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New York City of Dreams or Developers Nightmare?

New York City of Dreams?

It seems that since the start of 2018, the glamorous apartments of New York City are worth considerably less they were just one year ago. A solid slump in New York City.

To compensate for the lacklustre numbers in the Big Apple, sellers and developers offer special incentives to prospective buyers, just to try and close contracts.

What type of incentives, you ask? In many cases, possible buyers are being lured in with free parking spaces (a supreme bonus in a city such as New York), or even covered property taxes for a specifically listed amount of time.

In a few specific deals, a major west end NY building was offering $25,000 credits towards the purchase of apartments or a $10,000 generic gift card for consumer-preferred purchases.

Leonard Steinberg, the president of Compass Real Estate, expressed that we are currently in “The best buyers’ market ever”. “Prices have come down remarkably, far more than during the economic crisis. People who buy now will be laughing in a few years,” said Steinberg of New York City.

One year ago, there were 2,264 sales recorded for the historical city

Currently, there is an 11% decrease, with a mere 2,008 recorded contracts.

Given the amazing deals, buyers took advantage of the pricing by purchasing their properties in one of the most expensive areas of New York.

The numbers certainly back this fact. Over 30% of all Manhattan sales took place in downtown areas, which generally sell at about $1,797 per square foot.

It seems that Realtors and Developers are not the only ones suffering. Rental units within the same parameters have been forced to decrease in cost as well.

Rental units in New York City with 3 bedrooms or more have been subject to a 6% annual drop, while units with 2 bedrooms or less have been recorded at a 4.6% decrease.

Just like the incentives being offered but development companies and Real Estate agencies, Landlords have been offering their own enticing deals in order to attract people into renting their units.

These rewards generally include the first 2-3 months free of rent charges, reduced or no security deposits or even offering to pay the broker fees for the unit.

Nathan Tandow, managing broker at Zumper, in New York City, believes that by September-October when the final wave of students have arrived, the incentives will get even better.

Landlords will be desperate to rent out their last few units before the winter months.

If you’re looking to buy, rent or even just inquire about some property in the great city of New York, now is the time to take advantage of the lowered market costs, not to mention the large variety of possible rewards you could receive just for signing a contract term.

New York City

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New York City of Dreams or Developers Nightmare?

by Sonia Landry time to read: 2 min