Navigating Today’s Evolving Real Estate Market: Part 2
Elegran hosted Part 2 of its webinar created to help clients understand how to navigate a historically uncertain New York City real estate market.
We reconvened our panel of industry experts, all of whom possess experience and have guided their clients and companies through previous crises, to offer their perspectives on today’s market, and here are a few of the essential takeaways from the discussion.
Buyers and Sellers
- Buyers have more negotiating power and can request clauses they can put in their contracts to help mitigate risk
- All contract data is monitored to respond to trends for buyers and sellers in real time. We have been able to negotiate and renegotiate deals due to data we track
- Cash is king, if mortgage side is delayed buyers with cash will be more apt to get the deal and negotiate
- Based on data the average offer was submitted for 14.5% less than the asking price and a seller accepted an offer 8% on average below the asking price
- Inventory is compressed because sellers have taken listings off the market creating a “shadow” inventory. Your broker can access this data and ascertain what is on the market and what could be on the market
- We are seeing select new developments advertise 10-20% off. Last week there was an accepted offer at a new dev in Tribeca for $2.2M, which was 17% off the asking price
Data and Market Intelligence
- Inventory is down 20% because of fewer listings and deal volume is down about 80%
- Buyers have the advantage of negotiability but lack of supply
- Deals happening now are sight unseen virtual showings
- Deals signed now won’t close for up to three months, in August we will have a better idea of what is happening now
- If you wait until August to jump in you might miss the market and opportunities
Lending and Finance
- Vet your lender and commitment letter, don’t rely on pre-approval alone
- There is opportunity in the market now for first time home buyers, now is the time to be out there and looking for those special deals
- Lending community has not been able to lend on certain projects or pulled back due to liquidity shortage and reduced reliability
Legal
- An impediment for buyers is the obstacle of seeing the apartment, doing inspections and being comfortable with what they are buying
- We see concerns about employment and income due to COVID, people are afraid to take the leap of faith and afford the home
- Taxes could go up, they always do with inflation and operating costs
- We need the state of New York to come up with more cash and not from real estate or retail
- Thank you to our moderator and panelists below for their invaluable insight and expertise
Steven Lord - COO, Elegran & Strategic COO and CFO Consultant
Ross Levine - Partner, Schwartz Levine
Scott van der Marck- Senior Managing Director, First Republic Bank
Noah Rosenblatt - Founder - Founder/CEO, Urban Digs
Jared Antin - Director of Sales, Elegran
You can watch the video of today’s session with these insights and more HERE
Click HERE to suggest a topic for our next Webinar
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