Dorchester Towers condo 2016 Summer End MARKET REPORT|

155 West 68th Street Market Report Summer End 2016

In today’s Real Estate market, we firmly believe that information and knowledge is your number one resource when it comes to making informed decisions.  It can be overwhelming to try to figure out what is actually happening when you are seeing different headlines, conversations and reports.

The Real Estate market in 2016 has not been easy to narrow down. Is the market up, down, sideways? The top end of the luxury market is in a period of adjustment, with pricing and buy side demand levels finding its way into headlines.  Now where are the majority of the transactions on the condominium re-sale side of the business taking place? This is an alternate discussion, we still see relatively low amounts of inventory, with consistent demand for entry level pricing. If we had to characterize the market we would say that if the apartment is in a good neighborhood with no serious defects, and priced based on the last three months of comparable sales, there will be a strong demand and the apartment will sell within a reasonable amount of time.

As Dorchester Towers building specialists, we always want to provide you with a specific and relevant market report about Dorchester Towers. So let’s discuss all things Real Estate related at the Dorchester Towers.

What has been selling in Dorchester so far this year?

We track all of the sales that come onto the open market and stay aware of all of the off market sales that are happening without being listed by a brokerage company.

So far this year, there have been a handful of studio, one bedroom and Junior four (Convertible Two Bedroom) sales.  Studios ranging in price from $745,000-$940,000. A One Bedroom selling for  $965,000 and the Convertible Two Bedrooms selling between $1,150,000-$1,200,000.

As we have mentioned before, with so many different layouts in the building, each apartment sale can be looked at differently based on the particular size, view and apartment condition.

We had the opportunity to represent both buyers and sellers in several of the transactions that have taken place this year.  From what we have seen, the apartments that have sold for the highest prices have been renovated.  As residents of the building, it seems that more and more people are renovating, which definitely impacts resale value and the amount of time to sell, when they are put on the market.  The fact of the matter is that the building is about 50 years old and some of the apartments look their age.

We sold Dorchester #1509; this is a true one bedroom on the smaller end of the square feet spectrum at 600 sq ft that underwent a full modern renovation a few years ago.  We listed it for $975,000. We had conversations with other brokers and interested buyers where we came up with that price.  We received a lot of interest and had a couple of offers within the first 30 days and we finally sold for $965,000, which is one of the highest prices achieved in the building for a regular one bedroom apartment.

Douglas Elliman keeps track of the price ranges that each apartment size is selling for in different neighborhoods. For example, in the West Side (boundary of 60th to 110th Street), Median Price for a one bedroom Condominium in 2016 was approximately $955,000.  In our opinion, Dorchester #1509 falls right in line with what other one bedrooms have sold for on the West Side. This was a higher floor apartment with meticulous renovations, so what it may lacked in overall size it more than made up for in other areas.

What About Condominium Owner Rentals at the Dorchester Towers?

According to the August 2016 Douglas Elliman Rental Market Report, rents in Manhattan were described as flat compared to to 2015 and the overall supply of apartments increased.  Concessions were being used by landlords.

What is always challenging in the Real Estate market is what we are seeing and feeling and when it actually shows up in headlines and market reports.  This year we have had multiple listings in the building take longer to rent out than in years past and we were feeling that tenant demand was a bit sluggish.  We found it helpful to see that what we were experiencing was actually reflective in the most recent market reports.

What is the number one reason potential renters do not rent an apartment?

Of course, it can be the price, though if the potential renter already saw the apartment in person, they know the price already. What we have found at the Dorchester Towers is the condition of the apartment​ can be a factor​.  We have had a lot of repeat feedback that potential renter who tend to look in the building and who are looking for a full time doorman building in our location, also require a certain level of renovation.  Generally, potential renters want an updated kitchen with new appliances, updated bathroom with new fixtures and solid wood plank floors throughout the apartment. They are open to spending a few hundred dollars more per month for the same size apartment and in newly renovated condition.   So the less renovated inventory will sit on the market longer while trying to find the right tenant who can look beyond the latest and greatest finishes and values a great location at a smart price.

Moving Forward:

The Real Estate market in Manhattan is rewarding both entry level and mid-entry price points with the most buyer side activity.  Priced effectively with the right exposure and marketing, you will have the best opportunity to maximize your sale.  As Dorchester owners ourselves, we’d love the opportunity to speak to you if you want any specific information about your apartment and what it could sell for or rent for in today’s market.

Read Other Dorchester Market Reports click on this link  http://dorchestertowerscondo.com/category/market-report/

Dorchester #1509 Renovated One Bedroom: http://dorchestertowerscondo.com/dorchester-towers-condo-one-bedroom-for-rent-1509/

Manhattan New York Real Estate – Are we in a Buyer’s or Seller’s Market?

Currently we are working with BOTH qualified buyers and serious sellers in the Lincoln Center and as well as other Manhattan neighborhoods, so we are seeing what is happening in the market place and have our hands on the pulse of the market.

On the other hand, if you have been reading the news headlines about the ultra-luxury NYC Real Estate market, it can make you feel confused or puzzled about current state of the market.

If you are an serious buyer search for a fair priced apartments in any of the core Manhattan neighborhoods such as Lincoln Center Upper West side, you may have a far different experience of any signs of slow-down.  

It is essential to step back and take a look at where we are in the current cycle as Real Estate market always runs in cycles.

Everybody and news media is going to have their own interpretations, although its fairly agreed upon that the market stabilized in or around 2010 after the 2008 crash, so we are in about the sixth year of recovery. 

