Gov. Paterson wants to impose mortgage tax on Co-ops

Governor Paterson wants to impose the NY state mortgage recording tax on Coops. Coops have been exempt from the state mortgage tax because coops are not considered "Real Property" they have been considered personal property.

Prior to 1989 coops were exempt from transfer taxes. Until a few years ago coop sales were private and not in the public records.

Financing a coop is technically not a mortgage but a coop loan. Coop owners purchase shares in a corporation that owns the building. Coop shareholders have a proprietary lease.

Current mortgage tax on condos and houses are between 2% and 2.175% depending on the mortgage amount. Below $500,000 or above $500,000. All purchases above $1 million are also subject to a 1% mansion tax.

If this new tax is approved most of the revenue will go to NYC. It may have an adverse effect on the value and sale prices of coops.



If you've been thinking about buying a coop and need financing, Now Is the Time before this new mortgage recording tax for coops is implemented. Contact Alfred Real Estate Today.

4th Quarter 2009 Market Report

Courtesy of Alfred Real Estate

News Update

Freddie Mac: Mortgage interest rates fall below 5 percent for third week this year

Thirty-year mortgage interest rates fell below 5 percent for the third week this year, according to a Freddie Mac survey released yesterday. For the week that ended Feb. 11, the 30-year fixed-rate mortgage had an average 4.97 percent rate, down from 5.01 percent for the week earlier and from 5.16 percent for the same week last year. The 15-year fixed-rate mortgage was down to 4.34 percent from 4.40 percent during the week-ago period and 4.81 percent in the year-ago period. Five-year Treasury-indexed hybrid adjustable-rate mortgages averaged 4.19 percent, down from 4.27 percent last week, while their one-year counterparts were up to 4.33 percent from 4.22 percent one week ago. The drop in interest rates on fixed-rate mortgages "helps a number of homeowners to refinance their existing housing debt," said Frank Nothaft, vice president and chief economist at Freddie Mac, noting that the latest survey from the Mortgage Bankers Association found that more than two-thirds of mortgage applications have been for refinancing since the start of 2010. "In mid-June of last year, for example, 30-year fixed-mortgage rates topped nearly 5.6 percent. Currently, the monthly payments would be almost $77 per month lower on a $200,000 loan balance."

Existing home sales rise nationwide

Existing home sales rose in 48 states and the District of Columbia during the fourth quarter of 2009, according to a National Association of Realtors survey released today, with 32 states seeing increases in the double digits from the third quarter. Forty-nine states and D.C. saw sales rise year-over-year from their levels in the fourth quarter of 2009. Nationwide, total sales rose to a seasonally adjusted rate of 6.03 million single-family and condo units, thirty-two percent of which were distressed property units. The median single-family price was $172,900, a 4.1 percent drop from the fourth quarter of 2008. The nationwide number represents a 13.9 percent increase from the third-quarter 2009 figure of 5.29 million and a 27.2 percent rise from the 4.74 million sales registered for the year-ago period. "The surge in home sales was driven by buyers responding strongly to the tax credit combined with record low mortgage interest rates," said Lawrence Yun, NAR's chief economist, in a statement.

Contact Alfred Real Estate Today.

Manhattan’s Unique Style Lures Overseas Buyers

New York is one of the most desirable cities to visit on earth. From partying and posing, to shopping and star searching, there are unlimited factors of the city’s appeal. But does the property market have equal dazzle?

The answer is absolutely. Britons buying in the Big Apple look to Tribeca (the Triangle Below Canal Street), where artists discovered loft living in the Sixties, and SoHo (South of Houston Street), where the landscape has a European feel with cast-iron balconies and low-rise blocks built to house Italian immigrants arriving in the 19th century.

There is also Chelsea, a popular artistic and gay quarter, with loft buildings and brownstone family houses, and the legendary bohemian area of Greenwich Village. Prime Manhattan real estate close to Central Park attracts the wealthiest of buyers. And the prices are reputedly the lowest they will go.
"Prices are still down from a year ago, but they're improving. Unemployment has risen, but New York's labor market has been more resilient than the national average," says Walter Molony, of the National Association of Realtors, an umbrella body representing estate agents in America.

He forecasts the city's prices are likely to hold up - and possibly rise in the near future - because the number of new homes being built in NYC is a whopping 88.5 per cent below the long-term average.

