MARKET RESEARCH
Manhattan is the most sought-after section of New York City. It is home to Wall Street, the United Nations, Times Square, Madison Square Garden sports complex, some of the most famous museums in the world, the Broadway theatre district, and numerous restaurants with every type of cuisine imaginable. In Manhattan, real estate prices reflect this prominence in financial and cultural circles.
Since 3rd Quarter 2008 real estate reports, New York City’s housing market has faced some of its toughest challenges in twenty years. Manhattan has certainly felt the effects of the global financial crisis. During the 2nd quarter of 2008, total closings on home sales decreased by nearly 60 percent. However, trends in recent months have shown signs of that the real estate market is on the upswing. During the 1st quarter of 2009, closings had increased by 10 to 15 percent and research has show that homes sales will most likely increase further. With the market reshaping itself, this quarter and the next will most likely define the new levels of pricing in Manhattan.
What does this mean for you, the buyer?
• The market is recovering. This fall the market appears to be behaving much more normally than it has been over the past 12 turbulent months. Reports show that the number of listings added in Manhattan after Labor Day was similar to last year’s. This bode of confidence in the market shows that consumers are once again feeling comfortable enough to sell. This is good news for sellers—the steep decline has certainly subsided—but it does not mean that the market has returned to the way it was in its heyday.
• It is still prime time to buy. Although inventory has somewhat stabilized, sellers will not be getting the prices they received a year or two ago. New data suggests that asking prices are about 24 percent below levels last year at this time. According to 2nd Quarter 2009 real estate reports for Manhattan, the average sales price of condos is $1,598,000 and the average sales price of co-ops is $922,000.
• Take advantage of your currency. The Association of Foreign Investors in Real Estate has released a survey of its members and has ranked New York City the number one city in the world for real estate investment. The real estate downturn has made New York apartments and townhouses an incredible value for those whose wealth is in euros, Japanese yen, British pounds, Brazilian reals and other foreign currencies.
Below are closing costs associated with buying co-ops and condos in Manhattan, as well as some helpful statistics about New York City residential real estate prices, as well as a breakdown for Manhattan specifically.
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Closing Costs for Manhattan
Listed below is general information concerning closing costs associated with the purchase of an apartment in Manhattan. The costs listed are meant to be general guidelines, not exact figures. Buyers and sellers should consult their personal attorney or financial advisor for more specific information.
Closing Costs of Condominiums
For the Purchaser |
Own Attorney |
Approx. $1,750+ |
Bank Attorney (if financing purchase) |
$500+ |
Bank Fees (if financing purchase) |
Points: 0% to 3% of loan amount |
Application, Credit Check, etc. |
$500+ |
Appraisal |
$275+ |
UCC-1 Filing |
$50+ |
Mortgage Tax |
1.75% of amount of mortgage for loans under $500,000
1.875% of amount of mortgage for loans more than $500,000 |
Fee Title Insurance |
Approx. $450 per $100,000 |
Mortgage Title Insurance |
Approx. $200 per $100,000 |
Short Term Interest |
One month (maximum) |
Tax Escrow |
2 to 6 months |
Recording Fees |
$200-$300 |
Municipal Search |
$275+ |
Managing Agent Fee |