The last few years the price increased in a fast and consistent pace without much of slow down, eclipsing the previous peak pricing in most neighborhoods.  It feels like starting in 2015, the crazy buyer demand started to slow down and now we have entered a more balanced marketplace.  

What we can share is that unrealistic sellers who insisted push the price up above the fair market price, finally see the buyers resistances and not offer on the property.  We have seen more price drop for properties that have been on the market for 90 days or longer, sellers now are more open minded regarding accepting offers that are mortgage contingent, something sellers previously would not want to discuss as they were holding out for an all cash buyer.

We can also share is that we are seeing well priced properties located in prime neighborhoods in Manhattan see a lot of demand.  This is not a buyers market if you are looking in the entry level (Yes, relative to Manhattan) pricing in any of the prime Manhattan neighborhoods.  

For example, we recently had unit in Dorchester Towers condo, our asking price was $975,000.  This is a segment of the market where there are very few one bedroom condominiums for less than a million dollars, we had immediate demand from different types of buyers, including owner occupants, investors, and parents buying for their children. 

Lincoln Square is a neighborhood where a lot of people want to be. 

We received a handful of offers, some people coming in bidding $100,000 less than the asking price telling us that they will wait it out and see if we are on the market in a month or two, but we also received bids and offers near the asking price, finally selling for $965,000.  This was a price the owner and we felt was extremely fair, a record for the building actually on a price per square foot basis for that layout.  

We do see buyers having more choose to from in the luxury to ultra-luxury sector of the market, both from new construction condominiums that are still being built and from resale units of recently closed luxury condos that were bought by investors.  That rush to make a decision has tapered off, as buyers are looking at more and more properties before making a decision.

Overall we would say the market is very healthy, with the right expectations a seller is going to get a very good price for their property.  Buyers are purchasing in a marketplace where they might have some more choices than they previously had with the ability to close on what they want.  

If you would like to discuss the market for your specific needs or Dorchester Towers condo unit, call us so we can have a detail conversation on your interest. Call us at (917)837-8869 today.

Dorchester Towers Condo – 2015 Year Review Market Report

In 2015, there were just a few sales at the Dorchester Towers.  The lower number of sales was a reflection of inventory just not making itself available versus a scenario of lots of units coming on the market and nobody wanted to buy.  To the contrary, buyers demand is still strong, but in a more balanced real estate environment.

In 2015, we saw total of (3) different actively listed Dorchester units came on the market and closed in 2015.

With an additional couple of units transferred through private owner sales.  This number was a drop off compared to number of sales occurred in 2014, when there were about a dozen sales.  We have been writing this newsletter for years now and track the volume of sale of sales and pricing quite extensively.

The lack of inventory has been something that we have been talking about for years now, low inventory levels have been present in the Manhattan condominium market for awhile now.

We tracked a big run up in prices from 2010-2014 in the resale condominium market.  In 2015, we saw just how much buyers were willing to spend for certain types of apartments, the price ceiling was established.

With escalating prices the past couple of years, new price levels were being established and eventually just how high it would go before buyer resistance would eventually happen.

For example, we saw that “days on market” start to increase in 2015 and initial asking prices had to be reduced or price negotiations take place to find the price point where a buyer would commit.  This is not to be misunderstood that prices have decreased, we still see prices maintain or increase from 2014 prices, we see it as a plateau or leveling off.

What we always find important to address is that the Real Estate market works within the segment of individual markets.  If you are looking for a studio or one bedroom condominium in our neighborhood, you will be hard pressed to find much availability.  Or if you want a two bedroom/two bathrooms condo for less than $2,000,000 again your search will be very limited.

With that being said, it is always find it important to look in detail at the segment of the market your apartment falls under. Below are the sales in 2015:

(1) Alcove studio sold in 2015:

It was a 545 sq ft Western facing on the 10th floor sold for $700,000, with an original asking price of $725,000 (Another studio sold in a private sale, it was a 600 sq ft Eastern facing alcove Studio sell for $745,000.)

(1) One bedroom unit sold in 2015:

It was an 18th floor Southwestern exposure, 633 sq ft sold for $855,000, originally asking $890,000

(1) Two Bedroom/Two and a Half Bath unit sold in 2015

Fully Renovated on the 31st Floor sell for $2,000,000, originally asking $2,195,000.

With just single sales occurring for each size apartment, trying to make a trend comparing price per square from 2015 to 2014 is just not going to be realistic because our sample size is too small

Our conclusion for year-end 2015, we saw moderate price growth compared to 2014, with most apartments being listed for more than what they sold for. There were more price negotiations taking place in 2015 than we saw in 2014. We are in what we would describe as year 4-5 of a price growth cycle, inventory still remains historically low, demand is strong but buyer’s are hesitant of bidding on an overpriced apartment.

If you are thinking of selling in 2016 and want to know what you can do to maximize your sale here is our #1 Tip:

The improvements you make to the apartment will play an important role in the price you will receive and the days on market. Fewer buyers will buy property they need to update, they would rather pay more for a “Turn-Key” apartment than put additional cash and the time and stress involved in a renovation. Not every owner has the ability or desire to conduct a full renovation, but there are going to be certain improvements that are very cost and time effective, putting your apartment in the best position possible to take advantage of the market.

We have met and talked to many Dorchester owners who wanted to know how to maximize their condo unit when it comes to renovating, give us a call, we would be happy to stop by and talk to you in person.

Nicely renovated one bedroom facing Broadway for rent:  http://dorchestertowerscondo.com/155-west-68th-street-1424-for-rent/

Summer End 2015 Market Report:  http://dorchestertowerscondo.com/dorchester-towers-condo-end-of-summer-2015-in-review/