On January 24 & 26, BARNES New York was pleased to host conferences in France on real estate investment in New York, followed by a cocktail. These conferences “Invest in New York” in Paris and Lyon were a great success.
Yann Rousseau, Managing Partner of BARNES New York, Westchester & Connecticut, and Adrien Gouirand, BARNES New York consultant, lead the discussion in Paris and Lyon in order to present the New York real estate market and its opportunities. The following agenda was discussed :
How is the New York real estate market?
Why is it the right time to buy?
What are the opportunities in new developments (and property tax exemptions)?
What is the buying and financing process in the United States?
The New York real estate market
The New York real estate market is witnessing a decline in supply and demand. Despite the U.S. recession, we do not expect a decline in prices for existing properties. On the other hand, the euro is recovering and new constructions represents very good buying opportunities for both resale and rental.
The most sought-after properties
Although more expensive, new developments have many advantages in terms of finishes, amenities, tax exemptions and rental/resale potential. Pre-war buildings are also in high demand for their charm and lower costs. Finally, multifamily buildings are also highly sought after by families or investors looking to rent several apartments.
The most popular neighborhoods in Manhattan are Tribeca, the Upper East Side, Midtown and Soho. As for Brooklyn, the neighborhoods of Dumbo, Caroll Garens, Gowanus or Cobble Hill are very popular.
Events that made a splash
The conferences were followed by question/answer sessions and cocktails that allowed all participants to interact on the New York real estate market in a laid-back and chic atmosphere.
To buy a brand new apartment in Manhattan can be an exciting but scary experience. As the cost of housing prices rise, finding a new apartment for the best possible price can be time-consuming. Luckily, knowing about an ideal budget, location, and process can make the experience easy and stress-free.
What is your budget?
How much are you willing to spend on your apartment? Generally, a one-bedroom apartment in Manhattan costs about $900,000 to buy. A 4-bedroom apartment can easily cost over $3,000,000. Generally, co-op apartments are less expensive than condos. However, new developments Manhattan homes will cost more than those already well-established. As an additional tip, to buy a brand-new apartment in Manhattan, it is best to save up roughly 20% to 25% of the cost of the apartment before the purchase, if this is possible.
Having a reasonable budget at or above the $1,000,000 range will ensure that you will find apartments and condos for sale in Manhattan that will meet your needs. Of course, with more accommodations, the price rises as well. Depending on what you are looking for, set a limit for yourself to find hidden jewels of homes and avoid overspending. It is best to speak with a mortgage banker or broker to request a preapproval letter to set your budget accurately.
What is the location?
Another huge factor to buy a brand new apartment in Manhattan is the location. The neighborhood that the apartment is located in can either make or break your experience in Manhattan and determine the price of the condo or co-op. There are several different areas that are all great for people of different personalities and backgrounds.
For example, the Financial District and Tribeca are great for wealthy and high-class people with larger budgets. These areas are best suited for people that enjoy living in luxury, eating in 5-star restaurants, and buying expensive clothes from classy boutiques. These areas are home to both old money and new money folks alike. They are busy in the daytime and quieter at night and are home to many large places of work. These districts are also filled with office spaces and other large work buildings.
Areas such as Chelsea, West Village, and NoHo are great for creative spirits with an eye for beautiful art. These areas are highly inclusive of all cultures, and it is much cheaper to buy an apartment here over the Financial District and Tribeca. There is always plenty to explore, including art exhibits, venues, and unique restaurants. Still, you can find lovely homes here as the residents are immersed in exquisite, unique, and vibrant art. These areas are perfect for always being entertained, as well as for those who have a deep appreciation for art and creativity.
The Lower East Side and East Village are best suited for those looking for an exciting nightlife with plenty of activities almost 24 hours a day. These areas are filled with bars, lounges, venues, and much more to enjoy every day. Because these areas can be noisy, they are best for night owls that feel the most alive when the sun is down. There is always someone to socialize with in the Lower East Side and East Village, and always an event to go to.
How does the buying process go?
Buyer’s agent giving the key of a brand new Manhattan apartment to new owner after signed contract.
As a buyer in Manhattan, it is always a great idea to work with an experienced buyer’s agent, which are free to work with because they earn commissions from the home’s sale. By working with a buyer agent, you can save money by helping you find great deals on apartments and condos. At this point, attend open houses for information on each property and specific details about their offers. That way, you have the most chances to buy your brand new apartment in Manhattan.
