Market Report: 1st quarter 2010

Hi everyone

Last week when the market reports came out for the first quarter of 2010, the message was ‘ Market returns to normal’.

It got me thinking, what does that mean?  In this case it refers to the fact that transactions have returned to historical levels.  I am curious to know the collective dollar value of those sales, perhaps not so good.

Even the reports themselves seem outdated and from a different era; tracking property like a stock. That was the ‘normal’ market we were all used to.

So in the world of the new ‘normal’ where people are buying homes, and banks want equity before they give a loan, there are some consistent and positive trends. In the last six months of 2009 sales below $2 million were strong and prices stable. That trend has continued and is now moving up through the market.

Here are the highlights that stood out to us in the recent reports.

Corcoran

• Dramatic reductions we saw in 2009 have stopped and prices are stable.
• The median price of lofts up 25% year over year.
• Sale transactions could be up as much as 70%

Brown Harris Steven

• Demand for high priced and large co-op apartments strong and rising.
• Downtown 3 bedroom apartment had an average price increase of 6% year over year

Prudential Douglas Elliman

• Median sales prices for 3 bedroom apartments up 11% and 4 bedrooms up 28% year over year.
• Increased inventory as sellers come back to market.
• Warn of shadow inventory of development apartments not yet on the market. They estimate this could be as much as 6500 units.

Amanda and Sheena

• If you are selling your apartment in the high end market over $5 million dollars, understanding your competing inventory is key. With stratedy and some patience you can achieve a price closer to the top of the market than you might think.
• Downtown the demand for $2 million dollar two bedroom condos in SoHo, The Village and TriBeCa is intense with multiple bids becoming frequent..
• If you are looking to buy, you missed the bottom of the 1 bed market, may have missed the bottom of 2 bed there are still opportunities in the larger loft market.

To conclude the fire sales are at an end and there are fewer opportunities for a steal. Prices are stable and desirable market price apartments attract wide interest and multiple bids. If a home is special it can still fetch a premium price.

Amanda and Sheena

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