Digs Realty
up to 2% of your purchase price cash back at closing
Enjoy the Buyer’s Market…While It Lasts
The news media continues to report on the dismal state of the NYC residential real estate market for sellers – from Crain’s: “Manhattan Home Prices Fall Again”, from Bloomberg: “NYC Home Sellers Are Cutting Prices Like It’s 2009 – And Then Some”, from The Real Deal: “Stubborn sellers are putting a major damper on the Manhattan sales market”, and from the NYTimes: “Manhattan Buyers’ Market Widens” – and this, while true to a certain extent, continues to fuel the general perception of a soft market that is continuing to soften.
I’m not trying to suggest that the market is strong – the chatter you’ve been hearing is reflective of the current state of the market, and will likely continue to be for a while longer. I personally do not feel that material improvement in the market is likely to start happening for at least the next 12 months or so, but there are signs of life. Although inventory is still at record highs, absorption rates are low and listing discounts (the ratio of closed prices to original list prices) are high, the price chopping that everybody is talking about may finally be working, and new sellers are coming to market at prices that are more reflective of current conditions.
Open house attendance last week in Manhattan was up almost 30% from the prior week and significantly above where it was over the summer. Additionally, in August and September, more contracts were signed for studio, one bedroom and two bedroom apartments relative to this time last year (three bedroom contracts were still down compared to last year). Feels like green shoots.
The bottom line is that the conditions today are still very favorable for buyers – banks are still lending at historically low rates and there is a lot of inventory out there to choose from. Although the market is still incredibly slow relative to 2012-2015, anecdotally, agents for units above $3MM (the hardest hit category during this down cycle) are starting to report an increase in traffic, and at least one prominent industry observer has called it the “7th or 8th inning” of this down cycle. Buyers who have been sitting on the sidelines trying to buy the bottom of this cycle should consider getting more serious and pulling the trigger over the next couple months because, short of a market-shocking event, I believe things are going to start looking better for sellers by this time next year.
In Other News…
We had a very active quarter with 15 closed transactions and are seeing an uptick in our sales business. This past quarter, we brought three amazing apartments to market, and we currently have exclusives on five more apartments that we will likely be listing in the next month. Please check them out below, and let us know if you or anybody you know is interested!
Mark your calendars! On Monday, October 15th at 6 pm, Dan will be participating in the First-Time NYC Homebuyer Panel hosted by the NYC Cornellians alumni group. Registration is available here. If you or anybody you know is interested in potentially buying an apartment in NYC, or has already started looking, this event is an extremely informative introduction to all aspects of the buying process…and you do not need to be a Cornell alum to attend!
New Digs Teammate!
Having more exclusive sales requires a bigger team, so I would like to introduce you all to our newest agent, Andrew Kirk. Born and raised on the north shore of Long Island, but now living in Hell’s Kitchen, Andrew comes to Digs eager to learn the residential real estate market and to help our clients. He is a graduate of SUNY Geneseo with a degree in History.
Digs Exclusive Listings
Check out our exclusive listings. Please be in touch if you’re interested or forward them along to anyone you know who might be!
Gramercy Park
201 East 21st Street, 10S
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Upper West Side
41 West 72nd Street, PHD
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Upper West Side
11 Riverside Drive, 9VE
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Hell’s Kitchen
453 West 43rd Street, A
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Upper West Side
323 West 83rd Street, 4D
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IN CONTRACT
Greenwich Village
77 Bleecker Street, #624
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IN CONTRACT
Coming Soon…
Although they’re not quite ready to share with the world, we are going to be listing these amazing apartments in the next couple weeks:
Battery Park City
2 River Terrace, 4D
Renovated 2br/2ba condo with Hudson River views
$2,430,000
Upper West Side
415 Central Park West, 6C
Renovated 2br/2ba co-op with direct Central Park treetop views
$1,249,000
Hudson Heights
24 Bennett Avenue, 45B
Renovated 1br/1ba co-op
$375,000
Upper West Side
147 West 105th Street, 3W
5br/1ba HDFC co-op (income restricted)
Price not yet determined
Financial District
15 Broad Street, #702
Renovated 1700sf 2br/2ba condo loft with 250sf private terrace
Price not yet determined
Digs Realty is a full-service residential real estate brokerage company specializing in home purchases and sales in New York City. Clients working with Digs on a purchase are eligible for a rebate of up to 2% of the purchase price cash back at closing, and clients working with Digs on a sale are eligible for commission discounts. For more information…
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