The NYC 3Q real estate sales numbers are out, and they’re… OK.Generally, prices appear to have flattened out at about 15% off peak. (Anecdotally, I just sold a Sutton Place co-op for 13% less than it had appraised for in 2007.)
The good news for buyers is that this pricing may last for a year, or even five. That stands in strong contrast to the market dip after 9/11, which lasted for all of three months.
The newspapers note that confidence is coming back … but that’s glacial.
3Q saw some higher-end sales as wealthy buyers realise that they still have jobs, but volume is still low as many buyers continue to hang back from the market.
As do sellers. Anyone looking for a property on the Upper West Side or in Brownstone Brooklyn will tell you that inventory leaves a LOT to be desired.
New condo market has mixed signals too. New condos — which two years ago were declared to be dead — are selling again. A number of projects are declaring victory — for example SoHo Mews on Wooster St., where Oscar de la Renta just bought.
On the other hand, the ruling at the Brompton that buyers can get their deposits back — WSJ story here http://bit.ly/cgiP8v — may slow up that market a bit in Q4.
Bottom line: at an average price of $1,095 per square foot, the market continues to creep towards recovery. If you see something you love, jump on it, but otherwise there’s no hurry.
Speaking at NYU’s Financial Fitness Workshop tomorrow. Swing by if you have a chance.