At a time when New York City's budget continues to grow while many residents feel public services are not keeping pace, it is frustrating to see real estate owners repeatedly treated as the solution to every budget shortfall. There are transfer taxes. There are property taxes. Buyers purchasing over $1 million already pay the mansion tax. There are mortgage recording taxes, and lawmakers have even floated the idea of taxing all-cash purchases. And now, the pied-à-terre tax has officially passed. Approved late in the legislative session and set to take effect next month, the new tax leaves many unanswered questions. Here is our breakdown on the new tax, the unanswered questions, and potential consequences. The Backdrop: New York's Unusual Property Tax System The tax arrives amid growing scrutiny of New York City's property tax system. Unlike many jurisdictions, the city does not reassess properties upon sale. Co-ops and condominiums are generally valued as if they were rental buildings, while one- to three-family homes are valued under a different methodology. The result is a system where assessed values often bear little resemblance to actual market values. Faced with budget pressures, city leaders have increasingly looked to real estate for additional revenue. Yet there has been little appetite for a comprehensive overhaul of the property tax system, likely because doing so would create winners and losers across virtually every neighborhood in the city. Why Target Pied-à-Terres? Instead, policymakers have focused on a smaller and politically easier target: luxury second homes. Set to take effect next month, the new pied-à-terre tax leaves many unanswered questions, and the Department of Finance has yet to issue the rules and guidance necessary to implement it. At its core, the legislation imposes a surcharge on certain second homes in New York City. Exempt from legislation are properties occupied by an immediate family member of the owner, or those rented out to unrelated parties with leases of at least twelve months. How the Tax Will Work The tax will be implemented in two phases. During the first phase, second homes valued at over $1M for co-ops and condos and $5M for 1-3-family homes will be taxed. These valuations will be based on the Department of Finance's current market values, which have long understated the value of many co-ops, condominiums, and one- to three-family homes. This is expected to impact very few second homes. Beginning in 2028, the second phase will rely on a new valuation methodology based on comparable sales that the Department of Finance has yet to develop. In phase 2, all properties with a valuation over $5M will be subject to the tax. Because of uncertainties regarding the new valuation methodology, it is hard to predict how many second homes will be impacted. The Bigger Question Many in the industry view this legislation as something much larger than a tax on second homes. Once a new valuation framework exists, it is difficult to imagine it being used solely for this narrow purpose. The bigger question is whether this becomes the first step toward a broader overhaul of New York City's property tax system. Implementation Challenges For co-ops, implementation presents additional challenges. Unlike condominiums, co-op apartments are not individually assessed tax lots. Buildings will need to determine which apartments qualify as pied-à-terres and collect the surcharge from affected shareholders. That creates new administrative burdens for cooperative boards and raises questions about how smoothly the law can be implemented in practice. Potential Consequences As an industry, many struggle to find redeeming qualities in this legislation. One notable omission is the lack of an exemption for New York State residents who already pay New York State and New York City income taxes. More broadly, policies that discourage pied-à-terre ownership risk pushing investment elsewhere. That matters because real estate supports far more than property owners. It supports building staff, contractors, architects, attorneys, designers, brokers, restaurants, retailers, and countless local businesses throughout the city. At some point, the question becomes whether continually adding new layers of taxation is strengthening New York's long-term economy or gradually making the city a less attractive place to invest. That is a question policymakers should consider carefully before looking once again to real estate as the answer to the next budget gap.

