The housing market has seen its fair share of ups and downs in the last couple of years. As such, both buyers and sellers are eager to learn what to expect in the world of real estate in 2023.

Specifically, many are predicting that house prices will drop. This is due to a combination of factors, including a cost of living that’s still high; inflation and mortgage rates that are continuing to climb; and a slowdown in the starts of new, single family home construction. And, while it’s

The housing market has seen its fair share of ups and downs in the last couple of years. As such, both buyers and sellers are eager to learn what to expect in the world of real estate in 2023.

Specifically, many are predicting that house prices will drop. This is due to a combination of factors, including a cost of living that’s still high; inflation and mortgage rates that are continuing to climb; and a slowdown in the starts of new, single family home construction. And, while it’s not certain that we’ll see a buyer’s market nationwide, a modest decline in prices is likely, according to Fixr.com’s Housing Market Predictions report.

Of course, when it comes to knowing what the future holds for the housing market, our best bet is to listen to forecasts from top experts at the forefront of the industry. Here’s what some of them are predicting.

House Prices Will Go Down — But Not in All Areas

Mortgage and interest rate increases are set to slow demand somewhat as housing becomes unaffordable for many. This will then cause house prices to drop.

Robert Dietz, chief economist at the National Association of Home Builders (NAHB), said that his organization was forecasting home price declines through the end of 2023. In fact, he predicts that house prices could fall as much as 10% from peak in typical markets. Meanwhile, Rayan Rafay, CFO and COO of Fraction, believes that we’ll see a general “flat to modest decline in home prices” across the country.

This is good news for buyers who may have been recently priced out of the market. Garrett Derderian, director of market intelligence at Serhant, thinks that Mountain West and West Coast homes are most likely to depreciate at around 10% to 20% at most.

However, that may not be the case for all areas of the country. For instance, price stability is expected in East Coast markets (like New York City) due to the “limited number of turnkey homes for sale,” per Derderian. He said the same can also be said for in-demand markets, like Florida, which “are unlikely to see a major pullback in values.”

Single Family Home Construction Expected to Slow, While Build-to-Rent Picks Up the Pace

As one segment is primed to continue to boom, the other is set to take a temporary hit. In particular, build-to-rent homes have seen a major rise in numbers in recent years — and that number will only increase further. For perspective, Dietz reported that 10% of all home construction were build-to-rent homes in the second quarter of 2022.

At the same time, new single family home construction is set slow in 2023. That’s because starts were already down already in 2022 — and this downturn is predicted to continue. Supply chain issues also rumble on, as well as labor shortages. All of these factors have led to lower demand, partly due to the volatile building materials market. That said, Dietz stated that the NAHB was still predicting a housing rebound in 2024.

Wider Economy Will Feel the Heat

As the housing market continues to navigate its way out of the resulting fallout from the pandemic, the wider economy is expected to continue to feel the pressure. To that end, high inflation and interest rates will affect people across the nation.

“Economies and real estate markets will be deeply affected for years,” said Baron Christopher Hansen, real estate consultant at Coldwell Banker Realty.

Rafay agreed: “Economic stagnation will be difficult to quickly exit from.”

Plus, ongoing issues around labor shortages will continue to affect both real estate, construction and the economy as a whole.

Temporary Housing Downturn Expected

While home sales are predicted to fall by as much as 7%, no major housing market crashes are expected. Although 2023 might be slightly better for buyers than the years since the pandemic began, many experts are predicting a housing market rebound for 2024.

About

Adam Graham is an industry analyst at Fixr.com. He analyzes and writes about the real estate and home construction industries, covering a range of associated topics. He has been featured in publications such as Better Homes and Gardens and The Boston Globe, and written for various outlets including the National Association of Realtors, and Insurance News Net Magazine.

Sustainability is becoming more popular every year in the U.S. as the new generation tries to help clean our environment through greener initiatives. Now, even large cities are doing their best to join in on the fight against climate change.

