new york

New York City’s Midtown Reawakens: Power Lunches Return with a Vengeance

By Columbus International,15 April 202415 April 2024

As the dust settles from the tumultuous waves of the pandemic, New York City’s Midtown district is experiencing a renaissance of bustling activity, particularly during lunch hours. Wall Street firms like Goldman Sachs Group Inc. and JPMorgan Chase & Co., often the pulse of the city’s financial heartbeat, have played a pivotal role in propelling New York City’s return-to-office (RTO) rate to nearly 80% of its pre-pandemic levels, according to recent data. The revival isn’t confined to the financial powerhouse alone; Miami, too, is witnessing a similar resurgence, marking a positive shift in the broader economic landscape. Placer.ai’s Nationwide Office Building Index, analyzing foot traffic data from approximately 1,000 office buildings across the nation, underscores this trend, highlighting the remarkable rebound in RTO rates for both cities, surpassing the national average by a considerable margin. In the heart of the Big Apple, the iconic power lunch, once confined to select weekdays, is back on the menu five days a week. Midtown’s culinary landscape is witnessing a resurgence, with renowned establishments like Michael’s, Fresco by Scotto, and Daniel Boulud and Jean-Georges Vongerichten’s culinary ventures, witnessing a steady stream of patrons eager to combine gastronomic delights with deal-making discussions. Daniel Boulud, the visionary behind culinary gems like One Vanderbilt’s Le Pavillon and Wall Street’s Le Gratin, remarks on the palpable return of the lunch crowd, signaling a promising trajectory for Manhattan’s office spaces. Similarly, Jean-Georges Vongerichten’s Four Twenty Five, nestled in the heart of 425 Park Ave., has expanded its lunch service, catering to the renewed demand from office-goers and local denizens alike.

The sentiments echo beyond the culinary sphere, encapsulating a broader narrative of revitalization sweeping across Midtown. As foot traffic steadily inches closer to pre-pandemic levels, the district is poised for a new era of prosperity, symbolized by the resurgence of beloved institutions and the emergence of new dining destinations. Rosanna Scotto, a prominent figure in New York’s culinary scene, emphasizes the readiness of establishments to welcome back patrons with open arms. Lauren Mitinas-Kelly, a seasoned broker, recounts her recent experience at Estiatorio Milos, underscoring the palpable energy reverberating through Midtown’s streets. The impending arrival of Rosemary’s, a beloved West Village haunt, further underscores the evolving landscape of Midtown, injecting a dose of warmth and hospitality into the bustling district. Carlos Suarez, the visionary behind hospitality gems like Bobo and Claudette, highlights the district’s craving for neighborhood camaraderie, a sentiment echoed by patrons and proprietors alike. Beyond the gastronomic delights, Midtown’s resurgence holds promise for the city’s economic recovery, with notable figures like Jonathan Tisch, CEO of Loews Hotels, rekindling the tradition of power lunches at iconic locales like the Loews’ Regency. As Midtown continues to reclaim its vibrancy, the echoes of its renaissance resonate far beyond its bustling streets, offering a glimpse into a future brimming with promise and possibility.

Luxury Upper East Side Townhouse, Renovated by Neighbors, Hits Market for $24.99 Million (New York Post)

By Columbus International,12 April 202412 April 2024

The New York Post reports that a meticulously renovated townhouse situated in the coveted Upper East Side, originally owned by the late Richard “Dick” Snyder, former chair of Simon & Schuster, has been listed for an impressive $24.99 million. This remarkable property, located at 120 E. 78th St., has stirred considerable interest due to its intriguing backstory. Meredith Verona, a prominent figure in the real estate arena and the listing agent for the property, shared insights into this captivating narrative. Verona, who resides adjacent to the townhouse, described the listing as emblematic of a quintessential New York tale, highlighting the vibrant dynamics of the city’s real estate landscape.

Verona and her husband Bryan acquired the residence in 2022 from Snyder’s estate for $9.25 million, subsequently embarking on an extensive renovation journey. The acquisition unfolded against the backdrop of a legal dispute initiated by Snyder, who alleged that the Veronas’ renovation activities on their neighboring property had adversely impacted the marketability of his own residence. However, Verona swiftly dismissed the lawsuit as baseless, emphasizing the positive impact of construction endeavors on enhancing property values within the locality.