One of the first conversations we have with buyers moving to New York is explaining just how different the process is here compared to almost everywhere else in the country. Because NYC real estate operates by its own rules. The biggest example is co-ops. In most parts of the country, buyers do not even know what a co-op is, and they do not need to. But in Manhattan especially, co-ops make up roughly two-thirds of the housing inventory and are often priced at much more accessible price points than comparable condos. That affordability comes with tradeoffs. When you buy a co-op, you are technically not purchasing real estate itself. You are buying shares in a corporation that owns the building, along with a proprietary lease granting you the right to occupy a specific apartment. And because of that structure, co-op boards have enormous influence over the process. They can set financial requirements, dictate building rules, restrict pieds-à-terre ownership or subletting, require board interviews, and ultimately approve or deny buyers. That is why one of the first things we do with clients is evaluate whether a co-op is actually the right fit for their lifestyle, finances, and long-term goals. That decision alone can completely shape someone’s search. Timing is another major adjustment for out-of-town buyers. New York moves fast in many ways, but real estate is often surprisingly slow. In many other markets, there is a strict escrow timeline with clear deadlines. Here, transactions tend to move at their own pace. Even relatively straightforward deals often take at least four to six weeks to close. Once financing, condo applications, or co-op board approvals become involved, timelines can easily stretch to several months. Patience becomes part of the process. The contract process also surprises many buyers since making or accepting an offer is not binding. Unlike many states where offers are accompanied by earnest money deposits and become binding relatively quickly, accepted offers in NYC are not immediately binding on either side. A seller can still accept another offer. A buyer can still walk away. An accepted offer mainly triggers attorney due diligence and contract negotiations, which usually take one to two weeks. Only once contracts are signed and the buyer submits the deposit — typically 10% — does the deal become legally binding. Showings work differently too. Most NYC apartments are either owner-occupied or tenant-occupied, so showings are typically by appointment or during designated open house windows. Listing agents usually need to coordinate access directly, and some buildings place strict limitations on showings or public open houses altogether. Finally, we don't have inspection contingencies. That is because due diligence in New York is heavily front-loaded. Buyers usually complete inspections, financial reviews, and building due diligence before signing contracts so the contract itself can remain relatively clean once both sides commit. To many out-of-town buyers, the process initially feels overwhelming. But once buyers understand how the system works, it becomes much easier to navigate strategically. And that education is a major part of our role — helping buyers understand not just the apartment itself, but the structure, process, timing, and building dynamics that ultimately shape the entire experience of buying in New York City.

One of the biggest misconceptions sellers have is that maximizing value before a sale means taking on a major renovation. That's almost never true. One of the first things we evaluate when walking into a new listing is not whether a seller should gut renovate, but what may distract buyers from emotionally connecting to the space and what can be done to make the apartment feel brighter, fresher, more aspirational, and easier to picture living in. And in most cases, that is where we focus. Paint is one of the clearest examples. But not just on the walls. We often recommend painting cabinetry, bathroom vanities, built-ins, or outdated trim when the existing finish feels dated, chipped, worn, or simply does not photograph well within the space. Those relatively minor changes can completely shift how an apartment feels without the cost, timeline, or disruption of a full renovation. Lighting is another high-impact update. Replacing dated fixtures with cleaner, simpler options can make a space feel much more current almost immediately. Goodbye boob lights. Then there are the softer details buyers may not consciously notice, but absolutely react to. Fresh linens brighten a room and instantly elevate it, whether that means crisp bedding, updated towels, or a better shower curtain. We often switch out throw pillows for more modern patterns and textures that photograph better and make the apartment feel more current. Plants soften rooms and make them feel cared for. Even good fake plants can have this effect. Rugs are not just decoration. They define spaces. We pay close attention to scale and dimensions because the wrong rug can actually make a room feel smaller or awkwardly proportioned. Things like coffee table books, artwork, and accessories can also help shape the overall feeling of a space, whether that vibe is more bohemian, artistic, academic, minimal, or classic. In reality, we rarely advise sellers to take on major renovations before listing. In more than a decade of selling Manhattan and Brooklyn real estate, we have only recommended full kitchen renovations twice before listing — both in situations where we believed the increase in sale price would far exceed the actual renovation cost, which is very rare. (And we were right.) We want buyers to respond emotionally to the apartment. They need to feel it that is has been well maintained and is easy to move into. We want them to feel connected. We want them to feel “this is how I want to live." Those feelings last past the showing. Those feelings have them up at night. Those feelings get offers. Before or After? Do you think the costs were worth it?