For example, New York City passed the Local Law 97 plan (LL97) in 2019 that requires most buildings that exceed 25,000 square feet to meet new energy-efficiency standards and gas emissions by 2024. Notably, condos and other co-ops in NYC are most affected

Sustainability is becoming more popular every year in the U.S. as the new generation tries to help clean our environment through greener initiatives. Now, even large cities are doing their best to join in on the fight against climate change.

For example, New York City passed the Local Law 97 plan (LL97) in 2019 that requires most buildings that exceed 25,000 square feet to meet new energy-efficiency standards and gas emissions by 2024. Notably, condos and other co-ops in NYC are most affected by this law, so owners of these types of buildings must figure out how to adapt and change their typical methods of operation to comply with new requirements. Below, we’ll cover some of the best ways that owners can effectively go green to abide by this law.

Utilize Solar Power

Solar power is a great way to help conserve energy. In fact, using solar power in any capacity can make a difference in the environment, whether it’s a small change — like adding solar-powered lights around the house — or a substantial project, like installing solar panels. In particular, the LL97’s main goal is to reduce the emissions produced by the city’s largest buildings by 40% by 2030 and 80% by 2050.

There are plenty of benefits for buildings to switch to solar power. In addition to ensuring that they comply with LL97, solar power also helps reduce a building’s carbon footprint. According to some studies, condos and co-ops in New York City use almost 60% more electricity than a typical multifamily rental building. Issues like these are what LL97 was designed to combat. By going solar, these buildings could reduce the number of greenhouse gas emissions produced by each kilowatt-hour of solar that is generated.

Moreover, large buildings in New York City can implement this change in numerous ways. For instance, they can install items such as solar panels, solar-powered lights and solar heating. The most popular (and common) method is solar panels. Granted, the cost of solar panels depends on the model and manufacturer. For condos and co-ops in the city, it could cost anywhere between $16,000 to $31,000, depending on the type of system that will be suitable for the building size, as well as the number of residents.

Implement Smart Home Technology

Energy waste is a problem in the U.S., especially in big cities like New York City. That’s because many building owners don’t realize the environmental effects of constantly running their water; air conditioning (A/C) and heating units; and electricity. For example, A/C and heating units use so much electricity that they are a major contributor to global warming. To that end, some researchers have reported that, by 2050, A/C and heating units will be responsible for around 25% of the cause of global warming.

In a condo or co-op, in particular, residents and workers often forget to turn off a light when they leave a room. While this may seem insignificant, over time, it will cause a bigger issue. One solution to this is to implement smart home technology in every unit in the condo or co-op. There are a variety of benefits to utilizing this type of technology. First, it keeps you and the building in check: There would be no need to remember to turn off the lights, faucets or heat. Additionally, you can save energy by installing different types of smart home technology. In fact, homes equipped with smart technology can reduce energy consumption by up to 45%.

Large buildings can implement this by installing smart technology in each unit:

Start Recycling

Some may think it does very little, but recycling provides substantial benefits for the environment, since waste is an issue in big cities such as New York City. Not only does this give a false negative stigma of New York as “dirty,” place but it also causes building owners to lose significant amounts of money each year by constantly wasting and replacing materials. But owners could save money and comply with the new law by recycling.

Furthermore, recycling provides several benefits, such as helping to reduce greenhouse gas emissions by decreasing energy consumption. It’s also good for the economy. Especially in large buildings, recycling saves money. More precisely, condos and co-ops can save anywhere from $3,000 to $4,000 per year by recycling paper alone.

Plus, recycling is fairly easy to implement in buildings. All building owners would need to do is place recycling bins in accessible locations throughout the building for ease of use. They could have bins for paper or cardboard boxes, as well as specific metals, plastic and glass. Owners and boards would also need to explain to residents why recycling is crucial. They could even offer rewards or incentives to help encourage better recycling. Additionally, a recycling program can cost between $50 to $150 per ton, while a trash/disposable program can cost anywhere between $70 to $200 per ton, making this one of the most cost-effective methods to green a building.

