With Spring finally in the air, and temperatures in the city beginning to warm up, it’s the time of year when the temperature of the real estate market throughout the country starts to rise as well. The NYC real estate market has grown continuously since the recession in 2008 but hit a plateau in 2015/2016. The good thing about the slowdown is that it means more opportunities for buying, which has been a long time coming in a seller-dominated market.
Some experts blame the slowdown on the over-saturation of inventory found throughout pockets of the city, and in the numerous new construction and developments. That over-saturation, paired with a decrease in the number of active foreign buyers and the implications of the new federal tax act, makes for nervous buyers and sellers. However, the fear of an impending economic downturn is actually good news for buyers – especially those who are interested in high-end or luxury real estate opportunities. In fact, on the top end of the market, homes originally listed above $3 million are seeing their prices drop as much as 20-30 percent. Paradoxically, properties of $3 million or less are only experiencing 10-15 percent drops.
So what does this decline in price mean for the prospective property buyer? That depends on several factors, including where you’re looking. Some neighborhoods are perennially in-demand, while others are not as desirable. For example, Brooklyn continues to be a destination borough, as it continues to gentrify and attract young, hip, artistic buyers. Many areas throughout the neighborhood are seeing bidding wars for properties. Manhattan, however, is a great place to find deals, even for higher end ($3 million-plus) properties. According to a Bloomberg report, re-sale co-ops in the city “were the only category to have an increase in sales” in the first quarter of 2018.
To find the best real estate deals in Manhattan, look for properties that have been sitting on the market for six months or longer, and properties which have seen drops in price over time. Another strategy is to look for buildings with several properties for sale, as the competition for buyers will motivate some sellers to make deals.