Optimism abounds in housing market

Real Estate Weekly, Nov 6, 2002 by Elaine Misonzhnik

At a recent residential roundtable, the mood was that of short-term optimism, at least as far as the sales market was concerned. According to the participants, the currently low interest rates and erratic stock market fluctuations have caused New Yorkers to consider real estate as a sound long-term investment. In addition, the leveling off of prices in the past year has allowed many buyers to acquire properties they would have previously considered too expansive.

According to Elizabeth Stribling, president of Stribling & Associates, for example, "It's all a question of pricing. We are seeing multiple bids occurring again. Buyers are still eager to pounce on a property if the price is right."

The roundtable discussion was held with members of the Real Estate Board of New York's Residential Brokerage Division Board of Directors Oct. 24

However, the brokers warned property owners not to overestimate the current value of their buildings if they decide to sell - otherwise they might end up with much less than they were hoping for.

There are some sellers out there who've lost out by putting too high a price on their product," said Peter Marra, president of William B. May Real Estate. "Their properties are still sitting out there at that price. What sellers have to understand is that there is a window of opportunity, where if you price it property, you could make a good sale. And I don't think that we as brokers are doing the sellers a favor by inflating the price."

Helene Fields, president of HF International Realty, agreed.

"When something sits on the market for a while, it becomes an old property and buyers wonder why it hasn't been sold. And they will known when something is fairly priced," Fields said.

But although everyone agreed that the current market is ideal for sales, apparently the rentals have not been fairing as well.

"The rental market went off because of the layoffs," explained Marra. "The college graduates could not get jobs and there was no one coming in to rent new apartments. At the same time, the people who lost jobs on Wall Street did not renew their leases. And some people who have been leasing up to this point, decided to buy."

What surprised brokers in the rental arena, however, is how quickly Downtown, and especially Battery Park City, recovered from last year's shock.

"Who would have though this area would come back so quickly? There is very little product left there," said Marra. "People have opened up their minds to moving."

At the same time, when it comes to making predictions for the future, most participants are unsure what to expect.

Barbara Fox, president of Fox Residential Group, for example, thinks that the residential market will slow down in 2003.

"I feel the prices will go down. I don't think they will plummet, but it will all flatten out," she said.

According to Peter Marra, "2003 will be stable, 2004 will be a stretch."

Joyce West, director of sales with Charles H. Greenthal & Co., thinks that market "is going to stay healthy," and Elizabeth Stribling feels that "the low interest rates will maintain stability in the housing sector until the economy will begin to pick up."