Install LED Lights

Another simple, yet effective way for building owners to comply with LL97 is to install LED lights throughout the building.

LED light bulbs have become increasingly popular due to their energy efficiency and low carbon footprint and installing them is extremely beneficial for the environment and buildings: LED lights use 75% less energy than incandescent lighting and other halogen lights. Not only that, but they also lower overall carbon emissions because traditional lights account for about 5% of emissions. LED lights also have a longer lifespan, which means building owners can save money by not having to replace these lights as often as traditional lighting, like incandescent and halogen light bulbs.

Meanwhile, building owners can also choose from a variety of LED lighting options, including warm or cool lights; LED miniature bulbs; LED smart bulbs; LED filament bulbs; and more. It all depends on the type of bulb and wattage they want. Of course, LED lights typically cost around $4 to $8 per bulb depending on the type chosen, which may be a little more expensive than traditional bulbs. However, these buildings will save a lot more money and energy in the long run. 

Conserve Water

Water waste has always been an issue in the U.S. Millions of tons of water are wasted every year by residential buildings and businesses. Water usage for residential or commercial use represents around 5% of the nation’s overall carbon emissions. This gets even worse when you focus on a single area, like NYC: On average, New York City uses 1 billion gallons of water per day, which doesn’t even include water that isn’t used.

Once again, conserving water can be beneficial for all parties: It helps the environment, saves money, ensures building owners follow the law and more. And, with proper education about water waste, building residents can help conserve more water overall, too.

Like the other strategies, there are a variety of ways that NYC building owners can implement this change. As previously mentioned, installing automatic faucets in each unit can help conserve water because these faucets shut off when not in use. Another idea is to promote it to their residents by kindly asking residents to turn off faucets when not in use. Likewise, condo/co-op owners could follow California’s lead by limiting the amount of water that can be consumed by each building.

Conclusions

While these techniques cannot fully satisfy the requirements of Local Law 97, they are a sure way for buildings to become more sustainable and make straightforward and cost-effective progress towards meeting the goals set forth by the law.

Key Takeaways:  

Key Takeaways:  

Across the U.S., concerns of a recession are increasing, and the general public is feeling the quick rise of the cost of living. That, coupled with the further raising of the Fed’s benchmark rate has influenced a growing number of would-be homebuyers to pull out of the market or at least step closer to the sidelines, waiting to see if real estate prices will drop as a result of diminished demand and economic volatility.

Meanwhile, in New York City, sales activity had yet to show any signs of a slowdown in the second quarter. In fact, Q2 sales came in 11% over Q2 2021 figures. However, the third quarter closed with a 4% year-over-year (Y-o-Y) downtick in the number of sales. More precisely, there were 9,878 sales in Q3 2022, whereas Q3 2021 closed with 10,268 transactions, as the market readjusts after the homebuying frenzy of 2020 and 2021 artificially lifted prices.

Quarter-over-quarter, sales numbers were actually up by 636 transactions, reflecting the seasonality evident in 2021 as well, when Q3 sales surpassed the number of deals closed in Q2. For now, Q3 figures have not shown any drastic changes in NYC trends, with more visible market shifts likely to show up in Q4 figures.

Additionally, the city closed the third quarter at a $755,000 median sale price, unchanged compared to the same period last year. Notably, this came after the local median sale price ticked down 1% Y-o-Y in Q2, marking the first quarter in two years that prices were not on the rise. So far in 2022, NYC’s median sale price has yet to shift quarter-over-quarter, posting the same $755,000 median in every quarter sin e the start of the year.

At the borough level, only Queens underwent a price contraction. Its median slipped 4% to $559,000, while Manhattan and Brooklyn experienced a cooling in sales activity, coming in 8% and 5% below year-ago levels, respectively. Notably, the Bronx was the only borough where both sales activity and the median sale price were on the rise, growing by 8% and 7% Y-o-Y, respectively. That said, the Bronx has yet to place any neighborhood among the city’s 50 most expensive.