Out-of-town buyers are often surprised by how different the NYC real estate process feels from other markets. Many buyers come in focused primarily on the apartment itself: the finishes, the neighborhood, the view, and the square footage. But in New York, the building matters just as much as the apartment. Two nearly identical apartments can have completely different rules, monthly carrying charges, financial requirements, renovation policies, and long-term flexibility depending on whether the building is a co-op or condo and how that particular building operates. Timing is another big adjustment. Well-priced apartments in desirable buildings can move very quickly, particularly when they are move-in ready and priced well relative to the surrounding market. Buyers are often surprised by how quickly they may need to make decisions once they find the right property. At the same time, the actual closing process usually takes much longer than buyers expect. Even an all-cash condo purchase typically takes at least 45 days to close, while many transactions take closer to 2.5 to 4 months from signed contract to closing. Attorney review, board packages, financial disclosures, managing agent requirements, and building approvals all become part of the process fairly quickly. Then there are the things buyers do not initially realize are considered luxuries in NYC. In-unit washer dryers are still uncommon in many buildings. Garbage disposals were banned for years and remain relatively rare. Many newer buildings no longer allow gas stoves. Central A/C can be difficult to find in older buildings, and some co-ops still permit only window units. And then there is the question of value itself. Many buyers are surprised by what $1M, $2M, or even $3M buys in Manhattan and Brooklyn compared to other markets, particularly when it comes to size, views, outdoor space, and overall scale. But that is also part of what makes NYC real estate so unique. People are not just buying square footage here. They are buying location, lifestyle, convenience, culture, and access to one of the most dynamic cities in the world. And understanding those tradeoffs early is a major part of helping buyers find the right fit long term.

Many NYC buyers focus heavily on saving for the down payment. But financially, that is often just the starting point. It is everything that comes after. and in NYC, those costs can add up quickly. First, there are the closing costs, which are significantly higher than in many other places. There is mansion tax, which begins at 1% for purchases over $1M, and increases on a graduated scale depending on the purchase price up to 2.25% of the purchase price. There are attorney fees, which are often in the $3,000 to $5,000 range, though some attorneys bill hourly and can be considerably more expensive depending on the transaction. For condos, there is title insurance, which is calculated through a fairly complicated formula. As an initial estimate, we often conservatively budget around 0.5% of the purchase price. There are move-in deposits and building fees. If you're financing, there are origination and appraisal fees. And if you're financing a condo or a house, there is mortgage recording tax, which is 1.8 or 1.925% of the financed amount, depending on price point. Then there are the ongoing ownership costs. There are monthly building charges, typically referred to as maintenance in co-ops and common charges in condos. Those charges go toward building staffing, insurance, maintenance, water, garbage, and the day-to-day operation of the building itself. There are also real estate taxes which are included in maintenance or charged separately for condos and houses. And buyers are often surprised by how much those costs can vary from one building to another. There is also the possibility of future assessments. Buildings periodically need to comply with various NYC local laws, complete capital improvements, or increase reserves when unexpected expenses arise. Renovation costs in NYC also remain extremely high. Labor is expensive. Building rules are restrictive. Approvals can take months. None of this is meant to discourage buyers. It is simply important to understand the full picture early so there are fewer surprises later. A major part of our role is helping buyers evaluate the true cost of ownership, think through the tradeoffs between different buildings and apartment types, and walk into the process with their eyes wide open. Because in NYC, buying successfully is often less about the apartment alone and more about understanding everything that comes with it.

