Now that we are into November, we see clearly how the Fall market is shaking out. These 3 factoids sum it up nicely:
1. Under $1 million, the number of listings on the market is up 24% vs. 3rd quarter 2017.
2. $1 million to $3 million, this inventory is up 10% vs. 3rd quarter 2017.
3. Above $10 million, number of listings decreased 26% vs. last year
a. It's like Amazon out there. More properties available = increased days on market + decreased prices. Discounts abound.
b. On the high end, overpriced and stale inventory is finally being purchased as sellers become realistic about the prices they can achieve.
c. Developers have listened and shifted and are building units that have more attainable price points, as the demand for large ultra-luxury units has dwindled.
In the week through Sept. 9, there were 774 homes in Manhattan, Brooklyn and Queens that got a price cut, the most for any seven-day period in data going back to 2006, according to a report by StreetEasy. The previous weekly record was in March 2009 during the global recession when 713 properties were reduced.
Real estate is a lifelong investment strategy, not a one time transaction. View it with a long term lens and use balance sheet mentality:
Assume you live in a $4 million home, and the market is down 20%. You'd have to sell that home for around $3.2 million, a loss of around $800,000. Assuming you are buying a $9 million home that is also down 20%, that home should cost $1.8 million less, a savings of around $1 million net.
When the real estate market is hot, upgrading is extremely expensive. Assume you live in a $4 million home and the markets rise 20% allowing you to sell your home for $4.8 million. If the market is up 20% across the board, that $9 million home you wish to upgrade to will now cost $10.8 million.....it will cost you $1 million MORE for the same exact upgrade.
Opportunity always exists!
Want to know what your closing costs will be on your new condo? Need practice tips for your co-op board interview? Want to read my musings on all things NYC real estate? Here's a peek from the site
Did you catch your girl in last month's Elle Decor and this month's Architectural Digest? Featuring: me in a bathroom window, a corny play on my last name by our marketing department, and the gorgeous living room at 30 5th Avenue in Greenwich Village which is so photogenic it's giving the Victoria's Secret model on the cover a run for her money.
Until Next Time!
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