Additionally, it is important to prepare your offer documentation and find a real estate attorney. Since Manhattan apartments are in high demand, you will have the highest chance of winning the apartment if you submit an offer as early as possible to be ahead of the competition. Because offers are not final until both parties agree and accept all terms, you can submit offers for many different apartments simultaneously with no repercussions.
Once the offer is accepted, your attorney will negotiate and look over the housing contract on your behalf, as well as thoroughly review the building documents, including the first two years of financials. Once this has been completed, you can sign the contract, and a 10% deposit can be made to the condo or co-op.
Once you have a fully executed contract, you can send in the mortgage application and request for an appraisal. The bank will give you a mortgage commitment letter, and you can complete your condo, apartment, or co-op board application. Begin the building application as soon as possible to stay on top of additional letters and information and remain organized with any important information.
If you are purchasing a co-op, you will be called for a board interview, but if you are buying a condo, the building will process its waiver of the right of first refusal to allow you to close on the apartment.
How do I close on the apartment?
If you are approved by the co-op board or condo in Manhattan, you can then close on your apartment. The attorney will schedule this, usually in the attorney’s office or the building’s managing agent’s office. So now, your brand new Manhattan, New York apartment is all yours!
Usually, this process takes 1 to 2 months for a condo and 2 to 3 months for a co-op. If possible, be as prepared as you can to provide documentation such as identification, income statements, and other important files. Having this readily available will help shorten the process of buying the apartment.
Get in touch with our team of experts at BARNES New York to benefit from considerable discounts on the purchase price, transaction fees, and carrying costs when buying a brand new apartment in Manhattan.
The Westchester County Real Estate Market has been in high demand lately, in large part, due to the global pandemic. As a result, more than ever, people are leaving New York City and traveling north, trying to find property in less crowded and more spacious areas while still remaining a train ride away from all the big city action.
Homes, condos, townhomes, and even rental units are selling for record prices. As a result, the supply is dwindling. And buyers are jumping on whatever they can get and almost always enter competitive bidding wars that often send the property’s sale price over what was originally asked.
Just how competitive is the Westchester county real estate market?
According to a report put out by Bloomberg last year, properties in Westchester have been in such high demand that the supply of the properties, if it continues at its current rate, will be completely drained by the end of the year. In Westchester County’s history, a shortage of that severity has never been recorded before.
And because of that shortage, the Westchester County Real Estate Market is very tense and properties are now being sold for record rates.
Why is Westchester county so competitive?
One of the main reasons the Westchester County Real Estate Market is so competitive is because of its close proximity to New York City. It’s no secret that while many people want to move out of the city, they do not want to cut ties with it completely. They want to remain close, and Westchester being the first northern county to border New York City proper, keeps them close.
But that’s not all—Westchester county is also known for its high quality of life, and its experienced workforce, including more than a few Fortune 500 companies. All these features make the Westchester County Real Estate Market a good place to invest.
Are there any parts of Westchester not as affected by the real estate market?
Unfortunately, not really. As a whole, Westchester County is in a lower supply of properties than usual. That low supply has driven up the selling price of available properties.
According to a report by Miller Samuel, the selling price for properties in Westchester County has increased, on average, by approximately 1.5% from the previous year. In comparison, the number of properties being sold fell by nearly 13.4% in that same period. That means more people are trying to buy than sell in the Westchester County Real Estate Market.
What are the most in demand cities and towns in Westchester?
Anything along the coast is always in high demand, and places like New Rochelle and Larchmont up to Rye and Port Chester, which have picturesque waterside views and thriving downtowns, are avidly sought. And then there are places like Yonkers, Tarrytown, and Croton-on-Hudson, all of which are located along the Hudson River and similarly popular.
Why is the eastern coastline in such high demand?
The eastern coastline of Westchester County consists of New Rochelle, Larchmont, Rye, Port Chester, and a few other cities and towns. They are home to many young and experienced working professionals and ample nature parks.
What can I expect in New Rochelle?
New Rochelle is the southernmost coastal city in Westchester and the seventh-largest city in the state. It is approximately 15 miles to New York City (Manhattan), which translates to just over 20 minutes away by car or thirty minutes by train.
