So far this has been an extraordinary year - once again. While the majority of the United States is experiencing a “down” housing market, Manhattan sales continue to escalate and in this spring season we are experiencing scenes reminiscent of years ago - dozens of persons appearing at open houses and bidding wars raging on the best properties. However, the bidding wars now are confined to the properties found in prime locations and presented in “move-in” condition.
Importantly the New York Times reported that the Federal Reserve announced May 9, 2007, that the Federal Funds Rate would not increase. http://www.nytimes.com/2007/05/10/business/10fed.html?th&emc=th
Favorable loan rates continue to fuel the interest of buyers.
Persons ask -- is this a buyers' or sellers' market? My answer remains - neither - it is a traditional market where well priced properties are still highly desired. Buyers still have product options. However, one area demands excitement -- there does not appear to be a sufficient supply of luxury large properties available for the buyers who want them.
Miller Samuel Appraisers http://www.millersamuel.com/ reported that in the first quarter of 2007, the average sales price of a Manhattan apartment was $1.29 million, an increase of 5.4% from $1.22 million reported in the fourth quarter of 2006. The average price per square foot experienced a rise of 7.2% to $1,070.
We are finding that the experienced brokers who are properly accessing the value of a home for their sellers are having their property’s asking prices met. There is not much negotiation happening across the market as a whole. Clearly if a property today lingers on the market, it is not priced properly.
Additionally, many persons who took a “wait and see” attitude this past winter are discovering that the market has advanced past them this spring.
However we believe that a good real estate sales agent is one who watches carefully what is happening in the market; evaluates it and remains in weekly contact with their seller as to the reaction in the marketplace and my sincere hope is to encourage careful evaluation.