Developers feel the same. In an interview for financial TV service Bloomberg, Barry Sternlicht - head of the Starwood firm, which specializes in building new apartments - says homes in his firm's new scheme at Battery Park are "selling like hot cakes".

Unlike many cities, where low cost wrecks are a thing of the past, New York has plenty of what Americans call 'fixer uppers' - old former industrial properties ripe for turning into homes. The Garment District on Manhattan's West Side still has plenty of examples for those wanting a renovation project.

New York estate agents also tip Washington Heights for price growth and, just across the Hudson in New Jersey, there are good-value homes to be found in the commuter town of Hoboken - popular with many British professionals who work in Manhattan.

One of the most dense, buzzing urban centers in the world, New York consists of five boroughs - The Bronx, Brooklyn, Manhattan, Queens and Staten Island. There are about 10 million residents across the city. The wider commuter area, stretching into New Jersey, has another 12 million.

And with prices as low as they are likely to go, this might be just the time to take a hearty bite of the Big Apple.

Celebs make NYC a Home away from Home

British-born actress Kim Cattrall has a Manhattan pad - appropriate enough, given her role as Samantha in Sex And The City. Close by are the homes of Coldplay’s Chris Martin and his wife Gwyneth Paltrow, and American heiress Nancy Shevell, girlfriend of Sir Paul McCartney. Harry Potter star Daniel Radcliffe is reported to have no fewer than three New York homes - and he’s only 20.

But thousands of other Britons live in more modest New York properties - and there is a vast infrastructure to help them settle in. The most famous hang-outs for expatriates include Soho House, a private members’ club and hotel in the grungy Meatpacking district, and the Red Lion pub, a live music bar based in Bleecker Street. There is also Tea & Sympathy, a restaurant and shop in Greenwich Village. It serves a full English breakfast, roast beef at lunch time and cucumber sandwiches for tea. Devon fudge, Hob-Nobs and videos of vintage TV sitcoms are on sale in the shop, which was founded 20 years ago by Nicky Perry, from Eltham, London. Kate Moss and Rupert Everett are regulars, and Davina McCall calls it ‘my favorite place in New York’.

Contact Alfred Real Estate Today

Manhattan Market May be the First to Rebound

According to industry experts, New York City's real estate market will recover ahead of other areas of the country, and perhaps by the end of the year. Many believe that most of New York's overbuilt office space inventory will finally be absorbed in 2010. What's more, distressed properties will become available through deals or foreclosure sales. Furthermore, developers will have the opportunity to begin repositioning themselves as land, construction and renovation costs drop to more reasonable levels.

The Urban Land Institute warns that New York will see vacancy rates skyrocket into the mid teens, office rents plummet 40% and co-op prices drop 25% in its 2010 market forecast. But it also says "New York offers savvy investors opportunity and more affordable costs over the long term."

Experts bet that New York will recover before other areas of the country because in his view, the region didn't indulge as much in over-development as did places like Las Vegas and Miami. The high construction costs and the wherewithal needed to obtain all the necessary permits prevent many speculators from coming in and developing properties in Manhattan.

Those barriers give well-financed industry players an advantage during times of crisis like now. Since many companies resisted buying properties or starting new projects when the market was peaking between 2005 to 2008, they did not become loaded down with debt. Nor are they stuck owning properties that are now worth significantly less than they were just a few years ago.

When looking at investment opportunities, residential is the healthiest area of real estate because the need for housing is perpetual. Commercial, which will benefit when jobs return, is the next strongest area, followed by hotel, which is benefiting from strong tourism. As prices continue to drop in 2010, individuals should look for opportunities to buy property in Manhattan at a discount while they can.

Contact Alfred Real Estate Today

NYC Property Taxes Will Increase July 1st

The Department of Finance released a tentative assessment for all residential and commercial properties for fiscal 2011, which begins July 1st.

While property values may have dropped, according to the city, the total market value of property in NYC, including new construction rose 0.12% to $796 billion. NYC taxes properties based on assessed value. Assessed value can rise even if market value declines.

Market values for coops and condos rose 4.04% and assessed values increased 5.09%. NYC Coops and condos are valued as if they were rental properties that generate income. Property values lag two years. Fiscal 2011 assessment is based on 2008 data. The Finance department will publish final assessment values on May 25th. The final assessment will be used to calculate property taxes for fiscal year 2011.

