Q4 Numbers | Manhattan
Ah, Spring- when you feel like whistling, even with a shoe full of slush. It's the season of new beginnings and the unofficial start of the busiest season in real estate. Last year was the most robust in Manhattan. History. Ever. And as we round out the winter into spring, I'm confident we will have a wild market in the year ahead. The beginning of 2022 was the best first quarter for closed sales in 15 years, and signed contracts—demand’s best indicator—improved versus a record-breaking 2021, marking the strongest start to any year on record.
Despite rising interest rates, geopolitical uncertainty, and Covid-19, demand was higher than it was a year ago and sales rose (Take that, NY POST!). As a result, First Quarter 2022 built upon the momentum of 2021 to also see lower inventory, fewer days on market, and higher prices compared to last year. We are seeing stellar sales numbers: for the first time in 15 years, closings have now risen year-over-year for five consecutive quarters. Market-wide price statistics increased sharply versus last year: median price rose year-over-year for a seventh consecutive quarter to a near-record $1.195M and average price per square foot grew annually for the second consecutive quarter to $1,816, returning to 2017-2018 levels.
Sellers take note: Buyers are voracious- but make sure you price accordingly. Buyers expect to pay the asking price or over, so don't scare them off with "pie in the sky" pricing. With interest rates up, buyers will start watching those pennies. Overpriced properties will be ignored because buyers will wrongly expect them to go over ask. Don't be the ice queen sitting alone at the ball. Get out there and shake that moneymaker! Buyers, Be flexible and prepared. There's a lot of competition out there so have your financing in order and be ready to move fast.
Q4 Numbers | Brooklyn
The Brooklyn market is off to a roaring start in 2022. After the record-setting 2021, 1Q 22 was the strongest first quarter for sales in the borough in over a decade. Due to thriving demand and a surge of first-time buyers, sales were up 7% to 1,993 closings annually.
Drawn by the allure of more space, lower taxes, and a much bigger pool of trophy properties, like townhouses and the easy-to-trade condo vs traditional co-ops, buyers are determined to capture their piece of the borough. As inventory hits a four-year low, Brooklyn continuously proves to be one of the most desirable places in the world to call home. With no sign of its sparkle fading, the local market is on track to have another phenomenal year.
While overall the average price per sqft in the borough didn’t change much since last year, in some neighborhoods, like Park Slope & Gowanus, the median price increased a stunning 29% compared to the same time last year, a significantly larger gain than any other neighborhood in the borough. At the same time, the inventory in these neighborhoods saw a jaw-dropping 49% decrease over the same period.
Buyers: Expect lines for open houses and understand that “asking price” is where the conversation begins. Sellers: It’s your party. Every home will find an enthusiastic buyer right now. But don’t make the mistake of falling prey to the siren song of “aspirational pricing”. Remember that rates are going up which will make buyers more cost-aware. Also, buyers are getting coached by brokers that know the market - when everyone expects to bid over the asking price, an overpriced listing will be left unnoticed, perceived as out of reach.
Outdoor Activities
Luxe Picnic Experience | Central Park
Where: Central Park, New York, NY
Picnicking in Central Park is always a must-do in the summer. If you are anything like me and hate planning outings, you can now outsource the whole picnic experience and have it catered to you at the park.
Several companies can handle all aspects of the event, whether it's your kid's birthday party or just a romantic picnic with your better half.
For more information: Click Here
NYC Maple Fest | Grand Bazaar
Where: 100 West 77th St, New York, NY 10024
At The Grand Bazaar, everything revolves around the sweet maple syrup. Taste your way through the various maple syrups and make sure you come hungry. What I find really nice about it? With the purchase of any product, you support the organizer who donates the entire profit and you have a really meaningful souvenir that will remind you of your New York trip for a long time!
For more information: Click Here
Tree Giveaways - New York Restoration Project | All 5 Boroughs
Where: All 5 Boroughs
After a two-year hiatus due to COVID-19, New York Restoration Project is thrilled to revive free tree giveaways with community partners throughout New York City! They will distribute 2,000 individual, native species trees this spring thanks to the financial support of Bloomberg Philanthropies. To see when they will be in a borough near you, click on the link to see the dates and locations available.
For more information: Click Here
Kayaking in NYC | All Over
Where: Manhattan & Brooklyn
It might not be the first thing that comes to mind when you think about summer in the city, but when you need to beat the heat, why not give free kayaking in NYC a try? We've got plenty of water from the Hudson River to the East River, and these waterways offer some of the best views of many of New York's attractions.
