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(Partner Article) If you want to buy in New York, we have good news for you: now is the time! The real estate headings are all full of the same expression: "buyer's market". Clear: "The power has changed sides in recent months, and buyers are now in a strong position"says Renaud de Tilly, founder of De Tilly Real Estate.
The first reason: the available inventory, which continues to grow. New goods have arrived on the market, and this will continue in the coming months. This is due in particular to a building frenzy in 2015 and 2016, for tax reasons in particular (the expiration of a tax benefit for developers). These projects have recently arrived on the market at a time when demand was beginning to dwindle. The New York Times recently announced some 20,000 new apartments entering the market for 2019 alone.
These new condos, the majority of which are built in Brooklyn (almost twice as much as in Manhattan), add to an already high inventory. Result, in the last quarter of 2018, the number of properties for sale was up 15% in Manhattan compared to the previous year, and 22% in Brooklyn. As a result, apartments for sale remain on the market longer than ever, eight months now.
Negotiating skills
These figures are obviously good news for buyers, who find margins of negotiation that had not been known in New York for several years. In the last quarter of 2018, only 7% of transactions resulted in "bidding war"; that was 31% in 2015. Conversely, more than 25% of sales are now below the Manhattan asking price. On average, the discounts are 5%, but they can reach much more for the most expensive goods (up to 30% above 10 million dollars).
Bargaining is therefore more crucial than ever, hence the importance of being well accompanied. In a buyer's market, "it is essential to be vigilant about what you buy ", says Renaud de Tilly. Selecting property, knowing the environment is crucial for, for example, not buying an apartment for its view when a new tower must rise the following year in front of the windows … Have a real estate agent who can tell you "Do not buy this apartment" can save you a lot of money, or avoid losing money. "Mostly, adds Renaud de Tilly, Negotiation is a technique that can be learned and have a professional who knows the market and the real room for maneuver can make all the difference. "
Favorable interest rates
The return of trading margins is not the only good news for buyers in 2019. Contrary to all expectations, interest rates have remained relatively low. A typical borrower, with a personal contribution of 20%, still finds rates well below 4% (for a loan over 30 years, including 7 years fixed). In recent months, average rates have fallen, but the general consensus is that the trend should be on the rise in the coming months. So this is the time when ever to embark, especially as the fundamentals of real estate in New York, they do not change. Despite the 2008 US "Great Recession", the average price of a condominium in Manhattan has for example increased by 500% over the last twenty years. And if there is no bad time to buy in New York, one thing is certain: 2019 is the time to buy.
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Note: "Partner Articles" are not articles in French Morning's editorial staff. They are provided by or written to the order of an advertiser who determines the content.
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