Issue 15. June 2008

  Frances Katzen, SVP

Pertinent Articles:


Buyers await lower prices
As the national housing market weakens, homebuyers in New York City are holding out for lower prices, but brokers are advising sellers to stick to their asking prices if they're realistic. "If someone thinks a place is priced correctly and they're not under pressure to sell, I would not reduce prematurely," Jill Sloane, a Halstead Property senior vice president, told AMNY. Most brokers are advising buyers not to try to time the market. 
[The Real Deal]


Nolita gets new developments
Nolita hasn't seen any new residential development in 20 years, but developers are changing that. Developments are popping up around the neighborhood: at 290 Mulberry, a SHoP Architects-designed 12-story, nine-condo building is rising, and at 49-51 Houston Street, a 14-story, 15-unit condo project is being built by Arpad Baksa Architects. Prices per square feet in Nolita condos have jumped 600 percent in the past fifteen years to about $1,200 per square foot. A carriage house built in the 1800s, known as the Candle Building, is being converted to a condominium called 11 Spring.
[The Real Deal]

Starck for rent on Wall Street
By Steve Cutler
While by no means the first starchitect-driven residential property in New York City, when it opened, Downtown by Philippe Starck at 15 Broad Street was among the first condominiums to flash a designer brand so flagrantly. And effectively.

The 42-story luxury conversion sold $210 million in condo apartments in just four weeks in the summer of 2004 and helped lift Manhattan's undervalued Financial District to upscale destination status. .
[The Real Deal]


Condo coming to former Chelsea club
By Jovana Rizzo
A new luxury conversion called the Alma is planned for a former Flatiron District club that was used as the location for a dance sequence in "Desperately Seeking Susan," the 1985 Madonna movie.

The building at 30 West 21st Street in Chelsea was once the home of the notorious '80s dance club Danceteria.
[The Real Deal]


Some Hamptons retailers now take euros
By Catherine Curan
The hordes of European renters descending on the Hamptons this year have a new reason to love New York's posh summer playground: they can pay cash in Euros for food, lodging and even fine art at some places.

A sign in the window of Loaves & Fishes cook shop in Bridgehampton, as first reported by Plum Hamptons TV, shows how far the mighty dollar has declined. It reads, "We now accept euros. Bills only. Change given in U.S. dollars." 
[The Real Deal]


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Quarterly Reports:
Frances Katzen
485 Madison Avenue 16th Floor
New York, NY 10022

(212) 350-8575

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It’s The Time To Buy

There’s a well-worn adage for stock investing: buy on bad news and sell on good news. Going contrary to the conventional wisdom has made a fortune for many people.

This old adage holds true today for Manhattan real estate.  The news nationwide is pretty gloomy with prices tumbling in many markets, lending institutions tightening up and a dramatic rise in foreclosures.  Yet, the New York market has avoided the tribulations being experienced in most of the U.S. and has positioned itself so that this is
The Best Time to Buy.

Let’s look at some facts: 

  • prices are down a bit in the past several months,
  • there is more supply on the market,
  • sellers are willing to negotiate.

Add to this the historic perspective that real estate is a terrific long-term investment and the factor that buyers don’t have to settle and have a wide range of choices to find their “dream” apartment and you see my reasoning.
This is not a market for investors, looking to buy and then flip at a profit within the short-term. That market, which was strong the past several years, has evaporated.  Today’s market is for the serious buyer who is looking eight to 10 years down the road and who helps stabilize the market.  The current downturn in New York is a necessary correction that all markets must go through. The market was over-extended and over-hyped in recent years, though the foundation remains extremely strong.
Looking at the various sectors, the hi-end market, apartments over $5 million, has solid absorption; the middle market from $2.5 to $5 million is holding its own.  There is weakness in the below $2.5 million market, offering excellent buying opportunities in this sector.
Much of the news focus has been on the chaos in the subprime mortgage market and the tightening of credit.  Overlooked in this is that mortgage rates remain low.  The key is that buyers need to have solid credit and put down 20 percent of the price, rather than the previous standard of 10 percent.  New York has also avoided the mortgage debacle because of the more stringent financing requirements, particularly in co-ops, which had 80 percent financing requirements as well as a review of a buyer’s finance.

Fran says: TIME TO BUY

Take advantage of the market correction

Investment  purchases have evaporated

Mortgage rates are still low

Elliman Senior VP Fran Katzen knows the market

Today’s buyers have a wide selection

Over-hyped market has quieted

Buy now for long-term growth

U don’t want to lose a great opportunity

You should contact Fran Katzen today



© 2006 An Independently owned and operated member of Prudential Real Estate Affiliates, Inc. is a service mark of Prudential Insurance Company of America Equal House Opportunity. All material presented herein is intended for information purposes only. While, this information is believed to be correct, it is represented subject to errors, omissions, changes or withdrawal without notice. All property outlines and square footage in property listings are approximate.

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