Why 2017 May Be the Year to Buy Real Estate

The New Year brings with it the feeling of a chance to start fresh, new opportunities, and excitement about what the coming months ahead may bring. Coming off of 2016 which was a tumultuous year to say the least, the sentiments of optimism for 2017 seem stronger than ever. 

2016 was a strong year for real estate, and industry experts are looking for another favorable year in 2017. Home prices rose in 2016 and have since recovered from the lows of 2012 that resulted from the collapse of the housing market. For the majority of 2016, mortgage rates were suppressed to historic lows until crossing 4% after the November election. Builders were not building at a fast enough pace to keep up with demand at the lower end of the market while the ultra-luxury segment remained saturated. 

With this backdrop of the 2016 market as we enter 2017- the question on many peoples' minds is: "what can we expect for the 2017 market? Is it going to be positive?"

Here are some considerations and thoughts as to why 2017 may be the year to buy real estate, keeping the luxury market in mind.

Rising Rates

We have already seen rates rise from their historic 2016 lows. The sharp rise in mortgage rates, largely corollated to the spike in 10-year Treasury yields, since the election has been dubbed "The Trump Effect". Rates have been hovering around the 4% mark on a 30-year mortgage, and many anticipate this to continue to rise throughout the year and into the future as the Fed has placed expectations on continued rate hikes in 2017 to its Fed Funds rate and the expectation that inflation will increase in 2017.

If you have been considering the purchase of a property with mortgage financing, now may be the time to act on your willingness to purchase and lock in a favorable rate. 

Build Wealth

Buying a home and building equity in it is one of the greatest ways to accumulate wealth for yourself, and wealth that can eventually be passed to your children or heirs. This is most profoundly seen for Millennials as they have a long time horizon for their investment, and generally speaking, the value of property increases over the long term. In fact, a self-made millionaire has stated that buying a home is the single most important factor for accumulating wealth.

Millennials are expected to increase their representation in the buyers pool as we enter 2017. If you are in the position to buy (not drowning in student debt, etc.) consider purchasing a property to start accumulating that wealth now instead of flushing money down the toilet each month with rent. Close to saving for your down payment or looking for some ideas of how to get on track? Check out our creative ways to save for a down payment. 

Negotiability

Realistic sellers that are looking to get out of their properties for whatever the reason may be are willing to negotiate. This means the cards are in the hands of the buyer and with a keen broker to negotiate for you, deals can be had on great properties. In fact, one published research statistics showed that the average difference between listing price and contract price for the luxury market in 2016 was 6%. For a luxury property, that is a handsome discount! 

Less Regulations

The Trump Administration has outlined policy plans that include an array of deregulation in both the financial services and housing sectors. One of the most notable is related to the Dodd-Frank Act, a cumbersome 2,300 page piece of legislation that has largely been critiqued by many. The legislation essentially tied banks' hands after the financial crisis as a means to (hopefully) avoid another by imposing rules regarding what investment banks can hold on their balance sheets and who banks can lend to among other things. 

By reducing regulations related to Dodd-Frank, we could see access to credit expand. Will banks be rushing to lend every person a mortgage? Doubtful as they have learned their lessons regarding due diligence, however, expanded credit certainly stands to benefit many as they will hopefully have access to a mortgage for which they would have previously not qualified. 

The Wealth Effect

Buyers in the luxury market seem ready to benefit from "The Wealth Effect," or the feeling of increased wealth from various economic factors. Trump's proposed policy, specifically taxes, will benefit wealthy buyers, hypothetically returning more money to their pockets if enacted. 

Additionally, financial markets have reached record highs since the elections and the consensus among financial experts seems to be another march higher in 2017 thanks to Trump's proposed infrastructure spending and corporate profits. Increased markets means increased stock portfolio values...have you checked your statement recently?

All of this combined with increased consumer confidence and sentiment leads wealthier buyers to feel even wealthier!

Normalized Pricing

Pricing in the luxury and especially ultra-luxury segments of the market have began to normalize or "cool-off." Sellers can no longer demand the outlandish prices that we saw on some properties in 2014. This has been a harsh reality for some sellers to accept, however, a normal market is certainly a more healthy market for all. Given normalized pricing, buyers have a more realistic picture as to what properties are in their price range and where they can negotiate to score a deal. 

Less Building Permits

Have you noticed less cranes dotting the skyline of New York City? The last three years saw a boom in new construction across the city; however, significantly less building permits have been approved recently. There has never been a better selection of new development inventory on the market as there is now, and many developers are offering concessions to lure buyers to their projects given current inventory. 

