And so it goes. Another year begins, and we look forward, (and backwards), to get our bearings and plan for the future. 2009 showed a marked improvement in sales activity late in the year as buyers who were on the fence finally began to pull the trigger. The best apartments at the best prices are moving again, particularly in the studio and one-bedroom market.
What does 2010 hold? The future is always uncertain, but here are some of my thoughts:
- The Federal Reserve is currently slated to pare down their direct support for mortgages this spring, and it is likely that interest rates will rise from record lows over the course of the year.
- Inventory is down from its' record levels in 2009. It is not a sellers' market, but it's not so strong a buyers' market that buyers can unilaterally dictate terms. Many buyers have unfortunately lost out on properties they really liked because they pushed too hard and the sellers went elsewhere.
- Inflation is a growing concern across our entire economy, not just real estate.
- Be reasonable. You are not going to find the lone rube who is willing to pay 2007 prices for your apartment, nor will you be able to drive down a seller to accept 50% off the asking price because you are paying cash.
- Learn the market. Find out where prices are for properties that are in your realm of interest. That way you will be able to know what amount to bid to buy it, or what price to offer it for in the case of being a seller.
- Get an excellent real estate attorney. This past year I have seen more deals fall through because of bad lawyers than ever before. You stand to lose a boatload of money if there should be a problem and you have inadequate representation. Get a recommendation and under no circumstances should you use a friend or relative (read "cheaper fee") whose business is not primarily that of New York real estate.
Reach me at: michael.sussilleaux@gmail.com
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