Manhattan Market: Corcoran Report Q2-09

Since Q3 2008, Manhattan's housing market has experienced one of its most challenging periods in 20 years. In the wake of the financial crisis, homes sales have slowed by half. Total closings decreased by 50-60% over 2008's busy second quarter, but were up by 10-15% over the prior quarter. In addition, trends in recent months have been very encouraging.

Read more in the new Q2 Corcoran Report.

Home Enhancement Guide for Sellers

The First Impression

Did you know that within 15 seconds a buyer has already developed an opinion of your property? This is why establishing the right first impression is critical to achieving a successful sale. Following is a list of elements which create the overall first impression, including suggestions on how to make sure the buyer reacts favorably.

A fresh coat of paint can be one of the best investments you can make to increase the value of your apartment. If you do not want to spend the money to paint the entire apartment, consider just the entry at least.

Windows

Attractive windows can help increase appeal.

* Replace any cracked or broken glass.
* Make sure the windows are sparkling clean.
* Apply touch-up paint where needed.

Doorway

The doorway is a focal point of your home.

* Repaint the door.
* Apply new door hardware.
* Install a brass kick plate.
* Replace apartment numbers.
* Install a new front light fixture.

Appeal to the Senses

There are many ways to create a more exciting and saleable interior, at surprisingly little cost.

Light

People react more favorably to property shown under bright light than dark.

* Keep windows clean.
* Use adequate wattage in light bulbs.
* Consider replacing older fluorescent lamps, which darken with use.
* Use mirrors to magnify the feeling of light and space.
* Use track lights to create a high-tech look.
* Use light wall colors.
* Open drapes and blinds and turn on lights prior to showings.

Color

Keep colors neutral and light.

* Shades of white, off-white and very light pastels are the safest choices for the interior.
* Avoid highly patterned wallpaper whenever possible.
* Try to limit bright colors to accents like fresh flowers, towels, area rugs and shower curtains.

Sound

The sounds of peace and quiet are some of the best sounds to have when your home is being shown to a prospective buyer. But there are other sound considerations you should also be aware of.

* Avoid barking dogs and noisy children, if possible.
* Also avoid sounds of work like vacuums, dishwashers and lawn mowers.
* Make sure there are no sounds of mechanical problems like banging pipes or faulty appliances.
* Light classical or instrumental music can be effective in creating a pleasing atmosphere.

Smell

Smell has more impact than you might expect. It can work for or against you.

* The smell of newness is positive. This scent can be achieved by applying a fresh coat of polyurethane to natural wood or latex paint to walls.
* The smell of cleanliness is important to the selling environment of your house. Beyond actually cleaning, lemon oil or lemon wax can help create a lasting scent of freshness. Fresh flowers can also be effective.
* For a real heart-warming touch, place a dish of vanilla in a warm oven to create the aroma of fresh-baked cookies or bread.
* Sweeten the refrigerator with a box of baking soda.
* Smells to avoid include strong pet odors, tobacco, and cooking oil or gas.

Packaging the Interior

Entry

The entry is where the first impression of the interior is created. Here you have the opportunity to make a big statement in a small area.

* Repaint the entry using light, neutral colors.
* Move a prized antique or attractive furnishing to the entry, where it will have maximum impact.
* Install simple chair rail molding on the wall.
* Apply a fresh coat of polyurethane to a wood floor.
* Tile or linoleum flooring should shine.
* Replace plastic switch plate covers with brass or porcelain.
* A new hall light fixture can make a great impression.
* Make sure the room is well lit.

Kitchen

The kitchen is an important room in the apartment. Here is a list of ideas to increase the appeal of your kitchen without spending a great deal of money.

* Make sure the room is virtually spotless and smells fresh. Try putting a quarter section of a lemon in the disposal and grinding it up.
* Consider replacing outdated light fixtures with new track lighting.
* If your appliances are dated by colors like harvest gold or avocado, consider having them professionally refinished in a new color like almond or plain white. This will make appliances look new at a fraction of the cost of actually replacing them.
* Spruce up kitchen cabinets by installing new knobs or hardware.
* If your cabinets look especially old, you can have a professional replace the doors or door fronts.
* Organize your kitchen cabinets to demonstrate how much room you have. Cabinet organizers are a good investment for this.
* Remove small kitchen appliances and gadgets from countertops to create an uncluttered look.
* Chipped or damaged countertops should be repaired or replaced.
* If your floor is badly worn, replace it with neutral no-wax flooring or tile.
* A freshly painted kitchen may be well worth the investment.

