Manhattan - Q2 - Get in...while the gettin's good and rates remain low

New York City Real Estate Newsletter

Q2 2017

Get in...while the gettin's good and rates remain low

Freedom of Choice

Spring is here and so are the deals.

As predicted months ago, the greatest buying opportunity for the next handful of years is upon us, however it is narrowing. Just read the headlines of two recent articles: Josh Barbanel's WSJ article titled Manhattan Apartment Sales Are Rebounding which explains, "After a sluggish year, first-quarter 2017 performance was the second strongest for a first quarter since 2008." And Curbed's article titled Manhattan resale market is strong, but buyers still have the upper hand, which quotes, "There was pent up demand pre-election ... and then we saw an uptick in resales, which was the biggest uptick in two years."

Moderating prices (more realistic prices) have generated tremendous activity. This could, of course, be isolated, but there are many reason for optimism. Inventory is ample enough to provide buyers with choices and these choices provide more negotiating leverage than before. Although on the rise, interest rates remain low and therefore provide further purchasing power for buyers. Also, whereas it is not a for gone conclusion, President Trump's agenda seeks significant tax cuts; portions of that resulting liquidity will indeed filter into real estate.

Manhattan real estate is about competition, beating out your fellow competing buyers. History has proven the best way to win is to get in before them. While others remain on the sidelines undecided ...perhaps nervous, the opportunity to edge forward is upon us. The question is, are you prepared to dive in? Anyone interested in purchasing now should be rolling up their sleeves to determine whether there's a home or investment property out there for them.

NEW YORK REAL ESTATE HAS HISTORICALLY

PROVEN TO BE A SAFE INVESTMENT

(phrase borrowed from HPDM)

Your best investment is often in the broker you choose. With Manhattan's palpable level of competitiveness, my clients have considered me their hidden-hand. My 19 years of experience afford me the expertise to pull back the curtain and reveal the circumstances as they are and the possibilities that exist.

"...man about TOWN"

(click on the photo above to view my promotional video)

* Recognized by New York Magazine & Five Star Professional as one of the "most accomplished real estate professionals in New York City."

* Ranked nationally by REAL Trends as one of "America's Best Real Estate Agents" for avg. sales price of $4.350M.

* Sold a single family Townhouse faster than any other on the Upper West Side over $10M to date. (StreetEasy)

* Trivia: Won the 2015 New York Times NCAA Basketball Pool.

In This Issue

- Featured Listing

- Market News

- Mortgages & Interest Rates

- Market Reports & Resources

- NYC Food for the Foodie

- Concierge - Luxury Attaché

Featured Property : 15 West 72nd Street # 23FG ~ Mayfair Towers

Location, Location, Location...

Nine and a half foot ceilings at the Mayfair Tower...who knew? Indeed, the 23rd floor uniquely provides for nearly 9 1/2' ceilings and unsurpassed views, from every room, of Central Park and historic Bow Bridge. Apartment 23FG is an exquisitely renovated two bedroom, two bathroom home with every possible detail attended to for comfortable living.

Originally a large Junior 4 and an over-sized studio, it was seamlessly combined to create one of the largest 2 bedrooms in the building. Additionally, the oversized Master Bedroom allows for several design options: it is currently configured with a very large walk-in closet and a den; alternatively, the den itself can be converted into a second and equally spacious walk-in closet. The kitchen was redesigned to create an open living experience and is equipped with the highest rated appliances including a Thermador Oven and Range, Subzero Refrigerator, Miele Dishwasher, GE Microwave/Convection Oven and Electrolux Wine Chiller. Both bathrooms have been completely renovated and have THG or Grohe fixtures. You also have your own private Bosch Washer/Dryer with thoughtfully designed folding area, a walk-in pantry, separate linen closet and ample storage throughout the apartment. See full listing information he re. See full listing details here .

Market News

Signs of life: Manhattan's luxury residential market
is pic king up pace

2017 contracts in over-$5M market jumped 29% year-over-year

By Miriam Hall

There are early indications that Manhattan's ailing luxury residential market is beginning to recover, with a jump in the number of contracts signed on the borough's most expensive pads.

So far this year, 152 contracts on Manhattan condominiums and co-ops asking $5 million and above were signed, according to a new report from Stribling & Associates. The figure represents an almost 29 percent increase from 118 during the same time period of 2016. A total of 106 contracts on luxury condos were signed, according to the report - a 61 percent increase from 66 in the first two months of 2016. There were 29 contracts signed on co-ops priced at $5 million and above - a decline of 9 percent from the year before.

Courtesy: Stribling

"In the last six months [of 2016], people were very concerned because the market seemed to wither - particularly on the luxury end," said Stribling's Kirk Henckels. "Because of Brexit and remarkably high anxiety over the presidential election, a lot of the luxury buyers went to ground - people were really panicky about it."

Courtesy: Stribling

Recent reports from other city brokerages also show a boost in the city's luxury market. The number of contracts on properties priced $5 million above jumped 28 percent in January and 43 percent in February, the Wall Street Journal reported, citing Brown Harris Stevens analytics. Corcoran's Kelly Kennedy Mack told The Real Deal late last month that deals above $5 million were up 30 percent in the first month-and-a half of the year. There were 108 contracts signed at $4 million and above in February, according to Olshan Realty - the second-best February since the brokerage started keeping track in 2006, and a 42 percent increase on contracts signed in February 2016. Read more .

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Knight Frank's anticipated Annual Wealth Report.