The Upper East Side feels different right now. Not so establishment. More vibrant. Dare I say hip again? For years, the neighborhood carried a reputation for being traditional, quiet, and a little predictable. Beautiful apartments and established buildings, but not necessarily where people went looking for energy or newness. That has changed. A wave of restaurants, cafes, fitness studios, and retail has completely shifted the feel of the neighborhood over the last few years. Many downtown restaurants are opening uptown outposts, while Madison Avenue retail has evolved far beyond the traditional luxury brands that once defined it. Brands like Vuori, Farm Rio, and Staud are bringing a different energy and price point to the avenue, while more fashion-forward labels like Dries Van Noten and Toteme are giving parts of Madison Avenue a noticeably more SoHo-like feel than it had even a few years ago. The Second Avenue subway accelerated a lot of that change by making Yorkville feel far more connected to the rest of Manhattan. Areas that many buyers once overlooked suddenly became more convenient and increasingly attractive relative to comparable downtown neighborhoods. But the biggest shift is not retail. It is lifestyle. For years, downtown represented the aspirational version of Manhattan living. Now, many buyers are looking at the Upper East Side differently, drawn to the parks, cleaner streets, culture, convenience, and apartments they can realistically stay in long term. And the Upper East Side offers something increasingly difficult to find in Manhattan: a neighborhood that feels established without feeling stagnant. You can move between Central Park, museums, restaurants, cafes, and Madison Avenue retail while still finding larger apartments, quieter blocks, and a distinctly residential feel that is harder to find in many other parts of Manhattan. And buyers are responding. Move-in ready apartments with good light, sensible layouts, lower carrying costs, and flexibility continue to perform especially well, particularly in well-run co-ops and condos near the park and along the Second Avenue corridor. The irony is that many of the things buyers once overlooked about the Upper East Side are exactly what people are looking for now. Greenspace matters now. Culture matters now. Ease matters now. And all the new restaurants and shops don't hurt.

NYC co-op buyers have reportedly been rejected for being too rich, too young, too famous, and even because of who wrote their reference letter. Beyond these sensational claims, in reality, most co-op rejections have little to do with personality and everything to do with finances, liquidity, debt-to-income ratios, and whether the buyer is a good fit for a building's requirements. Co-op boards are primarily focused on what a buyer's financial picture will look like after closing. Liquidity matters. Debt matters. Employment history matters. And sometimes the issue is not that a buyer fails to qualify, but that the package raises questions. For example, we have heard of buyers being rejected after failing to disclose liabilities that later surfaced during the credit review. Even if the omission was accidental, it can create concerns about transparency and credibility. Boards also look beyond the numbers. If a buyer is purchasing an apartment that requires extensive renovations, the board may want comfort that there will still be sufficient reserves to complete the work after closing. Then there are the gray areas. A building may technically allow pieds-à-terre, guarantors, trusts, or parental purchases, but different boards can view those situations very differently. A pied-à-terre owner planning to spend substantial time in the apartment may be viewed differently from one who intends to visit only occasionally. And sometimes it is not about the applicant at all. Boards are often aware of recent sales in the building and may have concerns about transactions that could establish pricing precedents they do not believe reflect the building's value. At the end of the day, boards are evaluating far more than a purchase price and salary. They are evaluating whether a buyer appears financially stable, organized, transparent, and likely to be a responsible long-term shareholder. And every building evaluates risk a little differently. That is why understanding a building's specific culture, expectations, and financial standards matters long before an offer is submitted. Because in Manhattan and Brooklyn, getting an accepted offer is often only the beginning of the process. The real goal is getting through the board.

This is a conversation we've been having more and more often. In a city where apartment prices are significantly higher than the national average, many first-time buyers receive financial assistance from their parents, and in some cases, parents purchase the apartment outright. Most families start by focusing on the apartment itself: the location, the budget, the layout, and the condition. But the bigger questions often have the greatest impact on the search. How should title be held? Who should be on the mortgage? What happens if the child eventually gets married? What if they move out after a few years? Will the apartment become a rental property, a pied-à-terre, or eventually be sold? These questions can dramatically affect what type of building makes sense. Many families are surprised to learn that some co-ops restrict parental purchases, have strict guarantor requirements, limit future subletting, or require the occupant to have independent income. That is one reason condos are often worth considering, even with their higher price tag. They are generally more flexible from an ownership, financing, and long-term planning perspective. The mistake we see most often is making a decision based solely on today's needs without thinking about what life might look like five or ten years from now. The apartment may be for a child today. But eventually it may become an investment property, a pied-à-terre, or a home shared with a future spouse or partner. Part of our role is helping families think through those possibilities before they become problems and guiding them toward buildings that fit both their immediate goals and their long-term plans. Because when parents are involved, choosing the right building is often just as important as choosing the right apartment.

