New Building Round Up: For Sale in 2015

For many 3 years is imply too long to wait! If you looking for new construction available right now, we have included this round up of new buildings expected to be completed in 2015. While there are plenty of one to three bedrooms, a new proliferation of duplex and townhouse residences built into new development projects offer the space of a traditional single family with the amenities of a full service building - who could ask for anything more! All new developments on this list are already accepting offers, so if you are interested now is the time to move forward. The list covers some of the larger new builds in Manhattan and Brooklyn; for a complete search specific to your needs be sure to give us a call as we have access to all new construction in the city and are excited to get to work on your search! View List

2014... It Was A Very Good Year

Happy New Year! 2014 was indeed a very good year for NYC real estate. Below is a recap of where we stand in Manhattan and Brooklyn and a link to the 4th Quarter Corcoran Reports to offer further insight into these extraordinary markets:

Manhattan:

• Inventory challenges. Inventory has grown by 20% since last year, but almost entirely on the basis of condo availability and the introduction of significant high-end new development product.  The number of co-op listings has remained flat since Q2 2011, and the market is significantly under-supplied below $2M.
• Contract signings are up. Signed contracts rose 3% versus last year.  A lack of affordable inventory sent buyers to the co-op market.  Co-ops accounted for 58% of signed contracts, their highest share since Q3 2009.
• High-end sales helped value reach new peak. Thanks to activity at the high-end, the average price per square foot increased to $1303, up 6% versus Q4 2013.

4th Quarter Corcoran Report: Manhattan

Manhattan Monthly Market Snapshot for December  

Brooklyn: 

• Strong demand but short supply. Brooklyn is experiencing a classic seller's market in which there are not enough listed properties to feed demand from buyers.  Thanks to the inventory shortage, transactions fell 4% versus Q4 13.  At the same time, prices rose to their highest point in seven years; the price per square foot in Brooklyn is now $789, up 15% from the prior year.
• Fewer new developments. The number of new developments available in Brooklyn shrank, but their absence did not dampen enthusiasm for the borough nor the upward trend of prices.
• Dramatic price growth south and east of Prospect Park. Many areas held or modestly gained in value, but neighborhoods like Bedford-Stuyvesant, Bushwick, Crown Heights, Kensington, and Windsor Terrace enjoyed dramatic increases as buyers in search of affordable, quality properties competed for home purchases there. 

4th Quarter Corcoran Report: Brooklyn

Brooklyn Monthly Market Snapshot for December

Williamsburg...The New West Village

The West Village has long been touted as one of the most desirable, and expensive, neighborhoods in the city, which is why it made me take note when several clients in the last few months have asked me for the West Village...or Williamsburg. With West Village dollars in hand, buyers are migrating at a quicker pace than ever to our fine neighborhood, and with Condo inventory down 29% year over year, buyer competition is pushing prices ever higher. The price per square foot for Williamsburg condos is up 16% year of over year in 2014, resulting in prices well over $1000/sqft and an average price increase of almost $200,000. At the same time, the price per square foot for a Williamsburg townhouse has dropped 3% year over year to an average of $681 per square foot. This competitive townhouse pricing, coupled with the large price increases for Condos make this the perfect time to make your move if you have ever dreamed of owning a whole building! Whether you are looking to trade up, or just move on, now is a perfect time to sell!

Townhouse Qualifiers

Many Brooklyn purchasers are considering a multi-family townhouse as a viable option with more living space, private garden area, storage in the basement and an additional unit generating rental income to reduce their overall out of pocket monthly expenses. The first order of business is getting pre-approved for this type of transaction because there are different requirements for conforming (under $625K) versus non-confirming (JUMBO) loans. One consideration is the down-payment requirements for 2 versus 3 family homes. Typically 3-family townhouses  require a 25% down-payment, a little more than the normal 20% down-payment. Also, the buyer’s ability to use rental income in order to qualify depends on the size of the loan too. Lenders will use the rental income if a conforming loan, however on a JUMBO loan, the requirements are tougher. In order to show the use of rental income, the buyer will have to show a history of managing rental properties with two years of tax returns supporting the claim. An exception may be considered with strong credit and post-closing liquidity. 

Earnest Money Deposit

Earnest Money Deposit is a confusing term for many buyers and sellers. Who gets it? What is it? Basically, it's a check to ensure the seller that the buyer is actually "earnestly" intending to purchase the home. Some sellers think that if the deal falls through, the earnest money deposit is automatically forfeit. Some buyers think that if the deal doesn't close, they automatically get the money back. Neither one is true. Even when the failure to close is the buyer's fault, the seller doesn't have a "right" to the deposit as a way to "punish" the buyer. Nor does the buyer automatically get the entire deposit back, even when they are not at fault.