For more information, visit nyc.gov/finance

Contact Alfred Real Estate Today.

New York City to Receive $20 Million in Stimulus Funds

City Will Use Funds to Assist Homebuyers, Purchase and Renovate Foreclosed Units and Develop Vacant Sites 



U.S. Department of Housing and Urban Development (HUD) has awarded more than $20 million in Recovery Act funding to the New York City Department of Housing Preservation and Development under HUD's Neighborhood Stabilization Program 2.



The grants were awarded competitively to applicants who developed the most innovative ideas to address the impact of the foreclosure crisis on local communities while demonstrating they have the capacity to be responsible stewards of taxpayer dollars. The City will use the funds to buy, renovate and resell foreclosed properties in the most-affected neighborhoods to low- and moderate-income families.



In addition to the award to HPD, two other New York City housing agencies received NSP funding in Round 2: Habitat for Humanity New York was awarded $10.5 million and Community Builders received an award of $5.5 million.

Contact Alfred Real Estate today.

Co-op Boards Making (Small) Compromises

Co-op boards are starting to become slightly more flexible in light of the market. It looks like 2010 is going to be another challenging year for the real estate industry, and a growing number of brokers urging co-op boards to consider broadening their pool of acceptable buyers—and it appears to be working. Some of the boards are actually starting to bend, and this could help boost co-op sales in 2010.

With sales volume so far down from the peak of the market, sellers often have to waiting for months to find a buyer, only to see that buyer rejected. Boards are starting to believe that to enable shareholders to get the maximum price for their apartments they have to be a little more flexible with regard to the buyers. The current economic climate has made boards more wary of the financial situation of buyers, so in return some brokers have convinced boards to ease up on allowing compromises on pet policies and pied-à-terres.

Boards are, of course, still insisting that potential shareholders have steady jobs and plenty of cash. In addition, they are less likely to accept residents who are self-employed or whose incomes fluctuate from year to year. Even with more willingness to compromise, boards will only make exceptions for extremely well-qualified candidates.

Contact Alfred Real Estate today.

Tenants of Rent-Stabilized Apartments: The Newest Homebuyers?

Rent-stabilized tenants appear to be the newest addition to the ranks of new homebuyers. In New York City, nearly 70 percent of the population rents — about double the rate for the rest of the country. Most New Yorkers don’t take the decision to rent lightly. However, since home prices in New York have dropped as much as 30 percent since the height of the real estate boom, even people who are paying way under market rates for their rentals are venturing into the housing market.

The Times' lead-off anecdote is a retired school teacher who is trading a $725/month East Village studio for a $305,000 studio in a doorman building on the Upper West Side. Even though he and other buyers making the transition from stabilized renting to owning will end up paying more than they do now, most are certain it beats renting at market-rate.

Those who decide to leave rent-stabilized apartment know that they will probably wind up paying more, but they have some very compelling reasons for leaving the security of their rented abodes. Some have the desire to upgrade to a nicer building or a larger space while others give up size for the experience of owning. There are some who make the move because they know that their rents will soon head into market-rate territory anyway. Despite sharing other secondary motives, their main incentive is sales prices that have been heftily discounted and mortgage rates that are hovering enticingly low at around 5 percent.

Market experts say there is a chance that prices may drop slightly over the next quarter, however now is probably as good a time as ever to buy. Even if buyers aren’t getting a rock-bottom price, prices have come down substantially and buyers will get a good, reasonable deal at very low mortgage rates.

Contact Alfred Real Estate today.

Mortgage Rates in U.S. Drop to Record Low

Mortgage rates for fixed 30-year loans in the U.S. dropped to a record low of 4.71 percent for the week ended today, the lowest since Freddie Mac began compiling the data in 1971. Rates on 15-year fixed-rate mortgages were 4.27%, down from last week's prior low of 4.29% and 5.77% a year earlier. This comes amid signs that the housing market is beginning to emerge from the worst slump since the 1930s.

Five-year adjustable-rate mortgages averaged 4.19%, up from last week's record low of 4.18% but were down from 5.77% a year earlier. One-year ARMs were 4.25%, its lowest level since June 2005, down from 4.35% last week and 5.02% a year earlier.