Bathroom

The bathroom has become an important selling feature in today's home. It is a room that has moved from the utilitarian to the exciting. There are many ways you can improve deficiencies and create interest through various levels of enhancement.

* Place a vase of fresh flowers on the vanity.
* Install a wall telephone for a high-tech look.
* Replace an old toilet seat.
* Replace an old light fixture with a new style light strip or make-up light.
* Refinish an old porcelain tub using a porcelain finishing service.
* Place all personal care articles out of sight.
* Freshen the air with lemon scented products.
* Replace an old towel rack with one of brass or oak.
* Add color and richness with new towels and shower curtain.

Living Room

The living room is a major selling point of an apartment. Buyers look for elegant and impressive living rooms to make the right statements to their friends and relatives.

* Use mirrors whenever possible to enhance the perception of size.
* A fireplace is one feature that everyone can appreciate - show it off to its best advantage. Sweep it clean and make sure the screen is in good condition
* Use inexpensive free-standing "can" lights to create dramatic visual effects behind large plants or pieces of furniture.
* Use chair rail or cornice molding to create a feeling of elegance.
* Professionally clean wall-to-wall carpet or large area rugs.
* Sand and refinish stained hardwood floors.
* Clean windows and light fixtures.
* Make sure all cosmetic plaster cracks are repaired. (This applies to every room in the house.)
* Use lemon oil on hardwood furniture to create the right look and aroma.
* Liberal use of fresh flowers and plants will enhance the environment.

Bedrooms

The bedrooms can do as much to sell your house as they can to turn off a buyer.

* Make sure the bedrooms are absolutely spotless.
* Rugs should be cleaned, windows washed and fresh smells from flowers or lemon oil should be in the air.
* Organize closets to increase their perceived size.
* Rubberized wire closet organizers do a great job of helping fully utilize space.
* Mirrored closet doors can add dramatically to the feeling of size in any bedroom.
* Bedrooms should be well lit. You may want to add track lights in the master bedroom.
* A ceiling fan can be an attractive and practical accent to any bedroom.

By showing attention to detail and understanding the buyer's needs to visualize your home against a neutral backdrop, you can dramatically increase the salability of your property.

Click here for available listings at The Boulevard or any Manhattan building.

Click here to find out how much your home is worth in today's market.

Low Inflation Push Mortgage Rates Back Down

In its Primary Mortgage Market Survey for the week ending June 18, 2009, Freddie Mac reported that the 30-year fixed-rate mortgage (FRM) averaged 5.38 percent with an average 0.7 point, down from last week when it averaged 5.59 percent. Last year at this time, the 30-year FRM averaged 6.42 percent.

The 15-year FRM this week averaged 4.89 percent with an average 0.7 point, down from last week when it averaged 5.06 percent. A year ago at this time, the 15-year FRM averaged 6.02 percent.

Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 4.97 percent this week, with an average 0.6 point, down from last week when it averaged 5.17 percent. A year ago, the 5-year ARM averaged 5.89 percent.

One-year Treasury-indexed ARMs averaged 4.95 percent this week with an average 0.6 point, down from last week when it averaged 5.04 percent. At this time last year, the 1-year ARM averaged 5.19 percent.

To read the entire Freddie Mac survey and press release, click here.

Deutche Bank's NY Report

Deutche Bank put out a report that was reported in Time Magazine, Bloomberg news and various other media outlets. Deutsche Bank predicted that New York median sale prices would drop another 40% from Q1 2009 figures and 52% from the height of the market in 2007.

Here is their New York analysis:

In New York, prices still have to drop an additional 32.0% from Q1 2009 levels just to restore affordability to its historic high (1998), as has already occurred in 74 of the top 100 markets. But including model risk factors beyond just affordability, we are projecting a 40.6% decline, from Q1 2009.

