With apartment and condos on the rise, and buyers and renters in New York City in decline, more and more developers and landlords are offering incentives to prospective clients. This is flipping the real estate market in rare favor of the buyers/renters.
Certain factors are playing key points in the market shift including surging supply, an absorption slowdown, incentives influx, price reduction, and the pursual of brokers. The Real Deal spoke to Mirador Real Estate Agent Neeta Mulgaokar about buyer/renter incentives saying, “the incentives are making and breaking deals when people are comparing apples to apples.” For more information on the factors influencing the changing real estate market in New York City, read the full article here.
Mirador Real Estate’s Eydie Saleh makes predictions for the Brooklyn market in The Real Deal‘s October issue. The magazine’s Residential Scorecard reports that several neighborhoods have seen decreases in year-over-year median rent for the past two months. In other words, rents were lower in July 2016 than they were in July 2015, and the same was true for August. Eydie predicts landlords won’t continue to lower rents, but they will make other concessions to renters:
Mirador Real Estate broker Eydie Saleh said concessions and financial sweeteners that landlords will likely start throwing in may not be reflected in bottom-line rental prices. But she said renters should expect to be relieved from the money they burn on agents’ fees.
“There will be an increase of landlords paying my fee,” Saleh said.
The issue is now available on newsstands, but you can read the Residential Scorecard online here.
The Real Dealreports that the mid- and high-level Manhattan real estate markets – those units priced $5 million and above – are becoming increasingly favorable to buyers. The price-per-foot has actually lowered for properties $10 million and up, and there are signs the decreasing prices will reach the mid-level market. On the other hand, prices for entry level units – those $2 million or less – remain high, with buyers still likely to pay more than the asking price.
To discover the reasons for these opposite trends, The Real Deal spoke with Mirador Real Estate’s managing director, Karla Saladino:
Overall, the median sale price in Manhattan was $1.1 million during the second quarter, up about 13 percent year-over-year from $980,000, according to real estate appraisal firm Miller Samuel.
Karla Saladino, managing partner of Mirador Real Estate, said that jump was a byproduct of an oversupply of new development units across most price points — with the exception of the entry level.
“You can’t dump thousands of units onto a marketplace in a three-year period and not expect the market to correct or flatten out because of it,” she said.
Saladino also noted that some buyers who can afford apartments in the $5- to $10-million range simply don’t want to be saddled with such a large asset. As a result, they trade a tax deduction for flexibility and rent an apartment for $10,000 to $15,000 a month instead. “Young entrepreneurs value freedom of everything. So purchasing a home and leveraging yourself doesn’t appeal to them,” she said.