(click below)

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Coutresy Urban Digs

Although there has been a significant increase in luxury inventory, inventory remains relatively low. In April of 2009, there were over 8,843 units available. Compare that to today where the number of available units is half, at 4,437.

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"Private" is the most-used word in the city's priciest listings

by Liz Lucking

When it comes to advertising New York City's most expensive real estate, brokers work hard to set their listings apart. Listing descriptions boast of one-of-a-kind pleasures and amenities.
But read two or 20, and it all begins to melt into the same old over-the-top broker babble.

So LLNYC decided to gather the text from the 25 priciest listings in the city - including 8 East 62nd Street, 834 Fifth Avenue 7/8A and 100 East 53rd Street PH - to cut through the noise and discover what NYC's high-end real estate is really all about. We analyzed over 9,000 words of property-prose to conclude which words are most popular with brokers.

Above is the resulting word cloud.

Excluding the, is, and and so on, private was the word that came out on top. Followed closely by floor, views and Central Park. No surprises there. Words like spectacular, stunning and magnificent also made the list. But the least used included the likes of sex, drug, and rock - yes, really.

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Interest in NYC real estate being swamped by Russians, TripleMint data show

by Ali Montag

Excerpt:

Over the course of 2015 and 2016, the company [TripleMint] tracked the location of visitors on its website hunting for housing, ranking countries by a percentage of total foreign searches for that year, and compared the results. It found the biggest mover was Russia, which jumped from #20 on their

top searchers list in 2015, to #2 last year, landing just behind the United Kingdom.

The results were somewhat surprising, taking place during a volatile period in U.S./Russia relations. The country is being hammered by accusations of hacking as well as electoral meddling, although it was unclear to what extent those events influenced TripleMint's data, if at all.

Nevertheless, the findings came as a surprise to the company.

"We had no idea that we were going to find that," David Walker, TripleMint's CEO, told CNBC in an interview. "It was fascinating seeing this data and how much search traffic has picked up from Russia."
Read more.

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What the latest interest rate increase

means for NYC real estate
by Virginia K. Smith

For the second time in 2017, the Federal Reserve raised interest rates this week, moving its benchmark rate to a range between 0.75 percent and 1 percent, as the New York Times reported. It's a strong signal of the economy's slow-but-steady improvement, but will it change much for NYC buyers?

In the immediate future, not too much. As we reported when rates first went up in January, the increases have caused a slowdown in the refinancing market as interest rates look less favorable, with lenders focusing more on home equity lines of credit, which often are used to pay for renovations.

But while a certain segment of the market might balk at higher monthly payments, as Miller Samuel appraiser Jonathan Miller tells us, close to 50 percent of sales in Manhattan are all-cash transactions, meaning that nearly half of the borough's deals won't be affected by interest rates at all. And even for buyers who might be concerned, higher interest rates tend to mean looser access to credit, and even the new, higher rates are near historic lows.

"[Higher interest rates] do pull back some demand because there are people on the margins who get knocked off," says Miller. "But in 2007 interest rates were around 6.25 percent, and when I first bought in 1996, I was thrilled to get a rate of 8.25 percent, so the reality is that this current increase isn't as severe as some might think." Read more.

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Be Careful what you wish for...

NYC property tax reforms would be studied under state bill

By Anna Sanders

Excerpts:

"CITY HALL -- Reforms to the city's complex property tax system would be studied by a commission if a new state bill passes. The proposal comes as Mayor Bill de Blasio continues to resist a similar reform effort -- despite also acknowledging inequalities and inconsistencies within the property tax system."

" 'We need to be clear that the only one standing in the way of this is Mayor de Blasio, despite promising to do so, and this state law can simply go over his head,' Borelli said. De Blasio said in January that he will put together 'a task force or whatever' to look at the property tax system but wasn't sure when that would happen."

"What the city collects from property taxes is expected to increase 23.7 percent over the next five years, by some $5.73 billion, according to the January financial plan. De Blasio's preliminary budget would increase city-funded spending by $2.78 billion in fiscal year 2018,

which begins in July. Revenue from property taxes funds 30 percent of that proposed budget."

Read the entire piece here.

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The Biggest Mistakes People Make When

Renting an Apartment in NYC

By Melanie Lieberman

"Renting in New York City is like no other experience," Udi Eliasi, a broker from real estate firm Compass, tells Thrillist.

The rental process here is an incredibly confusing one, and it's normal for first-timers to get overwhelmed. You could spend hours scanning apartment listings online (on any given day, CityRealty.com may have between 20,000 and 50,000 active listings) only to find you're not even eligible for the apartment you want. Many novice renters will also choose not to work with a broker to avoid paying a fee, but then quickly realize what an exhausting process it is to negotiate directly with landlords and property managers to see units. And that's to say nothing of the paperwork necessary to actually secure your first New York apartment.

Even longtime New Yorkers -- seasoned tenants who have lived in multiple boroughs and have dealt with dozens of landlords and brokers -- can improve upon the experience of renting an apartment.

"The New York real estate market is insanely competitive," says CityRealty.com's director of research, Gabby Warshawer. "A sense of humor and a Zen attitude can [help] you maintain your sanity -- but those are not prerequisites."

So what is a requirement? We spoke to a number of New York City real estate pros -- licensed agents and other authorities on the city's rental market -- to figure out the biggest mistakes New Yorkers make when apartment hunting. And, most importantly, how you can avoid these all-too-common traps.