This is, however, improvement from the projected decline that we published in March (47.4%). The improvement is due simply to the fact that recent price declines have brought New York closer to the trough. Somewhat confusingly, actual home price declines can impact our analytical framework in competing ways. First, all else equal, if prices have declined, then the MSA should be that much closer to its bottom for prices. However, because our model also includes a risk factor score for negative home price momentum, dramatic price declines can also have at least a partially offsetting negative effect.

The peak for home prices in the New York MSA was in Q2 2007, when the median home price hit $552k. As of Q1 2009, the median home price had dropped to $446k, down 19% from the peak. While this is painful, it pales in comparison to what has already been experienced in many other regions of the country, particularly in parts of California, Florida, Arizona and Nevada. Many MSAs in those states peaked earlier than New York and prices have been falling in those areas for longer. Our total, peak-to-trough forecasted decline in New York is 52.1%.

A few essential facts to keep in mind:

The report projects price declines two ways: first, from data produced at the end of Q1 (what they termed “current-to-trough”) and second, from the top of the market – Q2 2007 – to the projected bottom of the market (“peak-to-trough”).

In discussing “New York” the report is actually surveying the “New York Metropolitan Statistical Area” – an area that encompasses Westchester, Long Island, Northern New Jersey, parts of Connecticut as well as the City of New York. So there is a distinction to be made between price activity in Manhattan or Brooklyn or even the Bronx and Queens (which are not broken out by the report at all) and the New York MSA as defined by Deutsche Bank.

It is very probable that the New York MSA’s median price is heavily inflated by Manhattan sale prices, which should make one question the wisdom of adopting a methodology that treats city sales equivalently with Wayne, NJ and White Plains, NY.

The picture Deutsche paints for the New York MSA is bleak because we have had the least improvement in affordability from the historical moment when property in our region was at its most affordable – all the way back in 1988!

(“Our HPA outlook is predicated on the assumption that the home price correction underway will take the form of mean reversion to historic levels of affordability. . . . We calculate an affordability ratio for a given area using the local median home price, median income and an MSA-specific mortgage assumption.”)

In other words, prices in our region would have to erode by 32% just to return the affordability ratio back to par. This is the primary reason why they have singled out New York MSA for extraordinary price contraction.

However, this does not take into account New York’s role as America’s global city and the accompanying boost to the cost-of-living that results from that fact.

Affordability is subjective and relative. It is also debatable whether New York’s price activity is truly comparable to that in other American metropolitan areas or whether it would be more appropriate to judge it in relation to other global centers like London, Tokyo and Hong Kong.

With all due respect to Deutsche Bank their predictions have been wrong many times before. I recall it was the chief economist at Deutsche Bank that predicted a recession, a global market collapse and financial catastrophe around the world due to a Y2K computer meltdown. They spread the fear, but as we all know the year 2000 came and went without a problem.

High Line, Manhattan's 21st Century Park Opens

Manhattan's new 21st century park, The High Line park opened this week. The High Line is built atop the former elevated train track transforming 22 blocks into an open park.

The High Line runs through three of Manhattans most dynamic neighborhoods, Hells Kitchen, West Chelsea and the Meat Packing District.

Many new real estate projects were created along the High Line. The High Line itself is adjacent to or runs through various buildings creating interesting unique urban designs.

Several new residential projects are underway or have been completed.

High Line 23 or HL23 (shown above) is a new green building that is currently under construction in the West Chelsea art gallery district at West 23rd Street and 10th Avenue.

The structure is a 14 floor mixed use of gallery space and condominiums with amazing views of the new High Line elevated park. The condo will include nine floor-through apartments ranging in size from about 1,850 square feet to 2,600 square feet. Sales are underway. Prices range from $2,750,000 to $11,500,000 for the 3700 square foot penthouse duplex unit with a terrace.

The first phase of the pedestrian park which runs from Gansevoort Street to 20th Street, opened this week. The second phase, which runs from 20th Street to 30th Street, is slated to open by the end of 2009.

The redevelopment of the abandoned elevated railroad structure has created a residential new construction boom on the far west side along the High Line.

