March: Move in a Direct Purposeful Manner

March 21, 2021

New Development is notorious for not negotiating on their listing price.

March: Lion, Lamb, and Listing(s)
Hoping to keep this short and sweet. But we know how that generally turns out.

March, in like a Lion, out like a Lamb... in terms of weather, generally speaking. The market as a whole, some submarkets more than others, is beginning to pick up.

More Off Market properties are coming to market, more contracts are being signed, and interest rates are rising, slightly. If the 2-3 days of warm weather we recently enjoyed is any indicator, people are ready for the sun and eager to explore life post lockdown, whether that means visiting trusted friends, socializing outdoors, or searching in earnest for their next home. In March, imagine May.

I do hope that you are all well and maintaining your health, physical and mental during these trying times. As always, while I will touch on other subjects, this newsletter is intended for people interested in the NYC real estate market, and necessarily deals with pricing and dilemmas that may seem insensitive. My thoughts are with all of you, and I do hope that there has been some silver lining over the past year, or at least flowers blooming from Covid Rainclouds.

Spring has not quite Sprung, but we are a couple of days away. We're not averaging 40-degree weather, much less 50, but there will definitely be additional action as people who may have been on the fence pending Vaccine Rollout enter the fray. 
Lion, Lamb, April Showers & May Flowers.

So I won't say March rolled in like a Lion, at least not weather-wise, but there are some clear metrics of market performance that point to a bottom being hit in terms of pricing and an increase of both leasing and purchasing activity.

Renters.
I advise signing a lease before June if you are on a month-to-month lease or timing your move to NYC. Generally rental prices jump in the summer due to demand. College graduates sign in June, lease comes up in June, landlords try to have 14-18 month leases end in June.This all leads to a glut of inventory and competition, in normal times.Obviously these are not normal times.

With the vaccine roll out, however, you could see an increase in hiring, a partial return to work, and some sort of announcement regarding colleges, etc that will contribute to the supply of renters, and possibly embolden landlords to try to recoup some of the losses of the pandemic, legally, and understandably. 

I rep tenants and landlords, individuals who use real estate as a means to finance and support their families and individual goals.

So while December-February is the best time to get a deal on an apartment, especially one with outdoor space, the remainder of March and April will be key for landing a new rental with limited competition.It always sucks to miss out on an apartment you like because somebody put an application in before you, but it will likely feel worse if you are juggling showings with your covid adjusted work schedule etc.Don't postpone.March!

If you are on the fence, month to month or out of town, please click the chart for a link to Bloomberg and click the quote to head to Motley Fool for an insight to how some landlords may be thinking.
While many are still maxing out their budgets, they are getting more for their money, now.

"
The logic behind withholding Manhattan apartment listings is simple. Rents have been on a downward spiral, and the more leases that get signed at a discount, the more the city's average rent is apt to drop. By keeping homes for rent off of the market, landlords are hoping to stop the bleeding. If demand for Manhattan apartments increases, those landlords can then list their property and potentially command higher rent for them."
Buyers:

If you have been reading for the past 6 months to a year, you should know me by now. I will avoid reprising such classics as, "We may have already hit the bottom" and "15-20% ship has sailed." My new tune is for the Springtime Steppers.

For those who haven't heard the Brighter Report Best Hits.
Real Deal reports, nationally, that Home Sale Prices near 100% of asking prices, for those that sell.

Screenshot from a zoom, pardon the tight crop.

New Development is notorious for not negotiating on their listing price. They are always wont to offer concessions and incentives, which are not recorded or publicly syndicated and therefore have less effect, except anecdotally, on their price per square foot. In October of 2019, I was able to negotiate 2 years of paid common charges, and waiver of all closing costs sponsors normally pass on to the buyer, PRE-COVID. 

Many buildings that have had a year of lackluster, sub-par, or non-existent sales have adjusted their pricing to stay relevant in the 2020 market,

Discounted luxury product, "affordable" 2-3 beds, and units with exceptional views are likely the first to go.SEXY always sells, and while discounts are sexy to everybody, in this case, it's probably the lowest floor with an exceptional view that is selling versus the cheapest unit in a given line. 

Furnished Condos Anyone?
New Dev Struggle Strategy


LAST WEEKS ACTION


Supply being up 15+%, whether strictly resales, bolstered by New Development, or pegged ot a sub 1M or Over 2M luxury market, doesn't indicate that it is a seller's market, or a buyer's market, what it indicates is that the pump is being primed for what sellers and listing agents expect to be a warm weather return for buyers.

Contracts Signed being down 6% week over week is fairly irrelevant.Keeping in mind that 10-11,000 apartments are sold in Manhattan almost every year. 300 a week even with 450 added to market every week, would be well over the time proven sales average, by number, in Manhattan. 

Anything over 300+ deals a week is a very strong market. 
Anything over 250 is a strong market.

- Noah Rosenblatt, Urban Digs 

THE LUXURY MARKET IS HOT, $2M+
I personally feel too much attention is paid, in terms of press, and eyeballs to properties in the Luxury Sector. These properties are out of reach for most, but they are attractive, distracting, and visually satisfying. Professionally, they are big Buffalo for this "eat-what-I-hunt" commission earning Independent Contractor, so Disclaimer.
 