Despite initially harboring no intentions of purchasing the townhouse, the Veronas eventually succumbed to the allure of the property as its price gradually declined. Motivated by a sense of responsibility and armed with a comprehensive understanding of the neighborhood’s nuances, they seized the opportunity to acquire the residence at an opportune moment. Spanning over 12,600 square feet, the neo-Georgian townhouse boasts a plethora of luxurious amenities, including nine bedrooms, 12 baths, and six fireplaces. Originally constructed in 1930 by esteemed banker Henry Winthrop, the property exudes timeless elegance, featuring exquisite French paneling, hardwood floors, and ornate marble mantels.

Designed by renowned Beaux-Arts architects Delano & Aldrich, the eight-story residence epitomizes architectural grandeur, with its elliptical staircase, expansive living spaces, and state-of-the-art facilities. The meticulous renovation process, which spanned approximately 12 months, ensured that the townhouse seamlessly melded historic charm with modern comforts. Verona, drawing upon her familial ties to the real estate development sector and her firsthand experience with renovations, spearheaded the restoration efforts with unwavering dedication. Reflecting on the arduous yet fulfilling journey, she expressed profound admiration for the property’s rich history and unwavering commitment to preserving the neighborhood’s architectural legacy. In essence, the listing of this exquisite townhouse symbolizes not only a testament to meticulous craftsmanship but also a celebration of New York City’s vibrant heritage and enduring allure.

Jennifer Lopez and Ben Affleck: The Hollywood Power Couple on the Hunt for a Home in the Upper East Side

By Columbus International,4 April 20244 April 2024

In a city renowned for its luxury residences, the power couple of Jennifer Lopez and Ben Affleck is once again making headlines as they set their sights on exclusive properties in the Upper East Side of New York City. Sources close to the couple have revealed to Gimme Shelter their recent forays into the Big Apple, where they’ve been spotted exploring exquisite residences befitting Hollywood royalty. Among the properties that have caught their discerning eyes was a family-sized townhouse located at 226 E. 68th St., with an impressive price tag of $45,000 per month.

Another noteworthy stop on their tour was a stunning 3,024-square-foot townhouse at 342 E. 69th St., currently listed for $5.95 million. Clad in her distinctive style, J. Lo, a seasoned real estate investor, exuded elegance as she explored potential new abodes alongside Affleck. Despite her ventures into new territories, Lopez remains rooted in the New York real estate scene, retaining ownership of a penthouse at the renowned Whitman in NoMad, a property she acquired for $20.2 million back in 2014. With exclusive access granted to Gimme Shelter, it was revealed that her penthouse, nestled among esteemed neighbors including Chelsea Clinton and her family, is currently listed for $24.99 million. While Lopez’s Bronx roots add a touch of authenticity to her New York endeavors, her presence in the city isn’t solely tied to her real estate commitments. Reports from Page Six suggest she’s in town to shoot a new rendition of the beloved classic, “Kiss of the Spider Woman.” This cinematic venture, following in the footsteps of its predecessors that garnered critical acclaim, adds another layer of excitement to Lopez’s packed schedule. In their quest for the perfect New York residence, Lopez and Affleck spared no expense in exploring luxurious options.

A standout property that caught their attention is a spacious 6,700-square-foot townhouse on East 68th Street. With six bedrooms, six bathrooms, and an array of luxurious amenities including radiant floors and an elevator, this townhouse embodies modern opulence. Its carefully designed interiors, adorned with floor-to-ceiling windows offering panoramic views of a landscaped garden, elevate the concept of urban luxury living. Not far from their initial discovery, the couple set their sights on another prestigious residence. A four-story masterpiece meticulously crafted by AD100 designer Timothy Corrigan, enticed them with its timeless elegance. Featuring exclusive details like a wood-burning fireplace, spa-style bathrooms, and a terrace boasting breathtaking city views, this residence expertly blends classic charm with contemporary comforts.

While details regarding their potential acquisition remain hidden, one thing is certain: the allure of New York City’s Upper East Side has once again captured the hearts of Hollywood’s elite. With esteemed brokers Thomas Wexler, Morgan Garofalo, and Tyler Wexler of Leslie J. Garfield at the helm guiding them on this journey, Lopez and Affleck are poised to make a statement in the city that never sleeps. As the saga of their house hunt unfolds, all eyes remain eagerly fixed on the next chapter of this New York power couple’s story.