The Caledonia, the 1st residential tower on the High Line Park had sold out 190 condo units in April 2007, within eight months of sales. The Caledonia also features luxury rental apartments.

Thinking about living in a new designer building with new park views and 21st century luxury amenities? Qualified buyers can join my VIP Manhattan Buyer Profile System and receive new condo listings by email. For new developments click here.

How Much Apartment Can You Afford?

Understanding The Related Costs of Apartment Buying

You'll need to think about more than a mortgage payment to determine if you can afford an apartment in Manhattan. To assure you are purchasing a home within the confines of your budget, you must consider down payment requirements, closing costs, taxes, carrying charges, and yearly maintenance requirements as well.

How much can you afford?

First consult with a mortgage broker or banker to determine how much of a mortgage you qualify for. Calculate the estimated mortgage payment plus monthly maintenance (coop), common charges and real estate taxes (condo).

Several formulas exist to help determine how much a lender will allow a consumer to borrow. One of the more accurate formulas is a front- and back-end ratio. It states that the buyer can afford as much as 28 percent of his or her gross-monthly income toward the monthly mortgage payment, assuming that the consumer's other debt payments (credit cards, car loans, student loans, etc...) are less than or equal to 8 percent of his or her gross-monthly income.

Most NYC coops have stricter financial requirements than most lenders. Most coops use a 25% debt to income ratio formula. Many coops will only allow a maximum of 75% financing although some will allow 80%. Coops may also require liquid assets available after the closing to cover 2 years worth of maintenance or 1 year of mortgage and maintenance. Every building varies and uses their own formula.

While condos will allow 90% financing many lenders today will only finance 85% (LTV) loan to value. A minimum 15% or 20% down payment may be required. Before you start looking for an apartment in Manhattan you should be pre-approved and qualified by a lender.

Understanding your financing needs before you search for a new home will help you move ahead quickly and confidently when you find the right apartment.

How To Get The Best Price in Today's Market

* Price to the future not the past.
While past sales give an indication, we use currently available properties as the real competition.
* Factor in the uniqueness of your home.
Every home has its special qualities that affect price.
* Understand a likely selling range.
Only the market can pinpoint a price and the market changes quickly.
* Market the property aggressively.
The price you get is a function of the quality of the marketing you choose.
* Set a credible price.
* Have a competent market analysis done.

Click here to have a market analysis done on your property.

Open House NYC: Price Fix with Barbara Corcoran

How much is your home worth? Click here and I will tell you.

First Time Buyer $8000 Tax Credit Can Go Toward Downpayment

FHA issues guidelines allowing consumers to use $8,000 tax credit toward downpayment

U.S. Department of Housing and Urban Development (HUD) Secretary Shaun Donovan announced that the FHA would permit the federal $8,000 first-time homebuyer tax credit to be used toward a purchaser’s downpayment.

This week, the FHA finalized the rules that allow state housing finance agencies and some non-profits to monetize the credit, officially making the credit available to be used toward a downpayment.

According to HUD, the new rules allow FHA-approved lenders to “monetize” the tax credit for use as part of a downpayment or for closing costs, which can help achieve a lower interest rate. Borrowers can immediately apply the funds toward their down payments in excess of the required 3.5 percent.

Previously, borrowers applying for an FHA-insured mortgage were required to make the minimum downpayment and lenders could not monetize the tax credit for use as an additional downpayment.

To read the entire HUD press release and Mortgagee Letter 2009-15, click here.

Neighborhood Report: Hamilton Heights

Hamilton Heights is located between 145th and 155th Street. Hamilton Heights in Upper Manhattan was the home of Alexander Hamilton from 1802 - 1804. Alexander Hamilton was the first United States Secretary of the Treasury, a Founding Father, and political philosopher. His Manhattan home Hamilton Grange has recently been moved from Convent Avenue to St. Nicholas Park.

Today Hamilton Heights is mostly a housing fusion of palatial 19th century brownstones, spacious pre-wars and tenement walk-ups.

Developers have converted brownstone, shells of buildings and narrow vacant lots into condominium apartments. For Manhattan home buyers, Hamilton Heights provides an opportunity to live in a neighborhood with small-scale buildings. Zoning does not allow for very large buildings. These apartments, typically floor-throughs and duplexes come with town house amenities, like terraces, gardens, fireplaces, and uncommonly good light for Manhattan.

