Looking for Guidance in This Real Estate Market
As the value of New York Real Estate evaporates, it has been difficult to accurately measure and report the speed of the decline and where real estate values have held up best. Several sources publish guides from different perspectives using different data.
One of the best, Streeteasy.com’s quarterly guide, came out last week. Aside from painting a bleak picture of the market (sales volume continues to fall) and highlighting neighborhoods where people most overpaid in recent years (Soho), the guide offers a similar purview to other reports such as Corcoran or Elliman with more emphasis on the various stages of residential real estate transactions. Reflecting its web roots, the report uses data cutting across brokerages and delivers detailed stats and graphs.
Market wide stats such as inventory,
the number of broken contracts, and the pervasive quality of price cuts are all detailed. The report carefully distinguishes between condos and co-ops. In addition, the report refers to the area below 34th Street as “Downtown”. That aggregates Chelsea, the East Village and Tribeca as a single market. Corcoran’s report does the same. Another distinction that the reports lack is that between doorman and non-doorman. Amenities make a difference in pricing. That difference should be measured, tracked and reported.
Guide for Renters
Guide for Renters
Another guide, the Manhattan Rental Market Report by TREGNY (The Real Estate Group of New York) does an excellent job of breaking down the values of rental apartments. Its report separates the markets into neighborhoods and tracks prices month by month. The more concise data points are appropriate in the rental market, where deals take days rather than months to consummate- especially while credit remains difficult to obtain. Importantly, the Manhattan Rental Market Report includes actionable tips like the one below.
Tips for Renters
Midtown West: the destination for non-doorman units. Midtown West has long been a neighborhood known for a central location and good value, but that value has gotten even better. With non-doorman units falling over 3% this month, apartments in this area have become an even better bargain. Non-doorman studios are now the lowest priced units, with the exception of Harlem, at $1,670.
Clear choice: LES. If you’re looking for a one-bedroom apartment with service, forget the rest of Manhattan, renters should be combing the LES for deals. One-bedroom units are currently averaging $2,547 – over $450 cheaper than any other central Manhattan location.
Safety, security and service. Battery Park City prices have continued to fall from their heights of last spring and summer. Units in this area are down an average of 14% from their peaks, making them an excellent value for those looking for service and a quieter location.
Midtown West: the destination for non-doorman units. Midtown West has long been a neighborhood known for a central location and good value, but that value has gotten even better. With non-doorman units falling over 3% this month, apartments in this area have become an even better bargain. Non-doorman studios are now the lowest priced units, with the exception of Harlem, at $1,670.
What does it all mean? There aren’t many surprises here. Values are falling and will continue to fall. Corcoran’s report had a nice conclusion about this, drawing on Robert Shiller, co-creator of the Case-Shiller Home Price Index. “As early as 2005 Shiller predicted severe declines in home prices across the United States. Busts, Shiller argues, follow booms. But just as surely, he says, recoveries follow busts.” In the meantime, property owners need to look for economical ways to differentiate their buildings. There are answers and these answers are not in these published guides.
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