The Private Club Scene in New York: A Haven for the Elite

By Columbus International,2 April 2024

New York City, often touted as the concrete jungle where dreams are made, is also home to some of the most exclusive and prestigious private clubs in the world. These enclaves cater to the elite, offering not just social status but access to luxurious amenities, culinary delights, and a network of influential individuals. Let’s delve into some of the most notable private clubs shaping the social landscape of the Big Apple.

Core Club: Redefining Luxury and Community
Nestled within the opulent confines of the SHVO-owned building at 711 Fifth Avenue lies the illustrious Core Club. Founded by CEO Jennie Enterprise, Core Club embodies a commitment to curating a global community of individuals driven by curiosity, cultural exploration, and a passion for life without compromise. With initiation fees ranging from $15,000 to $100,000, Core Club offers its members a plethora of amenities spread across its 60,000 square feet of space.

From rejuvenating spa treatments to a meticulously curated wine library overseen by sommelier Yannick Benjamin, Core Club spares no expense in delivering unparalleled experiences. Members can indulge in culinary delights crafted by renowned chefs like Michele Brogioni, whose Mediterranean-inspired cuisine promises to tantalize the taste buds and foster bonds akin to Italian family gatherings.

ZZ’s Club: Where Culinary Excellence Meets Exclusivity
Helmed by the culinary virtuoso Mario Carbone, ZZ’s Club at Hudson Yards beckons discerning palates with its bespoke dining experiences. Carbone’s unwavering dedication to culinary perfection is evident in dishes like the Lobster Risotto all’Arrabbiata, meticulously prepared to order, ensuring each bite is a symphony of flavors. With initiation fees of $20,000 and annual dues of $10,000, ZZ’s Club is a sanctuary for those seeking gastronomic indulgence in an atmosphere of refined elegance.

SoHo House: A Tale of Glamour and Struggle
Once a bastion of coolness, SoHo House finds itself at a crossroads amidst reports of an existential crisis and dwindling appeal among New York’s elite. Despite its storied past and celebrity allure, the club grapples with criticisms of overcrowding and subpar service, prompting questions about its future viability. With speculations of a potential privatization looming, SoHo House stands at a pivotal juncture, navigating the delicate balance between exclusivity and accessibility.

Casa Cipriani: A Symphony of Italian Luxury
Nestled within Lower Manhattan’s historic Battery Maritime Building, Casa Cipriani epitomizes the epitome of contemporary Italian luxury. With its restrained opulence and panoramic views of the East River, Casa Cipriani transports guests to a bygone era of sophistication and refinement. Under the stewardship of design legend Thierry Despont, the club exudes an ambiance reminiscent of vintage luxury ocean liners, offering guests an immersive experience steeped in Italian charm and hospitality.

The Knickerbocker Club: A Legacy of Exclusivity
Established in 1871 by dissatisfied members of the Union Club, The Knickerbocker Club remains a bastion of exclusivity and tradition. With a rich history boasting notable members like Douglas Fairbanks and JP Morgan, The Knick continues to uphold its legacy of elitism, maintaining a strict men-only policy and a code of secrecy shrouded in intrigue.

The Lotus Club: A Haven for Literary and Artistic Minds
Since its inception in 1870, The Lotus Club has served as a sanctuary for literary and artistic luminaries seeking intellectual stimulation and camaraderie. From Mark Twain to Arthur Conan Doyle, the club has played host to some of history’s most renowned figures, embodying its mission to promote literature, art, and culture. With its illustrious past and commitment to fostering creative expression, The Lotus Club remains a beacon of enlightenment in the heart of New York City.

Metropolitan Club: A Symbol of Prestige and Tradition
Founded in 1891 by luminaries like JP Morgan and Cornelius Vanderbilt II, the Metropolitan Club stands as a testament to the union of social duty and intellectual pursuits. Housed within a majestic Renaissance Revival structure, the club exudes an aura of grandeur and refinement, offering members a sanctuary for socializing and intellectual exchange amidst the hustle and bustle of Midtown Manhattan.

University Club: Bridging Academia and Social Life
Rooted in the celebration of intellectual pursuits, the University Club of New York has stood as a beacon of erudition and social camaraderie since its inception in 1865. With its storied history and prestigious membership, the club serves as a nexus for scholars, professionals, and thought leaders, fostering a vibrant community dedicated to the pursuit of knowledge and enlightenment.