A diversified mix of Buyers are coming to Hamilton Heights for the neighborhood’s history, the houses, brownstones and new condos that cost much less than they would a mile to the south.

Currently there are approximately 110 active apartment listings in Hamilton Heights. Prices range from a $125,000 for an HDFC (income cap retrictions) 2 bedroom coop to a $2,125,000 8 room four bedroom 3 bath, 2250 square foot pre-war coop.

There are currently about 45 active building listings in Hamilton Heights. Prices range from $695,000 for a 5 floor building to $3.2 million for a multi-family building.

IF you would like to receive apartment and townhouse listings in Hamilton Heights click here.

Click here to find out how much your home is worth in today's market?

related nyc Blog estate posts:

Harlem Neighborhood Report

Construction Update: The Harrison, Upper West Side

The other day I attended a cocktail reception in the lobby of The Harrison, a new luxury condominium, at 205 West 76th Street on the Upper West Side of Manhattan.

The Harrison's elegant lobby features a series of Romanesque arches and columns, English oak millwork and a grand stone fireplace.

According to executives from the Related Companies, the building's developer, the Robert A.M Stern designed building is 80% sold. Closings are expected to begin in June.

The two twin tower complex will have 132 apartments, studios, 1,2, 3 and 4 bedroom penthouses. The two buildings are joined by a four-story public area.

The larger building fronts Amsterdam Avenue,
the smaller building looks over 76th Street, facing south.

Amenities include: An Equinox Gym in the building and membership is included in the common charges. Entertainment Lounge, Landscaped Outdoor Garden, Dinosaur Themed children's play area. Rooftop Sun Terrace, Related Signature Services, 24-hour attended Garage.

The Harrison has applied for (LEED Silver certification) Leadership in Energy and Environmental Design, the country's most popular green benchmark.

Certification of silver, gold or platinum can happen up to a year after the building is completed. Green buildings are required to be 14 per cent more efficient than regular building codes dictate.

Current available apartments range from:

• 532 square foot studio for $765,000.
• A 1 bedroom/ 1 bath 706 square foot unit asking $1,190.
• A junior 4 /2 bath apartment asking $1,650,000.
  
• Three 2 bedroom/2 bath homes ranging from $1,775,000 to $2,100,000.
• Three and four bedroom units including two penthouse apartments with terraces range from $3,150,000 to $6,000,000.

To receive available listings at The Harrison or any other new development in Manhattan click here.

related posts:
green-condo-buildings-in-manhattan
new-construction-update-upper-west-side

Open House - 401 East 86th St. #3H

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Property Tax Abatement for Going Green

To support recent New York State laws providing property tax abatements for the installation of green roofs and solar electric-generating systems, the Buildings Department has implemented new rules for tax abatement applications. The Department has created a fact sheet which reviews the process for completing abatement applications and compiled frequently asked questions to assist applicants.

related posts:
Green Real Estate Glossary
Tips for Greening Your Apartment in 2009
Green Condo Buildings in Manhattan
Nation's First Multi-Story Green Industrial Facility Opens In NYC
Empire State Building Going Green
Broadway Goes Green
Green NYC

Tips to Help Pass a Coop Board Interview

I've recently been asked by a few buyers about the coop board interview. Below is a re-post that I wrote a while back that gives tips to help you pass a coop interview. I've also included links below to a post about NYC closing costs for condos and coops and a link to download the NYC coop and condo buyers guide.

