New Yorkers are nicer these days. It seems everyone is smiling on the streets of the Big Apple; or their faces are just frozen in a joker-like grin?
Now seriously, I think this arctic weather has affected the market in the recent months. This chill is inviting no one to venture out in search of real estate deals.
One broker even recently tweeted: “canceled our open house at our new listing at 565 Park – will reschedule in spring when the snow stops!”

The appraisal firm Miller Samuel published data for the last quarter 2010. It’s worth considering some trends highlighted in it.
The number of sales in Manhattan in the fourth quarter 2010 were 2,295; down from 2,473 from the same period the year before. We should keep in mind though that the fourth quarter in 2009 was the largest fourth quarter market share of sales activity in more than 20 years. It was a period when pent up demand from the previous recession months and first time buyers incentives spurred a flurry of sales.
On the other end, the inventory (i.e. available real estate on the market) declined between the third and fourth quarter 2010 from 8,123 to 7,232 leading to a modest level of inventory for the beginning of 2011.
The market share of studio and one bedroom apartments decreased by 11% compared to the year before when the entry level segment was stimulated as I mentioned above; while the two bedroom category gained 12% becoming the largest segment of the market.
Price per square foot in residential Manhattan as a whole went from $1,051 in the fourth quarter 2009 to $1,058 in the fourth quarter 2010; during the same period the average number of days a property stayed on the market before being bought went from a record 204 to 124. This number was basically unchanged over the last two quarters 2010 and is in line with the 126 days on the market average of the past 15 years.

Financial District (FiDi)
The neighborhood is continuing its process of improvement and change.
While there are consulting firms and financial institutions like Deloitte & Touche and Nomura  that are leaving for Midtown, there are media firms, law firms, tech corporations that are finding their new home here. Examples include: Conde Nast – negotiating a 1 million square foot lease at One World Trade Center; Newsweek and The Daily News – both planning to move here soon.
FiDi has also seen its residential population more than double since Sep 11 2001.
I think that in the end the loss of big players like Deloitte and Nomura will not be a significant problem for the neighbourhood. Even though the neighbourhood will maintain its financial “ego”, FiDi is acquiring a diversity of industries and a growing residential population – both of which are creating a downtown market for opportunities in the retail sector.

As brokers have been noticing for few months now: the seasonality of the Manhattan rental market is back.
According to Miller Samuel data, the number of new apartment rentals reached 7,217 in the fourth quarter of last year; almost three times as much compared to the same quarter 2009.
On the other end the slowdown in the winter months manifested itself since the activity was 16% higher during the third quarter 2010 compared to the successive one.
Employment will play a big role in deciding whether this seasonal pattern is back for good.
According to the New York State Department of Labor: roughly 119,500 fewer people are employed in New York City compared with August 2008. And nationwide, unemployment rate fell by 0.4 percentage point to 9.0 percent in January.

200 Eleventh Avenue
The new residential building by architect Annabelle Selldorf is few weeks away from its completion but it is already one of the most talked about condos.
The structure presents a peculiar feature: The Sky Garage.
Residents can drive their car into the building and an elevator will take them and their automobile to their apartment floor. Even if the concept is not that innovative in general (there are some office buildings with the same service), it is the first of this kind when it comes to luxury apartment buildings in Manhattan.
Newspapers report that Nicole Kidman and Domenico Dolce (of Dolce and Gabbana) have purchased units here.

100 Eleventh Avenue
At this Jean Nouvel designed neighboring glass structure in luxurious West Chelsea, residents have been complaining about construction problems and delays.
Recently there was even a leak in the lobby’s ceiling creating a puddle in the polish-granite floor.
The problems with the construction have been mirroring the tough financial environment of the past two years. The project actually needed to be rescued by a group of private investors to escape bankruptcy.
As much as the deconstructive style of the building catches the eyes from the outside, it does not seem to conceal the building’s internal technical issues that appear far from being fixed.
When the financial crisis hit, several buyers who signed contracts to purchase units and put down six figures deposits tried to walk away and sued the sponsor over a number of different claims.
In fact closings at the building began in late 2009, almost two years after some contracts had been signed.
While with difficulties, it must be said that the new ownership group has been able to provide resources to keep the project “luxuriously” alive.

This is it for today, my Dear Friends.
I am always available to answer your questions and provide you with more information on your next real estate investment in the Big Apple.

Warm Regards,
Riccardo Ravasini

photography by: http://mariobucolo.info