Archive for Real Estate Trends
In the News
Posted by: | Comments1/6/12: Silk Stocking District Still Hotter Than the Trendiest Neighborhoods: ‘Last year, the somewhat stodgy “Silk Stocking District” of the Upper East Side fared better than hip new downtown and uptown enclaves in terms of their absorption rates — the percentage of listings that went into contract or were taken off the market.’ Read about it at DNAinfo.com
1/18/12: ‘Medical Arms Race’ Spurs Massive Health Development on East Side: “At a time when the city’s public hospitals are struggling and Brooklyn hospitals are facing possible closures, top-tier East Side institutions — including the Hospital for Special Surgery, NYU Langone Medical Center, Lenox Hill Hospital, Weill Cornell Medical College and Mount Sinai Medical Center — could dramatically reshape the city’s landscape over the next five years as they expand their footprints, modernize and adapt to upcoming health care reforms.” Read about it at DNAinfo.com
1/21/12: Chefs, Butlers, Marble Baths: Hospitals Vie for the Affluent: “Pampering and décor to rival a grand hotel, if not a Downton Abbey, have long been the hallmark of such “amenities units,” often hidden behind closed doors at New York’s premier hospitals.” Read about it in the New York Times
1/22/12: Massive, Exclusive Full Floor UES Co-op Wants $30M: “It’s not every day when a unit at the fabled 2 East 67th Street comes onto the market, and this massive full floor unit is certainly impressive.” See the floor plan and read about it at Curbed
1/24/12: East River Underwater Turbines Give Jolt to City Power Grid: Using underwater turbines in the East River off the coast of Roosevelt Island, Verdant Power will be electrifying New York with roughly 1 megawatt captured from the strait’s natural tidal currents — enough for an estimated 1,000 city homes. Read about it at DNAinfo.com
1/25/12: A-Rod sells his NYC condo for a considerable profit: “According to the Wall Street Journal the New York Yankees third baseman has already received a contract for his 3,500-square-foot condo on the 35th floor of the Rushmore building on Manhattan’s Upper West Side.” Read about it at YAHOO! Sports
Manhattan Residential Rental Market Report Fourth Quarter 2011
Posted by: | CommentsThis week, we released our Fourth Quarter report for the Manhattan Residenital Rental Market. Manhattan Residential Rentals Market Overview Q4 2011 reported here and summarized below was prepared by Miller Samuel for Prudential Douglas Elliman.
“Tight mortgage credit conditions continued to drive rental prices and activity higher.”
- The median net effective rent (face rent less landlord concessions) jumped 9.5% from $2,950 to $3,121 in the same period last year. The year-over-year-gains were consistent across all rental price indicators.
- The 2-bedroom and 3-bedroom markets outpaced their smaller counterparts,increasing 14% and 18.1% respectively over the same period.
- New rental activity (excluding lease renewals) was up 10% from 7,217 to 7,942 in the same quarter last year.
- About 7.4% of new leases had some form of landlord concession compared to the 40.5% in the prior year quarter. For those leases with concessions, the average amount was the equivalent of 1.2 months of free rent.
- Days on market—the number of days from original list date to lease signing—was at its second fastest pace of 37 days in 15 years, which is when we began tracking this metric.
Sellers in Manhattan are Renovating
Posted by: | CommentsThe decision to sell an old apartment can be liberating. Old counter tops and kitchen appliances can start you dreaming of a fresh start in a new kitchen with shiny appliances and granite countertops.
But buyers are more discerning than ever, and squeaky or stained floors and cracked laminate countertops can sink a potential sale as fast as an outdated kitchen or bath.
Renovations before the open house can attract a buyer faster. Buyers today want move-in ready, a far cry from the boom years when buyers would buy anything with walls and a floor, and often will pass up the older units in need of updating.
It might go against the grain to spend money on an apartment you’re leaving behind, but it can be money well spent, setting your apartment above the dozen or so apartments a buyer is considering. You may not be able to add the cost of the renovation to your asking price, however in most cases, if you don’t renovate, you may need to reduce your asking price, causing people to wonder what is wrong with the place.
It may not make sense to spend a huge amount of money. With a fresh coat of paint and skillful staging, you can present a buyer with an attractive property, even if you can’t swing the $50,000 kitchen renovation. Of course every case is different and you should consult your broker when making a decision on whether a renovation is ‘worth it’ in order to sell.
Inspired by New York Times article by C. J. Hughes published November 4, 2011.
Manhattan Co-op/Condo Residential Sales Market Report Fourth Quarter 2011
Posted by: | CommentsOur Q4 Manhattan Market Overview was released today and summarized below was prepared by Miller Samuel for Prudential Douglas Elliman.
“After a year of mixed economic news, the Manhattan housing market, while continuing to experience overall price stability, closed out the year with a slower pace of sales.”
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Median sales price was $855,000, a modest 1.2% increase from $845,000 in the prior year quarter. Price per square foot increased 5.6% to $1,117 from $1,058 over the same period.