One of the biggest misconceptions buyers have is that renovating adds value. In reality, it often doesn’t. In NYC, the cost of buying an unrenovated apartment plus completing a renovation is frequently higher than what the finished apartment would ultimately trade for on resale. Renovation costs in New York are simply extremely high once you factor in labor, materials, permits, architect fees, building requirements, carrying costs, and delays. That does not mean you should not renovate. It just means you should renovate primarily because you want to live in the space and customize it for yourself, not because you necessarily expect to make money or recoup those costs when you sell, especially if you plan to sell soon. And if resale matters at all, there are certain choices that tend to age much better than others. One of the biggest mistakes we see is over-customizing in ways that narrow the future buyer pool. Reducing the number of bathrooms is usually a no-no. Kitchens are another area where buyers can quickly become polarized. Overly stylized kitchens tend to age poorly, whether that means an ultra-traditional French country aesthetic or an aggressively futuristic “spaceship” kitchen. Buyers usually respond much better to styles that feel intentional but broadly appealing: simple shaker cabinetry, slab cabinetry, neutral tones, quartz or natural stone counters, and finishes that feel clean without feeling sterile. Beware of all-white kitchens as well. In photos especially, they can read as generic developer kitchens and make it difficult for buyers to distinguish quality custom finishes from builder-grade materials. With kitchen appliances, avoid under-counter refrigerators. While they may look sleek and complement the layout, they are simply not practical for most buyers. Similarly, if you already have a gas stove, think carefully before replacing it with electric or induction. Most NYC buyers still strongly value gas cooking, and once replaced, it can be very difficult or impossible to restore depending on the building. As for the overall apartment, replacing hardwood flooring with tile or other non-wood materials alienates many buyers. I have been surprised by how many of my buyers have viewed off-putting flooring as a deal-breaker, even though in reality it is often one of the easier things to change. Wood tones matter too. Orange and red-toned woods can immediately date a space, while gray-washed wood floors and cabinetry — extremely popular 10 to 15 years ago — are already starting to feel tired in many apartments. All-in-one washer dryers that perform poorly can frustrate buyers, particularly at higher price points where people expect full-size appliances. Jacuzzi tubs can also feel dated or difficult to maintain, while a clean, simple soaking tub tends to appeal to a much broader audience. Ironically, some character is actually helpful. Apartments tend to resonate most when they feel clean, cohesive, and thoughtfully designed rather than overly trendy or overly generic. There are also upgrades that are almost always worth doing. Replacing older parquet floors with wider plank wood or engineered wood flooring can dramatically modernize a space. Updated baseboards, doors, hardware, and trim make a much bigger visual difference than people expect. Better closet space is almost always valuable, especially when thoughtfully designed with practical details like interior outlets for charging vacuums or other appliances. And if possible, replacing window A/C units with whatever alternative the building will permit tends to have an outsized impact on how polished an apartment feels. Neutral does not have to mean boring either. Some pattern, texture, or contrast — often through geometric tile, lighting, millwork, or subtle material changes like wallpaper — helps a renovation feel elevated and memorable without becoming too taste-specific. At the end of the day, the best renovations balance personality with restraint. It is your home, and you should absolutely create a space you enjoy living in. But if resale matters at all, the goal is usually not designing for yourself alone. It is creating something future buyers can also see themselves wanting to live in years from now.

