2016 was a roller coaster year for all of us and it’s not just because of the U.S. election. The real estate market in Manhattan, while very stable on the sale side, was certainly going through changes of its own and adjusting its footing in many segments of the market. 2016 was a year in which a record number of new development units, in progress for the past 3-5 years, hit the market. And the competition at the high end of the market is fierce. From starchitects and star chefs, to amenities and personal concierges and celebrity DJ opening building parties, nothing matters more than the bottom line or as I like to refer to it as “the pricing.” Nothing is more important than the value (at any price point) that is delivered to the consumer. As closed sales figures are becoming more and more transparent, property is becoming more scrutinized and it’s not just a subjective group of factors. Supply and demand, pricing history in a particular building and neighborhood and upcoming changes in a particular neighborhood are what matters the most. The market is becoming more and more segmentized. There is still a very strong demand for quality properties under 3-4M and a slowdown in certain types of properties at above this price point.
In 2017: If you’re thinking of selling, do not underestimate the preparation and research it might take to have your property “show ready.” Creative and customized marketing is becoming more and more important. If you’re looking to purchase, I cannot stress how important it is to have your financial affairs and financing (if you’re obtaining a mortgage) in order well in advance of actually locating the property of your dreams. Assembling your real estate team such as a mortgage broker, real estate attorney and a contractor (if renovation is required) is just as important to do well in advance.
The Federal Reserve raised interest rates in December for the second time in a decade. This might signal additional raises throughout 2017 therefore creating a sense of urgency that was lacking in certain market segments.
Let’s also address the rental market – with the flood of new building openings, there is a significant amount of rental units that are coming to market. In addition, income is not rising at the same rate that rents are climbing. 2016 was certainly a year of the concession in the rental market. Landlords were offering a variety of concessions in the form of a free month’s rent and/or paying the brokerage commission. The winter months traditionally are the slow ones in the rental market and at this point, in addition to concessions, there are rent reductions as well. However, there is always demand at the right rent level.
That being said, we’re starting the new year with renewed hope and optimism. Whether you’re looking to buy a new residence or sell an existing one, there are opportunities for everyone in the Manhattan market.
Licensed Real Estate Broker with Halstead Property in Manhattan. Respected as a reliable real estate resource, she has been profiled in the Wall Street Journal and is often quoted in the New York Times. Her clients and peers consistently recognize her as a seasoned professional with an in-depth knowledge of Manhattan market trends and inventory. Prior to entering real estate, she established her reputation in the marketing, technology and investment banking fields with companies such as Procter & Gamble, EDS, GM, and Lazard Frères. She is fluent in Russian and has a conversational knowledge of French and Bulgarian. She prides herself on maintaining strong relationships with her clients not only throughout the entire transaction, but long after closing. Victoria frequently speaks to consumer, trade and industry groups in Manhattan on a variety of real estate subjects.
For assistance in the nuances of purchasing and selling a property in Manhattan, please contact Victoria for a confidential consultation at 917.952.3452 or via email at firstname.lastname@example.org