This makes it a great time to be a buyer! You have a vast selection of luxury product in the city from Battery Park to the Upper East Side, offering beautiful finishes and unparalleled amenities. With the pipeline of new development uncertain given building permits, now may be the ideal time to shop!

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4 Reasons Why You Should Stage Your Home

We often get asked the importance of home staging and, more specifically, if it is something a seller should do. As a team of real estate brokers, we have not only seen the importance of staging, but also the value it brings to a property as well. We like to think of it as “Staged and Sold”

Staging a home is certainly an investment, but it is an investment that has driven results for sellers all across the country. Many home sellers are hesitant to stage their home because they think it is too costly, too much effort, and won’t yield results.

Get all these reasons out of your head because staging your home is an extremely effective tool that can reduce your home’s time on the market and increase its value, both of which are money in your pocket. Additionally, in a highly competitive real estate market, staging can be a tool that gives your home a competitive edge.

So, you are probably wondering, why should I stage my home?

1. A Powerful Marketing Tool:

A sound marketing strategy is necessary for any listing, from social media campaigns to open houses, and yes, staging, marketing is a key component of selling a home. Staging is, in fact, a form of marketing and an effective one at that as it allows the buyer to mentally move in to your home and visualize the space.

• Make photographs more appealing for use on web, social, and digital campaigns
• Staging makes your home memorable and can serve as a differentiator
• Position your home as appropriate for the target audience through the lifestyle you portray with the staging

Imagine a buyer that has tirelessly been looking at properties, perhaps empty apartment after empty apartment. In the mind of the buyer, they all start looking the same and nothing notable can quickly be recalled from memory. In this instance, staging would make your home “stand out from the crowd” and be more memorable to prospective buyers.

2. Increase the Value of Your Home:

A staged home looks appealing and inviting, and also allows the buyer to more easily see his or herself in the space. All of these aspects help to evoke a sense of desire in prospective buyers. As a result, a buyer is more willing to pay a premium for something he or she deems as desirable and valuable to him or her.

In fact, the National Association of Realtors conducted research that reported that for 32% of buyers the value the buyer was willing to offer for a staged home was 1-5% higher than an unstaged home, and even went as high as a 10% premium!

3. Your Home Will Sell Faster:

The Real Estate Staging Association reports that homes staged prior to listing spend on average 76% less time on the market. Their research concluded that staging did, in fact, work to reduce time spent on market.

Less time on the market means savings for you. Many sellers forget that the longer their home sits on the market, the longer they are responsible for mortgage payments, maintenance costs, etc. which all add up and can sometimes be more than the cost of staging!

4.  First Impressions Are Everything:

The old saying you have been hearing since childhood comes into play with staging and selling your home as well. Today, the majority of buyers start their home search online, and the power of images has never been more important.

• Staging will make your home stand out in online searches, increasing the chances of attracting prospective buyers right out of the gate.
• Staging often involves decluttering and depersonalizing the space, two important factors for appealing to a wide audience
• If you do not stage your home properly from the beginning you risk making a bad first impression and face the costs of lost time.

 

An Example:

20 West 64th Street, Unit 28DE represented by The Victoria Shtainer Team exemplifies effective staging. The apartment, an expansive 3,045 square foot home by Lincoln Center, offers ample space and stunning views. Living in this home offers a true lifestyle, being located right in the heart of Lincoln Center with some of the best the city has to offer at your finger tips.

Without staging, the apartment feels very expansive and it is hard for prospective buyers to actually visualize waking up in the master with Central Park views or imagine their family watching TV in the media room. The staging brings the apartment to life and the buyer can mentally move in, understanding what makes the apartment truly special. The photographs speak for themselves.

We successfully transformed our listing at 166 Perry Street (which has sold) with the power of staging. The apartment had a personal touch, as the layout was to the owner's specification. The staging decluttered and depersonalized the spaces into functional rooms that appeal to any audience. Below is an example of just one room in the expansive 5 bedroom apartment showing the before and after:

3 Reasons to Consider Buying or Renting a Condo in a New York Hotel

The luxury real estate market has seen a shift in consumer preferences as tastes and needs evolve. In the past, wealthy buyers desired things like high-end kitchen appliances. Today, buyers in the luxury real estate market in New York consider amenities and the convenience they bring to their daily lives. This is why hotel-style living is appealing to a large segment of luxury buyers. Of course kitchens are equipped with the top appliance brands in these residences, but, here, residents are exchanging the use of their appliances for in-room dining prepared by celebrity chefs at the push of a button. We also take a look at the price of some suites at various hotel/condos in the city to compare what it would cost per-night to stay vs. monthly renting.

