Page 22 - New York Cooperator March 2019

22 THE COOPERATOR
— MARCH 2019
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37966_Cooperator_5x6.25.indd 1
12/8/17 11:24 AM
lack of urgency may be what’s behind the in-
crease in days on market of approximately 6
percent over 2017.
Inventory Indicator
Perhaps the most significant changes in
the market are in inventory. Market-wide,
the overall number of units available in-
creased by 10 percent since fourth quarter
2017. Inventory in the co-op resale market
is up 17 percent, and 6 percent for resale of
condo units. “Although fourth quarter in-
ventory hasn’t been this high since 2011,”
says Corcoran, “this quarter’s figure was still
31 percent lower than the fourth quarter
peak reached in 2008.”
Brokers and other professionals view this
discrepancy between the increase in inven-
tory between co-op and condo units as a
result of several factors. First of all, condos
tend to sell and close more quickly than co-
ops, as there’s no board approval required.
Additionally, as Leedes Bienstock explains,
while having a lower price generally, co-
ops require more cash and liquidity from
the buyer upfront. That generally leads to a
longer period on the market. Overall, the in-
ventory of co-ops in absolute terms always
outpaces condos because they stay on the
market longer.
Bo Poulsen, also a broker with Halstead,
adds that “economic uncertainty was a ma-
jor factor” in the change in the market over
the past year. “2018 really started in 2017,” he
says. “A lot of inventory came onto the mar-
ket at that time. Overbuilding in the luxury
market generated a lot of the problem. The
slight improvement we’ve seen in the fourth
quarter over the rest of 2018 is attributable
to a slight decline in mortgage interest rates,
and sellers becoming more realistic. Despite
the market, people have to go on with their
lives. Now people are seeing opportunity
and acting on it.”
Neighborhood Differences
From a neighborhood perspective, com-
parisons are all over the board. The Upper
West Side had the largest decrease in total
sales and median sales price, while the Up-
per East Side had the highest increase in
average price per square-foot differentially.
Downtown experienced no change in sales
volume. Midtown had the highest decrease
in median price per square-foot. Upper
Manhattan showed mixed results, with posi-
tive movement in Washington Heights and
declines in Harlem. Inventory rose in all sec-
tors.
In this new reality, Larry Lubin, a broker
with Klara Madlin Real Estate in Manhattan,
advises sellers to “price things right. If buy-
ers get a sense that things are even slightly
overpriced, they will simply walk out; they
won’t even make a low-ball offer. We had a
listing on the Upper West Side, and the seller
needed to get out, so we under-priced the
apartment a little bit. That resulted in a bid-
ding war, and ultimately we got a little more
than we expected.”
Markets change; In prior years it was
the seller’s market. As Leedes Bienstock de-
scribes it, “sellers expected to sell in a bidding
war in five minutes,” but that’s not necessar-
ily the case, and “buyers are feeling their oats
and their demeanor has changed.” Markets
swing back and forth. Watch this space over
the coming weeks for the pros’ predictions
on what 2019 will bring.
n
AJ Sidransky is a staff writer at The Coop-
erator, and a published novelist.
MANHATTAN..
continued from page 8
on their own. Pest control plans start be-
fore demolition. Pest control must be dealt
with in an ongoing, timely manner. It’s not
a one-time exercise.”
Getlin adds that “when you negotiate
an access or license agreement, cover this.
Also, increase the visits of your own exter-
minator, and seal everything up.” That’s the
approach she took when dealing with near-
by construction in properties she’s man-
aged. “The problem is unavoidable and an
uphill battle, but it can be fought.”
Governing Authorities
Freedland explains that laws and regula-
tions governing construction are found in
both state and local ordinances and juris-
dictions. Getlin, Strnad and Freedland all
agree, though, that for the most part it’s
local laws and regulators who oversee the
process. In Chicago, it’s the Department of
Buildings and the Office of Underground
Construction who have the most oversight
responsibility along with those agencies
governing historic preservation. In New
York, it’s also the Department of Buildings
and the local community boards – and in
relevant instances the Landmark Preserva-
tion Commission. Be sure to check with
your local governing authorities if a project
is about to begin near you.
In the end, Getlin offers the following
advice. “Try to develop a good rapport with
the point person for the developer. And be
aware that your priorities are not the same
as the developer. You have to remember
that your priority is to protect your build-
ing and its residents. Sometimes that’s dif-
ficult. The developer has a lot of money on
the table and they can be very emotional
about it. Know how to stand your ground
politely. Keep board and owners informed
and be proactive. That makes people feel
more comfortable. This is about their qual-
ity of life.”
Make sure the agreement is reasonable.
You should be named as an additional in-
sured on their policy, and make sure their
work will be conducted among other
things. Make sure you’re represented by
counsel to protect yourself
n
A J Sidransky is a freelance writer/reporter
with The Cooperator.
BUILDING...
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