Revival has been the buzzword in the New York real estate market for quite a while now. The market for studios was the first to gather steam; it was then followed by three-bedroom homes. And now, it’s the turn of two-bedroom apartments to feel the upward surge.
The widest variety in terms of cost, covered area and amenities in the New York real estate market is seen in the two-bedroom category, with properties ranging from $700,000 to lavish $5 million spreads. Industry pundits have observed that the lower segment of the market ($750,000 – $1.2 million) has made the most striking recovery. This process started in mid-2010, even as the demand for studios lost its upward momentum.
The executive vice president at Bellmarc Realty, Alan Nickman, confirms this trend. He says that most of his recent buyers have asked for apartments in the $750,000 – $1.2 million range. He goes on to add that amongst these buyers, there are “first-time buyers who are going straight into a two-bedroom.”
Jonathan J. Miller, who is the president of Miller Samuel, an appraisal firm, says that the two-bedroom market is likely to be very robust through 2011. This is because the two-bedroom inventory is not quite keeping pace with the demand. Since March 1, the two-bedroom inventory has recorded the slowest growth in the market at 11.4 percent.
Currently there are over 600 listings for two-bedroom apartments under $1 million. Predictably, most of these properties are in Queens, Brooklyn and Upper Manhattan. However, there are options available in highly-sought after locations south of 96th street as well. There is hot competition on for these homes, and most of them are receiving multiple bids and being picked up within a week of being on the list.
Naturally, the problems with some of the lower priced homes on the two-bedroom list are lack of amenities and locational problems. Most of the buildings are older constructions with no doorman, and the windows don’t offer interesting views. Some of them even face walls and back alleys, thus reducing the amount of light that gets in.
However, buyers prefer to look at the brighter side. For instance, most of the older constructions have been recently renovated and have well functioning amenities. Besides, a studio can never match the spatial availability of a two-bedroom spread. Young couples can confidently start a family, without thinking twice about spatial restrictions. Consequently, a two-bedroom apartment tends to be a longer-term buy and appears more attractive to buyers than similarly priced studios.
Karin Posvar Picket, a real estate professional who works at the Corcoran Group confirms this buyer approach. She says, “There are not many two-bedrooms in Manhattan priced this low ($600,000 – $700,000).” She then adds, “this is an alternative to a one-bedroom that buyers can stay in well into the next stage of life.”
Other agents confirm that whenever low priced options turn up on the list, which are in good condition and offer good views as well, they go almost instantly.
This trend just confirms that the New York real estate market is in great health. The message is clear for potential buyers: be prepared to make lightning quick decisions, or lose out