Economists at Huntington National Bank in Columbus, Ohio speculate that rates probably won’t go any lower, and that they’re at the lowest point they are going to achieve in a long time.

The index of signed purchase agreements, or pending home sales, climbed 3.7 percent to 114.1 after rising 6 percent in September, the National Association of Realtors said on December 1st.

The low mortgage costs, in addition to the recent extension of the new homebuyer tax credit, have increased the demand for property. In October the demand for contracts to buy previously owned homes increased and the demand for applications for mortgages continue to increase.

With prices and rates this low, there has never been a better time to invest in Manhattan real estate. Contact Alfred Real Estate today!

Digs and Bids: Real Estate Auctions are In

Condominium prices in Manhattan are low and inventory is up. Developers who began construction at the height of the market are now faced with empty buildings stocked with every possible amenity. Owners of luxury apartments are finding that buyers are hesitant to invest in their prize property. In order to cope with the new face of the market, brokers are trying a new tactic: auctions. Auctions are both a way to attract bargain-hunting buyers still on the fence on whether to buy and get the condos sold quickly.

Starting bids are at times more than 50 percent below the list price. One of the less expensive one-bedrooms at an apartment represented by Alfred Real Estate, for example, has a $299,999 starting bid but was originally listed at $660,000.

“Buyers are still afraid of making a definite decision,” says Dan Babush, principle broker at Alfred Real Estate. “Potential buyers are still worried that prices have yet to bottom out—and I would be wary of that. It’s possible that this is the bottom, but an auction is a good way for people to feel like they got the best deal possible.”

“There are amazing luxury properties now up for auction,” says Erica Bunin, principle broker at Alfred Real Estate. “And an auction puts a sense of urgency on the buy. If it’s your dream property, you better show up, or it’s gone.”

Real estate auctions are the fastest growing type of auctions, growing by 47.7 percent between 2003 and 2008.

Brokers at Alfred Real Estate have witnessed the popularity of auctions and believe it’s a sign that the market is beginning to recover. At a recent auction, attendance was more than twice what brokers had expected, and average bids were nearly 10 percent higher than expected. Now is the time to invest in Real Estate, and auctions are a great way to get a fantastic deal on your dream home.

Time to Invest in Manhattan Real Estate!

This may surprise you: Manhattan residential real estate has performed better than the broader U.S. real estate market and comparable major cities such as San Francisco and Los Angeles.

For potential buyers, now is the time to shop. The Dow is at 10,000 without justifying fundamentals, unemployment is at 10%, and the dollar is weak and inflation is coming. Relative to the stock market and comparable major cities, Manhattan has performed well.

Cities like Los Angeles and San Francisco have seen their real estate prices decline more than 40% from their bubble highs while prices in Manhattan have taken a significantly smaller hit.
The Manhattan market is showing signs that it is starting to find its bottom. Third-quarter 2009 data show prices declined at a lower rate while transaction volume surged 46%. Experts predict that it will decline another 10% with an eventual U-shaped recovery. However, the duration and the magnitude of the decline have been less than for comparable major cities.

According to The Wall Street Journal, Wall Street firms are expected to pay a record $140 billion in bonuses this year because of the resurgent stock market, an easing in credit markets, an increase in deal-making and government programs. This is despite the recession and despite an unemployment rate of 10.3% in New York City. These bonuses may be undeserved, but regardless, their payday will boost Manhattan real estate prices.

Manhattan is a landlocked island. While developers in most cities keep expanding outward, developers in Manhattan do not have this alternative.

Manhattan is a global must-see destination. Emerging markets like Brazil and China are creating wealth at a very high rate and churning out millionaires and Manhattan is often the first international destination they want to visit. It's also one of the first places where they want to buy investment property.

Manhattan is full of diverse industries. Besides finance, New York has media, hospitality, advertising and professional services like law and accounting firms. These industries will be serving emerging-market economies and will benefit the local New York economy in terms of job creation and housing demand.

The city's unemployment rate was at 10.3% in August. If not for the diversity of the current New York City economy, the unemployment rate would be even higher. While the finance industry lost jobs, sectors like education, health, leisure and hospitality gained jobs.

Manhattan provides top quality of life. The air in Manhattan is pristine compared to air in other global metropolises like Hong Kong. Transportation, although via a 100-year-old subway system, is still efficient and dramatically reduces commuting time for those living in Manhattan. The legal system is established and there is a better work-life balance compared with countries like China. These are major considerations for attracting global talent.

