Back to Blog
August 2nd, 2018 | Posted in Real Estate News
I hope you all enjoyed a wonderful Fourth of July shared with friends and family. The recent release of Corcoran’s Q2 Market Report reminds us that we’re already past the halfway point of 2018, so what better time to take a look at what the Real Estate market is doing. There’s so much floating around right now about what is happening and where the market is going, that it bears discussing.
The phrase on everyone’s mind is “Buyer’s Market” – without a doubt we are experiencing downward pressure on prices across the mid-level and luxury market. Median house prices in New York are down 3% to $1.143M due to both price drops in the upper end of the market as well as the increase in sales at lower price points. An increase in market share for sub $1M apartments is skewing the average price per square foot downward although a few key ultra-luxury closings helped keep the average high this quarter. We’re also seeing very real price adjustments in the mid-to-luxury markets as new luxury construction floods the market. 50% of condos are priced over $5M, but only 30% of closings are happening over that price point. Potential buyers are waiting longer to make offers causing properties to stay on the market longer, and when they do we’re seeing low-ball offers coming in more frequently.
One of the biggest mistakes people make is watching market trends and beginning to think that they can game the market. More often than not what happens is that you find yourself sitting on the sidelines waiting and hoping for the prices to come down – the apartments that are priced well are going to sell quickly. If you think you might want to buy in the next year now is the time to start looking.
I’m happy to help you navigate the market. Give me a call.