- There were 2,011 sales in the fourth quarter, 12.4% less than 2,295 in the prior year quarter. The fourth quarter had the lowest number of sales since the same period six years ago, perhaps related to the unusual surge in sales in the prior quarter. Pending sales were also below the prior year level.
- There were 7,221 active listings at the end of the fourth quarter, essentially unchanged from the same period last year, but 2.6% less than the ten-year quarterly average of 7,412.
- Days on market—the number of days from the last price change if any to the contract date—saw a modest 5 day increase to 130 days from 125 days, still consistent with the 132 day average for the prior decade.
- Listing discount—the percent difference between the list price at time of sale to the sales price—fell to 4.9% from 8% in the same period last year.
In The News
Posted by: | Comments11/30/11: From The Real Deal: November Rents in Manhattan, Brooklyn avoid seasonal drop: “Despite the seasonal cooling of the residential rental market come the winter months, Manhattan rents barely flinched, according to a Manhattan rental market report released today by MNS, as prices dropped just 0.2 percent in November compared to the prior month. The rental market in Brooklyn showed similar strength, according to another report from the brokerage.” Read more about it at The Real Deal
12/3/11: From the New York Times: Taking the Tiny House Movement Tinier: “Glenn Grassi used his skills as a set designer in the construction of his portable 84-square-foot microhome, trying to maximize the space available. Read more about it in the New York Times
12/4/11: From the New York Times: Higher Loan Limits, Again for Pricey Markets: “Less than two months after lowering the maximum loan amount that could be backed by the Federal Housing Administration, lawmakers in Washington reversed course just before the Thanksgiving holiday and once again raised that limit, offering home buyers more financing options in a tight credit market”. Read more about it in the New York Times
12/4/11: From the New York Times: Help with a Down Payment: “The biggest barrier to buying a home these days is saving for the down payment, according to a survey released in September by Trulia. The best holiday gift some people might receive would be help with the down payment.“ Read more about it in the New York Times
In Recent News
Posted by: | Comments10/31/11: From The Real Deal: Related to bring cancer center to controversial UES site: “The Related Companies is bringing a state-of-the-art cancer treatment center to its Upper East Side development site” currently occupied by Rupert Playground. Read more about it at The Real Deal
11/3/11: From The New York Times: A City Shrinks, or So the Census Says: “According to its latest calculations, New York City has shrunk by more than two square miles, or the equivalent of Central and Prospect Parks combined.” Read more about it at the City Room Blog of the New York Times
11/6/11: From the New York Times: Salvaging Abandoned Bikes, Making Room for Others: “No firm numbers exist for how many bicycles sit abandoned in storage rooms around New York City. They decay uncounted in dim basements, mixing awkwardly with sleek new city cruisers and carbon-fiber racers, threatening to turn an increasingly marketable real estate amenity, the bicycle storage room, into something like a bone-filled catacomb.” Read more about it in the New York Times: 11/08/11: From Crain’s New York Business: Cuomo council seeks to boost city tech campus: “Group established by Gov. Andrew Cuomo proposes state aid for plans to build a graduate school or schools in NYC. Other projects include Hunts Point market and green manufacturing facility at the Brooklyn Navy Yard. Read more about it at Crains’ New York
Third Quarter 2011 Brooklyn Residential Sales Market Overview
Posted by: | CommentsToday we released third quarter sales for the Brooklyn residential market. Brooklyn Market Overview Q3 2011 reported here and summarized below was prepared by Miller Samuel for Prudential Douglas Elliman.
“Sales noticeably increased, as all price indicators edged higher, and listing inventory remained stable.”
- There were 2,219 sales in the third quarter, 18.1% more than 1,879 sales in the prior year quarter, and the second highest quarterly total in three years.
- Median sales price increased 5% to $510,000 from the prior year quarter, reaching its highest level in three years, and tying the 2008 third quarter level.
- Listing inventory edged 0.9% higher to 6,688 in the third quarter from the prior year quarter. With the rise in sales outpacing the increase in inventory, the absorption rate fell to 9 months from 10.6 months over the same period.
- Days on market expanded by nearly a month over the same period to 149 days from 109 days in the prior year quarter, as stable inventory, and higher sales resulted in an increase in sales from older listings.
- The listing discount—the difference between the listing price at time of contract and the contract price—was 3% in the third quarter, down from 5% over the same period last year.
Third Quarter 2011 Queens Residential Sales Market Overview
Posted by: | CommentsToday we released third quarter sales for the Queens residential market. The Queens Market Overview Q3 2011 reported here and summarized below was prepared by Miller Samuel for Prudential Douglas Elliman.
“The market continued to find its way to stability, as price indicators higher and both listings and sales levels declined”
- There were 2,743 residential sales in the borough, 11.8% less than 3,110 sales in the same period last
year. The decline in sales was attributable to re-sale, as new development sales nearly doubled. - For the fourth consecutive quarter, the year-over-year median sales price increased.
