Manhattan New York Condo Market Overview 2012/2013
How’s the condo market doing right now? Are the sales prices going up? Is it seller’s or buyer’s market? These are some of the questions that we are receiving on an increasing basis so far this year. And the answers to each question are never easy, as it depends on each segment of the market and each individual’s personal situation.
How did the condo market perform in 2012?The most impactful aspect of the condo market in 2012 was the declining amount of inventory on the market. The decline of inventory has been a multi-year event, peaking in 2009. Condominium inventory decreased approximately 30% in 2012. The total number of listings both condo and co-op is hovering around 5,000, about half of the peak in 2009 when there were 10,000 condo units for sale.
So had did this impact the market?
With demand outpacing supply, when a well-priced apartment came on the market, multiple offers were becoming quite commonplace, and increasing prices resulted. Throughout many segments of the condo market including studio, one bed, two bedroom buyers in a variety of neighborhoods open houses were full, best and highest scenarios became more routine for the most prime condo units when it is priced and marketed by experienced agents correctly.
The Condo Market in Manhattan is Hyper-Local and Building Specific. Comparing the West Village condominium market is going to be very different to the Murray Hill condominium market. There are different factors that drive pricing for each neighborhood and it’s very important to keep that in mind. Why does one building have 10 units on the market and a building next door doesn’t have any? Having a specific building knowledge of what differentiates each condominium building is something we have developed.
What to expect in 2013?
If you are a motivated seller, more than likely you will be in more control this year. If priced and marketed effectively with the right agents like ourselves, you can reasonably expect much more interest in your condo units and a higher realized price than in years past. Obtaining a mortgage is still an arduous process as lending practices for Manhattan condominiums is still tight. New development condos coming on the market are mostly focused on the high end buyer and are smaller in size than during the peak new construction boom of 2006 and 2007. If you are a buyer, you can expect full open houses, prepare your financing now and educate yourself early on in your buying process so when an apartment that meets much of your criteria comes available you are ready to make a decision.
For a fair assessment of your condo unit, and discuss how to take advantage of this market, contact us (917)837-8869 for a no pressure, no obligation conversation.