In the tapestry of New York’s social landscape, private clubs serve as exclusive sanctuaries where the elite gather to indulge in luxury, foster connections, and bask in the glow of prestige. From culinary extravagance to intellectual stimulation, these enclaves offer a cornucopia of experiences, each contributing to the rich tapestry of New York City’s social fabric.

Experience Elevated Living: This Stunning New York Apartment Redefines Luxury Living as an Art Form

By Columbus International,27 March 2024

Dear friends,

Today our brokers take you to the sixtieth floor of an apartment located in the heart of Central Park and New York City. The direct elevator entry leads to a spacious full-floor residence, comprising three bedrooms and three and a half bathrooms. Stunning in design, the northern views offer postcard panoramas of Central Park and beyond, while to the south, views of the river and the skyline of Manhattan.

The finishes demonstrate an extraordinary commitment to craftsmanship and quality. Direct elevator access leads to the grand entrance gallery finished with white macauba stone floors. Dramatic double doors lead to the spacious living room with intricately patterned floors in smoked solid oak and floor-to-ceiling windows through which to enjoy the views.

The New York real estate market at your service

The beautifully designed open kitchen offers views of Central Park, custom cabinets with a light hand-rubbed finish, and countertops and backsplashes in white quartzite and a full suite of everything.

The luxurious primary bedroom suite boasts views of the city’s southern skyline, a spacious dressing room, and a bathroom with a window clad in veined white onyx with a custom bathtub in polished nickel and custom-designed faucets hand-cast.

The secondary bathrooms are finished with gold quartzite and the powder room features a jewel onyx stone sink, floors, and wainscoting.

Descending, here is a two-lane swimming pool with private cabins, sauna and separate treatment rooms, a double-height fitness center with mezzanine terrace, private dining room and chef’s catering kitchen, resident lounge with panoramic terrace, meeting rooms and study, 24-hour attended entrances and dedicated concierge service. Residents will have access to an on-site paddle court, golf simulator, and children’s playroom.

Want to know more? Contact our real estate agents today: info@columbusintl.com

Kim Kardashian’s Skims Scores Prime Fifth Avenue Retail Space at Bargain Rates (The Real Deal)

By Columbus International,25 March 2024

In a strategic move that underscores shifting dynamics in New York City’s retail real estate landscape, Kim Kardashian‘s apparel empire, Skims Body, has secured a coveted lease for a sprawling 20,000-square-foot space on Fifth Avenue. This development comes at a fraction of the cost compared to its predecessor, signaling a savvy business maneuver amidst a changing market. According to reports from The Real Deal and Crain’s, Skims Body inked a deal with Oxford Properties and Crown Acquisitions for at least 75 percent below the previous tenant’s lease rates. The stark difference in pricing was highlighted in a recent report by Fitch Ratings, which also noted adjustments in the mortgage structure backing the Skims space and other properties in the vicinity. While specific lease details remain undisclosed, industry experts speculate that Skims Body’s rental rates could be well below the $770 per square foot paid by Versace, the former occupant, as reported by KBRA in 2022.

This suggests that Skims Body is likely paying under $200 per square foot—a substantial reduction reflective of evolving market dynamics. Kim Kardashian’s multifaceted entrepreneurial prowess likely played a pivotal role in securing such advantageous terms, especially as neighboring retailers recalibrate their strategies and vacate Fifth Avenue addresses. This vacancy trend has empowered companies like Skims Body to negotiate from a position of strength, capitalizing on prime retail spaces in iconic locales. Oxford Properties reports full occupancy for Olympic Tower’s retail segment, constituting 28 percent of the property but contributing over 60 percent of total rental revenue. Negotiations are also underway for office space within the same complex, showcasing sustained investor interest despite recent market adjustments. Institutional investors, who have held the mortgage since 2017, recently witnessed Fitch downgrading seven classes associated with the $760 million loan, due for maturity in 2027. The transition in tenant occupancy has coincided with a 13 percent dip in cash flow, now at $56 million annually, since the mortgage’s initial sale. Skims Body is gearing up for a grand opening slated for February, enhancing its brand presence with a high-profile physical retail outlet.