It's time to invest. Manhattan residential real estate has a net rental yield of 4% and still benefits from rental income and price increases. Real estate prices and rental income will increase with inflation.

For the primary residence buyer who is still renting, the value of your saved dollars is getting weaker. The Dollar Index is now at 75, down from 88 in March, reflecting the world's pessimism about our currency. Rents will increase. So start shopping for real estate. It's better than sitting on a pile of cash with weakening buying power.

Port Authority Plotting “Plan B” for World Trade Center

It appears that the Port Authority has begun planning an alternative “Plan B” for when/if the Silverstein's Towers 2 and 3 go unbuilt. $20 million was allotted to 14 consultants working on a design study for "Plan B." The redesign is unrelated to the Silverstein plan to construct six-story stumps, and will look at where to stick the WTC Transportation Hub's mechanicals should Silverstein just vanish into thin air (the various tanks and such are currently supposed to be housed in the lower floors of the two skyscrapers).

Throughout all of the confusion and muddled planning for the new structure, there were rumors that the WTC Performing Arts Center planned next to One World Trade Center could move to the current site of the Deutsche Bank Building in order to speed up construction. However, the Downtown Express reported that there are all sorts of complications with changing the plan, and the move seems unlikely to happen. Keeping in tune with all of the confusion, there are also all sorts of complications with keeping it where it’s currently planned.

What are your thoughts on the new World Trade Center construction?

NYC Real Estate

Subway Fares May Be Lowered During Off-Peak Hours

The MTA is considering altering subway fares to offer discounts for those using the train during off-peak hours, late nights and weekends. This will be the most prominent change to the subway system since the abolition of the token.

This past summer prices for a single ride went up 25 cents, from $2.00 to $2.25, although half of those riding the subway use an unlimited pass, and therefore the price differs depending on what type of card is used.

The unlimited-ride MetroCard was introduced in 1998. Ridership on weekdays has since swelled by 40 percent, and weekend ridership has risen almost 70 percent. In 2008, the average weekday ridership was 7.6 million, according to New York City Transit.

A new computerized, scannable fare card would allow New York City Transit to charge passengers different prices depending on the time of day. This kind of system is already available in London. Mr. Walder says the MTA has no plans to raise prices for longer trips, a system used in cities such as Washington DC and London.

Chairman of the Metropolitan Transportation Authority, Jay H. Walder says, “We might imagine that we offer discounts at later times, or we offer weekend discounts. Time-of-day pricing might be very attractive.”

The goal would be to encourage use of buses and subways during traditionally quieter hours. “We have an infrastructure that is set for the capacity of the peak,” Mr. Walder said. “What we really want to do is use that infrastructure all the time.”

About $220 million is included in the authority’s new capital plan to install a smart card payment system, a no-swipe fare card that is waved over a sensor to speed up payment. Mr. Walder wants the cards to be linked to credit card accounts and usable in multiple forms of transit. Unlike in other cities like London and DC, however, passengers in New York would not have to wave their cards again to exit the system.

What do you think about this proposed system? Please post comments for discussion.

NYC Real Estate

Foreign Investors See Now as Prime Time to Buy

On October 4th HSBC sold its headquarters to Israeli firm Koor Industries and Property and Building for $330 million. The deal signals that foreign investors currently see Manhattan real estate as a bargain, experts say. Foreign buyers have been looking at the Manhattan real estate market for the past year, and the general feeling is that if the market has not hit a bottom yet, it is pretty close to it.

Other foreign firms are also expecting prices to soon see a rebound. Over the summer, Youngwoo & Associates and Korea-based Kumho Investment Bank reached a deal to buy 70 Pine St. and 72 Wall St. from AIG for what sources say was about $110 million. Youngwoo reportedly said it plans to turn 70 Pine into a residential condo, and are extremely optimistic about selling, expecting units to fetch $2,000 a square foot. Israel-based Optibase and an American partner agreed to buy half of 485 Lexington Ave. with a plan to buy the remainder later. The deal values the 500,000-square-foot tower at $504 million.

