bio: peter comitini »

market knowledge
Manhattan market report »
townhouse report »

follow peter comitini

peter's newsletter
sign-up here »

the topics
blogs & sites
design
downtown
economy
for sale or rent
green city
headroom
market reports
professional
property geek
questions & answers
tips for buyers
tips for sellers
videos
newsreal bookmarks
peter's photos


real estate services
home page
selling your property
buying a home
browse listings
recent press
contact peter


recommended
design & ideas
green design
neighborhoods
nyc resources
real estate
real estate: overseas

the archives
April 2014
November 2013
April 2013
February 2013
January 2013
June 2012
April 2012
March 2012
February 2012
January 2012
December 2011
July 2011
February 2011
January 2011
December 2010
October 2010
July 2010
June 2010
May 2010
February 2010
January 2010
December 2009
October 2009
June 2009
May 2009
April 2009
March 2009
February 2009
January 2009
December 2008
November 2008
October 2008
September 2008
August 2008
July 2008
June 2008
May 2008
April 2008
March 2008
February 2008
January 2008
December 2007
November 2007
October 2007
September 2007
August 2007
July 2007
June 2007
May 2007
April 2007
March 2007
February 2007
January 2007
December 2006
November 2006
October 2006
September 2006
all archives

« previous: Manhattan Residential Market Snapshot January 2010   |  next: Manhattan sees dramatically increased home sales  »

Friday, February 19, 2010

How negotiable is that apartment?

click the chart to enlarge
January 2010 Manhattan Real Estate  NegotiabilityManhattan real estate market report»Download the report (.pdf)
Corcoran just released some more data on the market place in January
, which gives us some additional color on what I presented in the most recent market snapshot post. A key trend highlighted is average deal negotiability from the last asking price, and it is shrinking in every price category, when compared with a year earlier. In January 2010, our contracts data signed indicated a range of negotiability between 5% to 7%. Sellers have more realistic notions about price, and buyers aren't imagining doomsday scenarios leading them to half-priced properties. Note too that it is negotiability from last asking price, meaning that a property may have already had one, two, or more, price reductions, before hitting a level which starts to invoke offers. Especially in a market that is operating cautiously at best, sellers overpricing a property will deflect buyer traffic and offers, rather than bringing them to the closing table. Manhattan is a dense, "hyper-local" market. Properties in a very tightly defined area, may have significant fluctuations in value, for reasons that are not always so obvious to buyers or sellers. So there are a few moving parts to this.

A caveat is required to prevent misunderstanding. I'm looking at a very broad and general trend, to get a sense here of where the Manhattan real estate market is headed in 2010. It is a bit like looking at the Dow or NASDAQ, each individual stock does not necessarily move in tandem. Every real estate deal is different too. It does not mean that you should look for a 5% to 7% discount off an asking price. It could easily be more or less. The averages have little bearing on what I might recommend to a customer bidding on a particular unit. That requires both research, and good instinct, built on a working knowledge of the market. It tends to be when an agent earns their keep.

» Inventory and negotiability (138 kb .pdf)
» January 2010 snapshot (156 kb .pdf)


post a comment:

to help fight spam, your comment may need to be approved by the moderator before it appears





we don't collect or share email addresses


email this to a friend:


recipient's email address:


your email address (required):


we don't collect or share email addresses

your personal message (optional):

a link to this page will be included with your message.