filing and the global financial crisis that followed.

The drop in sales spanned from the highest reaches of the luxury market to workaday studios and one-bedrooms. Buyers, who have noticed that home prices are no longer climbing as sharply as they have been, are realizing they can afford to be picky. Rising borrowing costs and new federal limits on tax deductions for mortgage interest and state and local levies also are making homeownership more expensive, giving shoppers even more reasons to push back on a listing’s price — or walk away.

While just a few years ago, bidding wars were the norm, “there’s nothing out there today that points to prices going up, and in many buyers’ minds, they point to being flat,” said Pamela Liebman, chief executive officer of brokerage Corcoran Group. “They’re now aggressive in the opposite way: putting in very low offers and seeing what concessions they can get from the sellers.”

Corcoran Group released its own Manhattan market report Tuesday, showing an 11 percent decrease in completed purchases and a 10 percent drop in sales that are pending.

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For sellers, to reach a deal in the first quarter was to accept a lower offer. Fifty-two percent of all sales that closed in the period were for less than the last asking price, according to Miller Samuel and Douglas Elliman. Buyers agreed to pay the asking price in 38 percent of deals, but often that figure had already been reduced. Combined, the share of deals without a premium was the biggest since the end of 2012.

“Even with New York real estate prices, you do hit a point in which resistance sets in,” said Frederick Peters, CEO of brokerage Warburg Realty. “People are very anxious about overpaying.”

Peters said that these days, he gets dozens of emails a day announcing price reductions for listings. And buyers are haggling over all deals, no matter how small. In a recent sale of a two-bedroom home handled by his firm, a buyer who agreed to pay $1.5 million — after the seller cut the asking price — suddenly demanded an extra $100,000 discount before signing the contract. They agreed to meet halfway, Peters said.

Buyers also are finding value in co-ops, which in Manhattan tend to be priced lower than condos. Resale co-ops were the only category to have an increase in sales in the quarter, rising 2 percent to 1,486 deals, according to Corcoran Group. Sales of previously owned condos, on the other hand, fell 12 percent as their owners clung to prices near their record highs, the brokerage said.

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The median price of all sales that closed in the quarter was $1.095 million, down 5.2 percent from a year earlier, brokerage Town Residential said in its own report. Three-bedroom apartments saw the biggest drop, with a decline of 7 percent to a median of $3.82 million, the firm said.

Prices fell the most in the lower Manhattan neighborhoods of Battery Park City and the Financial District, where the median slid 15 percent from a year earlier to $1.21 million, according to Corcoran Group. On the Upper West Side, the median dropped 8 percent to $1.1 million.

Neither new developments nor resales were spared from buyer apathy. Purchases of newly constructed condos, which continue to proliferate on the market, plummeted 54 percent in the quarter to 259, Miller Samuel and Douglas Elliman said. Sales of previously owned apartments dropped 18 percent to 1,921.

The plunge in transactions is actually a good thing, in that it may serve as a wake-up call for more sellers to scale back their price expectations, said Steven James, Douglas Elliman’s CEO for the New York City region.

“It sends the sellers a signal that you have to get more reasonable if you want my buy,” James said. “It’s like buyers said, ‘I’ve told you all along, but you wouldn’t listen! Now I have your attention, so let’s talk.”

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Source: By Oshrat Carmiel | Bloomberg

 

 

 

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An Inside Look At Manhattan’s Billionaires’ Row

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Along Manhattan’s 57th Street, stretching from Columbus Circle on the west side to Park Avenue on the east, you’ll soon find more than a half-dozen glittering, ultra-exclusive condominium towers that will offer unparalleled views of Central Park — and virtually the entire city. Welcome to Manhattan’s Billionaires’ Row, the current trophy real estate of the 1%.

The mega projects, with some penthouse floor plans such as those at 432 Park Ave. expanding to more than 8,200 square feet, are expected to list on average for more than $14.5 million (or $4,375 a square foot). Some even have living rooms bigger than most condominium units in Manhattan (the average size of a condo unit in Manhattan being 1,100 square feet.)

The sky-high prices on Billionaires’ Row will also help push the average price for a unit at new developments in Manhattan to $7 million (or $2,787 a square foot) by 2017, according to Gabby Warshawer, head of research for CityRealty, a New York real-estate research firm. Manhattan condo units on average were just $1 million as recently as 2005, says Warshawer.

An inside look at ‘Billionaires’ Row’

For the Manhattan, and global, elite, trophy apartments in the sky, overlooking Central Park, will set new marks for luxury and price.

Aside from the luxuriously appointed apartments and the central location, there’s something else that’s appealing about the apartments: As Noble Black, a real-estate agent who has marketed condominium units in One57, points out, unlike many city co-ops — whose boards are famously picky and have turned down such notables as pop singer Madonna and former President Richard Nixon as potential residents — buyers on Billionaires’ Row don’t need to open up their financial books to co-op boards or even submit to interviews.

Here’s a look at what $14 million–plus will buy you along Billionaires’ Row …

These sky-high trophy homes overlooking Central Park set new marks for both luxury and price

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157 West 57 St.

One57, built by developer Extell, was the first on the Billionaires’ Row strip to be built and is 75 stories tall and more than 1,000 feet high. The building, which includes a Park Hyatt hotel with services catering to owners’ every whim, with room service, maid service and a spa and gym, saw its penthouse apartment sell for a record $100.5 million in December 2014 to a yet-unnamed buyer. All told, the entire building’s 92 condo units were worth an estimated $2 billion and will sell for an average of $6,300 a square foot, according to CityRealty.

111 West 57th St.

Built by JDS Development Group, this extraordinarily slender skyscraper will rise 80 stories and more than 1,400 feet. That’s taller than the Empire State Building. The 60 apartments will start at $14 million according to the developer’s website and rise to $100 million, according to CityRealty. Completion is expected in 2018.

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550 Madison Ave.

The rehab of the 37-story Sony Building will include a $150 million penthouse and possibly a five-star hotel. The skyscraper, completed in 1983, was sold to Joseph Chetrit, a real-estate developer for more than $1 billion in 2013. The sell-out price for the property will likely approach $2 billion, or more than $4,400 a square foot, CityRealty says.

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432 Park Ave.

Currently the tallest residential building in the city at 1,396 feet, the condominium development by CIM Group/Macklowe Properties recently sold its penthouse for $99.5 million.The building’s total sales will be worth an estimated $3 billion (or nearly $6,300 a square foot), according to CityRealty, assuming the 144-unit building is sold out. Closings on the remaining units — which range from $17 million to $81 million — are expected to start at the end of the year.

53 W. 53rd St.

Hines Development’s 77-story condominium has been in the works for 10 years but has only recently started marketing its 100-plus units. The 1,050-foot-high trapezoidal tower with geodesic elements is set to be completed in 2018 and to include a unit priced at $70 million, according to CityRealty. All told, the sell-out price is anticipated at upward of $2 billion.

by Daniel Goldstein for Market Watch