An apartment combination is the stuff of lore for many New Yorkers, but if you're one of the lucky few for whom that opportunity may present itself, there are many things to consider before making the offer on your neighbor's apartment. Theoretically, combining two adjacent co-op or condo apartments requires nothing more than removing a kitchen and creating a doorway-sized opening in a wall to join the two units. However, creating a new apartment that actually feels like a home in terms of flow, functionality and durability will require a much more extensive renovation. Before you take the plunge, it’s important to consider the costs associated with combinations, both to make sure your budget can foot the bill, but also to make sure the value of the apartment you plan to create will be worth more than the sum of its parts in a resale. Start with your building Confirm your building will allow a combination, and find out as much as you can about what the process will entail. Depending on your particular circumstances, it may be desirable to purchase hallway or other common space from the building. It is also important to understand the building's rules for this type of renovation, which is usually contained in the alteration plan. Your building's fees for renovation, use of elevators, protection of hallways, and potential penalties for exceeding the scheduled timeline will all factor into your budget. Costs will also vary based on what your building will require of your renovation, for example if you must update all electrical during a renovation or when the building requires you engaged a structural engineer. Understand the costs with a team of experienced professionals While the costs of a renovation can range from $200-$500 a square foot, this does not begin to address the question of what is a reasonable budget for a particular combination. Vertical combinations are more expensive than adjacent, but the condition of the respective units and the final vision you have for the combination (custom features are a major driver of cost) will make a huge difference. Apartment combinations almost always require an architect. Many architects will charge a percentage to provide full-scale service from design and drawings to construction management, but if you are on a budget, it may be possible to reach another arrangement such as hourly or a flat fee. It is most important to be upfront about your expectations on scope of work and budget when speaking to architects. Similarly, it is important to get quotes from several contractors to get a sense of what it will cost to get the work done. At a preliminary phase, it is difficult for contractors to estimate costs without drawings or a sense of the level of finishes desired for the combination. A trusted architect may be able to help you formulate a plan and anticipate other professionals you may need to hire (an expeditor to submit plans and navigate the permitting process, asbestos abatement, structural engineering certifications, or major electrical or plumbing upgrades). The importance of a thoughtful layout While there are legal requirements for light and ventilation when creating or moving kitchens, bathrooms and bedrooms, other factors are important to consider when creating your new floorplan. All too often, combination apartments have odd room sizes, weird areas of “dead” or unusable space, or just seem to flow weirdly. An experienced architect or designer will be able to offer you advice on how best to configure your new space, and create a floorplan that will maximize both functionality and value of your home. Keep in mind that not every combination may result in a desirable larger home that feels like it was meant to be a single space. Moving major systems: kitchens and bathrooms Other than in a few specific situations, New York City only permits one kitchen per apartment. A kitchen demolition can run anywhere from $5,000 to $8,000, but it’s important to consider whether your demo requires moving plumbing or waste risers. Plumbing risers are the most expensive thing to move around. Even if one apartment has a bathroom that lines up with the other apartment’s kitchen, you won’t necessarily be able to blast through the wall to create a giant kitchen or bathroom. The risers—which begin in the basement and end at the top floor—likely serve an entire line of apartments, so buildings usually forbid moving them for safety reasons, and to avoid major disruption to other building residents. If you are allowed to shift a riser line, keep in mind that it will likely add a at least $10-20K to the cost of your renovation. The devil is in the details Combining apartments that are mismatched in quality (e.g. if one is in estate condition) poses additional design challenges. However, even if you’re combining two renovated apartments, blending finish work between the two will almost always require updating trim, moldings, doors and windows. Surprisingly, this finish work may be one of your largest