New Rochelle is chock full of everything water-related. It has sailing schools, yacht clubs, rowing clubs, nature preserves, museums, and beer gardens. Its own downtown offers everything you need, so you don’t need to make the trip to New York City if you don’t want to.
The average sale price for its homes is often around $415,000, making it far more accessible than the city itself.
What can I expect in Larchmont?
Larchmont is immediately north of New Rochelle and its average sale price for homes at the time of this writing was $1.6 million USD.
Larchmont has a walkable downtown, plenty of spacious homes, and offers all of the same conveniences as New Rochelle, like parks, yacht clubs, and ample beaches.
What about Rye and Port Chester?
Rye and Port Chester are the northernmost waterside cities on the eastern coast of Westchester. Rye’s average sale price for homes is $1.6 million, while Port Chester sported a cheaper $598,000 price tag, on average.
Rye is a food haven—there are ample restaurants, cafes, and coffee shops that dot its enviable downtown, and there is no shortage of explorable parks. Of the coastal cities in the county, it has a more suburban feel to it, and most residents own their homes.
Port Chester is just north of Rye and offers plenty of museums, movie and performing arts theaters, and an abundance of restaurants downtown. Plus, being so close to Rye, any of Rye’s amenities are just a short drive, or train ride, away.
What about the cities along the Hudson River?
The Hudson River cities of Yonkers, Tarrytown, and Croton-on-Hudson carried a smaller price tag for homes than the eastern coastline. The sale price for homes in the river cities is approximately $750,000 on average, with Tarrytown driving that average up.
What is Tarrytown like?
Tarrytown is a diverse city with idyllic tree-lined streets and Victorian-style homes. Many of its residents describe Tarrytown as quiet, peaceful, and beautiful. And it’s that beauty and style that have inspired many well-known works of art, including the novel ‘The Legend of the Sleepy Hollow.’
Home prices here sell for around $1.4 million on average.
What is Yonkers like?
Yonkers is the closest Westchester city to New York City, and originally began as an industrial extension. However, that was its past; Yonkers has since been transformed, while keeping its historical buildings intact, into a residential haven filled with four-star restaurants, luxury properties, and a booming downtown.
It’s got great culture and diversity to boot too, and, with the prices of homes starting near $342,000, you can do little wrong buying property here.
What about Croton-on-Hudson?
Croton-on-Hudson is located at the intersection of the Croton and Hudson Rivers. It is a 5-square-mile town that is packed with plenty of things to do and eat. Of the mentioned Hudson River cities, Croton-on-Hudson has the most suburban feel to it, but it comes with many amenities like highly-sought-after housing, high-end restaurants, and plenty of scenic parks.
On average, its home prices are typically around $951,000.
When is the right time to buy in Westchester?
Real estate is a tricky subject right now. There are more people wanting to buy property than there are people willing to sell their property. Because of that reason, the selling price often goes above and beyond the asking price.
As a result, buyers should be ready to be bidding against a handful of other interested parties.
For more information on Westchester and its real estate market, contact BARNES New York!
New York City is always bustling with people who have places to go and goals to achieve. It’s a beautiful city for real estate investment, as it perpetually attracts tenants looking to rent a home for vacation, for a semester of school, or for the long term.
In addition, NYC is an amazing place to purchase a secondary home, as there are countless sources of entertainment and shopping, most of which are very easily accessible on foot or by public transportation. So whether you are looking for a new home for your family or an investment rental property, BARNES New York has the resources you need to navigate your way through your purchase.
While NYC offers plenty of historical real estate, there are excellent advantages to exploring new real estate developments within the city, which often include elements of historic architecture in conjunction with the conveniences of modern, upgraded materials and amenities. BARNES New Developments has preferred access to developers. Our team consists of agents with top-notch negotiation skills as well as a thorough knowledge of different parts of the city to help you find your new home.
How can I save money buying new real estate in New York?
Some buyers shy away from newer developments because of the price tag; however, luxury purchases are excellent investments. Updated properties offer increased value and are often built better due to the advancement of construction and materials. They know that these details are extremely important when purchasing in the luxury market.
