REAL ESTATE REPORT copyright mhk 2009
BY MARILYN HARRA KAYE , PRESIDENT MLBKaye International Realty
Second Quarter 2009
The real estate market is beginning to have small bubbles which is encouraging. Although the market for residential real estate still is soft in terms of the numbers of sales; some sales are beginning to go to contract but only if the price is right and most sellers must have all cash as the financing is rarely available even though the government has supported loans to financial institutions but translation to buyers is still not there. Many buyers are coming from foreign countries and sales are all cash.
If a seller does not price their property correctly, it will not sell in this market. Unfortunately buyers must have cash and most of them are sellers of their own property with cash in hand or must needed residences, such as larger families.
First Quarter 2009
The Market has stopped; everyone is waiting to see what our government will do for businesses. Many buyers are changing their selling plans to "renting with options to buy."
Sellers need to adjust prices; the realization that the market has changed finally hit the press! There is so much being done by government for business support and a very serious recession has been acknowledged. In some ways this is good as now it can be fixed. Foreclosures are rampant but not in Manhattan. Still, the total economy depends on everything and Wall Street is a factor in the real estate business for the high end of real estate.
New York has always been a safe haven for the world. This precipitates investment. While prices will affect the numbers of sales, there still is an important factor to consider; low interest rates will fuel the market and investors will always be there for investments, particularly if there are bargains available.
Fourth Quarter 2008
Changes in the market precipitated by a global slow-down.
There are less properties on the market at this time. This is precipitated by owners who are waiting for changes in the market. The owners that have their property listed, if over-priced, are now reviewing their options and making limited changes.
The larger firms call it price adjustments and the smaller firms call it reduced prices. Realistically, this is a good thing for Manhattan as there will be a price correction.
Whatever you call it, prices are coming down as nothing goes up forever!
Third Quarter 2008
Why is the market so strong in Manhattan? Limited inventory and very little space for new development. The demand is high; the city is exciting and safer. The business center of the world is here.
America is a safe haven for both money and people. Low interest rates have helped inflate real estate prices-as well as created multiple jobs. When real estate sells, the contractor's, plumbers, electricians, decorator's and city's tax revenues swell; it's good for everyone.
The cosmopolitan aspects of the city have expanded into new neighborhoods. Today there is so much to choose from that is quaint, safe and interesting. Some commercial buildings are being converted to residential property. From Battery Park, to Harlem Riverdale, and Inwood, everything sells.
There has been an overflow in the Boroughs, Westchester, and even further upstate where all prices have risen.
Very frequently I get asked "Marilyn What about the "bubble?" The bubble has not burst but it has lost air. Prices are flat and have not gone up. Although the numbers in Manhattan look as if prices have gone up, this is skewed by two very expensive buildings, one on Fifth Avenue and the other on the West Side. If you back out these buildings, you will see there has been a market adjustment and Manhattan was the last to be affected. Tougher financing in the real estate industry will affect prices unless sellers are willing to do so. The Million dollar question is, where is it going? This is now very complex and financial conditions and confidence in the entire economy will dictate prices. Although Manhattan was the last to be affected, you will now see price adjustments and new opportunities; look for these tag lines and you will do well in the market and remember it is your home not a stock. Yes, even Manhattan gets affected but not too much!
Historically if you look at the history of real estate, it ascends and descends slowly, particularly in Manhattan. Why is this the case? The answer is simple: it's the one financial asset that you can live in and/or rent out and there is only one Manhattan. We at MLBKaye/LBKaye have been in the real estate industry for several decades and have experienced the gradual nature of market inclines and declines. It doesn’t have abrupt surges like other markets. Most people live in their residences 5 to 7 years. This is generally their biggest asset and they can also deduct their taxes and interest, thus making it a great investment financially.
Whether you are selling or buying today, you will sell for slightly less but the same will be true when you buy. Real estate depends on your needs! Good luck with your search.
Marilyn Harra Kaye, President