Why Consider Hotel-Style Living

Building Amenities

Perhaps the most attractive feature of hotel-style living is the amenities that come along with it. Being attached to a hotel gives residents access to the hotel's features. Concierge services have become very desirable because they allow the resident to have more time to do what matters to him or her. Just like hotel concierge, they will help residents do things such as make reservations, find gifts, or acquire event tickets. Another amenity that attracts interest is the access to restaurants by celebrity chefs...in your own room! At 30 Park Place, residents will enjoy options from Wolfgang Puck's CUT, while residents at The Mark can get dishes by Jean Georges delivered to their apartment. Additionally, residents have access to state-of-the-art fitness centers, housekeeping services, and valets.

Rental Options

From an investment standpoint, these buildings can be more advantageous than other condos and co-ops. If you are looking to purchase and then subsequently rent out the unit, hotel-style buildings generally have more relaxed leasing terms. This means that something like a 6 month lease is generally allowed while they are often prohibited in many other buildings. Tenants will also have access to all the great amenities that a typical condo will not have, a big appeal to prospective renters. 

Brand Recognition

Brand recognition is also appealing from an investment standpoint. An international buyer can rely on brand recognition to help their investment. For example, buying into 30 Park Place means buying into the Four Seasons, a brand recognized globally for their standard of excellence. Brand recognition can also be helpful for owners looking to use the unit for rental income. Renters in the luxury market can feel confident about their selection with the hotel name behind the building. Additionally, it is appealing to rent an entire apartment inside the hotel for the same price as one of the best suites the hotel offers directly. Corporate renters are attracted to these brands, and generally pay top-dollar for rent while looking for the flexibility of shorter-term leases.

Hotel-Style Living in New York

The Mark

via Mark Hotel

The residences at The Mark take advantage of all the 5-star hotel has to offer. Residents can order room service from the Mark Restaurant by Jean Georges and have a Frederick Fekkai Salon located downstairs. The Mark is located on Madison Avenue on the Upper East Side, moments from world-class shopping, Central Park, and many museums. 

At last check a 2 Bedroom suite was $3,995/night

The Plaza

The Plaza is one of New York's icons, steeped in a rich history. The private residences, many which have wonderful park views, are decorated in the grandeur of the Plaza, with ornate finishes. Living in The Plaza comes with its perks such as access to Les Clefs d'Or concierge, daily house keeping, and valet parking. Other New York favorites are located just below such as Palm Court and the Food Hall which has an oyster bar by Todd English. 

At last check a 2 bedroom suite started at $3,340/night

Baccarat Hotel & Residences

via Baccarat Hotels

The residences at the Baccarat Hotel set a standard for luxury. Everything from the marble and Zircote wood resident's lobby to the grand salon exude luxury. Residents at the Midtown hotel have access to an exclusive list of amenities including a La Mer spa, 24-hour room service, and personal shopping. If you are looking for a nightcap, step down to the signature bar where drinks are served in Baccarat crystal. 

At last check a 2 bedroom was $8,138/night

30 Park Place

30 Park Place is the first private residences in New York by the Four Seasons brand. Residents will experience the standard of excellence for which the brand is known the world over. The homes are beautifully designed by Robert A.M. Stern Architects and have captivating views of Manhattan. Looking for an in-room meal at the push of a button? No problem. Wolfgang Puck and his steakhouse, CUT, will be located right downstairs. 

At last check, large suites were offered by price upon request only

 

Currently on the Market

Below are 2 listings currently on the market that exemplify hotel-style living in New York.

The Mark -255 East 74th Street, Unit 1204
$7,995,000   
This is a beautiful 3 Bed, 3.5 Bath at The Mark Hotel represented by our colleague Oliver Brown. Custom designed by Jacques Grange this home is impeccably finished with coffered ceilings and custom solid white oak floors. Features include an expansive sunny corner living room with open southern views. The windowed eat-in kitchen was designed by Piero Lissoni for Boffi, with Sub-Zero refrigerator, Gaggenau cooktop and oven and Meile dishwasher. The luxurious master bath features floor to ceiling white marble slab walls and Lefroy Brooks fixtures. There are two additional bedrooms both with en-suite marble baths. In addition there is climate control and power window shades in each room. Meile washer and dryer, state-of-the-art Crestron system and 24 hour room service, full-service gym onsite, Fredric Fekkai salon and The Mark Restaurant by Jean-Georges.

This unit would rent for $55,000 the entire month or $70,000 with room service vs a 2 Bedroom suite for $3,995 a night at The Mark.