Brooklyn Ranks 24 Neighborhoods in Top 50 — Two More Than Manhattan

Of the 53 neighborhoods that posted the 50 highest median sale prices (the result of three ties), 33 neighborhoods recorded price gains and 18 saw prices trend down. Moreover, while the previous quarter saw 11 neighborhoods’ medians rise by 30% or more year-over-year, in Q3, only four NYC neighborhoods were in a similar position. Additionally, the sharpest rate of increase was Gowanus’ 65% Y-o-Y price growth, as opposed to Q2, when two neighborhoods recorded year-over-year gains of more than 100%.

Overall, 32 neighborhoods posted medians of $1 million or more — three fewer than during the same timeframe last year. Of these, 16 were from Brooklyn, 14 were from Manhattan and two were from Queens. Those numbers also reflect the neighborhood mix of the top 50 priciest neighborhoods, which consisted of 24 Brooklyn neighborhoods, 22 from Manhattan and seven from Queens.  

Notably, in Q3 2021, Queens had 11 entries among the city’s top 50 richest neighborhoods. Essentially, that means the borough placed one-third fewer neighborhoods among the city’s most expensive this year than last year.

However, the city’s richest neighborhoods still showed mostly positive trends, as evidenced by the #50-priciest NYC neighborhood: Brooklyn’s Sea Gate claimed the last entry with an $858,000 median sale price this year, whereas the 50th-priciest NYC neighborhood in Q3 2021 was Brooklyn’s Clinton Hill at a $775,000 median.

At the other end of the spectrum, 18 of the priciest NYC neighborhoods logged declines in their median sale prices, 11 of which were in double-digit territory. Even so, the sharpest price drop, by far, was Fiske Terrace’s 45% Y-o-Y depreciation.

Explore the interactive map below for at-a-glance price and sales insights for NYC neighborhoods in Q3 2022:

Meanwhile, sales activity slowed in more than half of the city’s most exclusive areas: 27 of the city’s top 50 neighborhoods closed fewer sales in Q3 of this year than they did in the same period in 2021, while 25 neighborhoods saw their transactional activity increase. Among the latter, sales more than doubled in three locations compared to year-ago figures. In neighborhoods where transactions slowed, sales dropped by more than half in four locations, led by Hudson Square’s 73% Y-o-Y contraction.

Manhattan Claims 5 Most Expensive NYC Neighborhoods in Q3

With a median sale price of $1.14 million and a 4% Y-o-Y increase in the borough’s median, Manhattan remained the priciest of the four boroughs analyzed (as expected). And as is usually the case, Manhattan also claimed most of the city’s 10 most expensive neighborhoods (six), including the five priciest. Still, Brooklyn came in strong, earning four positions.

At the top of the list, Hudson Yards and TriBeCa maintained their places as the most expensive neighborhoods, with both remaining in the $3 million and above price range. However, Hudson Square overtook SoHo to become the third-most expensive NYC neighborhood, while SoHo slid to #4.

In strong fashion, Hudson Yards remained the #1 most expensive NYC neighborhood. Its median sale price rose 34% Y-o-Y — the fourth-sharpest increase among the city’s leading neighborhoods — to reach $5,852,000. Hudson Yards’ median increase was influenced by a 40% increase in the average size of condos sold in the neighborhood, which went from a 1,920-square-foot average in Q3 2021 to 2,693 square feet in Q3 2022.

Additionally, most sales in Q3 were recorded at 35 Hudson Yards, whereas 15 Hudson Yards claimed the most deals in Q3 2021. At the same time, sales activity accelerated by 33% in the neighborhood, although it must be noted that this was the result of an increase from nine sales in Q3 2021 to 12 total in Q3 2022.

