To understand what’s happening in Harlem’s real estate market, we interviewed several award-winning Certified TopAgents who specialize in the the area.
Tony Oakley, The Corcoran Group: For the past six years, Tony has worked on numerous new development projects in Harlem. He is an expert at understanding the inventory and pricing trends in the Harlem condominium market and is a consistent member of Corcoran’s Multi-Million Dollar Club.
Julia Boland, Halstead Property: Since moving to Harlem a few years ago, Julia has become one of Harlem’s most active and knowledgeable agents. She leads a team of experienced agents and is regularly sought after by the media regarding Harlem’s latest real estate trends..
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Dianne Howard, The Corcoran Group: Dianne is a long-time Harlem resident. Since she began her career in real estate, she has focused much of her business in Harlem due to her intimate knowledge of the neighborhood.
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What are some of Harlem’s special characteristics?
Julia Boland: The first thing that I noticed in Harlem was how wide the streets are because the boulevards in Harlem go both ways. The sidewalks are larger, too. Not only does that make it easier to get to the established infrastructure of bus lines and subways, but it also means there is more light in people’s apartments. Also, the type of housing stock is different. Unlike the rest of Manhattan, which is primarily co-ops, Harlem is primarily condos and townhouses.
Tony Oakley: Harlem has an immense amount of diversity among its residents. Also, there are primarily low buildings, so there’s a lot more sunlight in the apartments. There are more townhouses than in other areas.
Dianne Howard: Harlem is more affordable than many other neighborhoods in Manhattan. You tend to get a lot of first time buyers in Harlem because you get more space for the money. Harlem is also quieter than many of Manhattan’s other neighborhoods, which gives it a great, neighborhood feel. You don’t see 50-story apartment buildings like you would elsewhere. It’s townhouse living in Harlem – most buildings are under 12 stories.
What do you see happening in the Harlem market these days?
Julia Boland: Harlem has more condominiums than other neighborhoods, but Harlem’s supply is coming back into equilibrium. The activity level has increased over the past couple of months. We are seeing a lot of very serious buyers in the market who were not there before, but they are much more cautious than before the credit crisis occurred.
Dianne Howard: I’m seeing a lot more contracts being signed in Harlem. We did go through a lull with the rest of the market from October to May, but we’re getting back to within 10% of prices during the peak of the market. The new developments were initially so overpriced that even with lowered prices, they weren’t being sold. There is more movement in the Harlem market now because sellers have readjusted their expectations. Prices are stabilizing and I don’t expect prices to drop any further.
Tony Oakley: The major issue with Harlem is financing. Condominium buyers want to make sure that the sponsor of the project has financing. On the other hand, buyers in new developments in Harlem generally need financing, whereas in the Upper East or Upper West Sides, they might be able to pay all cash. That said, sponsors are making deals happen because they are willing to negotiate. There’s more than just a sale price going into comparables these days because the concessions can be so substantial.
What advice would you give a potential buyer in Harlem?
Dianne Howard: Co-ops in Harlem are about 30% cheaper than condominiums, so they attract a different purchaser. The Boards tend to be less strict about financials, because they expect first time buyers, but they have gotten stricter than they used to be. It’s a great first time buyer market, because they don’t expect the buyer to have a ton of cash in the bank after closing. For buyers looking for new Harlem condos, you have to be careful about buying because, like most places in the city, banks are only lending at 50% of contracts signed.
Tony Oakley: Harlem has changed quite a bit over the last ten to twelve years. You have to come explore it block by block. I encourage my customers to come eat dinner, have coffee, and talk to locals. That’s the best way to decide if Harlem is right for you.
Julia Boland: It’s a great time to be a buyer right now, because there are a number of opportunities and there’s still room to negotiate prices. A lot of people looking at Harlem want a fixer-upper. Unless you’re going to buy a $1 million townhouse, you won’t find a fixer-upper in Harlem because there are so many new condos. What sets Harlem apart for buyers is that it is still considered an emerging market, so you can still find some great values.
What advice would you give a seller in Harlem?
Dianne Howard: On the selling side, there is a lot of competition in Harlem so you really have to price according to the market. Make sure your buyer has some sort of pre-approval from their bank as well because the last thing you want to have happen is to go through the negotiation process only to have the buyer fail to close because they couldn’t get financing.
Tony Oakley: For a seller, I’d suggest that they look at everything on the market, in contract, or sold and closed to price their home correctly. Compare your apartment to those that are similar to yours, with the same amenities. Also look at the condition of not only the apartment, but the building. Is it in good condition? How old is the building? Is it full-service with a doorman? These are all aspects that affect the price of your home.
Julia Boland: Harlem is still considered an emerging neighborhood. There’s not the plethora of restaurants and beautiful boutiques you see below 96th street. There’s no question as to whether Harlem has changed, but it’s still emerging. Given the amount of inventory on the market right now, I recommend that sellers don’t sell unless they have to. If you absolutely have to, make sure to price the property very realistically, because it will hurt you to have the property stay on the market too long and become stale.