For example, 35 Hudson Yards was built with hand-picked limestone all the way from Germany, giving it warm, welcoming features. 108 Leonard incorporates majestic, historical architecture and combines it with more modern features to create beautiful units and common areas. Finally, buyers will want to check out 130 William Street, as it features luxurious Italian Pietra stone kitchen countertops. The upgraded materials and intentional features add value to all of these luxury properties and will likely reduce the need for renovations in the near future. These characteristics are one of the advantages of buying in a new real estate development in New York.
Furthermore, other unique details of these new developments certainly add to their value as well. For example, 277 Fifth Avenue offers floor-to-ceiling windows and columns that were intentionally placed along the perimeter of the building to avoid blocking the view. In addition, One Wall Street features tiled mosaics and a landscaped rooftop terrace for residents to enjoy views of the NYC skyline. New York City is known for its beautiful views, and these properties deliver what buyers want to see.
These features increase the value of luxury residences and therefore tend to increase the return on investment for those looking to rent or sell their property. BARNES New Developments provides our clients with services for buying, selling, and managing these types of properties, and our agents have the knowledge and experience to be able to identify unique features that help elevate luxury buildings in NYC.
Will I save money on utilities by investing in a new real estate development?
Newer developments tend to implement more affordable and eco-friendly utilities, saving the buyer money on energy costs. For example, 565 Broome SoHo incorporates a sophisticated curtain-wall system that helps to retain heat in the winter and generate solar energy in the summer. This reduces the cost of energy as well as the negative impact of consumption on the environment.
15 Hudson Yards boasts an on-site emergency generator, in case of loss of power, that contains efficient boilers to help reduce electric costs. Electricity tends to be one of the most expensive utilities for renters and homeowners, so these eco-friendly implementations can truly make a difference in overall costs and count as one of the major advantages of buying in a new real estate development in New York.
At BARNES New York, we are always on the lookout for properties that offer efficient, low-maintenance utilities to save our clients money and reduce negative impacts on the environment. Additionally, newer developments are able to incorporate updated technologies, such as more efficient energy systems and water-efficient plumbing, to reduce these costs.
What kinds of unique amenities are included in new developments in NYC?
Rooftop patio in New York City with a table and chairs standing on a paved area surrounded by green turf overlooking a view of the downtown skyline and skyscrapers
BARNES International Realty recognizes that another advantage to investing in new real estate is the availability of updated, state-of-the-art amenities, which add value to the property. Some of the more popular amenities include services and spaces dedicated to the health and wellness of residents.
For example, 53 West 53 features a gorgeous dining area that overlooks Central Park as well as a 65-foot lap pool and a golf simulator. It is conveniently located above the Museum of Modern Art and boasts amazing panoramic views. 130 William includes an infinity-edge spa pool, a yoga studio, and a fitness center with a terrace to elevate your health and fitness experience. 200 Amsterdam, located in the Upper West Side, has ‘his and hers’ steam rooms, a yoga and pilates room, and an infrared sauna. All of these amenities add up in value, especially if they are saving you money on luxuries many people typically spend money on, such as gym memberships or billiards clubs. All these savings are true advantages of buying in a new real estate development in New York.
Additionally, many new luxury real estate developments offer other lifestyle services, such as doormen, concierge, and memberships to museums or other venues of interest. The Kent, located in the trendy Upper East Side, offers doorman these services 24 hours per day. Additionally, this development boasts a complimentary one-year membership to the Lincoln Center for Performing Arts.
7 West 57 offers a virtual concierge so that residents can conveniently schedule services, such as restaurant reservations, by phone or computer. 300 West, located in West Harlem, includes two reception areas and a lobby that is attended 24-hours a day. These types of amenities increase the value of the real estate, as they provide modern luxuries that tenants highly desire.
Luxury New York City real estate can be overwhelming to navigate, but the opportunity to invest in these new real estate developments makes them worth the thorough consideration. Thankfully, BARNES offers agents who have extensive experience working with luxury properties.
Our agents are informed of the materials and architectural subtleties that help add value to new properties, ensuring buyers get the best value possible. In addition, we are always on the lookout for unique amenities that will save our clients money and add convenience to their daily lives. If you are considering investing in a new property in NYC, please contact our fantastic team at BARNES New Developments.