Here are some tips to help pass a coop board interview:

• Being called for an interview is a good sign it means you look good on paper.
• Be on time, dress appropriate for the building and neighborhood. Conservative is best.
• Bring a copy of the board package with you. Be familiar with all your financials and everything in the board package.
• Coop boards are stricter than banks, don't assume because you have a commitment from a bank you will satisfy the coops financial requirements.
• Be able to substantiate questions about your package.
• More is less do not elaborate and ask questions, an innocent question might offend a board member.
• It is better to have a short interview than a long one.
• Do not go into details about elaborate and costly renovations.
• If the apartment has outdoor space do not discuss barbequing, it is illegal and smells.
• Do not ask questions or bring up sublet policy or pet policy uless the board brings it up.
• It is not a job interview, you don't have to try and sell yourself.
• Let the board ask the questions, set the tone and conduct the interview.
• Boards like candidates willing to volunteer to serve on the board or building committees.
• Boards look for candidates that will "fit in" and follow rules.
• Don't ask or expect a decision on the spot they will notify you within a few days.
• Be prepared for a lack of privacy and to answer personal questions unless they are Fair Housing /NYC Human Rights violations.
• The NYC Human Rights Law prohibits housing discrimination in New York City based on a person's real or perceived race, color, national origin, gender, creed, disability, sexual orientation, marital status, partnership status, alienage or citizenship status, age, lawful occupation or because children may be or will be residing with you.

Closing Costs for NYC Condos and Coops

Download NYC Coop and Condo Buyers Guide

Delinquent Property Tax Deadline is Today

New York City property owners who owe property taxes or water bills have until the end of the day to resolve their debt. If not, the city will sell liens on their properties to a third party.

This affects homeowners with property tax debt of at least $1,000 that is three years old, or $1,000 in water charges dating back at least a year.

This affects homeowners with property tax debt of at least $1,000 that is three years old, or $1,000 in water charges dating back at least a year.

A list of delinquent properties is available on the Department of Finance's website, nyc.gov/dof.

what-should-you-do-if-lien-is-sold-on-your-property

High Line project Receives Urban Land Institute Award

New York City is the recipient of the 2009 Urban Land Institute award for excellence for the West Chelsea/ High Line Project.

Ten awards are given out to projects throughout North America. The Urban Land Institute has been recognizing excellence in land use and development for the past thirty years.

By adopting land use policies that support development in specific transit-oriented areas, NYC has created thousands of new housing units, commercial and cultural space and acres of new open space.

The High Line, once an abandoned elevated rail line, is fast becoming one of the City's - and world's - most innovative new parks. The redevelopment of the abandoned elevated railroad structure has created a residential new construction boom on the far west side along the High Line and the Hudson river.

The High Line runs through three of Manhattans most dynamic neighborhoods, Hells Kitchen, West Chelsea and the Meat Packing District.

The park's first phase, which runs from Gansevoort Street to 20th Street, is set to open by June of this year. The second phase, which runs from 20th Street and to 30th Street, is slated to open by the end of 2009.

Thinking about living in a new condo building with new park views and 21st century luxury amenities? Qualified buyers can join my VIP Manhattan Buyer Profile System and receive new condo listings by email. For High Line Condos click here.

Happy Earth Day: Photos by Astronaut Sunita Williams

photos courtesy of Astronaut Sunita Williams

Go Green for Earth Day:

Green Real Estate Glossary
Tips for Greening Your Apartment in 2009
Green Condo Buildings in Manhattan
Nation's First Multi-Story Green Industrial Facility Opens In NYC
Empire State Building Going Green
Broadway Goes Green
Green NYC

Construction Update: 535 West End Avenue

Construction at 535 West End Avenue at W 86th Street is expected to be completed by the fall.

The building features half-floor and full floor residences. 5, 6 and 7 Bedroom homes ranging from 3744 square feet to 8451 square feet are currently for sale.

535 West End Avenue features luxurious Pre-war details: choice of rosewood or oak flooring, traditional moldings, well-proportioned rooms and a formal library.

All homes feature custom Smallbone of Devizes kitchens with attached family room. The kitchens offer La Cornue, Miele and Subzero appliances.

Bathrooms are available in 2 different color palettes, and outfitted with Waterworks fixtures, double sink, mahogany or white cabinetry and a selection of mosaic tiled floors and polished stone walls.

Homes are fully equipped with Miele side by side Washer & Dryer and AMX technology. Anticipated occupancy Fall 2009.

Click here to receive current available listings.

Nation's First Multi-Story Green Industrial Facility Opens In NYC

The nation's first multi-story green industrial facility opened at the Brooklyn Navy Yard. Mayor Bloomberg also announced the creation of Duggal Greenhouse, a 60,000-square-foot LEED Platinum certified facility that will be used to manufacture eco-friendly products and will become a laboratory for new sustainable products.

