I apologize for the light postings lately but business and life in general have kept me away from the blog. As my friend Peter Comitini says, "I’m a real estate broker who blogs, not a blogger who sells real estate." That said, the market is indeed keeping me busy and on my toes as a great deal more effort is going into each and every transaction these days.
Here is an anecdotal snapshot (activity all over the map) of what I see going on right now in the Manhattan Residential Real Estate market:
- Contract finally signed over the asking price after 5 Highest, Best and Final Offers
- Some buyers are lowering budgets based on interest rates and tighter lending requirements while others continue their search and raise budgets.
- Many properties are being snapped up after several months on the market as soon as price is adjusted appropriately for current buying pool (i.e. Property on market for 4 months overpriced at $1.15M sells immediately after price adjustment to $999K)
- Mortgage contingencies are much more common in deals under $2M.
- Multiple offers and contract out over the asking price for a West Village 2BR (inventory in each area of city still low and sometimes creating bidding frenzies)
- Other properties sit on the market "patiently" waiting for the "right" buyer to walk in.
- "Creative" offers being submitted by unqualified buyers (i.e. $5000 deposit on a $2M home contingent on 90% financing and the sale of another home…good luck) NEWS ALERT!!!!…we’re not in a market that will generally entertain such an offer unless a seller is desperate and there just aren’t too many of those.
- Inventory is opening up a bit in the sub $1M market.
- Buyers are patient but eager to buy while interest rates are low.
- Anxiety has calmed a bit as many see Wall Street bleeding near an end.
- The ultra lux inventory remains tight as people wait for their perfect home to hit the market.
That’s about it. Again, this is what I see in my business. Make of it what you will but there is no doubt that we are in a much different market than we were this same time last year. In some ways it feels more "healthy" but I would be lying if I didn’t say that I preferred the deal flow last year. Things do seem to be picking up though which is in large part why I haven’t been blogging as frequently.