Not to be outdone, TriBeCa remained the #2 priciest NYC neighborhood — despite a mere 5% Y-o-Y increase in its median sale price that lifted it to $3,515,000. However, sales here remained virtually unchanged, with TriBeCa closing 100 sales during Q3 of this year, which was just one more than in Q3 2021.

Unlike previous quarters, TriBeCa was not followed by SoHo at #3, but rather by Hudson Square. This was the result of the latter’s 36% Y-o-Y median sale price gains coupled with SoHo’s 17% pricing slip. Specifically, Hudson Square’s rise was partly the result of six sales at 565 Broome St. with a $6,740,000 median sale price. Plus, Hudson Square’s price increase was also the third sharpest among the 50 priciest NYC neighborhoods.

In terms of transactional activity, Hudson Square closed nearly three-quarters fewer sales than it did in Q3 2021, marking the sharpest slowdown in transactional activity among NYC’s 50 richest neighborhoods at -73% Y-o-Y. At the same time, sales rose by nearly one-quarter in SoHo.

Meanwhile, coming in at #7 with a median of $1,791,000, Brooklyn’s Gowanus underwent a 65% Y-o-Y price increase to claim the sharpest price growth rate among the city’s top neighborhoods. Cobble Hill claimed the fifth-largest increase. Its median rose 29% year-over-year to reach $1,755,000 and become the #9 most expensive NYC neighborhood in Q3.

Notably, Manhattan’s Little Italy and Battery Park City were absent from the city’s 10 priciest neighborhoods due to sharp drops in their medians: Little Italy fell from #4 last year to #11 this year. Its median sale price contracted 41% Y-o-Y after Q3 2021 figures were lifted by half of that quarter’s sales closing at 185 Grant St. with a $1,445,000 median. Similarly, Battery Park City slipped from #8 to #19 following a 26% Y-o-Y median sale price decrease, which was influenced by a 23% decrease in the average size of condo units sold there.

Even so, sales surged 116% in Battery Park City, marking the second-fastest acceleration in transactional activity among the city’s leading neighborhoods. At the same time, Battery Park City and Little Italy had the third- and second-sharpest median sale price contractions, respectively, among the city’s richest neighborhoods. Chinatown had the fourth sharpest after its median decreased 24% year-over-year.

Brooklyn Home to Three of the Five Highest Price Rate Increases

While Manhattan’s median sale price climbed 4% Y-o-Y, Brooklyn’s median ticked up just 1% Y-o-Y, going from $810,000 to $815,000. Yet, despite the borough’s stalling price trends, it still managed to claim four of the city’s priciest neighborhoods. Here, Carroll Gardens took the lead at #6 with a $1.81 million median following a 13% Y-o-Y price increase.

Gowanus was next for Brooklyn, landing at #7 with a $1,791,000 median following the most significant rate of price growth among the city’s top 50 neighborhoods. It was followed by DUMBO at #8 with a median of $1,775,000 after a 2% price contraction that moved it two positions lower compared to Q3 2021.

Conversely, Cobble Hill rose from #13 last year to land at #9 in Q3 2022, thanks to a 29% increase in its year-over-year median sale price. Not only did that increase raise its median to $1,755,000, but it was also the fifth-sharpest price appreciation among the city’s leading neighborhoods. This was partly due to a change in the mix of asset types that were sold, with co-ops making up 25% of the neighborhood’s deals, as opposed to 34% during the same timeframe in 2021.

Brooklyn also claimed the sharpest price contraction with Fiske Terrace, which saw its median drop by 45% to stabilize at $905,000. That’s a far cry from the $1.65 million median it posted last year, which placed it as the #9-priciest area in NYC. Here again, the pricing decrease that took Fiske Terrace all the way down to #45 was influenced by a change in the mix of properties sold: While 80% of deals in Q3 of last year were homes, that ratio dropped to 37% in Q3 of this year.