With its shining lights, skyscrapers, and mix of cultures, New York surely is the place to live. There are plenty of NYC apartments for sale currently, so choosing which to buy is up to you! Buying a new property in New York can seem daunting, as it is a long process with many obstacles throughout. However, this process can be made easy by being aware of all rules, regulations, and steps to take when buying a property in New York.
Being aware of the regulations that come alongside buying and selling a new house can make the proceeding go much smoother. Knowing what is expected for you and the seller will get you closer to reaching your new New York home with less trouble. Also, following all regulations can help you to avoid extra fees and costs that you would not have paid otherwise.
What are the important steps when buying a new property?
As a buyer, it is always a good idea to work with a buyer’s agent who has plenty of experience, especially if you are a novice when it comes to buying homes. Therefore, the first thing you should do when you decide to buy a home is to find a buyer’s agent.
Prepare all of the documents you will need for an offer and find an attorney specializing in real estate. You can ask your buyer’s agent for local recommendations. Having all of your documents in order will allow you to find any required information quickly and check that all regulations have been followed properly, especially when you’re buying a property in New York.
If you submit an offer for a property and it is approved, your attorney will look over the housing contract on your behalf. They will also scrutinize construction documents, including the first two years of financing the property. Once this operation is completed, you must then make at least a 10% down payment. This is one of the most detailed steps of the process, so it is important to review the listed rules and cautions to be aware of when making the down payment.
Once you’ve signed the full contract, if financing, you will apply for a mortgage and request an appraisal. The bank will provide you with a mortgage commitment, and you can complete an application to buy the new property.
The process and regulations for buying a cooperative property in New York are quite different from the regulations of other properties. For example, if you buy a cooperative, the board will first call you in for an interview. If you buy a condo apartment or a house, this process is skipped, and the building will consider the waiver of the right of first refusal, thus allowing you to begin the closing process on the property.
Many details within the buying process must not be looked over, as this can result in penalties, extra fees, and can add to the time you must wait before owning your new property.
What is a seller’s disclosure?
When a homeowner puts their house on the market, they must collect a packet of documents with information about the property. Seller’s disclosures can vary from state to state and county to county depending on their requirements, otherwise known as disclosure obligations. For example, in New York, the seller’s disclosure obligations are divided into 5 different categories: General Information, surrounding environment, mechanical systems, structural elements, and defects.
The general information that sellers must include in the disclosure would be details such as the age of the house, the property title, and the utility surcharge. In addition, the environment around the property can significantly impact the maintenance, and it must be stated in the disclosure. For example, if the property is located in a floodplain, a wetland district, near a landfill, contains asbestos, or if other toxic substances have been spilled, the seller must report them.
It must include information about the mechanical systems, such as the utilities, water sources and quality, and the presence of sewers. All defects in the house must be reported as well. Any issues with the plumbing, air conditioning or heating, security, the foundation of the walls, chimney, and patio terrace must be described in detail on paper to the buyer.
It is your right to receive a full and detailed seller’s disclosure as a buyer. Sellers who cannot provide adequate disclosure can owe money in fees, but the buyer may pay extra money for repairs later down the line.
Are there regulations for down payments?
Regulations and rules about down payments may be one of the most important that you come across as a buyer. Many co-ops or condos in New York will require a 20% down payment, although you might be permitted to put only 10% of the purchase price in a few instances. Of course, the more money you initially put down, the less you have to pay by the month.
Any down payment less than 20% of the price will require the buyer to pay for extra private mortgage insurance. Private mortgage insurance is a type of insurance that any buyer will be required to have to take out a conventional mortgage loan. Unlike most types of insurance, private mortgage insurance will protect the lender’s investment in the home rather than the borrower of the loan. On the other hand, private mortgage insurance makes it possible for some buyers to own their new homes sooner. This is because those who put down less than 20% as a down payment on their home will be allowed by the private mortgage insurance to obtain financing.
PMI is not on the cheap end, though, and it can come with additional monthly costs outside of loan payments. Until the buyers have enough equity in the home and are no longer considered high-risk, they must continue to make large payments to the private mortgage insurance. These can be between 0.5% and 2% of the total cost of the house in a given year. The lower the down payment, the higher the percent of the total cost the buyer will pay to the private mortgage insurance.
How can I abide down payment regulations?
