I took a look at the data for Chelsea from March 15 - April 11 vs. April 12 - May 11 to see how this plays out in Chelsea. Some key facts:
- On average, prices for coops ranges from 28% to 44% less than condo prices.
- The volume of coops sold increased by 60% in the time period, while the volume of condos sold remained even.
- Average listing price decreased by 3%, while coop listing prices rose by 1.8%.
- The number of new listings of coops INCREASED by 17%, while the number of new listings of condos DECREASED by 72%.
My conclusions for using this data to your advantage as a buyer or seller are after the break:
My conclusions:
With a larger percentage of the market activity coming from coop sales, the dip in the average listing prices is expected. With fewer new condo developments, it is not surprising to see a decrease in new condo listings. With such a wide margin between coop and condo pricing, the trade-off between the pricing of a coop and the flexibility of a condo takes a more central role. I take a wait and see approach to see whether this is the beginning of a new market trend.
Bottom Line - buyers and sellers stand to benefit from these market conditions. Savvy buyers and sellers can make a better deal by using the information smartly.
Buyers - Knowing the differences between coop and condo pricing lets you choose more 'bang for your buck' as a buyer.
Coop Sellers - Growing competition between buyers for well-priced coop properties allows you to consider listing your property at slighter higher than average pricing without reducing demand.
Condo Sellers - Fewer new listings means more buyers for fewer condo properties - and hence higher demand for well priced condo properties.
*Full article available electronically here: The Real Deal
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