However, Fisk Terrace also logged the fifth-sharpest increase in transactional activity, closing 70% more deals compared to year-ago figures. Brooklyn also claimed the third-largest sales acceleration with Clinton Hill, which saw its transactional activity rise by 108% to reach 102 deals. This was partially influenced by 20 sales at 10 Quincy St.

At the other end of the spectrum, Brooklyn was also home to three of the five neighborhoods where transactional activity declined the most: First, Bergen Beach closed 62% fewer sales compared to Q3 2021 to mark the second-largest decrease in sales, right behind Hudson Square. Specifically, Bergen Beach closed just five deals at a $945,000 median.

Likewise, sales dropped by 55% in Prospect Park South, tying with Queens’ Hunters Point for the third-most significant slowdown in sales activity. Greenwood Heights was fourth in sales drops, coming in 43% below last year’s sales figures.

Queens Claims Sharpest Sales Acceleration with Belle Harbor’s 120% Surge

Represented by seven neighborhoods among the city’s 50 most expensive, Queens’ median sale price contracted 4% Y-o-Y to stabilize at $559,000, while sales ticked up 2%. As is often the case, the richest neighborhoods from Queens placed in the bottom half of our ranking.

Specifically, Ditmars-Steinway was the borough’s priciest location at $1,129,000 with an 18% Y-o-Y price increase. However, sales activity fell by 33% here, making it one of three Queens neighborhoods among the city’s priciest that closed fewer sales in Q3 of this year than it did in Q3 last year. Similarly, sales were more than halved in Hunters Point, with 55% fewer deals closed here. Its median also ticked down 1% to $1,055,000.

Queens’ remaining neighborhoods in our ranking posted medians below $1 million, with Belle Harbor just $1,000 shy of that benchmark. And although Queens’ #3 most expensive neighborhood underwent a 13% Y-o-Y price contraction, sales surged 120% for the sharpest acceleration of sales among the 50 richest neighborhoods in NYC.

For more information, explore New York City’s 50 most expensive neighborhoods in Q3 2022 in the interactive table below:

Curios to see what coworking and office space you can find in and around the priciest neighborhoods? Check out the ample choices New York City coworking can offer — after all, Manhattan alone is home to 3% of the national coworking inventory, with nearly twice the square footage of Los Angeles coworking. Manhattan also has more than double the coworking space in Chicago, 2.5 times the Washington, D.C. coworking space and more three times the amount of Dallas coworking space. Professionals in the Sunbelt looking for shared office space can alco make use of Charlotte coworking, Phoenix coworking and Jacksonville coworking. 

NYC coworking and office also leads in terms of office market share, with 4.6% of Brooklyn and 3.1% of Manhattan office space designated as coworking. Miami coworking makes up 3% of the local office market and Nashville coworking takes up 2.4% of the city’s office space. Although NYC might have the most flex space in the Northeast, coworking in Philadelphia has had a presence since the early aughts, while Boston coworking benefits from its rich life sciences sector.  

Methodology

Median sale prices were calculated based on closed residential property sales recorded in ACRIS between July 1 and October 7, 2021, and July 1 and October 7, 2022. Residential asset types included single family homes, condos and co-ops. Package deals were excluded.

Median sale prices were calculated only for neighborhoods that recorded at least five sales between July 1 and October 7, 2022. Year-over-year changes in median sale prices or the number of sales were calculated only for neighborhoods that also recorded a minimum of five sales between July 1 and October 7, 2022. Additionally, median sale prices were rounded to the nearest $1,000.

The boundaries of some Manhattan neighborhoods may vary, as data on several small neighborhoods is included in the statistics for larger areas. For example, Central Park South is included in the Theatre District-Times Square area; NoLita is included in Little Italy; NoHo is included in Greenwich Village; and Carnegie Hill, Lenox Hill and Yorkville are all included in the Upper East Side.