For more information: Click Here
Featured Exclusives
415 East 54th Street | Sutton Place | Priced at: $1,100,000
Maintenance: $1,372 | Taxes: $1,057
For more information: Click Here
165 West 18th Street, Apt 7C | Chelsea | 2BD 2BA | Coming Soon!
Price upon request.
For more information: Click Here
214 Riverside Drive | UWS | 2 Bed 2 Bath
Asking $1,495,000
For more information: Click Here
A Road To My Perfect Home
It’s safe to say that I have probably seen your home. So in this issue, I’ve decided that it would only be fair if I showed you mine! Below is my personal journey into homeownership and living through an extensive renovation in NYC in pursuit of the perfect apartment.
Before: The living room was dark & dingy with outdated fixtures plus and no storage.
After: Living room with custom built-ins, new fixtures, and a fresh coat of Benjamin Moore Decorators White.
Our current apartment captured our hearts when we bought it in 2019 with good pre-war bones, a layout built for our family, and our entertaining lifestyle while also being zoned for our favorite school in Brooklyn Heights. Like in all of real estate, we had to make some trade-offs. The 3-bedroom, 2-bathroom co-op had an outdated (but large) kitchen, a tiny primary bedroom, an ugly primary bathroom, and storage challenges. So like any other buyer looking for a 3-bed¬room in Brooklyn heights, we had to make compromises and made peace with that. We knew we could live in it to start and renovate it down the road. But the transformation started immediately with a fresh coat of paint, customized built-ins for added storage, new light fixtures, and nice furniture!
Before: The kitchen/living room were separated by an unflattering wall, cheap fixtures, and unutilized storage as to how the area was laid out.
After: Kitchen appeal and function were enhanced by opening it up to the dining room, adding a large island, and hiding the range hood in the ceiling for an unobstructed view.
In the Summer of 2021, we planned to spend the 6-week construction period at our country house in Sharon, CT, and return to Brooklyn Heights for the upcoming school year. The demolition date was deferred a month between navigating co-op approval, DOB delays, and various permit approvals. At that point, we had two options: move the renovation to the following year or suck up the delay, and rent a local apartment for September so the kids are close to school. As you have probably guessed we did not want to wait...
Before: The kitchen we inherited had an odd mix of expensive appliances, Formica countertops, and the cheapest cabinets you can buy at Home Depot.
After: The kitchen features Thermador Range & Stove, paneled DW, Gaggenau fridge, custom oak, white lacquer cabinetry, and a vented hood. A hidden pantry stores all the small appliances and snacks for the kids.
With 30+ years of combined real estate experience, my wife and I believe we understand what most buyers value in a home. So we invested in high-quality appliances and went an “extra mile” to get a vented W/D and range hood, to appeal to future buyers. We had a clear vision that we wanted to create a beautiful modern home while preserving the beautiful original details and high ceilings. The goal was to dress the apartment in timeless and delicate furnishings and fixtures that radiate a clean and simple aesthetic. The kitchen we inherited had an odd mix of expensive appliances, combined with Formica countertops and the cheapest cabinets you can buy in Home Depot. The W/D was under the counters taking up valuable storage space. There was also an old dumb-waiter that was no longer in use and the building allowed it to be removed.
We focused on maximizing every inch of space and splurged on custom cabinetry that is flush with the ceilings and custom closets throughout the home (hello spice shelf, tall vacuum closet, and hidden pocket doors).
Before: The master bedroom yet decent had minor closet space and was on the smaller side.
After: The primary bedroom was expanded 6 meaningful feet and the closet was repositioned around the window to increase storage and seating.
The result?
A home we absolutely love living in and with an estimated 30% appreciation since original purchase.
But that doesn’t mean that I’m selling!
Tips For Your Next Renovation
- Start sooner than you think you have to.
- Do everything you want at once (moving out furniture is hard enough).
- Leave money in the budget for potential upgrades.
- Work with a designer, and if you do not like making too many choices - hire a design-build firm.
- Expect the construction to last 1.5 times longer than what your contractor says.
- Avoid supply chain issues by ordering appliances and tiles in advance, or ones that are in stock.
- If you like Porcelanosa, order during their semi-annual sales event to reap significant savings (40% off!).
Daniel
Want to have a sneak peak tour of my renovated home above?
DanielKramp
Licensed Associate RE Broker
Union Square Top Agent 2019,2020
m. 646-549-0258
Licensed in NY and CT
My new website - danielkrampnyc.com