$200-$500 |
Common Charge Adjustment |
Pro-rated for the month of closing |
Real Estate Tax Adjustment |
1 to 6 months |
Mansion Tax |
1% of entire purchase price once the sale exceeds $1,000,000 |
Move-in Deposit |
$250-$1,000 (refundable after move-in if there is no damage) |
If Purchased Directly from a Sponsor
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NYC Real Property Transfer Tax |
1% of purchase price up to $500,000
1.425% of purchase price over $500,000 |
NYS Transfer Tax |
$4 per $1,000 of purchase price |
Sponsor’s Attorney Fee |
$1,500 |
For the Seller
|
Own Attorney |
Approx. $1,750+ |
Managing Agent Fee |
$200-$500 |
Move-out Deposit |
$250-$1,000 (refundable after move-out if there is no damage) |
NYC Transfer Tax |
1% of purchase price up to $500,000
1.425% of purchase price over $500,000
Plus $25 administrative fee |
NYS Transfer Tax |
$4 per $1,000 of purchase price |
Broker Commission |
6% of purchase price |
E Tax Filing (ACRIS) |
$50 |
Gains Tax Withholding (out of state seller) |
7.7% of gain |
Non-US Resident (FIRPTA) Tax |
10% purchase of price |
Closing Costs for Co-ops
For the Purchaser |
Own Attorney |
Approx. $1,750+ |
Bank Attorney (if financing purchase) |
$500+ |
Bank Fees (if financing purchase) |
Points: 0% to 3% of loan amount |
Application, Credit Check, etc. |
$500+ |
Appraisal |
$275+ |
Managing Agent Fee |
$450+ |
UCC-1 Filing |
$50+ |
Recognition Agreement Fee |
$200+ |
Lien Search |
$350+ |
Short Term Interest |
Equal to interest for balance of month in which you close |
Move-in Deposit |
$250-$1,000 (refundable after move-in if there is no damage) |
Maintenance Adjustment |
Pro-rated for the month of closing |
Mansion Tax |
1% of entire purchase price once the sale exceeds $1,000,000 |
For the Seller
|
Own Attorney |
Approx. $1,750+ |
Managing Agent Fee |
$450+ |
Move-out Deposit |
$250-$1,000 (refundable after move-out if there is no damage) |
NYC Transfer Tax |
1% of purchase price up to $500,000
1.425% of purchase price over $500,000 |
NYS Transfer Tax |
$4 per $1,000 of purchase price |
Miscellaneous Title Fees |
Approx. $200 |
UCC-3 Filing |
$50+ |
Flip Tax |
Depends on building |
Stock Transfer Tax |
$0.05 per share |
Broker Commission |
6% of purchase price |
Estate Fees |
Co-op may impose additional fees for estate sales |
Gains Tax Withholding (out of state seller) |
7.7% of gain |
Non-US Resident (FIRPTA) Tax |
10% of purchase price |
MANHATTAN – 4th QUARTER ‘09
|
Condos |
Co-ops |
Luxury Units |
Average Sales Price |
$1,655,000 |
$944,000 |
$4,863,673 |
● percent change from 3q09 |
9% |
3% |
-0.4% |
Median Sales Price |
$995,000 |
$630,000 |
$3,780,000 |
● percent change from 3q09 |
-2% |
0% |
-3.2% |
Average Price Per Sq. Ft. |
$1,187 |
$921 |
$1,866 |
● percent change from 3q09 |
7.8% |
6.4% |
12.7% |
Number of Sales |
1,209 |
1,264 |
247 |
● percent change from 3q09 |
-2.1% |
27% |
10.8% |
Number of Listings |
3,782 |
3,069 |
1,384 |
NEW YORK CITY (including Manhattan) – 4th QUARTER ‘09
|
Condos |
Co-ops |
Average Sales Price |
$1,087,000 |
$585,000 |
● percent change from 2q08 |
1% |
1% |
Number of Sales |
2,929 |
3,741 |
● percent change from 2q08 |
28% |
16% |
MANHATTAN TOWNHOUSES*
|
Townhouses |
Average Sales Price |
$5,012,736 |
● percent change from 2q08 |
-32% |
Median Sales Price |
$3,400,000 |
● percent change from 2q08 |
-31.9% |
Average Price Per Sq. Ft. |
$1,111 |
● percent change from 2q08 |
-31.2% |
Number of Sales |
149 |
● percent change from 2q08 |
-1.3% |
Number of Listings |
402 |
● percent change from 2q08 |
-24.2% |
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*Data based on market research reports from 4th quarter 2009 |
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