The Four Seasons New York Downtown- 30 Park Place

Unit 44E- 3 Bed, 2.5 Bath. $19,995/MO

AVAILABLE IMMEDIATELY. Be the first to live in this pristine 3 bedroom, 2.5 bathroom home at the newly constructed Robert A.M. Stern designed Four Seasons Residence in TriBeCa. This forty-fourth floor apartment of the building offers stunning views of One World Trade, the incredible Oculus Terminal, and the downtown city skyline, as well as western views to the Hudson River. High ceilings and large windows allow plenty of sunlight throughout the day. The master bedroom has a western exposure, large walk-in closet and gracious en suite marble bathroom with deep-soaking tub and custom vanities. The kitchen is outfitted with top-of-the-line appliances including Gaggenau stovetop and oven, Miele vent, and U-line wine cooler, and ample pantry space. The Four Seasons Residences offers 5-Star living and a private full amenity suite for residents, including a fitness center, spa and salon, 75 ft.indoor pool, children's playroom, screening room, landscaped public plaza, parking garage, resident lounge, a la carte hotel services, a coming Wolfgang Puck restaurant, CUT, and full-time doorman and concierge. Nearby to the Financial District, Brookfield Place shopping and dining, and extensive public transportation access.

Interested in hotel-style living in New York? To learn more about buying or renting in a New York hotel, please reach out to use with any questions. We are happy to help!

New York Luxury Properties Lure Buyers With Pools

Summer is beginning to heat up in the city, and as subway platforms begin to approach 100 degrees, we are all reminded of what seems to be a suburban commodity and an urban luxury, namely swimming pools. 

Sure, you can visit certain hotels throughout the city, and often times, pay to use the pool for a day or even try to get a membership to the exclusive SoHo House. However, in the Manhattan luxury market, pools are becoming a highly sought after amenity that can be found in some of the most luxurious and exclusive buildings and homes throughout the city. With that being said, the luxury of having your own pool in the building or even a private pool can come at a significant cost. 

Take a look at some of the best properties throughout the city that give the resident access to a pool. 

50 United Nations Plaza

Situated across from the United Nations, this new 43-story black tower has become an exclusive address in the city. The building offers an array of apartments and sizes, however, our eye is on the duplex penthouse on the 42nd and 43rd floors. The 9,700 sq ft duplex is comprised of 4 bedrooms and 6.5 baths, and features a private infinity pool on the 43rd floor. What better way to beat the heat than your own pool in the sky with spectacular views of downtown Manhattan and the East River? Asking Price: $70M

One57 Indoor Pool via Extell Development

One57

It may come as no surprise that the high-rise situated on what has been dubbed "Billionaire's Row" features one of the most luxurious indoor pools. Residents of One57 have a plethora of amenities at their fingertips as the building is part of the Park Hyatt Hotel and features a 20,000 sq ft amenities floor. The building has become iconic as it transformed the Midtown skyline, rising to 90 stories. Availabilities range from 1 Bedrooms starting around $3M to a 4 bedroom residence on the 83rd floor with spectacular views asking $58.5M. The finishes of the indoor, heated pool matched the sleek interiors of the residences. Additionally, the pool space features triple-height ceilings. 

Soori High Line unit 5A via Soori

Soori High Line

The Soori, a new development along the high line at 29th street receives the title of "greatest number of homes with private pools" in the city.  The Soori, designed by award-winning architects SCDA, features 31 residences, with 16 having private, heated pools. The pools are integrated into the modern, open-concept designs that feature floor-to-ceiling windows. Unit 5A is currently on the market with a private pool. The 3,586 sq ft 5 bed 5 bath residence features 2 terraces in addition to the private pool and is asking $10.875M.

443 Greenwich Penthouse A via Hayes Davidson

443 Greenwich Street

The Tribeca Lofts at 443 Greenwich Street  ( at Vestry Street) is a new luxury building in downtown Manhattan. The building was a former book binding factory which now features 53 condos. Residences vary in size, however, Penthouse A, currently on the market, is the crown jewel of the building. The triplex penthouse is comprised of 8,569 sq ft and 5 beds and 6.5 baths. The notable feature, of course, is the private pool found on the terrace which offers spectacular skyline views. Asking price: $55M

11 N Moore Penthouse Terrace via Streeteasy

11 N. Moore 

11 N Moore is a boutique Tribeca condominium that offers just 18 residences. On top of the building is a grand penthouse that is, perhaps, the crown jewel of penthouses. The residence features large picture windows and soaring ceilings up to 18 feet. In addition to the 7,000 sq ft of interior living space, the penthouse features 3,800 sq ft of exterior terrace space which is also home to a private pool. The unit is currently on the market, asking $29.995M and is newly on the rental market asking $75,000/MO.

If you are interested in residences with pools in Manhattan, we are happy to show you the premier luxury buildings throughout the city that offer this sought-after amenity.  Please fill out the form below to connect with us and ask us any real estate questions you may have! We will respond to your questions in a timely manner!