Sub $1M Closed Sales Breakdown | Coop & Condo List Discount Inverted? Why?

[Noah Rosenblatt]

Accepting ideas why coop disc under 1m is higher in last 3 months than condo disc under 1m - pure acris closings, we mark deals at the TIME OF THE DEAL, not the sale date, so the acris delay has been removed.

 

[antinjs]

The are 1/3 the number of condos below $1M compared to the number of coops below $1M on the market. So supply <> demand factors could affect the difference in negotiability.

 

[David Goldsmith]

Possibly because the alternative of renting is much easier in a condo? So as sellers realize they aren't getting the price they thought it is easier for condo owners to try to rent, whereas coop owners need to be more negotiable.

For coop owners where many are restricted to renting for only 2 years it is a very big gamble to bet that 2 years from now prices will be higher/the market will be better. And the bet includes carrying the unit vacant at that time either way because their sublet allowance is up. Whereas from condo owners they can just rent again... and again until they like the state of the sales market. Taking a few points less for coop owners may be preferable than taking on increased risk.

As far as why it flipped I think it is simply the realization that prices are headed downwards across the board is more widespread. First it was only in the "super luxury" market. Then in "new construction" (remember that category goes back 5 years). Now I think people realize it's the whole market especially after seeing the Q3 report of how much sub-$1 million contract volume fell YOY.

 

[Noah Rosenblatt]

both very good points on this: supply/demand inbalances & ease of condo rental

i guess i often wonder if some coops with big discounts were denied approval by their boards? that does often in times of deep stress

 

[John Walkup]

Interesting. I'd be curious to see what the coop/condo supply and discount breakdown looks like across the main hoods. Wonder if it can be localized.