Posted by Leonard Steinberg on April 14th, 2012
After we reported for several months on the extremely busy New York real estate market, this morning the New York Times featured this story…..on the front cover! You know it serious if its on the front cover….
They talked about the lines of people outside 422 West 20th Street…..about 4 weeks after we reported it here (with a photo!). They talked about the return of many multiple bids on strong properties, about 6 weeks after we reported this in LUXURYLETTER, our monthly market report. I could continue to badger The Times for not being as on top of the market as it should be, but I think they have redeemed themselves by placing the story on the front cover. That certainly indicates a level of certainty that should erase any doubts in the minds of all that we are now in a very, very active, strong market.
For the first time in years we are selling un-built condo units off floorplans (WITHOUT A SALES OFFICE) with only a raw concrete shell of a building (482 Greenwich Street, THE ARMAN), and several contracts are out with 3 units already spoken for. Having a reputable developer and builder (and broker!) helps.
Again the subject of how long this will last arose, and the answer is definite: just like really bad markets, really good markets never last forever. We are in a lower inventory period, with super-low interest rates, few new buildings that are deliverable soon, and lots of new global cash seeking a refuge from uncertainty as well as fears of inflation. These factors combined always fuel robust activity.
Any smart buyer to-day would know that buying now with interest rates as low as they are would cover a dip in pricing, although that seems highly unlikely. In fact, the opposite is ture: we see price escalation. I spoke about this a few weeks ago……read it in the Times soon!
