There’s a well-worn adage for stock investing: time to buy on bad news and sell on good news. Going contrary to the conventional wisdom has made a fortune for many people.
This old adage holds true today for Manhattan real estate. The news nationwide is pretty gloomy with prices tumbling in many markets, lending institutions tightening up and a dramatic rise in foreclosures. Yet, the New York market has avoided the tribulations being experienced in most of the U.S. and has positioned itself so that this is
The Best Time to Buy.
Let’s look at some facts:
- Prices are down a bit in the past several months,
- There is more supply on the market,
- Sellers are willing to negotiate.
Add to this the historic perspective that real estate is a terrific long-term investment and the factor that buyers don’t have to settle and have a wide range of choices to find their “dream” apartment and you see my reasoning.
This is not a market for investors, looking to buy and then flip at a profit within the short-term. That market, which was strong the past several years, has evaporated. Today’s market is for the serious buyer who is looking eight to 10 years down the road and who helps stabilize the market. The current downturn in New York is a necessary correction that all markets must go through. The market was over-extended and over-hyped in recent years, though the foundation remains extremely strong.
Looking at the various sectors, the hi-end market, apartments over $5 million, has solid absorption; the middle market from $2.5 to $5 million is holding its own. There is weakness in the below $2.5 million market, offering excellent buying opportunities in this sector.
Much of the news focus has been on the chaos in the subprime mortgage market and the tightening of credit. Overlooked in this is that mortgage rates remain low. The key is that buyers need to have solid credit and put down 20 percent of the price, rather than the previous standard of 10 percent. New York has also avoided the mortgage debacle because of the more stringent financing requirements, particularly in co-ops, which had 80 percent financing requirements as well as a review of a buyer’s finance.
Fran says: TIME TO BUY
- Take advantage of the market correction
- Investment purchases have evaporated
- Mortgage rates are still low
- Elliman Senior VP Fran Katzen knows the market
- Today’s buyers have a wide selection
- Over-hyped market has quieted
- Buy now for long-term growth
- U don’t want to lose a great opportunity
- You should contact Fran Katzen today