Are you a property owner or landlord that wants to sell their asset or needs to rent an apartment or retail space in New York City? Call or text me: Sam Moritz, licensed real estate agent, 203–209–3640.
Prices are about to come down a little bit.
At the beginning of January, the landlord (who subscribes to this email list) and I agreed we would list the converted railroad apartment (a “front and back” apartment) for $3200, no broker fee, in Bushwick. It’s an appealing layout for renters — bedrooms on opposite sides of the unit, allowing for a good amount of privacy, with the kitchen and living room in the middle.
I knew the price was expensive, because I have other listings in the area, listed at their 2022 prices, which were getting very limited attention from renters. But the landlord wanted this pricing, and I appreciate his business, so we agreed we would go with this for now and I would report back on how it was going in a few weeks.
An example of a “front and back” apartment. Not the current apartment I am listing. Kitchen / living room in the middle, bedrooms on the end. The bedrooms are nice and sunny, but sometimes renters complain about a lack of light in the common area.
Meanwhile, down the street, a colleague of mine was listing a one bedroom condo for $574,000. Interest rates were sky high in the beginning of the year, so it wasn’t a great time to sell, but his sellers were motivated— their daughter, who had occupied the apartment and paid the HOA fees, had moved to Denver. Neither her parents nor her wanted to pay the fees while no one living there, and they weren’t interested in renting the condo, so they wanted to sell, ASAP.
At the beginning of February, after limited showings for the rental, we reduced the price. The apartment is now $2700, but after many showings this month, it’s still not rented. As a real estate agent, my job is to show every interested person the property, but I can’t force them to take the apartment. You can lead a horse to water, but you can’t force it to drink. If they bounce to another place, it’s because they’re finding a better deal in the area. Want to rent an apartment or sell a condo within thirty days? Drop the price.
Meanwhile, in terms of the condo sale, my colleague and his sellers cut their listing price $10,000 in February, because there just wasn’t enough interest. Things have improved, he said – but it wasn’t like 2022, where an apartment of this size, off the Jefferson Street L stop, would sell for $600,000+ and have an accepted offer in thirty days. Mortgage rates are still almost twice as high from a year ago — but they had been coming down in recent weeks.
Gregory Schmidt of the New York Times wrote in the article “Falling Mortgage Rates Bring Some Home Buyers Back to Market,” published on February 9th: “The average rate on a 30-year fixed-rate mortgage fell to 6.09 percent this week, the lowest in five months.” With interest rates still high, home prices could continue to fall — for now. But things should improve this year, with more supply being offered, if the rates can fall closer to 5.5%, according to the article.
One thing is for sure, though: 2023 hasn’t been 2022, with apartments flying off the shelves at unreal prices. We’re heading back towards a more normal market, like from 2017–2019, when the price of a converted railroad apartment in Bushwick rented for $2400ish and condo listings sit for more, like, sixty days, not thirty.
I’m associated with EXR, and have been for six years. Our website: https://www.exrny.com/