Key Takeaways:

Key Takeaways:

NYC Foreclosures Up by Nearly 100 Cases for 49% Q-o-Q Increase

As New York City home sales slowed over the summer under the pressure of rising interest rates and fears of a recession, the foreclosure sector continued its gradual climb back to pre-COVID levels. And, as expected, foreclosures in NYC trended up. Specifically, NYC totaled 297 foreclosure cases in Q3 — 59% below Q3 2019 levels, but up 49% compared to Q2 of this year.

Similarly to the previous quarter, Queens was the largest contributor of foreclosures among the five boroughs. In fact, Queens’ 150 foreclosures represented a little more than half of the city’s foreclosure activity in Q3. Conversely, Manhattan had the lowest number of cases once again, with only 15 foreclosures recorded in the entire borough.

Considering the activity in Queens’ foreclosure sector, it’s no surprise that the borough again claimed the highest concentration of foreclosures in one zip code: 11412 had 17 unique cases, while the Bronx had only one zip code where more than one case was filed and judged (zip 10471 with two cases). In fact, NYC’s top three zip codes by number of foreclosures were all located in Queens in Q2.  Zip 11412 was followed by 11434 with 12 cases and 11413 with 10 cases, with the three zip codes forming the city’s most concentrated foreclosure cluster.

At the same time, NYC lis pendens were also on the rise. More precisely, 1,222 filings were recorded citywide during Q3 2022. That’s about half the number of instances recorded during the same period in 2019 and 18% more than Q2 2022. And, while Queens led in terms of foreclosures, the largest volume of lis pendens filings took place in Brooklyn with a total of 612. At the same time, the Bronx had the lowest pre-foreclosure activity, with a mere 53 filings in Q3 — down by nearly one-quarter compared to Q2.

Manhattan Lis Pendens Closest to Pre-Pandemic Levels Among 5 Boroughs

At the borough level, Manhattan continued to maintain the lowest foreclosure activity, with its 15 cases representing 31% of the total recorded in Q3 2019. That said, this was also the borough’s most active quarter for foreclosures since Q1 2020, when there were 38 cases.

In line with its slow pace of foreclosures (at least for now), Manhattan didn’t have any foreclosure superclusters. Here, zip 10025 — which includes parts of Morningside Heights, Manhattan Valley and the Upper West Side — had the largest concentration with three cases.

While Manhattan foreclosures were down 69% compared to Q3 2019, lis pendens in Manhattan were just 14% lower compared to the same period. Specifically, the borough totaled 102 lis pendens in Q3 of this year and 118 in Q3 2019. Compared to Q2, lis pendens were up 62%, increasing from 63 to 102 filings.

Queens Claims More Than Half of City’s Foreclosures as Cases Continue to Rise

In Q3, Queens continued to be the borough with the most active foreclosure sector, claiming more than half of the city’s case volume. Not only that, but the borough’s 150 cases amounted to 55% of its foreclosure volume in Q3 2019 — making Queens the borough where foreclosures have come closest to pre-pandemic levels.

Of course, with such an active foreclosure sector, it’s natural to expect that Queens would also claim the highest concentration of cases in one zip code. As stated above,  the borough indeed met and surpassed that expectation, claiming the city’s top three zip codes by number of foreclosures with zips 11412, 11434 and 11413 , which among them had 39 cases in total.

Even so, Queens lis pendens remained significantly lower than pre-pandemic levels: Q3’s 248 filings represented a 66% decrease compared to Q3 2019. And, while lis pendens did increase quarter-over-quarter, it was only by 8% — the lowest quarter-over-quarter increase in lis pendens activity among the five boroughs. (Although lis pendens filings actually decreased in the Bronx during the same timeframe.)

Brooklyn Records Highest Pre-Foreclosure Incidence in City for 3rd Consecutive Quarter

Meanwhile, Brooklyn foreclosures more than tripled quarter-over-quarter. Plus, despite the fact that its Q3 total was higher than Q1 and Q2 combined, the borough still closed Q3 with just 59 unique cases — 70% fewer than in Q3 2019.