expenses, as it will typically involve custom millwork, framing, and built-ins. High-end custom millwork, such as full height bookcases, storage cabinets or elaborate wall panels, can run you anywhere from $200 per linear foot to $800 per linear foot. Look at the big picture While much of our focus here has been on the costs, ultimately the goal is to create value. Speak to an experienced real estate agent to get a sense of a realistic offer on the neighboring apartment and what the resulting combination may be worth. Their guidance may even shape your renovation plans including decisions on number of bedrooms/baths that would be most desirable as well as what level of finishes are likely to be appropriate at a certain price point. #BlogPosts #FAQNYLiving

As a first time buyer in NYC, it is important to know the real price tag on your purchase and create a realistic budget that will help narrow your search to properties you can afford and ensure you are able to make a competitive offer when you find "the one." 1. Downpayment Most coops will require that buyers put down at least 20% of the purchase price as a downpayment (some may have higher requirements of 25%, 40%, or 50%). Condos have a lower threshold -- usually 10% -- but financing more than 80% will involve a surplus on the monthly mortgage payments so will amount to a costlier purchase. Especially in a tight market, buyers will be encouraged to put down at least 25% which decreases the risks of the deal falling through due to a lower-than-expected appraisal - it also difficult to be competitive in any kind of bidding war with an offer that includes less than a 20% downpayment. 2. Closing Costs Closing costs vary based on whether you are buying a coop or a condo, and whether the purchase exceeds $1 million. Your attorney or real estate agent can provide you with detailed information on closing costs for your specific purchase, however, the most basic takeaway is that closing costs for coops up to $1 million is around $8000-$8500 regardless of their cost or amount financed. Condo closing costs are significantly higher, especially if you are financing (about 2% of the financed amount is due as a mortgage tax). Purchases over $1 million in both coops and condos are subject to a 1% mansion tax. 3. Reserves Most coop boards will require buyers have some liquid funds remaining after closing, with the amount varying from 6 months to 2 years. This means that coop buyers must show that after deducting downpayment and closing costs, they have 6- to 24-months’ worth of their mortgage and maintenance remaining in their bank accounts. Condo boards have no reserve requirements though bear in mind that most lenders will require some reserves although they differ on whether those reserves can be liquid or illiquid (i.e. retirement accounts). 4. Monthly Carrying Costs In addition to your monthly mortgage, you will be paying maintenance for a coop (includes your share of real estate taxes and common charges) or separately common charges and real estate taxes for a condo. In Manhattan, $2/square foot is considered a reasonable monthly total for these fees, in Brooklyn, monthlies tend to be lower. While these costs can fluctuate based on amenities, some smaller buildings have surprisingly high monthly charges since basic costs are shared by a smaller number of residents. If these costs price you out of your desired area, I often advise my buyers to think outside the box and look at adjacent neighborhoods or areas that have the same look and feel as their ideal neighborhood. It's almost always better to opt for a larger apartment in a transitioning area rather than a smaller one in an established neighborhood. For Brooklyn buyers, this might mean Windsor Terrace or Greenwood Heights in lieu of Park Slope, Clinton Hill or Crown Heights rather than Fort Greene, or Prospect Park South or Kensington instead of Ditmas Park. In Manhattan, the East Side has a lot of value: Midtown East, Murray Hill, and the far East reaches of the Upper East Side and Lower East Side provide great entry level apartments with room to grow. But for those with their heart set on the West Side, I suggest buyers look North: the West Side is beautiful all the way up the Hudson River, from Manhattan Valley through Hudson Heights. Check out my quotes and ideas from my colleagues in this article in Brooklyn Underground to advise new buyers on which neighborhoods offer them the most opportunity, both in terms of price per square foot and return on investment in resale value after less than 10 years of ownership. #FAQ #BlogPosts

