NYC Market Realities

With regards to the New York City Real Estate market, this is a very busy time of year.
Rentals in prime locations are going within hours and sales are going in weeks.

There is very little inventory across the board, no matter the budget.
From the entry level starter studio on the rental side, up to the uber-luxury penthouse on the sale side.

Vacancies are slim and many are staying put for another year.

Come prepared and have your game face on!

So what does it REALLY cost to live in Manhattan?

This is a post that will create a ton of discussion. There are many areas to live, but the ideal areas for most are anything below midtown. A great deal of people will also look along Central Park on either the Upper West or East side.

No matter the area, after many years and seeing thousands of apartments, there is a magic number that must be considered the starting point for anyone looking to avoid crossing 110th Street.

While the last two years have happened and prices did correct themselves a bit, there is no way to keep prices down for a rare commodity for too long. You can argue all you want about what you may read in the papers pertaining to NYC real estate, but the fact is, more people move here each year. New hires, graduates, summer interns, vacationers and people downsizing or upgrading due to divorce and expecting children. The cycle never ceases, if anything it only increases.

Pay close attention, wait for it, here it comes…The one common thing that I have noticed since 2005, for a wide offering of what is out on the market, $1700 per person is the benchmark. You may find some things on the market for less. 95% of what is out there is sub-par and will waste your time.

I have found some rare gems on the market for less. There is this one number that really sticks no matter who or where you look. If you are looking for a simple studio in a great area, this is the starting point. If you are looking for a share in a doorman building, this is the point of entry. You can always try to find a needle in a haystack, or you can come prepared with realistic expectations of how much hay you are looking through. FYI-The fireplace is in a true one bedroom on Irving Place for $4100.

Your Key to the City Awaits on Block Beautiful!

Gramercy Park

 

This weekend I noticed how many great spaces are available in the Gramercy Park part of town. I have a friend who celebrated his birthday. See that red building on the right? WINNING!

That made me think about how blessed people are who live here and have the coveted key to the only private park in the middle of the city, as the other is in Queens. While that apartment is a massive classic six, I started to think about this on a smaller scale than the multi-million dollar spaces we all dream of. What about the space that the couple just starting a family would want?

The lowest priced property that actually had a key to this private park is $480K. It is a 500sf JR1 currently configured as an open studio. I love this area of town as it is scenic, picturesque, there great options in terms of transportation and you have some of the best restaurants in the city all within walking distance.

There are currently 13 places currently for sale under $1M keys to the park. All are at least JR1 or true one bedroom layouts. The top option is an 875sf one bedroom that can convert to a two bedroom going for $769K shown here.

 

Great location

 

 

The space is sufficient for a couple that may have a surprise on the way and are thinking long term. Superb schools, a private park in a historic part of town and superb restaurants and culture options for two or three generations to enjoy!

This is a rarity in that the properties here under $1M rarely go on sale as the location is so in demand. There are four places on prestigious Irving Place as well from $529K topping out at $869K. This area is rich in history and there is a plethora of fresh and healthy food options to shop for when cooking. Trader Joe’s, Whole Foods are the large chains in the area, there is also a farmer’s market in Union Square.

This is a great time to make a move here. If you realize that with this amount of inventory, there may be wiggle room with prices in an area where there is usually none at all due to the demand. Most of the apartments have not been on the market for more than 6 weeks, so this is the time to get creative and make offers. Owners tend to think that a sale can happen within the first month, so they get a bit antsy if there has not been any serious offers.

I am famous for finding superb locations and would love to work some magic for you 😉

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The Feeding Frenzy Begins

Rental season here in NYC is a crazy time of year. There are always more people than there are apartments to rent. People come here during this time, expecting some super deal that rarely exists during the slow seasons. There is a virtual turning back the clock to that move Gangs of New York. The entire island of Manhattan becomes the five points and it’s survival of the fittest. Those who are prepared, both in having REALISTIC expectations and also in having all documentation readily available, have the “luck”. Those who are ill prepared, are unlucky.

We have found that the people who stretch a bit beyond their means and get help from elsewhere, are the ones who come here, secure a place in the target area, do the job assignment and then move on. They have clear cut goals and will make whatever adjustments as needed to achieve them. There are few if any “deals” in the solid areas like Gramercy and the West Village. These areas are the most in demand and as a result, they are some of the higher rents in the city. Should you find one below market rate place, making a swift decision is crucial. There is always great competition for them.

This is a yearly trend even in the past two “down” years. The rental market in Manhattan is an aberration to the housing market nationwide. Even four years ago, we were encountering the same issues we have here now. This is a city with a ton of disposable income. People come here to live more, which in turn makes them spend more, but the whole point is that by living here, you MAKE more. As a direct result, this year there are higher end luxury offerings. Contact us for a viewing as the higher the rent, the more likely the landlord will pay us directly for you!

If you factor in the average rental of $2,000 and the qualification of 40-50 times the monthly in annual income, we are talking about a city where the average person has to earn $80,000-$100,000 per year just to sign a lease without a guarantor. For places under $2000 below midtown, there will often be multiple brokers with clients racing to see the same place. Then the race for paperwork begins. If you see a crowd at an apartment it is likely a good deal and people are already conferring about what decision to make.

The time of year is a mad dash for suitable housing. Actually, it’s a all out war with collateral damage in the form of sacrificing in the size of space, quality or location, if not the budget. The market will make that decision for you and we will never push you in that direction. We will take time to educate you on the market realities in the swiftest time period possible due to advanced product knowledge.

Come prepared and be ready to make a gut decision. If you can SEE yourself living there, you should go for it before the person who saw it an hour before you does. When it’s meant to be it just feels right!

Related Articles

• The Feeding Frenzy Begins (thehometeamnyc.wordpress.com)
• $1M NYC Tour Pt.1-For savvy investors, now is the time! (thehometeamnyc.wordpress.com)
• U.S. apartment vacancies fall in Q1, rents edge up (reuters.com)