Market Insights

This page is updated periodically. For weekly updates and the latest news, read New York Notice by Nick El-Tawil.


Manhattan

  • Luxury buyers are most likely to be domestic buyers in 2017.
    • The strong U.S. dollar has played a part in this.
    • Foreigners have less purchasing power today than in recent years.
  • The market for properties valued below $3 million is stronger than ever.
    • This is mostly re-sales.
    • New construction in this segment of the market is in high demand if priced around $2,000 per square foot.
  • There is a glut of new construction in the $10+ million range.
    • Re-sales must be priced appropriately to compete with new inventory.
    • Deals in this price range are getting done… but sellers must be patient.
  • Downtown Manhattan is a popular choice among buyers who once would have only considered the Upper East or Upper West Sides.
  • Supply of new inventory has led buyers to expect new. Fully-renovated homes are selling for a significant premium.
    • On the other hand, homes that are not renovated make great value plays.
    • Buyers who meet requirements for Upper East Side co-ops can find a steal. Many hit the market in estate condition.
  • Other neighborhoods where buyers can find great value include: the East Village, the Lower East Side, and East End (“Yorkville”).
  • Upper Manhattan (above 96th Street) home values have skyrocketed in recent years.
    • Unfortunately, many buyers still do not see it as a destination.
    • This won’t last forever. Harlem between 96th and 125th Streets has everything today’s buyers are looking for.

Brooklyn

  • Brooklyn’s condo market reached a new high in 2017 with a record $15,273,750 sale at 1 Main Street in Dumbo.
    • This record sale was a re-sale. Not new construction (which can inflate values).
    • Sky-high re-sale prices are an excellent sign for the future of Brooklyn’s market.
  • Most of Brooklyn’s new construction is happening in Downtown Brooklyn.
    • Downtown Brooklyn has an oversupply of luxury rentals as a result.
    • Downtown’s condo market is still strong, however.
  • Brooklyn Heights and Dumbo offer excellent value for would-be Manhattan buyers of the West Village and Tribeca, respectively.
  • The market in Northwest Brooklyn is flooded with renovated townhouses. That hasn’t stopped them from selling at record prices.
  • The L train shutdown, which begins in 2019, has hurt sales prices along the L… but not as much as rents.
    • Buyers and tenants can take advantage of this.
    • Retail along the L is taking the hardest hit. Many retail businesses can’t survive without foot traffic from the L.
  • Greenpoint is experiencing a major construction boom.
    • However, most of the 5,000+ new apartments will be rentals with only a handful of condos.
    • Retail values in Greenpoint have skyrocketed thanks to the new residential construction.
  • In Park Slope: condos along 4th Ave are selling and setting a new boundary for the neighborhood.
  • Developers are now building condos in South Slope, outside of the Park Slope Historic District.
  • Historic townhouses in BedStuy and Crown Heights are relatively affordable and in high demand.
  • Bushwick is selling too, but to a much different type of buyer. Look here for affordable new construction.

 

Tawil & Team - Market Insights

Last updated September, 2017.