Manhattan Condos - New Developments - Conversions - Resales: Manhattan Market Outlook Optimistic for 2010

Manhattan Market Outlook Optimistic for 2010

Manhattan Real Estate, Mitchell Hall, Associate Broker, The Corcoran Group

 

This week the major Manhattan brokerages released 4Q 2009 sales reports. The reports confirmed the activity I've experienced during the last quarter. Sales activity picked up at the end of the year. I had a very busy December traditionally a slow period during the holidays.

The Corcoran Report

Buyers are buying. Many people feel we may have bottomed. Inventory is down. I'm currently working with a buyer ready to buy a two bedroom condo or condop on the Upper West Side in the $1.2M range. There is very little to show. Any seller thinking about selling please contact me ASAP.

While sales activity increased during the last quarter, the market reports indicate sale prices are down 10-15% from the 4th quarter of 2008.

The extended tax credit and increase in income cap has helped more Manhattan buyers with higher incomes. First time home buyers with adjusted gross incomes up to $125,000 (single) or $225,000 (married) can get the full $8000 tax credit if they close on the purchase of a primary residence before June 30, 2010 and haven't owned a home in the past three years.

Current homeowners can receive a credit of up to $6500 if they've lived in their primary residence for five consecutive years out of the past eight, meet the same income thresholds as first-time buyers, and purchase and close on a primary residence before June 30, 2010. The maximum property value is $800,000. The credit does not apply to second homes, vacation property or investment properties.

Purchasers need to plan on being in the home for at least three years. If you sell the home or move to a different primary residence within three years you will be required to repay the credit.

The rising stock market, along with low mortgage rates has also helped increase buyer confidence in the market. The average Manhattan apartment sold for $1.3 million down about 13% from a year ago. Smaller apartments with easier mortgage terms, studios and 1 bedrooms accounted for 58% of all sales in the last quarter.

Wall Street bonuses are also expected to be very good which usually benefits the Manhattan real estate market. While there is no way to predict the overall economy, our local economy and the Manhattan real estate market seems to be starting out with an optimistic outlook.

 

Mitchell Hall, Associate Broker, The Corcoran Group

 

 

©Mitchell Hall 2010

 
   

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Mitchell Hall (Licensed as Mitchell J Hall)

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Comment balloon 8 commentsMitchell J Hall • January 06 2010 10:12PM

Comments

The fact that stated income loans are slowly coming back into NY will only help with the values. Self employed borrowers will be able to afford more.

Posted by Eric J, Dream Home Financing (Eric J - Dream Home Financing) over 8 years ago

I hope so and I also hope lenders become less tight with jumbo loans that many Manhattan buyers need.

Posted by Mitchell J Hall, Lic Associate RE Broker - Manhattan & Brooklyn (The Corcoran Group) over 8 years ago

Hi Mitchell... Glad to hear that things are picking up in NYC!  Best wishes for a prosperous 2010!

Posted by Steve Shatsky over 8 years ago

Thanks Steve,

Best wishes for a prosperous 2010 for you too.

Posted by Mitchell J Hall, Lic Associate RE Broker - Manhattan & Brooklyn (The Corcoran Group) over 8 years ago

Mitchell, We are seeing a big change in our Naples market.  Lots of Canadians and foreign nationals grabbing great homes at great prices.  We are very very busy in January, which is a good sign.  All the best to you in 2010.

Posted by Marcia Hawken, Naples Luxury Specialist (Downing-Frye Realty, Inc.) over 8 years ago

Marcia, Thanks for stopping by. I'm glad your market is doing well. Naples is beautiful. I would love to be there right now :)

Wishing you a great 2010!

Posted by Mitchell J Hall, Lic Associate RE Broker - Manhattan & Brooklyn (The Corcoran Group) over 8 years ago

Mitchell,

Things certainly do sound positive for the market in your area...I'm glad to hear that December was busy for you and consumer confidence is picking up again.

Jo

Posted by Jo-Anne Smith over 8 years ago

What????  What????? Those Wall Street crooks are getting bonuses again!  Just kidding.  May your clients get the bulk of the bonus money!  And I'll see you at Rain Camp tomorrow!

Posted by Patricia Kennedy, Home in the Capital (RLAH Real Estate) over 8 years ago

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