If you’re finding it difficult to rent an apartment in New York now it could be because there is little inventory and rents are expected to rise.
Last year landlords offered a free month of rent, paid broker’s fees and did whatever it took to rent their apartments. Those days are over. The apartment vacancy rate in New York fell in the first quarter, dropping to just 2.8%.
Last year the median rent for a Manhattan apartment with landlord concessions $2,808, up 7.4%. Renters grabbed the apartments as soon as they saw them. On average, units stayed on the market for 40 days, down from 86 a year ago. Listings fell 25.6% from last year to 3,874 apartments.
Manhattan's rental market is rebounding faster than its sales market. While lower unemployment has boosted demand for rentals. Today if a renter sees an apartment they love, there’s no time to think about it. Take it or lose it because the market is definitely tightening.
Leases are being signed in several of the pricey new rental buildings where studios start at $2,700.
With less apartments vacant and new reports showing that the rental market is hot, renters can expect competition and prices to start heating up again very soon.
Thursday, April 7, 2011
Wednesday, April 6, 2011
3 of top 10 most expensive U.S. homes sold in Manhattan
Billionaires are keeping the real estate world very busy across the country. Three of those expensive deals happened right here in Manhattan.
Coming in at number 6 on the list is a single-family townhouse sitting approximately 20,000 square feet on East 75th Street. Reportedly sold to private equity investor J. Christopher Flowers fro $53 million.
Coming in at No. 7 on the list is developer Harry Macklowe, who bought a Plaza Hotel condo for $51.5 million. The 13,000 square foot condo was bought by developer Harry Macklowe in 2007 for a cool $51.5 million.
Lastly coming in at No. 8, Russian oil man Len Blavatnik bought an upper East Side townhouse on East 64th Street in 2007 for a cool $50 million. The person who sold the townhouse to him apparently paid only $4.375 million for it in 1994
What kind of home would you buy if you could spend $50 million or more?
Coming in at number 6 on the list is a single-family townhouse sitting approximately 20,000 square feet on East 75th Street. Reportedly sold to private equity investor J. Christopher Flowers fro $53 million.
Coming in at No. 7 on the list is developer Harry Macklowe, who bought a Plaza Hotel condo for $51.5 million. The 13,000 square foot condo was bought by developer Harry Macklowe in 2007 for a cool $51.5 million.
Lastly coming in at No. 8, Russian oil man Len Blavatnik bought an upper East Side townhouse on East 64th Street in 2007 for a cool $50 million. The person who sold the townhouse to him apparently paid only $4.375 million for it in 1994
What kind of home would you buy if you could spend $50 million or more?
Saturday, April 2, 2011
First Quarter 2011 Manhattan Market Report
For New Yorkers who follow the real estate market, Halstead Property one of the premier real estate firms in Manhattan has just issued its First Quarter 2011 Manhattan Market Report.
After six consecutive quarters of growth, Manhattan apartment sales prices averaged $1,364,733 in the first quarter of 2011, virtually unchanged from a year ago, but 5% less than the fourth quarter of 2010. This marked the first time since the second quarter of 2009 that the average price declined from the prior quarter. The median apartment price of $787,500 was 4% lower than the first quarter of 2010, while the number of sales fell 23% from 2010’s first quarter.
Part of the decline in prices and in the number of sales may be attributable to the scheduled expiration of the Bush-era tax cuts at the end of 2010. Although they were ultimately extended, the extension wasn’t signed until the middle of December. This was after many homeowners had already made the decision to sell before the year ended to avoid paying a higher capital gains rate. Closings that might have occurred in the first quarter of 2011 were pushed forward, which help fuel the decline in transactions.
This rush to sell was reflected in the spike in high-end closings beginning in November, which pushed the average price up to over $1.6 million by December. January of 2011 saw closing prices return to where they were in October, at approximately $1.34 million.
The average co-op sale price of $1,070,229 was 1% lower than a year ago, although prices did rise for two-bedroom and three-bedroom and larger units. Condo prices averaged $1,745,464 during the first quarter, slightly higher than a year ago. Condo pricing gains were led by one- and two-bedroom apartments.
Recent revisions to economic data indicate that New York City weathered the recession much better than economists originally thought. In total about 140,000 jobs were lost, or roughly 40,000 less than the previous estimate. Job growth has picked up recently in the higher-paying sectors such as finance and business services, and Wall Street just had its second most profitable year ever. While cash bonuses fell to $20.8 billion in 2010, this was expected as more firms are deferring compensation and paying higher salaries.
The full version of the report is available on the Halstead website at the link below:
http://media.halstead.com/pdf/Halstead_QuarterlyReport_1Q11.pdf
After six consecutive quarters of growth, Manhattan apartment sales prices averaged $1,364,733 in the first quarter of 2011, virtually unchanged from a year ago, but 5% less than the fourth quarter of 2010. This marked the first time since the second quarter of 2009 that the average price declined from the prior quarter. The median apartment price of $787,500 was 4% lower than the first quarter of 2010, while the number of sales fell 23% from 2010’s first quarter.
Part of the decline in prices and in the number of sales may be attributable to the scheduled expiration of the Bush-era tax cuts at the end of 2010. Although they were ultimately extended, the extension wasn’t signed until the middle of December. This was after many homeowners had already made the decision to sell before the year ended to avoid paying a higher capital gains rate. Closings that might have occurred in the first quarter of 2011 were pushed forward, which help fuel the decline in transactions.
This rush to sell was reflected in the spike in high-end closings beginning in November, which pushed the average price up to over $1.6 million by December. January of 2011 saw closing prices return to where they were in October, at approximately $1.34 million.
The average co-op sale price of $1,070,229 was 1% lower than a year ago, although prices did rise for two-bedroom and three-bedroom and larger units. Condo prices averaged $1,745,464 during the first quarter, slightly higher than a year ago. Condo pricing gains were led by one- and two-bedroom apartments.
Recent revisions to economic data indicate that New York City weathered the recession much better than economists originally thought. In total about 140,000 jobs were lost, or roughly 40,000 less than the previous estimate. Job growth has picked up recently in the higher-paying sectors such as finance and business services, and Wall Street just had its second most profitable year ever. While cash bonuses fell to $20.8 billion in 2010, this was expected as more firms are deferring compensation and paying higher salaries.
The full version of the report is available on the Halstead website at the link below:
http://media.halstead.com/pdf/Halstead_QuarterlyReport_1Q11.pdf
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