With inventory nearing all time highs in Manhattan, there is no imminent change in site to the gridlocked sales market, where still high asking prices have left many buyers in ‘wait and see’ mode. The increase in inventory also means greater competition among sellers but many of those sellers are not responding with price adjustments, as the share of listings with a price cut remained virtually unchanged from last year, at 23.7%, with the median size of price cuts in Manhattan unchanged as well, at 5.3%.
Even with historically low interest rates, plenty of inventory to choose from, and reduced prices, many of those with the means to buy continue to play the waiting game from the comfort of their rental. With the sales market stagnating, the rental market is heating up, with rapidly rising rents, and landlords offering fewer concessions. We are expecting to see a winter rental season that's busier than usual.
Reversal on Anonymous Ownership: In a dramatic change of course, condo buyers in New York City who make their purchases using limited liability companies will no longer be required to publicly disclose the members of the entities. The reversal came last Monday as part of a revised set of guidelines issued by the state tax department. Previously, a new state law passed in September had required LLCs to disclose the names and addresses of all individuals with ownership interests in sales of one-to-four family homes—and condos. But last week, the state dropped the mention of condos on its website.
Once Popular HELOCs Going Extinct: The once popular loan used to finance home renovations and college tuition is slowly dying, slashing a lucrative source of revenue for the nation’s largest banks. Rapidly climbing property prices between 2003-6 led homeowners to use their homes as piggy banks, fueling consumer spending. A resurgent housing market after the Great Recession hasn’t brought with it a return to HELOCs, which have fallen by almost half in the past decade, New York Fed data show. The loans, which comprised 5% of the nation’s banking assets in 2009, now account for less than 2%, according to the Federal Deposit Insurance Corp.
Days on Market: As sellers resist price reductions, properties are lingering on the market. In Manhattan, the median time on market is now 95 days. Days on market increased in every submarket except for the Upper East and Upper West Sides. In Midtown, a submarket heavy with new developments, days on market increased to 103, up nine days from last year.
Compass Bridge Loans: In October Compass announced the launch of Compass Bridge Loan Services! This is just another revolutionary way we as Compass agents are able to help our clients find their place in the world and ease the stress that can come from buying and selling a home. Compass leadership heard of numerous examples of the stress many clients experience as they navigate the sale of an existing home while planning to move to a new home. Most people simply don't have the funds (or the desire to liquidate funds from retirement and investment accounts) to go to contract on a new home without having the assurance that their existing home will sell. Often - not always - a bridge loan is a perfect solution.