Two weeks into the new year, the 2024 real estate market shows considerable promise. The final quarter of 2023 continued the trend of low sales volume but concluded with positive momentum. Anecdotally we are already seeing an increase in new buyer consultations, a rise in showing inquiries, a notable uptick in signed contracts in BK, and the anticipation of several new listings. While the upcoming election adds some uncertainty to to come in the Fall, the backlog of activity accumulated over 18 months of low buyer and seller activity holds the promise of a robust market so long as economic conditions (stock market, inflation, mortgage) hold relatively stable or improve. Stay tuned for our January report out in a few weeks to see if the numbers track what we're seeing on the ground. If inventory and mortgage rates continue to normalize, we anticipate a surge in transactions that buyers and sellers have postponed for 12-24 months. If you've delayed buying or selling, now is the ideal time to contact us for strategic positioning in anticipation of what 2024 holds. Low inventory continued to be a stabilizing force on prices but kept transaction volume low. While the total number of closed sales was down 10.2% year-over-year, active inventory and contracts signed were up compared to last year, showing positive movement as we transition into 2024. Despite rates, low supply and increased contracts drove prices to the highest levels we've seen since 2018 both for condos and co-ops. Many are speculating that the bottom -- which was a bit anticlimactic in terms of "deals" -- is now behind us, while many would-be buyers were waiting for it to happen. New developments are moving quickly and helping to propel climbing prices, but resale inventory has continued to stagnate and is the market's current limiting factor. This comes as no surprise, as approximately 40% of would-be sellers are locked into ultra-low mortgages, and the data indicates they are still not interested in providing significant discounts. As rates decline, a resurgence in resale transactions in 2024 is possible, as buyers effectively have access to additional capital, and sellers on the sidelines with low-rate mortgages are more willing to take the plunge with a new purchase. The Brooklyn market was not immune to the effects of high mortgage rates and record-low inventory, but the year-end showed some improvement and the potential for a busier market in 2024. The total number of signed contracts increased 16% from the third quarter, the first year-over-year increase in signed contracts in almost two years. Lack of inventory continues to paralyze Brooklyn and is self-reinforcing. Would-be sellers are trapped in their low-rate mortgages, and beyond that know that once they sell there is little inventory for their subsequent purchase. Fewer new development launches in the end of 2023 only further exacerbated this problem. We'd expect that even some modest relief in inventory levels will unlock the market, driving more sellers to enter the market which would, in-turn, release pent-up inventory further. With record low available listings in prime neighborhoods, many buyers turned to resale co-ops and/or locations farther east and south pushing median and average prices down. These declines bring marketwide prices below where they were during the sizzling market of 2021, but essentially level with their five-year historical averages. Despite the decrease in these averages, Brooklyn remains an incredibly in-demand and competitive market with bidding wars on one-in-five sales. Rates are down more than 100 bps from their peak in October, and are now hovering in the low-6s. While all are anticipating rates to decline in 2024 as the Federal Reserve has made clear that they plan to lower the Fed Funds Rate by 75 bps in 2024, it’s not clear if that path will include one final rate hike before the rate cuts. Mortgage banks are cautiously optimistic of rate cuts sooner than later, and all eyes are on Jerome Powell as he announces the Fed’s outlook at their next meeting on January 31. The share of all-cash buyers in Manhattan hit an all-time high in the fourth quarter of 2023 at 67.9%, up 17.6% year-over-year and compared to figures between 40-50% historically. The surge in cash deals likely reflects the market’s anticipation that rates will be lower in the next few years and there will be an opportunity to obtain a lower-rate mortgage. (FINANCE YAHOO) Despite stocks experiencing a seventh consecutive week of gains, traders might be overly optimistic about expecting rate cuts early next year. The next step is not when to cut rates, but to decide how long to keep policy restrictive. (BUSINESS INSIDER) In the fourth quarter, there were 9.1% more sales (amounting to 37.6% jump in transaction volume) at the $20 million-plus price range compared to last year. New signed contracts, which provide a more real-time measure of market activity, also saw strong activity from deep-pocketed Manhattan buyers in the fourth quarter. (MANSION GLOBAL) If you are upgrading your New York City apartment or brownstone, then you are no doubt all too familiar with the U.S.'s supply chain crisis. Even design pros are grappling with getting materials—as in lumber, paint, and so much more—for their projects. Here is how to get around the supply chain crisis when you're updating your NYC apartment or brownstone. (BRICK UNDERGROUND)