The State of Real Estate in Harlem: In a word: stuck.
Nobody is buying, so therefor, nobody is selling. While the rest of New York has slowed, Harlem is at a complete standstill. Some neighborhoods have seen transactions drop 90% from the same period last year. Is this a surprise? No, not really. After many months of seeming immune to the nationwide real estate deflation, the New York market proved that in fact it really is not that much different from the rest of the country. When credit gets tight and people start losing their jobs and Wall Street quits paying bonuses (that is except to those at AIG!), of course New York real estate is going to slump. How could it not? Harlem, by any measure, is an emerging neighborhood. It was late to the game, still lacks some amenities that other New York neighborhoods take for granted, and has a population that at times can be less than welcoming to newbies. However, once the worm turns and credit begins to flow again (and it will), and the New York real estate market thaws (and it will...it always does...just as everybody thought it will only go up (wrong!), it won’t only go down!) Harlem will begin to look like a buy. Assuming the New York City real estate market drops 30-40% from the peak, if Harlem was a relative bargain at the peak, stop and think about what a bargain it will be at the trough...
Harlem has access to multiple subways, Metro North, more parks than any other neighborhood in New York, great housing stock, and 5-7 years of “new” residents who have a vested interest in raising the quality of life as well as real estate prices. The hundreds of recently built condos and converted townhouses will need owners and renters. While the builders and developers may get killed by the current glut, that glut will create great opportunities for families, artists, young professionals and all of the others that helped turned other neighborhoods like the Lower East Side and the Bowery from nothing to something. Also, don’t forget about Columbia’s push to expand their campus and the re-zoning of 125th Street. So while others see nothing but gloom for the neighborhood that I call home, I think in 3-5 years it will be the neighborhood that will be attracting the “smart” money.
Richard C. Bouchner
I put together a cheat sheet for my real estate clients who are looking to rent an apartment in New York City. The New York rental market as some unique requirements. I hope that the Apartment Renters Cheat Sheet is helpful to those who are abut to rent an apartment in New York.
Things to Consider When Renting in NYC
Neighborhood
Quality of Life
Income Requirements
Fee Structure and Application
Websites
Richard Bouchner, Managing Director, Commodore Property Group
Direct: 646.825.5734 Cell: 917.627.3459 E-mail: rich@cpg-nyc.com
The empty lot on the south west corner of 125th and Lenox is being set up for a Law and Order shoot. Towards the end of last week there was some activity on the lot...builders, trucks and the like...my first hope was that there might actually be a building going up. I realized though that this being New york City during the credit crunch, a new building was doubtful. On my way to the subway this morning, it became evident that construction crew was working on a faux garage for a Law and Order episode. Who knows...is Harlem the last "authentic" neighborhood left in New York City??
Believe it or not, there is a mortgage lender that will allow 95% financing for coop mortgages in New York City. As any New Yorker who has ever thought about buying a coop knows, most coop boards require a minimum of 20% down. There are however, a few buildings that will allow 10% down. Yesterday I received a call from a women who was looking at one bedroom sponsor owned coop apartment in the East Village that had no minimum downpayment required. She had see my FHA coop post, and wanted to know if I could help her obtain a FHA coop mortgage.
Unfortunately, while it seems as though FHA is willing to insure coop mortgages, there are no banks that are participating in the FHA coop program. After a little research though, i found that a bank out of Michigan will do coop loans to $417,000 with only 5% down. This could be a viable alternative for those looking to buy their first apartment in New York City. I will post updates as I learn more...
Anybody who is trying to to get a mortgage in a new condo development all ready knows how this song goes....
Unless the condo has 70% of the units sold (up from 51%), and no more than 10% of the units are owned by a single entity, or if more than 15% of the owners are behind in their condo fees, Fannie Mae will not issue a mortgage. In cities like my home town of New York (or Las Vegas and Miami for that matter) that have 1000s of new units coming to market, Fannie's new tighter rules are really adding fuel to the housing debacle and killing prices I understand that Fannie needs to protect itself from bad mortgages, but this is going to force many developers over the brink. Unless a potential buyer can pay cash, how are developers expected to unload their units? I think we will see the banks that hold the construction loans starting to offer mortgages to buyers, and we will see auctions as well as developers become desperate to fill their newly completed projects. Nice work Fannie...way to get tough at just the wrong time!
Fannie Tightens Its Conditions for Backing Condo Mortgages
Rich Bouchner
Managing Director
Commodore Property Group
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Commodore Property Group is a boutique real estate co located in New York City. We assist in the sales and marketing of coops, condos, townhomes, and investment properties in Manhattan and Brooklyn.
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