Are Co-ops the Best Deal in Town?
With the slew of challenging news over the past few months, it’s understandably hard to focus on the opportunities. Yet, quite a few abound.
The market is still in reset mode. Supply is right in line with where it was in 2019, a more typical year. Currently, supply stands at just below 8,000 listings. Deal volume is beginning to increase as prices come down. The average sales price has decreased by 7.6% since last quarter. For context, most properties sell today for 10%-20% below what they commanded at the height of the market in 2015 or 2016.
To no one’s surprise, mint-condition properties in “A” neighborhoods are seeing the most action, and most are condos. The Olshan Report indicates that condos account for approximately 80% of properties purchased above $4M in 2021 and 2022.
Buyers can’t seem to get enough of these brand-new condos with their luxurious amenities, and rightly so. However, the true opportunity lies in the somewhat forgotten segment of the market— co-ops. Currently, they may be the best deal in town.
Precisely because of demanding co-op Boards and the ownership structure, fewer buyers seek the fabulous pre-war apartments lining Manhattan’s most historically desired avenues. Furthermore, many of these pre-war apartments need work.
Yes, renovations are time-consuming. Yes, co-op boards can be challenging to deal with. But the pros outweigh the cons. Not only do you get more space for your money with a co-op, but sellers are also more negotiable, and there’s less buyer competition on the market. Not to mention, renovating a home to match your tastes will bring you joy and save you money in the long run.
The market is still in reset mode. Supply is right in line with where it was in 2019, a more typical year. Currently, supply stands at just below 8,000 listings. Deal volume is beginning to increase as prices come down. The average sales price has decreased by 7.6% since last quarter. For context, most properties sell today for 10%-20% below what they commanded at the height of the market in 2015 or 2016.
To no one’s surprise, mint-condition properties in “A” neighborhoods are seeing the most action, and most are condos. The Olshan Report indicates that condos account for approximately 80% of properties purchased above $4M in 2021 and 2022.
Buyers can’t seem to get enough of these brand-new condos with their luxurious amenities, and rightly so. However, the true opportunity lies in the somewhat forgotten segment of the market— co-ops. Currently, they may be the best deal in town.
Precisely because of demanding co-op Boards and the ownership structure, fewer buyers seek the fabulous pre-war apartments lining Manhattan’s most historically desired avenues. Furthermore, many of these pre-war apartments need work.
Yes, renovations are time-consuming. Yes, co-op boards can be challenging to deal with. But the pros outweigh the cons. Not only do you get more space for your money with a co-op, but sellers are also more negotiable, and there’s less buyer competition on the market. Not to mention, renovating a home to match your tastes will bring you joy and save you money in the long run.
