With the first half of 2018 in the books, one of the big questions currently floating around the New York City real estate market is whether right now is a buyer's market. What may be a concern for sellers could be a massive opportunity for would-be buyers. With new developments continuing to hit the market combined with property owners trying to resell, NYC has been witnessing an unprecedented amount of inventory on the market.
What is a Buyer's Market?
A buyer's market is when there is so much property inventory on the market, that prices of real estate are kept down. When inventory is at an all time high, and properties are staying on the market for extended periods of time, it generally means that the buyer wields the power in the transaction.
New York City Real Estate is Officially a Buyer's Market
Let's take a look at how a record number of listings are impacting the city's real estate market. StreetEasy, NYC's premier listing site, has reported that over the past three months available sales listings have have peaked to new highs (as of May 2018).
The following figures represent the year over year percentage increases of sales listings available on StreetEasy:
- Manhattan: 16.7% Increase
- Brooklyn: 23.4% Increase
- Queens: 42.8% Increase
The combination of increased inventory and combined impact of less transactions taking place is resulting in record numbers of condos, co-ops and townhouses sitting on the market for extended periods. With absorption rates low, the opportunity is ripe for the savvy buyer to find a deal.
StreetEasy even broke down some sample price ranges to exemplify the amount of units available. This June, in Manhattan, when looking the $500,000 to $750,000 price range, the inventory rose 39% compared to the same time last year. In Brooklyn, the increase was 32%.
Also, newly listed homes reached a historic high this April, with 2,614 properties listing in Manhattan and 1,412 listed in Brooklyn.
Condominiums that are professionally managed also makes owning them much easier for investors. If you plan on using your property as a pied-à-terre, you can rest assured that your apartment and its staff will always be prepared for your arrival. Your condominium will always be ready for you with no issues. If you plan on renting out the property to rental tenants, any maintenance issues that may arise will always be handled by the property's management company. This is of great benefit to condominium owners who don't want to be bothered by day to day operations related to their property investments. Professionally managed condominiums will also continue to command high resale values.
How Does a Buyer's Market Work?
As a potential buyer, you have the opportunity to get a good deal out of this when you purchase a property.
We work with buyers to navigate these market conditions and identify properties that make excellent investments, whether you plan on living in them or using them as income properties.
Some of the things you may want to look to identify opportunities:
- Properties that have sat on the market for extended periods of time
- Properties whose listing has recently switched from one brokerage to another
- Properties that have recently seen price drops
- Properties that are offering concessions at the closing
What Type of Deal can You Get in this Market?
There are numerous opportunities to save money on a home purchase when it's a buyer's market. Since sellers are not in control, they will be very happy when they have any buyer come their way and show interest in their respective properties. Some of the deals we've negotiated for our buyers include the following:
- Reduced closing costs on new development. Making the developer pay transfer tax and mansion tax.
- Price negotiation. Significant discounts in sales prices.
- Having sellers provide concessions at closing, thereby offsetting closing costs.
- Sellers paying real estate taxes for an entire year.
Should you Buy and Apartment Now?
The next few months are going to be a great time to find some great real estate deals in the city. This fall will see even more opportunity when new listings hit the market. If you're at all considering the purchase of a home, right now would make for a great time to start the conversation with us.
No matter how big or small you're thinking, we'll make sure to always personally contact you and provide you with the information you need. Use the form below to reach out.