The company’s meteoric rise is mirrored in its valuation, which surged to $4 billion last year—a staggering $800 million leap from 2022 figures. Versace’s gradual exit from the space since 2018, initially signaled by its subleasing efforts, underscores the dynamic shifts reshaping New York’s retail real estate narrative. As Kim Kardashian’s entrepreneurial ventures continue to make waves across industries, Skims Body’s strategic real estate play exemplifies a nuanced understanding of market opportunities amid evolving consumer preferences and economic landscapes. This move not only solidifies the brand’s physical footprint but also underscores the enduring allure of iconic retail addresses amidst transformative market forces.

Photo credit: Skims

Related Companies Reveals Renderings of Massive $12 Billion NYC Casino Complex at Hudson Yards

By Columbus International,20 March 2024

Plans have been revealed by Wynn Resorts for a colossal $12 billion project in Hudson Yards, a once train-filled area in Manhattan‘s West Side. The proposal, crafted in collaboration with real estate powerhouse Related Companies, envisions an imposing 80-story tower overlooking the Hudson River. This towering structure would house a sprawling gaming facility and hotel. Surrounding the magnificent casino skyscraper would be office complexes, residential towers, and an expansive 5.6-acre park, creating a vibrant urban landscape. Strategically positioned between West 30th Street and 33rd Streets, and 11th and 12th Avenues, the resort would be easily accessible to pedestrians strolling along the High Line, a repurposed elevated train line now serving as a public park. The architectural renderings depict a sleek office building and residential tower adjacent to the casino resort tower, enhancing the skyline from the Hudson River viewpoint. Additionally, the project includes plans for a 750-seat public school, a community facility, and a daycare center.

Dubbed Hudson Yards West, the venture, in collaboration with the Oxford Properties Group, promises to generate 35,000 union construction jobs and 5,000 permanent positions within the resort, according to its planners. Advocates for the proposal argue that the hotel component would become a prime destination for visitors attending events at the nearby Javits Center, potentially amplifying tourism and economic growth in New York City. Jeff Blau, CEO of Related Companies, remarked on the project’s potential to further invigorate the local economy, expressing enthusiasm for the development’s role in benefiting the state, the city, and the neighboring communities. Craig Billings, CEO of Wynn Resorts, highlighted the appeal of Wynn New York City as a premier destination for luxury travelers, citing the propensity of Wynn guests to spend more, thereby driving increased tax revenues and local economic activity. While the exact cost of the endeavor remains undisclosed, previous estimates suggest a staggering $12 billion investment, inclusive of expenses associated with constructing atop the rail yard. With the state contemplating the issuance of up to three casino licenses in the downstate region, intense competition among potential bidders has emerged. Notably, in Queens, Steve Cohen, owner of the New York Mets, has proposed an $8 billion gaming complex near Citi Field named “Metropolitan Park.”

Meanwhile, Resorts World New York City, situated at Aqueduct race track, has announced a $5 billion expansion, seeking approval to offer table games alongside its existing slot parlor. In the midst of this fervent competition, Hudson Yards’ developers face the challenge of securing political and community support, mindful of past opposition that thwarted similar projects, such as former Mayor Bloomberg’s proposed West Side Olympic stadium. State Sen. Brad Hoylman, representing the Hudson Yards neighborhood, has expressed the need to ensure alignment with the site’s original vision, dating back to 2009. The proposed development, with its consolidation of buildings and increased park space, must navigate a rigorous approval process involving city officials and undergo thorough land use review. Amidst skepticism from rival casino bidders, one close source remarks on the shifting prospects of the Hudson Yards plan, indicating a transition from a perceived impossibility to a challenging endeavor.

Source: New York Post
Images: Related Companies and Wynn Resorts

From Covid era to 2024, the return to the office in New York City is still a “work in progress”

By Columbus International,11 March 2024

After nearly four years since the initiation of pandemic-induced lockdown measures, New York City‘s journey towards a full return to office life remains a work in progress. Along this path, the city is approaching two significant milestones, one presenting a positive outlook while the other brings a more somber tone.

The first milestone involves office attendance rebounding to nearly 80 percent of its pre-pandemic levels. New York stands out as one of the top-performing markets in this regard, with workplace visitations in 2023 reaching 77.5 percent of the figures seen in 2019, as reported by Placer.ai. This marked a significant leap forward from the preceding year, witnessing a foot traffic surge of over 30 percent compared to 2022. (Placer.ai’s metrics gauge activity within a building, encompassing ground-floor retail spaces, rather than merely the presence of office workers at their desks.)

