Three Current Myths about the NYC Market
1. The Market Is Crashing - Despite all the negative economic news, the Manhattan residential real estate market continues to outperform the rest of the country. The average sales price of a Manhattan apartment increased 8.1% in the third quarter of 2008, compared to the same period last year. However, with inventory up significantly as a result of the current economic news, we are seeing price reductions. However, don't get your hopes too high, there will be no $100,000 studios hitting the market anytime soon!
2. It's a bad time to sell - If you need to sell your apartment within the next year, now is the perfect time to sell. The full impact of the Wall Street meltdown will likely not be felt until early 2009. In the meantime, although activity has slowed a bit, prices still remain quite firm. This may not be the case in early 2009. If there are significant job losses, and bonuses are not realized, these individuals will likely need to sell their apartments to remain solvent. This will only add to the inventory levels.
3. You can't get a mortgage - If you have good credit, verifiable income, and a down payment, getting a mortgage is not a problem. However, bank guidelines have changed dramatically in recent months. For example, the new benchmark for a credit score is 700, versus 620 a year ago. If you want to increase your credit score, here is an excellent resource: Maria Saselu, Credit Coach, 914.517.7575 ext 1048.