In a rare turn, condos led the pack of luxury contracts signed in Brooklyn last week. There were 24 deals inked for homes asking $2 million or more last week, according to Compass’ weekly report. The combined sales volume jumped to $81.7 million — a big increase from the previous week’s $60 million, spread across 18 deals.
--Real Deal

TOWNHOUSE BUYERS GETTING MORE FOR THEIR MONEY 

Admittedly this is kinda clickbait, albeit NYTIMES, $/sf dropped for Manhattan townhomes, as the relative size of the townhomes selling increased.

Another interstitial takeaway could be that 3+ bed buyers are opting to forego starchitect branding and over the top amenity packages for a square slice of NYC.

FYI: In Harlem and BK 2-3M is the sweet spot, but like I said, happy to sell you at $5M if you want to be in the city.Quality 2 fams on the market around 1.5M in Bushwick.
 

"It’s no secret that city-dwellers spent much of 2020 looking for more living space. New data suggests that they’re finding better value in townhouses than in apartments, even as prices for those houses continue to rise.

In Manhattan, townhouse prices hit a 24-year high last year, with a median sale price of $5.3 million. But despite the rising cost, the price per square foot in those houses continued a decline that began in 2014, meaning buyers are getting bigger houses for their money — a reflection of the weak high-end market."

Sellers:
There are too many variables for me to give you grandiose guidelines, and frankly, i'd rather you contact me directly. Yes I want buyers to contact me directly as well, but buyers are customers and sellers are clients.

Working a listing is both limited and focused.All of the information I share here regarding demographic shifts and different volatility at different price points informs my counsel for a listing. 

We can be as focused as we need to be to identify and attract a client typem but ultimately, our price will be compared to what else is on the market, so the secret sauce is accentuating your positives to outflank the riff and the raff. 

Or I could just talk about my company, promise you a price that is unrealistic and then pass the showings, negotiation, paperwork, and price adjustments to junior agents while I go hunting for another listing. 

*I don't do that, many brokers do, and you don't find out until maybe 1 month after the agreement is signed.

Consistent Feedback, Personal Accountability, Market Research, Efficient Communication, and Salesmanship are required.... and given.
 



Wrapping this edition with a Brighter quotable:

NYC Real estate will be back, and will surpass old price threshholds, over time. RE is stable, guaranteed, and roughly insulated save for a period of 2 years, every 7-10 years, pending major financial catastrophes.

9/11 great depression, global pandemic.

NYC today isnt nyc of the 70s 80s 90s or even 2000s. So the price has changed to match that. As we enter a next phase in a digital/virtual evolution NYC will redefine itself again, and many people will still choose to live here, to be around the people who also want to live here

Until next time,
LIVE BRIGHTER!
FOR SALE

82 Irving Place, 2B 
1 bed 1 bath Co-op
$575,000, maintenance $1050

(Gramercy)


This coop 1 bed property is renovated, the bedroom is large enough to accomodate a Queen Sized Bed, the living room can fit a Sectional Couch with room to spare and there is laundry in the basement. Most importantly, it is a 1 bed in the heart of Manhattan for under 600k. 

While you do not get a key to Gramercy Park, and the unit does not face the street, these features would cost you an additional 175-500k, for the same space. Location matters.
For Rent

Large 1.5 bed 1 bath, Townhouse Floorthru $2750
D/W, N/S exposure, SUNNY, 2 DCFPLC

(CLINTON HILL)

GIVE BRIGHTER!
PROJECT DESTINED


KW NY Tri-State/Manhattan Region and Project Destined (PD) are joining forces to empower a new generation of leaders in real estate, transforming Black and minority youth into owners and stakeholders in the communities in which they live, work and play.

Together, we are building a work-based education platform that provides a pathway to (home)ownership, entrepreneurship and wealth creation, by removing barriers to become a real estate professional and empowering students with the skills, confidence, experiences and network to launch their careers and a life as changemakers in their community.

In its pilot launch, the KW x PD partnership will provide 60 students, over three years, with:

TRAINING - 40+ hours of training in financial literacy, entrepreneurship and real estate

NETWORKING - culled from agent participation:(1) as instructors for the live learning component; (2) as dedicated mentors for students; (3) as speakers for the Executive Speaker series; and (4) as judges for the weekly competitions

EXPERIENCE - in pitching a live KW deal to KW professionals

FUNDING - to take the state pre-licensure course in residential real estate, upon completion of KW x PD program

ACCESS - to KW NY Tri-State/Manhattan Region market centers and renowned training to launch their careers as KW NY Tri-State/Manhattan Region real estate professionals

Donations, if you are so inclined, are tax deductible. 
https://charity.gofundme.com/o/en/campaign/mc1147-manhattan
 

We cannot change the history of America, but this is our chance to alter its trajectory in a way that builds equity and opportunity in a real and tangible way. Won’t you join us in the endeavor?

 
How can I help you?
Buyers: 150k-15M. 
Sellers:500k-5M. 
Renters: 1800-18k per month. 
 
Areas Served. 
All Manhattan.
All Brooklyn: accessible by train, 1 fare zones.
Queens: LIC/Astoria, Forest Hills, Jackson Heights
Bronx: accessible by train, 1 fare zones.

Property Types:
Rentals: Doorman, Walkup, Elevator, Loft, Townhouse
Sales: Condo, Coop, Condop, Townhouse/Brownstone
Commercial: Office Leasing, Retail Leasing, Investment Sales

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Brighter Real Estate Group
All rights reserved.


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