Luxury Real Estate

Courtesy of: Warburg Realty

Yes, it’s busy. Yes, there is a lack of inventory in many categories - in particular pre-war 2 and 3 bedrooms on the Upper West Side and in Carnegie Hill, which are flying off the shelves at a rapid rate, after Open Houses visited by 50 or 75 buyers, and often with several bids. No, the bids are not, mostly, above the asking price. But sometimes they are (it all depends, of course, on the asking price) Yes, there are still a lot of new condos for sale, even though absorption for those has picked up substantially as well. And yes, buyers DO think, often, that they may have missed the bottom and want to get in now, although many still bid low, just to be on the safe side. Sellers are just starting to think about how the discussions in Washington about changing the Federal capital gains tax rates may affect them, since selling a property two years from now may be a lot more expensive.

The market changes of 2009 wiped the slate clean for both buyer and seller behavior. In 2010, we see a new paradigm taking shape. There is market activity. There is limited inventory. Negotiations are often equally weighted between a more empowered buyer and a more flexible seller. Bonuses make those who receive them feel more financially confident but do not generate market frenzy. Nor do they elevate prices so much that those in other professions feel unable to participate. There is for today a certain balance in the market. We like it.