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Price Drops Now Drive NYC Condo Deals
Pricing in New York City’s for-sale housing, including condominiums and co-ops, is off as much as 20% from the summer 2015 peak, Warburg Realty reported. New condos have been hit especially hard: “a number of these buildings have taken multiple price reductions,” wrote Warburg CEO Frederick Peters in a blog posting.
“Overall, the months of October and November saw many sellers finally relenting on unattainable pricing and adjusting to conform more closely to the buyer’s market which now dominates negotiations at every price point,” Peters wrote. “The news from the post-Thanksgiving period is that this price capitulation has begun driving deals.”
Sellers who can’t accept the shift in market dynamics “will likely see their properties linger on the market,” he wrote. “Every day in our office, multiple price reduction announcements pour in via e-mail. Sometimes it takes two or even three such reductions before a property enters the salability zone.”
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