Experts say that buyers can now purchase office buildings for about $800 a square foot, without land costs—far less than it would cost to build them. In the first nine months of 2009 sales of properties priced at $10 million and over were down 80 percent from the year-earlier period. Although firms looking to buy are still struggling with the acute lack of financing, it appears that overall foreign buyers see now as the time to invest Manhattan real estate. The market may be at its bottom—and the rest of the world is not letting this opportunity pass it by.



Looking to invest in Manhattan real estate? Click Here for information on the market and residential investment opportunities.

New York City Wine & Food Festival Begins Today

The Food Network’s New York City Wine & Food Festival has started today and will continue on until Sunday, October 11th. The celebration of food, wine and cheer will take place in Manhattan’s famed Meatpacking District. It is absolutely the most fitting neighborhood for the celebration—the district’s abundance of restaurants and bars gives the area the reputation of food lover’s haven. However, even more profound is the sense of tradition which brings seasoned New Yorkers as well as out-of-towners to experience a taste of New York culture.

The festival will consist of over 80 events stemming from the Meatpacking District and beyond. These events include street tastings, performances and music. All of the proceeds go towards benefiting community based hunger relief organizations including Food Bank for New York City and Share Our Strength. This year’s talent includes Rachael Ray, Bobby Flay, Paula Deen, Anthony Bourdain, Alton Brown, Martha Stewart, Tom Colicchio and Guy Fieri, to name a few.

Important to the festival is the atmosphere of closeness—people will go from store to store, discovering wines and food as well as mingling with their neighbors. Throughout the weekend, the area’s galleries, shops, bars and restaurants will offer special menus, wine tastings and other events.

While many of the events require tickets, it is still worthwhile to visit the festival and experience how it feels when a New York City neighborhood joins together in the name of the arts, food and culture.

Organizers expect a turnout of around 2,500 people. Tickets for limited events are still available. For more information, visit www.nycwineandfoodfestival.com/

Third Quarter Market Reports are Out: The Free Fall is Over

After months of hyping up the possibility of a Manhattan market rebound, the moment we have all been waiting for has arrived: the release of the third quarter market reports. So, the question remains: do we have something to be happy about? The reports show that the free-fall of market prices is over, and the number of sales is way up from the previous quarter. Here, some “key metrics” from three brokerage firms describing their individual sales from the last quarter:




Average sale price

• Elliman: $1.323M Down 10% from last year, up 0.8% from last quarter
• Corcoran: $1.282M Down 16% from last year, down 11% from last quarter
• Halstead/Brown Harris Stevens: $1.274 million Down 13% from last year, flat over last quarter
  

Median sale price

• Elliman: $850,000 Down 8.4% from last year, up 1.7% from last quarter
• Corcoran: $799,000 Down 18% from last year, down 4% from last quarter
• Halstead/BHS: $781,000 Down 14% from last year, down 1.7% from last quarter
  

Number of sales

• Elliman: Down 16% from last year, up 45.6% from last quarter
• Corcoran: Down 38% from last year, up 16% from last quarter
• Halstead/BHS: Down 25% from last year
  

For a more in-depth look at third quarter market data, click here.

The Debate on the State of the Market Rages On as Third Quarter Stats are Released

Today’s Headlines

Taken from:
The New York Times Manhattan Apartment Sales Bounced Back Over the Summer, but Not All the Way by Josh Barbanel
Published October 2, 2009

It’s the question that has been on the minds of many New Yorkers: Has the real estate market reached a bottom yet? After a year of declines in Manhattan co-op and condominium sales, the residential market has recovered enough to finally have real estate appraisers and brokers approach this debate. Here, some statistics from the third quarter market reports released today (Friday, October 02, 2009):

• From July through September sales rose sharply from the second quarter, up 45.6 percent, but are down 16 percent from the levels they were at a year ago.
• For the most part, sale prices moved sideways this quarter although prices of apartments and new condominiums continued to fall. The average co-op and condo apartment sale price is now at $1.32 million, off 10.6 percent from the same quarter in 2008, but up 0.8 percent from the second quarter.
• Co-op prices are down 5.9 percent from the previous quarter, while condominium prices are up 3 percent.
• Average sale price on Upper East Side townhouses is still 50 percent below the price in the first quarter of last year.
  

