First time buyer here currently looking at studio condo apartments in NYC in the $700K range. Wondering if anyone here has perspectives on current state of the Manhattan real estate market and expected trends over the next 12-18 months and if waiting makes sense to buy vs. pulling the trigger now. I know the market is softening up and prices are correcting, and overall it's looking more like a buyer's market but just wondering if people have any thoughts here
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That market isn't moving much. The ultra high end luxury market is way oversupplied and is absolutely a buyer's market, and that is exerting downward pressure on other luxury units (think TriBeCa instead of 57th St), but when I was last looking at this (3-4 months ago) it hadn't managed to penetrate below the $1-3mm range. Those apartments actually saw an uptick in velocity.
For that price you're probably restricted to being way east in the 50's and 60's and FiDi. My advice is to wait. You're buying a studio, so this isn't a long term buy (I assume). You're going to want to move into a bigger space eventually, whether that's better financial circumstances or needing more space for a family. I doubt you're paying much less than 4,000/mo once you factor in common charges, taxes, and your mortgage. Why not go live in some sick one bedroom, basically anywhere you want, for that? With the way the luxury rental market is giving out concessions, you can probably live in a better, bigger unit in a better location, in a newer building, for less money. No, you're not building home equity or anything... but that isn't much of a sunk cost. Take 300/mo that you would have paid and invest it somewhere else, it'll do better for you.