The best way to ensure that you will meet the 20% requirement for a down payment on a new property in New York is by having a set budget and plenty of savings before entering the market.
It is important to decide how much you are willing to spend on your apartment, as well as which accommodations are most important to you. In New York, a one-bedroom apartment costs about $1,110,000 to buy on average in November 2022. A new 4-bedroom home for the family can cost over $3.8 million, making this a high initial down payment.*
Although putting a bigger down payment is generally advised, be sure to save at least 5% more than the down payment you wish to put down to help with repairs that you may need. Always set a limit with yourself and secure your expectations regarding financing. Additionally, it’s best to plan out your financial plan with an experienced mortgage broker to figure out your budget.
As stated above, working with real estate professionals can help you build confidence and guide you throughout the process and the regulations of buying a new property in New York. Unfortunately, many buyers and sellers may think that they are saving money on a real estate transaction by not hiring a real estate agent, and this could not be further from the truth.
An experienced real estate agent knows the New York market, has excellent negotiation skills, and offers great advice about choosing a home that will help you save money in the long run. Having a real estate agent by your side can help you find new properties that you may not have found otherwise, caution you of regulations you may be missing or unaware of, and assist you throughout the process to help you understand each step of the way.
Having a brokerage firm that you can trust is crucial when buying a home in New York. BARNES New York is available to help you in all of your real estate endeavors, whether you are buying a home, investing abroad, looking for private aviation and yacht services, and much more.
BARNES New York will assist you in all of your needs, especially when it comes to luxury living and new developments in New York. Contact us today for more information!
Manhattan is a beautiful city filled with diversity, vibrancy, and plenty of activities. It is a great home for people of all backgrounds, and there is something for every resident there. But unfortunately, as Manhattan grows and expands, the housing price in Manhattan are constantly on the rise.
Of course, they are subject to the location and neighborhood that the homes are in, but finding an apartment or condo for a low price is usually rare. Still, apartments in Manhattan are beautiful, and finding the right place to call home within the city is important. Depending on the area, the housing price in Manhattan varies.
So if you’re looking for a property in Manhattan, whether it’s a co-op, condo, penthouse, townhouse, or simply something with an incredible view, continue reading to learn and understand housing prices in Manhattan.
What factors determine housing prices?
The housing price of an apartment in Manhattan depends on three main factors: age, type, and location. If the apartment is older and a bit run down, it naturally will be cheaper than buying a brand new and up-to-date apartment. Because of this, it is important to decide what accommodations are important to you and which ones you can do without. In older apartments, the structure of the building may be less sturdy, and, of course, the wood will be much older.
The type and size of the building will also sway the price of the apartment greatly. Apartments that are small and compact will cost less than open and large apartments. Having an idea of how big you would prefer your apartment to be will give you a set goal and a specific range of apartments to look at.
Additionally, co-ops are cheaper options than condos by an average of about $100,000. The average price for a square foot of a co-op is almost $1,800, while the average for a square foot of a condo is well over $2,000. Even so, buying a condo is better for investors as well as renting out your property.
The location of the building is also important in determining the cost and risk of an apartment. What neighborhood is it in? What area of said neighborhood is it in? Is it more residential, or bustling with restaurants, shops and cafés? These are all essential questions that will decide the cost of the co-op or condo for sale in Manhattan. Also, the view outside the apartment’s windows can either make or break its price overall.
What is the price in Tribeca?
Tribeca is a beautiful, chic, and luxurious neighborhood to live in. It is filled with 5-star restaurants, classy shops and boutiques, and high-class residences. In addition, there are plenty of places to work along with beautiful office spaces. Because of this, buying an apartment in Tribeca can be profitable and rewarding when all is said and done.
If you are looking to rent out an apartment here, it is practically guaranteed to fill in quickly. With this luxury, though, comes a high price tag. The median price of a condo here is $3,350,000*, and often you must have over $1,000,000 that is ready to be put down on it first. The median price of a co-op here is $2,740,000*. Apartments in Tribeca are some of the most expensive in all of Manhattan, but are nearly always high-quality and gorgeous.
The East Village is the perfect place for those with a knack for art and nightlife, and the crowd here is a bit rowdier than in other neighborhoods. It is easy to meet people of all different cultures, and just as easy to create long-lasting friendships. It is filled with bars, music venues, lounges, casual cafes, and many more spots to relax and socialize.
