Last week we noted how confidence among commercial real estate developers and investors was still high despite the slowing market. However, sentiment among real estate brokers (both commercial and residential) was quite different heading into this week's presidential election.
According to a recent wsj.com report, confidence among brokers slipped to the lowest level for third-quarter reporting through an index created by the Real Estate Board of New York. Many blamed the lack of confidence on the typical uncertainty that comes with presidential elections. Others believed that it is a direct correlation with the dropping rates for retail properties and slowing residential sales.
Overall sales in Manhattan dropped nearly 20 percent in the third quarter alone.
Essentially, investors are cautious about where the fundamentals of the market are heading, regardless of whether they are looking for commercial or residential properties. Indeed, when markets slow down and prices fall, the opportunities for prime investments tend to increase. It is a function of the market that tends to favor those who may be new to the market and are not looking for high end properties.
For those who are considering a new home or an upgrade, the holiday season may provide the relief needed. But simply because the market may be slowing, it is not the time to be complacent and lose a great deal. Additionally, it is not the time to be cavalier about recognizing one's legal rights in the midst of a transaction.
If you have questions about how a real estate transaction is supposed to work in New York City, an experienced attorney can help.