FiDi: Big Discounts Means More Sales

The Financial District saw a spike in sales in the 2nd quarter with a 33% increase compared to the previous quarter according to a report by Platinum Properties. The past three months were also up 17 percent when compared to the same period last year. It's claimed the factor wasn't to beat the new tax laws rather the average price per square foot dropping more than 4 percent year-over-year, to $1,231. Average discounts in the neighborhood also doubled when compared to the second quarter of 2018. Inventory shot up 24 percent year over year in the second quarter of this year, resale prices fell 11 percent, and the average new development price plunged 46 percent. On a side note, if you remember back in 4Q of 2018 FiDi units sales tumbled 39 percent compared with a year earlier — while the median price falling 42 percent to $952,250. Three-bedrooms saw the biggest price hit with the median price sliding 11.9 percent to $2.78 million. With this in mind, you can see buyers starting to jump in taking advantage of the lower prices. Something to be aware of is the future inventory of FiDi. Last June The Real Deal claimed the neighborhood had 1,928 units in the pipeline between new construction and active units (not including in-contract of course). New Development Analyst Nancy Packes determined FiDi absorbs 16% of its inventory a year which would translate to about 8yrs to absorb all the inventory, nearly double the Manhattan average. The median time that apartments in the Financial District sat on the market in May and June was, respectively, 104 days (nearly 63 days longer than Brooklyn and LIC). The biggest wildcard of unclarity is Harry Macklowe’s One Wall Street that will have 566 condos. In 2014 Harry purchased the site (Bank of New York Mellon building) — $585 million having confidence in his overseas marketing, especially in China. Fast forward to today I'm sure he's not too happy about the trade wars impact on Chinese buyers... 

FiDi's neighbor, Battery Park, hasn't had the same success. Perhaps it hasn't lowered enough for buyers taste as the neighborhood's average price slid only 2% when compared to last year. In result, the number of sales has declined by 17%.

The Take-Away

It is a good time for buyers to say the least considering the low prices and low-interest rates however one will have more choices as the future inventory comes to market with possible further discounted prices. If you're wondering when or better yet where to pull the trigger on a purchase, you guessed it --> Call Me

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