Despite this progress, as any office owner would attest, New York still has a considerable distance to traverse. However, the situation appears graver elsewhere across the country. In cities like San Francisco, Los Angeles, Dallas, and Washington D.C., office attendance figures for 2023 lingered at levels well below half of pre-pandemic norms. Only Miami has managed to surpass New York’s performance, with 78.1 percent of 2019’s office attendance levels. Despite frequent anticipations of a game-changing return-to-office wave, progress has been incremental. Optimism surged once more at the onset of the new year, fueled by headlines proclaiming that “90% of Companies Will Return to Office By the End of 2024.”

This narrative echoes previous predictions, such as those made by Resume Builder in late 2022, asserting that “9 in 10 companies will require employees to work from the office in 2023,” based on a survey of 1,000 major business leaders. However, the actual implementation of return-to-office policies has proven sluggish. Even among companies that have succeeded in recalling most of their employees to the office, the transition to a full five-day workweek onsite has been challenging. Nationwide, office attendance remains down by approximately 33 percent on Tuesdays, Wednesdays, and Thursdays, dropping by nearly 50 percent on Mondays and Fridays. Only a handful of firms adhering to strict return-to-office protocols continue to utilize office space at pre-pandemic levels.

Many have adopted a hybrid model, allowing for a reduction in their physical footprints. Consequently, despite the gradual progress of the return-to-office movement, office owners continue to face significant challenges. Manhattan’s availability rate reached a record high of 18.2 percent in February, as reported by Colliers, edging closer to another milestone: 100 million square feet of available office space.

Across the borough’s primary office districts, total office absorption plummeted by 1.43 million square feet, bringing the cumulative available office space to 98.05 million square feet. Thus, while forecasts may paint an increasingly optimistic picture of an imminent return to office normalcy, healthy skepticism remains warranted regarding the immediate prospects for improvement in New York’s office market.

Source: The Real Deal

Riding the Real Estate Rollercoaster: New York City Market Trends Unveiled

By Columbus International,11 March 2024

Here are the latest developments in the New York City real estate market.

In the current landscape of the New York City housing market, the equilibrium between buyers and sellers holds significant importance. With a consistent decrease in housing inventory and a rise in median prices, the market tends to favor sellers. The limited availability of homes places sellers in advantageous positions, potentially leading to more favorable deals. However, this doesn’t necessarily translate to a gloomy outlook for buyers. The increased demand and fluctuating market dynamics offer opportunities for those looking to make strategic investments in real estate. The surge in home prices in New York reflects the impact of dwindling housing inventory and heightened demand. Consequently, the prevailing trend indicates that home prices aren’t declining but rather experiencing growth, signaling a robust market with the potential for lucrative returns for sellers.

The year 2024 began much like its predecessor, with low housing inventory and fluctuating interest rates around 6.5 percent, as reported by the New York State Association of REALTORS. The average rate on a 30-year fixed-rate mortgage saw a slight decrease from 6.82 percent in December 2023 to 6.64 percent in January 2024. However, compared to the same period last year, the interest rate has shown an increase from 6.27 percent, highlighting the dynamic nature of the real estate market. One notable shift in the market is the continued decline in housing inventory, persisting for 11 consecutive months in year-over-year comparisons. Across New York, the inventory of homes for sale decreased by 10.2 percent, dropping from 39,544 homes in 2023 to 35,492 units in 2024. This limited supply presents challenges for buyers but also creates an environment where sellers may find opportunities to capitalize on the scarcity of available homes. New listings experienced a modest decline of 1.5 percent, totaling 9,279 in January 2024 compared to 9,423 in the same month of the previous year. Closed sales witnessed a more significant decrease, dropping by 3.8 percent from 7,486 to 7,203 homes in January 2024. Conversely, pending sales increased by 8.9 percent, indicating a potential rebound and heightened activity in the coming months. January saw a 6.7% increase in the number of homes entering into contracts, marking a positive turn as buyers returned amidst declining mortgage rates. This surge, slightly higher than the average over the past five years, is attributed to the drop in mortgage rates during November and December, enticing buyers back into the market post-year-end holidays. However, despite this uptick, challenges remain. Highly-priced homes are staying on the market for longer periods, keeping the city’s median asking price elevated.