These and other green initiatives underway at the Navy Yard will create 1,700 new permanent jobs, 40 percent of which will be green industry jobs. The projects will also create more than 800 construction jobs.

The expansion of the Brooklyn Navy Yard and creation of green sector jobs is part of the City's Five Borough Economic Opportunity Plan to create jobs for New Yorkers today, implement a vision for long-term economic growth, and build affordable, attractive neighborhoods.

The $25 million Perry Avenue Building, which is on track to receive LEED Gold certification, features the first permanent building-mounted wind turbines to be operating anywhere in New York City. Along with the building's rooftop solar panels, the turbines will provide electricity for the building's lobby and other common areas.

The facility incorporates other green features such as reflective roofing and pavement to reduce surface temperatures, the use of recycled rain water in toilets, recycled building materials, high-efficiency lighting fixtures, natural ventilation systems and special accommodation for bicyclists and low-emission vehicles. The three-story, 89,000-square-foot Perry Building will be leased to SurroundArt, which will create a Museum Resource Campus to serve the art industry and institutions in New York City and beyond.

For more information: Complete Press Release

StreetEasy Q1 2009 Manhattan Market Report

StreetEasy released the following report for the 1st quarter 2009

Significant findings in Q1 2009

CLOSING PRICES CONTINUE TO DECLINE. Condo and co-op resale prices have continued to decrease. New development closings have actually shown price gains but these reflect contracts that were signed months, and in some cases, years ago.

The average Manhattan sales price increased by 0.7% to $1.435M since last quarter, but decreased by 12.1% since last year.

• Condo resale median price declined to $895K, a 4.7% decrease since last quarter and a 7.5% decrease since last year.

Average price is down 7.6% for the quarter and 10.8% since last year.

• Co-op resale median price declined by 11.3% compared to last quarter and by 16.7% since last year. Average sales price declined by 17.1% since last quarter and by 25.8% since the prior year.

• New Developments median sales price continued to increase by 10.4% since last quarter to $1.275M and increased by 26.4% since last year.

Average sales price also increased by 17.5% since last quarter, and by 7.4% since last year.
VOLUME OF SALES KEEPS FALLING. The number of closings has decreased by 47.1%, from the 2,826 closings of last quarter.

Co-op resale closings have decreased by 40.3% since last quarter, while condo resales decreased by 39.6% and new developments dropped by 57.1%. New development closings made up 34.5% of the closings, while co-op resales dominated activity at 44.6%.

WEEKLY INVENTORY CLIMBS OVER 11,000. Inventory of available units in Manhattan has steadily increased every week this quarter, staying above 9,400, and peaking above 11,700 in late-March.

According to Sreet Easy's listings database, an average of 403 new listings came onto market every week in this quarter, an increase of 9.2% since last quarter where we saw an average of 369 new listings per week. Condos made up 52.1% of all available listings on market this quarter (co-ops 46.9%, townhouses 1%).

Inventory level this quarter is 40% higher than they were a year ago.
FEWER BROKEN CONTRACTS AND INCREASE IN NEW CONTRACTS. This quarter, there were 107 broken contracts, a 24% decrease compared to last quarter’s 141. Additionally, there was a 7% increase in the number of listings (1,324) that have entered into contract compared to last quarter’s number of 1,233 listings.

MORE DRAMATIC PRICE CUTS. This quarter, 37% of all Manhattan listings had price cuts. There were over 2,500 listings with price cuts in available listings for condos, a 33.5% increase since last quarter but more than 1.6 times the number of cuts since last year.

Co-ops had a 31% increase in the number of price cuts, to just about 3,100 listings. The average price cut this quarter for condos was 9.4%, and for co-ops, the average cut was 9.3%.

LISTINGS SPEND A LONGER TIME ON MARKET. The average time on market for condo resale listings increased by 24.1% since last quarter, while co-ops sat on the market for 8.1% longer than last quarter. This quarter, condo resales stayed on the
market for an average of 137 days, while co-op resales were on the market for an average of 112 days.