Sales prices falling short in Soho and Nolita
Highballing sellers rather than shrewd buyers are the likely cause
Just because you paid below the asking price, doesn’t mean you got a deal.
Sales prices in Soho and Nolita fell short of asking prices in the second quarter, according to a new Streeteasy report, though the cause is likely to be sellers’ inflated expectations.
Asking prices in Nolita have jumped 26 percent year-over-year. Those in Soho rose 23 percent. Given those increases, sellers need not worry much about the 2 percent gap between asking and sales prices found in the report.
“It could be that their strategy is aim high and bring it down only if necessary,” Streeteasy data analyst Alan Lightfeldt told DNAinfo.
Prices are high in part because much of the area is landmarked. Buyers looking in the neighborhoods are also seeking a very specific sort of apartment, lofts in the case of Soho and townhouses in Nolita. These factors and others constrain supply, allowing sellers to keep prices high.
The high prices have attracted major developers as well. DHA Capital entered into contract to pay $50 million for a Nolita development site at 75 Kenmare Street in July, planning to build a 68,000 mixed-use building with residential, retail, and parking. KUB Capital filed plans earlier this week for an eight-story condo building at 146-150 Wooster Street in Soho featuring apartments that average 4,895 square feet of space. [DNAinfo]