As the official arrival of fall approaches, the NYC real estate market has wasted no time in ushering in the new season!
Traditionally, our summer sales market tends to slow down – blame it on the heat or vacations – it’s a predictable lull. However, the looming question as we passed the Labor Day weekend was whether current mortgage rates would dampen our hopes for a brisk autumn market. We are delighted to report that we’ve witnessed a discernible surge in activity, perfectly aligning with the trends of the past five years. A glance at the chart below reveals a robust increase in both new listings hitting the market and new contracts being inked.
If you’ve shelved your real estate plans, now might be an opportune moment to reignite the conversation.
Renovation vs. No Renovation: A Compelling Tale
Among the most compelling narratives in the current market is the striking disparity in pricing between renovated and unrenovated properties. Presently, renovated apartments command a staggering 30% more per square foot compared to their unrenovated counterparts. This marks a substantial increase from the 19% difference observed in 2021. Notably, the time it takes to sell an unrenovated unit has significantly lengthened, with a gap of up to 21 days compared to their renovated counterparts.
But why the stark contrast? One plausible explanation lies in the escalating costs of significant renovations, exacerbated by the noticeable impact of inflation on construction materials and labor. Additionally, buyers may be deterred by the prospect of shelling out renovation costs upfront, precisely at a time when they may already be committing a 20-25% down payment.
What Does This Mean for You?
– Be prepared to pay a premium for the convenience of a move-in-ready apartment of your dreams. Don’t be surprised if you encounter stiff competition when making an offer. However, if you have the financial means and are willing to invest some elbow grease, unrenovated units offer some of the most attractive deals in today’s market.
– If your apartment is renovated, it’s imperative that it looks the part. Consider staging and making minor fixes or upgrades, as these investments can significantly boost your final sales price.
As always, please feel free to reach out via email or phone if you have any questions. We are here to engage in a more in-depth discussion if real estate is on your mind. Don’t hesitate to contact us anytime! Your real estate goals are our priority.