With this being said, apartments in the East Village are chic and often have a rustic appeal. The median price of a condo here is about $1,740,000* and the median cost for a co-op is about $815,000*. This means you must have about $200,000 ready to put down.
New York City Manhattan SoHo street at sunset time background
NoHo is known for its free-flowing and fluid atmosphere, as well as its classiness and bohemian style. NoHo has all kinds of apartment styles, ranging from small to big and old to new. NoHo is filled with cute boutiques, small mom-and-pop shops, and casual cafes. Creative people from all over the world live here for their unique style and humbleness. NoHo in Lower Manhattan is one of the most expensive neighborhoods to live in, alongside SoHo and Tribeca. The median price of a condo here is about $5,900,000*, and about $3,200,000* to buy a co-op.
SoHo is famous for its infinite shopping plazas and unique fashion. If you have a love for clothing, SoHo is the place to be. There are plenty of boutiques and shops, both those with major brands and some that you cannot find anywhere else. SoHo takes on a bit of a faster pace than NoHo, but is still a beautiful neighborhood. It costs about $3,790,000* to buy a condo here, and about $2,380,000* to buy a co-op.
If you enjoy NoHo and West Village, you might just love Chelsea. Chelsea is filled with residents that hold art and creativity close to their hearts, and just being in the neighborhood is enough to bring about inspiration.
There is street art, numerous art galleries and exhibits, and unique landmarks, all of which make the neighborhood stand out from those surrounding it. A condo apartment in Chelsea costs about $2,840,000* and co-ops cost about $800,000*
The housing price of a Manhattan apartment depends on the size and type, age, and location of the condo or co-op. Of course, there are many other neighborhoods to buy an apartment in, and making such a big purchase requires thorough research and decision-making.
By finding the right neighborhood that fits your budget and needs, you’re sure to find the perfect apartment that’s right for you. BARNES New York can help with your project!
The BARNES Miami & New York teams were pleased to host a conference in French on real estate investment in the United States on October 12th, followed by a cocktail at the BARNES Neuilly-sur-Seine agency in Paris.
Partnering with French magazine Valeurs Actuelles,Enzo Rosani of BARNES Miami, and Yann Rousseau, of BARNES New York, presented the state of their respective real estate market and the opportunities for investments. The successful event was followed by cocktails in the recently redecorated Neuilly-sur-Seine office, the very first BARNES office opened more than 25 years ago.
The housing market has seen some serious fluctuation over the last 2 years, especially in places like New York. Many cities across America are struggling to keep up with housing demands, and rent continues to climb. So what is the real estate market like in New York right now ?
In 2020, living in New York seemed feasible for some people for a brief moment. Vacancy rates went up drastically as locals tried to escape the pandemic by fleeing to the less crowded states, making room for those who had been eyeing apartments in NYC for some time.
However, as we came into 2021, everything changed. The stimulus money ran out, and landlords stopped giving out handouts. As a result, the demand for housing has been more than anyone could have expected, and prices have been driven to an all-time high across the country.
Which parts of New York are most affected?
New York City has been rated the most expensive place to live in the US and is the 9th most expensive place to live globally. Roughly 64 percent of New York State’s population resides in the city, so naturally, this is where the high demand comes into play. While the median housing price for New York State is $371,000, it’s over double that in NYC at $850,000.
Prices were considered high before the pandemic, and it was a relief when they finally dropped. But now, in order to make up for that lost income, prices are continuing to soar past even what they were in 2019. The average rent increase is roughly 20 percent and climbing.
Manhattan has the highest median housing price of all the boroughs in the New York real estate market, at $1.4 million, followed by Brooklyn at $895,000, Queens and Staten Island both at $600,000, and finally the Bronx at $390,000. In these areas, prices for luxury housing can easily be several million dollars, with under $1 million being rare for family homes.
However, things are still very manageable outside the city, especially the farther away you get. While prices are still higher than before, the demand for upstate New York is not even close to the demand for city territory. If you’re looking to move to New York State but are not dead set on city life, there are some beautiful properties well under the median price range, ranging from a couple of hours away to the other side of the state.
