In the middle of current financial crisis, people looking to move to the Upper East Side have a rare opportunity to find a bargain due to demand on buyers in housing market.
The “Silk Stocking District”, which got its name in the 19th century because of its many wealthy residents , has much to offer not only to wealthy people and families but also to upper middle class buyers, who wants to live in this well known area.
“Families want the P.S.6 area because it is school district. Wealthy people want Fifth Avenue, Madison and Park Avenues. The Upper East Side has a good deal of bargains for those who are not wealthy because of its low rise buildings on First and Second Avenues,” said Rose-Marie Gambella a City Sites Real Estate agent, “Comparing, for instance, to the Upper West Side withits high buildings and more access to parks.”
According to the Corcoran Real Estate Report in the third quarter of 2008, median price on the Upper East Side co-ops decreased 5%, and 4% per square foot. The median prices on condos also decreased 3%, however, there was a 6% price rise per square foot.
“Those who make the market instead of chasing it will find themselves rewarded. Buyers are being cautious until the credit crunch is alleviated and taking longer to make decisions. For the buyers who are serious, times like this can represent an incredible opportunity. They may find themselves with greater negotiating leverage than they have had in years,” Pamela Liebman, a chief executive officer of Corcoran Group, said in the third quarter report.
According to the same Corcoran report sales activity in New York reached its lowest level in the past five years; more over, the Joint Center of Housing Studies of Harvard University in its annual State of the Nation’s Housing report implies that the country is facing the worst housing downturn in 40 years.
However, this is the reason for “an incredible opportunity” that Pamela Liebman was mentioning because the number of housing for sale have not changed dramatically while the number of buyers decreased as a result of their concerns. Therefore, those buyers who are inclined to buy at these times are able to take an advantage over the economy.
Whether the “Silk Stocking District” will hold on to its status as one of the Cities most affluent neighborhoods remains to be seen. “The Upper East fairly popular, but today areas like Tribeca and Soho, I would say, hold first position in the market of luxury apartments because of their beautiful, new luxury lofts,” said Edward Longwe, a City Connection Realty agent.
However, due to the 995 Fifth Avenue new penthouse, Upper East Side still holds the highest pricing in the city as states in the Corcoran Report.
The great deals to be had is the silver lining to the real estate slump. New record low mortgage rates are another byproduct of the times. As you said many areas that were once untouchable by most buyers are now affordable. It will be interesting to see where the cards lay once everything plays out.