- The median sales price was $385,000, 8.5% above $355,000 in the prior year quarter.
- Listing inventory fell 15.9% to 10,305 from 12,255 in the prior quarter. Coupled with the decline in sales, the monthly absorption rate–the number of months to sell all listing inventory at the current pace of sales–was at 11.3 months, 4.2% faster from 11.8 months at this time last year.
- The listing discount–the percent difference between the list price and time of sale and the sales price–was essentially unchanged at 6.6% as compared to the prior year quarter result of 6.7%.
- It took 8 days longer on average to sell a property as compared to last year, resulting in a total of 108 days in the third quarter.
Week in Review: News You Can Use July 8, 2011
Posted by: | Comments- “Despite a banner month for Governor Cuomo, New Yorkers put their Trumpets down when it came to the Economy” Read all about it at Siena Research Institute
- New York City Tax Commissioner Announces 10% Assessment Cap on Co-ops, Condos. “New York City Finance Commissioner David M. Frankel confronted his critics yesterday at a City Council Hearing in May, announcing he was placing a 10% cap on tax assessment increases for co-op and condo properties in the five Boroughs.” Read about it at Habitat.
- AGs, Banks near $60B deal on Foreclosures. “America’s biggest mortgage servicers are closing in on a deal with federal and state officials to settle some of the thorniest foreclosure problems.” Read about it in the New York Post.
- Manhattan rents rise with room to go higher. “The Manhattan apartment rental market has been heating up for months, and second-quarter market reports released today by residential brokerages Citi Habitats and Prudential Douglas Elliman show skyrocketing rents. Now, the question is how long the rent increases will continue.” Read about it at the Real Deal
- Homes Dark and Lifeless, Kept by Out-of-Towners “some Manhattan neighborhoods are assuming that vacant feeling the year round, because the people who own or rent apartments there actually live somewhere else most of the time” Read about it in the New York Times
New York City Council encourages Urban Farming & Rooftop Greenhouses
Posted by: | Comments
Recently, the New York City Council passed two bills supporting consumption and production of local foods and farming.
- · Buildings with a rooftop greenhouse will not be considered an additional story by the Department of Buildings
- · Greenhouses will be exempt from height limits as long as they take up less than one-third of the rooftop.
- · The city will maintain a database of unused spaces in order to transform them for urban farm use.
- · Another bill will require city facilities like jails and health centers to purchase locally grown food.
The bills are being sent to Mayor Bloomberg, where he is likely to sign them into law . From inhabitat New York City article
Week in Review: News You Can Use June 10, 2011
Posted by: | Comments- Foreclosures fall 38% in May for New York City according to data from PropertyShark.com, the total number of residential foreclosures fell last month from May 2010, however co-op apartments made up 79% of all new foreclosure auctions scheduled. Read it all in Crain’s New York
- Federal Reserve publishes Beige Book June 8, 2011 “The Second District’s economy has continued to expand since the last report, though at a somewhat diminished pace.”
- City’s Design Sector grew 75% the past decade: “More designers are employed here than in any other U.S. city, thanks in part to an explosion in recent years of Brooklyn-based companies, said the report, released on Wednesday by The Center for an Urban Future, a think tank in Manhattan. It noted that the number of Brooklyn-based firms spiked from 257 in 2001 to 433 in 2009, for a 70% increase”. Read it all in Crain’s New York.
- The Bullish Case for the U.S. Economy “Investment strategist Robert Doll says America’s edge is faster population growth, companies that are global in scope, and a culture of innovation and entrepreneurship.” Read it all in the Wall Street Journal.
In The News
Posted by: | Comments12/10/11: Storage Enters Stratosphere: “For buyers willing to pay far more than the median sales price for a one-family home in the U.S., modest bins can be had at a new condominium tower under construction on West 57th Street in Manhattan.” Read more about it in the Wall Street Journal
12/11/11: Luxury homes hard to come by, easy to sell: “Three years into real estate market recovery, pricey new units finally catch fire” Read more about it at Crain’s New York
Manhattan Residential Rental Market Report 3rd Quarter 2010
Posted by: | CommentsOur Q3 Manhattan Rental Market Overview which was released today and summarized below was prepared by Miller 
Samuel for Prudential Douglas Elliman
- Median rental price was $3,000 in the third quarter, 1.7% higher than $2,950 in the prior year quarter and unchanged from the prior quarter.
- Median rental price growth over the prior year quarter occurred in the studio and 1-bedroom markets with a 9.8% increase and 1.9% respectively.
- The number of new rentals surged as landlords offered limited concessions for lease renewals. Rental listing inventory fell 28.1% to 4,693 apartments from 6,527 listings in the same period last year.
- The listing discount—the percentage difference between original rental listing price to contract rental price—fell to 1.7%, its lowest level since the third quarter of 2006.
- Days on market fell to 38 days in the third quarter, less than half the 77 days of the prior year quarter.