Outside of the city, certain areas have not only a below-median price for New York, but it even falls below the national average. For example, Rochester, NY is the fourth most populous city in the state and is still extremely financially doable, with the median being only $149,900 thousand. Buffalo, NY comes in a close second at $160,000, followed by Liberty, NY at $174,100 thousand, and Albany, NY at $234,500. The only downfall may be that outside of the city; property taxes tend to be much higher.
Buffalo NYRochester NY
What Is expected for 2022?
Inflation has been a topic of conversation for many months now, as the price of housing, gas, food, and pretty much everything else continues to rise. In addition, companies are still recovering from supply chain disruptions, and it appears everywhere is understaffed these days.
Fish, meat, and poultry prices are up over 12 percent from January 2021, and gas has increased even more so, with record-breaking prices around the country. As a result, the overall inflation rate via the Consumer Price Index was 7.9 percent through February, the most we’ve seen since 1982.
Unfortunately for the housing market, Inflation affects more than just day-to-day prices. Housing costs rise and fall on numerous factors, including building materials, the local cost of living, and housing demands for certain areas. As long as inflation continues, the cost of housing will continue to rise.
Mortgage rates have also gone up and are the highest they’ve been since 2019. Add the increased interest rates on top of the base cost of a mortgage, and you’re looking at an average monthly increase of $290 in the last year. In New York, mortgage rates are 1 basis point higher than the national average rate of 4.83 percent, with the average monthly payment ending up at about $2,800.
It’s difficult to predict what will happen for the remainder of 2022, with professionals estimating anywhere from a 3.9 percent increase up to 16 percent. But, at the very least, the continued growth should certainly be slowing down now, and we are unlikely to see a market crash in the next few months.
Is now the time to buy?
If you’re waiting for prices to go down, experts say you will likely be waiting a long while. As we’ve previously noted, the market is likely to slow down over the next year, but nevertheless continues to rise.
Until New York can catch up with supply-demand, vacancies will continue to dwindle, and choices will be scarce, so it may be best to pull the trigger sooner rather than later. Luxury housing is somewhat easier to find than more affordable options at the moment, but over the next couple of years, that should change. Developers may turn more office buildings into residential properties due to the increase of people working from home, and more people working from home means they don’t have to live near the city to do their job.
If you’re looking to grab up a commercial property, now is the time to do so. Investors have been known to buy larger units as a NYC real estate investment, subdivide it, and then sell it for a profit. Non-residential properties can be an excellent NYC real estate investment, especially with the actual New York real estate market, as long as you get the proper permission to turn them into condos, lofts, or apartments. There are also zoning regulations that limit housing supply, and New York City will give tax breaks to investors who can turn things like commercial properties or warehouses into livable rental units.
How can I best navigate the New York real estate market?
The housing market is certainly warm, and all signs point to it staying that way for some time. If you’re not looking to spend your life savings on a condo in NYC, perhaps real estate in Upstate New York is a better option for you. On the other hand, if you’re looking for the waterfront, amenity-packed apartment of your dreams, by all means, check out some beautiful Manhattan or Long Island real estate and grab it while you can.
Perhaps you’re looking for something to invest in and want to help solve the NYC housing crisis—there is certainly an opportunity for you. Whatever the case may be, BARNES New York has all the information you need, and real people to help guide you every step of the way.
BARNES New York will be participating in the online fair “Bien Vivre in the United States”, organized organized by French Morning and presented by USAFrance Financials.
“Bien Vivre in the United States” is the first digital fair dedicated to French expatriates in the United States, or preparing for expatriation, offering an entire week of conferences with experts to receive advices to live better in the United States, whether you are settled there for a long time or are still dreaming of living there.
All the most essential topics of expatriation will be touched upon, including immigration, family, business, heritage, health, immigration… but also the daily life of the expatriate, to give you the keys to live your expatriation as well as possible.
The fair will take place online from September 12th to the16th, 2022. BARNES New York will be represented by Managing Partner Yann Rousseau, who will be presenting New York’s real estate market along with powerful insights on how to buy a property in the Big Apple.
After five consecutive months of rising prices, the average monthly rent stood at $5,058 in Manhattan last June. In the space of a year, real estate rentals in New York have seen prices soar by almost 30%. To understand this phenomenon, Rachel Brunet from LePetitJournal went to meet Yann Rousseau, Managing Partner at BARNES New York.
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