Are Co-ops the Best Deal in Town?

Are Co-ops the Best Deal in Town?


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.

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