Market Heating Up, but still at a Buyer Friendly Temperature
The spring selling season in Manhattan is off to the strongest start in two years. But it is still a buyer’s market, and prices have not increased.
Spring is traditionally the busiest selling season and sets the tone for the rest of the year. But in 2009, there was no spring season to speak up, and sales were the weakest in over ten years. High-end new condominium developments went months without ringing up a sale and when apartments did sell, they sold at a steep discount.
But psychology has shifted this year as fears of recession fade. Nevertheless, there is certainly is not a market frenzy and buyers are being very careful not to overpay. Early signs of New York's housing recovery began to appear near the end of last year, picking up first in discounted lower priced apartments eligible for federally-insured mortgages. This was followed by a rush of sales at the end of year for more expensive apartments, after many asking prices were cut sharply.
The Manhattan housing recovery still remains uneven. Some apartments linger, especially when sellers refuse to cut high prices, while others may attract multiple offers. Just last month, one of my buyers offered more than $25,000 over the asking price for a $600,000 two bed, one bath apartment on East 57th Street and still lost it to a higher bidder. She recently signed a contract for another two bed, one bath home on East 54th Street for $650,000, $25,000 lower than the asking price.
All told, pricing remains the key ingredient, both for sellers and buyers.