With all of this exciting new data, the debate on the market has sparked speculation from multiple New York real estate firms:

• A spokesman from Miller Samuel Inc. said that while the Manhattan housing market may be getting better in some ways, it has “not yet found a bottom.” The company attributed the current situation of the market to high local unemployment and tight credit.
• Many firms are more optimistic and are reporting that they had experience their busiest summer in years because buyers who had been scared of pulling the trigger in the spring had more confidence in the market. Dorothy Herman, the president of Prudential Douglas Elliman says, “We see the market as stabilizing. It has hit bottom.”
• Hall F. Willkie, president of Brown Harris Stevens, believes that with the rebound in the stock market and slowing job losses buyers are becoming more comfortable and that “confidence is returning to the marketplace.”
• Pamela Liebman of the Corcoran Group believes that “if we are not at a bottom, we are close to it.” However, she also says that despite the increase in sales, there is little evidence that prices will rise significantly in the near future.
  

Those who believe the market has yet to hit bottom attribute the sharp rise in sales to a shift in the busy season due to economic conditions. Usually, the spring is the busiest season for apartment sales in Manhattan. This year sales were halted due to the struggling economy and therefore the surge happened later. The spring market, in effect, occurred this summer.

Despite all of the hearsay, the new market has yet to take shape. But one thing is for certain—people are buying, and New Yorkers can’t ignore that sneaking suspicion that it is time, once again, to feel comfortable in the marketplace.


News Flash

Update from Alfred Real Estate

For those of you who think the real estate market is still dead, it is time to think again! The market is alive and property is selling. Don’t let anyone tell you otherwise. Sellers—the time has come to once again feel comfortable putting your property up for sale. Buyers—now is as good a time as ever to invest in a new home.

One of Alfred Real Estate’s principal brokers recently decided to invest in property and submitted a bid that was 10% less than the asking price. A few months ago she may have had it in the bag, but as it turns out she was one of three bids, and not even the highest at that! In fact, encouraged by the demand on his property the seller decided to have another open house to solicit more potential buyers. At the open house he plans to have a highest-and-best-bid closed auction. People are back in the market, and if the price is right, they are buying!

Making Waves Within the Industry

Hello and welcome to our blog! This space will be used to discuss New York City real estate market trends as well as to provide information that may be useful to potential buyers and sellers.

New York City has a history of real estate agencies that are a cut above the rest. Principals have a history of experience not only in real estate but in marketing, law, and finances. In accordance with these high standards, we have selected our top boutique agency that we predict will make waves within the industry.

Alfred Real Estate

Alfred Real Estate is a residential New York City firm dedicated to providing outstanding service to home rental and sales clients from all over the world. Alfred has exclusive listings and staff whose mission it is to find the top properties that exceed our clients expectations. Their brokers are native to the city and NY Manhattan real estate experts with 35 years in the business. Whether you are searching for apartments, condos, co-ops, townhouses, luxury living, new homes or developments, we have professionals available to meet your requirements.

Their brokers, Daniel Babush and Erica Bunin, have 30 years in the business. Erica was educated at Baruch College of the City University of New York where she graduated Cum Laude and received her Bachelor of Business Administration. She went on to earn her J.D. from Fordham University Law School. Erica has her license to practice law in the State of New York and worked as an attorney in a New York City law firm for 5 years. She was an attorney in Morgan Stanley Legal Department for 20 years where she was an Executive Director and head of a practice group in the litigation area. Once Erica earned her real estate broker’s license, it became clear that the cause of Erica’s success has definitely been her deep understanding of the market, sharp eye for value and keen negotiating skills; yet just as important is the honest, communicative, hands-on approach she delivers throughout the real estate process.

Dan was educated at New York University where he received his Bachelor of Fine Arts and later attended University of Pennsylvania Wharton School of Finance where he earned his Master of Business Administration. He was the Vice President of Citibank’s Real Estate Division from 1973 to 1985 where his Real estate broker’s license was attached on behalf of Citicorp Real Estate Inc. He has been a partner in a real estate brokerage, syndication, and consulting firm as well as an independent real estate broker in New York. Dan is a licensed member of the Real estate board of New York and has his real estate broker’s licensed. Dan is also the Founder and President of RentInRio.com, the leading vacation and relocation apartment rental firm for South America. Dan’s years of experience as a dedicated professional in the business have been complemented by his personal expertise as a buyer and seller of multiple homes. Armed with great knowledge and accurate information, Dan feels confident in guiding and educating clients so they make the soundest decisions possible.