So we were discussing the possible motivators at the high end.
Clearly, the sales which have recently recorded, or units gone into contract have motivated some sellers to list.
For example, we have a combination at 502 Park; an absurd price at 50 Central Park South, given the Steve Wynn purchase recently;
Lots of great units at the Walker Tower; some confident sellers at Superior Ink.
But will it be enough inventory to help hungry buyers or perhaps drive prices down?
My thoughts:
No.
There will be continued demand at the very high end, and some great new properties hitting the market to complement One 57 (which will see major price increases on the final units), and the final units at the Laureate.
Will there be enough bread and butter apartments to go around?
Sticking with the food metaphors, at the bread and butter level, I’m just not seeing enough hitting the market in September to satisfy demand down the line.
I’ve seen surprising results and demand across Manhattan, even using some of my own listings as an example:
45 East 30th Street– which had been on and off the market for a number of years before I listed it (it was a gorgeous rental for a time at $30,000 per month), is in contract for close to its asking price.
Condos in the Park Avenue South Corridor will see massive interest as Toll Brothers’ building on 28th and Park goes online in 12 months, and other projects break ground.
In the meantime, inventory dwindles in Murray Hill as investors look for rental returns.
10 Jumel Terrace- closed about 10 days ago over $1.6mm, an historic townhouse found a buyer within 2 months of being on the market.
Around the corner, one well-priced house sold for $1.25mm, and another will likely find a similar sale price.
Washington Heights continues to see massive growth.
375 Riverside– a 2-bedroom found a buyer within 6weeks, and will close near its $850,000 asking price.
The Upper West Side continues to struggle through high demand and low inventory.
245 Henry – a 2-bedroom unit just under $700k falls into this category of search for buyers scrambling for a 2-bedroom unit in “Close Brooklyn” under $800,000.
The demand is totally insane, with no inventory.
September will likely see more buyers come into the market and finally, we should see 1-bedroom pricing pick up, along with 2-bed/1baths.
Condo-heavy markets which haven’t seen a big bounce, such as West Harlem, will see aggressive pricing.
We’re already seeing it- and expect to see a tipping point over the next 6-12 months for large apartments, where prices start to catch up to areas further down on the Upper West Side.
We just need more inventory.
More to come on new developments.
I’m seeing a few in the coming weeks!
Best, Scott