"Buyers — A price correction already occurred, and over the last year or so the broader market has shown signs of stabilization and normalization. If you have a real need to buy and you find the right property, utilize this slow period for any leverage you can get in negotiations — you never know when a seller has had enough, and is ready to hit that bid."
Read the full article at: medium.com
We agree with Urban Digs. The Manhattan Real Estate market has already corrected, especially in the luxury segment, and buyers have more leverage now than they did than from 2014 - 2016. We expect this leverage to continue in 2018, as confusion about new tax changes takes place. We have found, however, that resale inventory supply is still low.
We have looked at resale inventory supply levels in four prime neighborhoods that are popular with our primary home buyers and investors: Tribeca, Chelsea, Upper East Side and Upper West Side. We looked at the $5 - $10 million segment, $2 - $5 million segment and $1 - $2 million segment.
Of all Manhattan real estate for sale in the $5 - 10 million segment, there were only 17 resale units for sale in Tribeca, 8 resale units for sale in Chelsea, 5 resale units for sale in the Upper East Side, and 4 resale units for sale in the Upper West Side. That's a total of 34 resale units in these four neighborhoods, which cover a lot of the island of Manhattan.
Shifting down market, of all Manhattan real estate for sale in the $2 - 5 million segment, there were only 22 resale units for sale in Tribeca, 15 in Chelsea, 21 units in Upper East Side, and 32 units in the Upper West Side (including the Riverside). That's only 90 units available in the $2 - $5 million segment across these four neighborhoods.
In the entry level market, of all Manhattan Real Estate for sale between $1 - $2 million, there were only 2 resale units available in Tribeca, 11 resale units in Chelsea, 15 resale units in the Upper East Side and 19 resale units in the Upper West Side. That's a total of 47 resale units available for sale in the $1 - $2 million segment across these four large neighborhoods.
As Urban Digs noted, it is true that seller's are more receptive to negotiations these days, especially compared to 2014 - 2015, but the supply of good resale condos is still relatively low. And, new development is selling at a high premium. When we start narrowing down to the best Manhattan real estate available for sale, by particular building, exposure, those that are not overpriced, the number of good options drops significantly. Therefore, if you are a buyer that has housing needs or looking for investment, keep this short supply story in mind.
Upper East Side
Upper West Side
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Charts courtesy of UrbanDigs