Happy Valentine’s Day!
We wanted to give you an update on some of the trends we are seeing in the market today.
• THINKING OUTSIDE THE BOX TO FIND MORE INVENTORY According to UrbanDigs, there have been 10,605 apartments listed in Manhattan over the last six months. Of those, nearly 50% (5,056) are active and currently on the market. A little more than 25% (2,742) have gone into contract or closed, and close to 33% (2,807) have been pulled off the market. If you are a buyer and you’re not finding the product you are looking for, there’s a large pool of sellers that are not currently listed but do have the intention to sell. With the right contacts and strategy, you can open the pool options available to you.
• PREMIUMS FOR TURN KEY We are finding that buyers are willing to pay a premium for turn-key properties and are more hesitant to do renovations. For those looking to sell, it could be in your benefit to upgrade your unit before coming to market to achieve the highest price possible. For those looking to buy, there is a lot of opportunity to be had if you take on a project.
• INTEREST RATES ON THE RISE Encouraging economic data including decreasing unemployment, rising wages, and growing bond yields are leading to an increase in interest rates. Last month the 30-year fixed was at approximately 3.75%. This month it’s hovering around 4.375%. These rates are continuing to rise. For those thinking about buying, it’s a good idea to lock in your rate sooner rather than later.
• RENTAL SEASONS MATTER For renters, your window is closing to still get a winter steal. RentHop is reporting that for a one bedroom, renters will pay about 5.4% more if they rent in July rather than February. For landlords, it’s important to try and keep your tenants in a spring/summer renewal. We’re advising our landlord clients to use concessions to bring their winter renewals in to more desirable summer months.