Manhattan Real Estate Faucet Turned On Again

Don’t hate me because I’m busy!

With 9 active properties for sale, 5 properties in contract and 2 pending contracts, these days are quite busy for me and my team.  I can just hear the comments now accusing me of ‘broker-speak" and "spin" which is why I was momentarily reluctant to post just how busy I am right now.  But since I never hesitated in the past to report declining prices, increased inventory, or challenging market conditions, here goes…

Buyer traffic over the past two weeks has increased exponentially as if someone has turned on the once dripping Manhattan real estate faucet again.  Of course as always, this is anecdotal but many of the agents whom I meet at property showings are experiencing the same increase in volume over the past couple of weeks.  And it isn’t just an increase in traffic volume, but an increase in deal volume as well.  Here are a few things that I am seeing that may be cause for this phenomenon:

  • Increased Credit Availability:  Despite all the talk of how no mortgage money is available, several of my buyers and buyers of properties that I am representing are being offered 75% and even 80% financing from banks like Wells Fargo and Chase.
  • More Realistic Asking Prices:  Properties that have been adjusted to levels that make more sense based on current market conditions are seeing the most traffic and the greatest number of offers. 
  • Reasonable Sellers:  Most sellers to whom I speak these days DO NOT have their heads in the clouds.  They have more reasonable expectations regarding sales prices and are much more willing to price right out of the gate and/or negotiate to a level that gives buyers that perception of value for which they have been looking.
  • Savvy Buyers:  Most buyers to whom I speak are very knowledgeable of market inventory including recently sold comps.  If they perceive a property as being priced properly for today’s marketplace, they will bid appropriately.  If not, they will bid what they perceive the place is worth with less concern about insulting a seller.

Could it be an Obama induced Dead Cat Bounce? Perhaps, but it is definitely a bounce…in activity that is.

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