Elevated asking prices, coupled with rising mortgage rates, are prompting sellers to make concessions to attract buyers, illustrating a nuanced market scenario. As of January, the median asking price in NYC stood at $1.095 million, reflecting an 11.7% increase from a year ago. This uptick is largely due to a slowdown in the luxury market, where homes priced at $4.975 million and above are taking longer to sell. The median asking price in Manhattan rose by 8.4% year-over-year to $1.68 million, indicating a resilient market experiencing notable shifts. While luxury listings in Manhattan witnessed an increase in median asking prices, the typical luxury listing received only 93.2% of its initial asking price, indicating a shift in power from sellers to buyers at the highest end of the market. In Brooklyn, where inventory is limited, the median asking price surged by 16.8% to $1.05 million. Meanwhile, Queens offers a more affordable option, with a 4.2% year-over-year increase, resulting in a median asking price of $624,900. The NYC housing market grapples with the aftermath of elevated mortgage rates and median asking prices, limiting the pool of potential buyers. While the monthly mortgage payment on a median-priced home rose by 16.1% year-over-year to $5,619 in January, the median asking rent increased by just 0.1% to $3,500. With a considerable number of potential buyers still on the sidelines, those who can afford to stay in the market now have more room for negotiation. The median asking price for homes entering into contracts in January was $925,000, 15.5% lower than the overall median asking price of homes on the market. This disparity indicates a market where more affordable homes are gaining traction among buyers, while the luxury segment experiences a slowdown. Despite the recent decline in mortgage rates, the outlook for the New York City housing market remains complex. Seller concessions, aimed at attracting buyers, have become more prevalent. In September 2023, when mortgage rates were above 7%, 2.7% of for-sale listings mentioned seller concessions. Despite a subsequent decline in average mortgage rates to 6.7%, concessions in January held steady at 2.3%, showcasing a significant increase from the 1.4% average in 2021.

Regarding negotiations, buyers are finding more areas to maneuver. NYC sellers are increasingly willing to offer concessions explicitly in their listings, helping to reduce closing costs for buyers without reducing the asking price. One notable concession gaining popularity is the rate buydown, with 1.7% of sponsor condos offering this option in January, a significant increase from the 0.1% average in 2021.

Record number of cash offers show New York property is only for the rich

By Columbus International,7 March 2024

The latest data reveals a striking trend in Manhattan’s real estate landscape: a surge in cash purchases accounting for over two-thirds of home sales last quarter, marking a record high. The driving force behind this shift is the soaring mortgage rates, which have soared to around 6 per cent, dissuading all but the wealthiest buyers from taking on loans.

Pamela Liebman, CEO of Corcoran, a prominent real estate brokerage, highlighted this phenomenon, stating that nearly 70 per cent of Manhattan properties were acquired without mortgages in the final quarter of 2023, a significant leap from the 55 per cent seen in the same period in 2022. High mortgage rates are creating a significant barrier for potential buyers without substantial financial resources, leading many to opt for renting instead. Corcoran’s report further underscores this trend, indicating a 4 per cent increase in new leases in Manhattan and Brooklyn in January 2024 compared to the previous year, alongside a record median rent of $3,950.

The reluctance to incur mortgage debt has led to a “void in the middle” of the property market, with affluent buyers dominating while those unable to pay cash face challenges amid escalating rents. The median sales price for Manhattan apartments reached $1.15 million in the fourth quarter, up 5 per cent from a year earlier, approaching the record high of $1.25 million set in the second quarter of 2022. However, the pace of buying has slowed, with prime properties lingering on the market for extended periods, contrasting with more affordable markets like Charlotte, North Carolina, where homes sell rapidly.

Despite a slight uptick in transactions in January, Thomas Ryan, a property economist at Capital Economics, notes that the US housing market remains stagnant, with transactions significantly below the 2010s average. Erin Sykes, a real estate agent and economist, attributes the surge in cash purchases to buyers seizing opportunities amid rising mortgage rates, viewing them as an advantageous time to strike deals. The challenges facing buyers in New York are further compounded by a severe housing shortage attributed to regulations limiting rent increases and the expiration of tax incentives for new construction projects. Mayor Eric Adams has proposed converting obsolete office buildings into residential towers as a potential solution, although this presents technical and cost-related hurdles.

The supply crunch has significantly reduced vacancy rates, plummeting from nearly 4.5 per cent in 2021 to 1.4 per cent, exacerbating affordability concerns and pricing many out of the market. As Liebman aptly summarizes, New York’s housing market is currently facing rough terrain, posing significant challenges for aspiring buyers.