3 Real Estate Insights for Fall 2015
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3 Real Estate Insights for Fall 2015
If you’re like many of my clients, you’ll probably find some value in paging through my firm’s Q3 2015 Market Report. With more figures per square inch than an East Village cocktail party, the report is rife with substance for the analytical mind performing due diligence.
Before going too far down the rabbit-hole, though, keep this in mind: my firm Brown Harris Stevens is in the business of representing buyers and sellers. The raw numbers will mean different things depending on which side of the equation you find yourself. So if you’re considering buying or selling an apartment in New York City, I suggest the following: READ BELOW and call me.
1. It's A Buyer’s Market
The market is generally down, meaning we’re in a buyer’s market right now. This is especially the case in the higher end of the market, where the average sale prices for both condominiums and cooperatives saw sharp decreases in the 3+ Bedroom category.
From the seller’s perspective, and from my own experience in the NYC real estate market, these numbers are not exactly sending me “running for cover.” Pricing trends move quickly in New York, and there are always exceptions to the rules - even in severe market conditions. Sellers have also been pricing their apartments ABOVE their brokers’ pricing suggestion which will lead to more time on the market and reduced selling price due to lack of competition and staleness after too much exposure.
2. The Fed, Interest Rates, and Stimulus
There are some fears about the Fed upping the Prime rate, which could increase mortgage costs. On the other hand, there is also talk of additional economic stimulus that can stabilize mortgage rates. At this point it’s six of one/half dozen of the other since nothing has actually happened yet, as of this writing.
Bottom line: a good broker will make as much (if not more) difference when it comes to individual results. Beware of analysis paralysis. At the end of the day getting a favorable purchase price can have a bigger impact than the mortgage rate.
3. Prices are Up, Year-over-Year
On the buy side it’s pretty safe to expect higher prices each year, almost as a matter of course in New York City real estate. This really doesn’t qualify as news; it’s more a confirmation that a dollar today is worth more than a dollar tomorrow. However, if you’re considering an apartment in the 3+ bedroom category, Q3 2015 results would say this is an especially good time to start shopping.
On the sell side, most categories short of 3+ bedroom apartments are up both quarter-over-quarter and year-over-year. The demand is definitely there, especially within newer developments (pre-war prices have fallen somewhat).
The quarterly results are a nice way of summing up macro trends in the New York real estate market, and they provide good food for thought when it comes to discussing real estate transactions as both lifestyle- and also investment decisions. Bear in mind, though, that every purchase and sale is as unique as the buyer, seller, unit, and broker.
If you’re curious about the market as it pertains to your particular case, I hope to be a resource for you as an individual! There are many facets to the real estate sales- and decision-making process, and much of my success in this field comes from years of experience and immersion in the market. I may not have every answer on hand at all moments, but I definitely have the questions to get us where we want to be.
Please forward this on to anyone you know who may be in the market to buy or sell, and by all means contact me directly if you have real estate needs yourself! You can follow me on Instagram @mikelubinnyc, and be sure to check out my website at MikeLubin.com