In terms of foreclosure clusters, Brooklyn’s hottest area was in zip 11203 in East Flatbush, which had a cluster of eight cases (the same as Staten Island’s 10308).

Although Brooklyn had the third-highest foreclosure volume in the city, it had the top incidence of lis pendens with 612 filings in Q3. That represented a 20% increase quarter-over-quarter. Yet, compared to Q3 2019, Brooklyn pre-foreclosure cases were 29% lower.

Bronx Foreclosure Sector Remains Sluggish with Only 19 Cases Year-to-Date

After recording zero cases in Q2, the Bronx had 11 foreclosures in Q3 — the lowest number among the five boroughs and an 84% contraction compared to Q3 2019 figures. In fact, of the five boroughs, foreclosures in the Bronx were consistently the lowest in the first three quarters of the year, recording a mere 19 cases year-to-date.

The borough’s tempered foreclosure sector was also evidenced by the lack of foreclosure clusters, with only one zip code seeing more than one: Zip 10471 — which includes parts of Riverdale, Fieldston and North Fieldston — was the setting for two cases in Q2.

Notably, lis pendens filings in the Bronx were also the lowest in NYC, with 53 cases in Q3 — 85% below Q3 2019 levels. Moreover, the Bronx was the only borough where pre-foreclosures dropped quarter-over-quarter, thereby bucking citywide trends of increasing pre-foreclosure filings.

Staten Island Again Records 2nd-Highest Foreclosure Case Numbers

Following a near-complete absence of foreclosures for seven consecutive quarters between Q3 2020 and Q1 2022, Staten Island foreclosures returned in Q2 of this year at the second-highest level in NYC, outpaced by only Queens. That trend continued into Q3, as well: Staten Island was the setting for 62 first-time foreclosures — second only to Queens’ 150 cases. Consequently, the borough’s foreclosures rose to nearly half of its pre-pandemic figures.

Finally, with Brooklyn totaling 59 cases this past quarter, it remains to be seen whether Staten Island will continue to have the second-highest number of foreclosures in Q4, as well, or if it will be overtaken by Brooklyn in an echo of pre-pandemic rankings. In terms of foreclosure clusters, Staten Island’s 10308 zip code in Great Kills was the setting for eight cases, equaling Brooklyn’s 11203 in East Flatbush.

Likewise, lis pendens filings in Staten Island were even closer to pre-pandemic levels, with Q3’s 207 filings 41% lower than Q3 2019 figures. By comparison, the previous quarter’s lis pendens total was 64% lower than Q2 2019.

Methodology

Having tracked foreclosure listings for more than a decade, PropertyShark is the only service in New York that guarantees 100% coverage of the local foreclosure market. Because auctions are frequently postponed and/or rescheduled, the statistics referenced in this report include only first-time foreclosures in order to avoid over-reporting the number of distressed properties in the city.

Separately, we also report on lis pendens (pre-foreclosure) filings — legal notices that mark the beginning of the foreclosure process.

This report focuses exclusively on residential properties (single and two-family homes; condos; and co-op units) that were scheduled for auction for the first time in Q3 2022.

Pre-foreclosure data refers to unique properties that had at least one lis pendens filing in Q3 2022, which may be a first-time filing or a refiling. The same building class restrictions apply, excluding co-ops. If more than three units were referenced on the same lis pendens filing, they were excluded in order to avoid accounting for entire buildings.

To some, coworking seems like a relatively new entry into the commercial real estate field. But, the truth is that it’s far from new. In fact, coworking has become one of the key factors by which some analysts are gauging how the return-to-work movement is unfolding following the COVID-19 pandemic lockdowns.

To that end, San Jose coworking and office space make up one of the most active markets in the country, which is a boon for freelancers, small business owners or remote corporate

To some, coworking seems like a relatively new entry into the commercial real estate field. But, the truth is that it’s far from new. In fact, coworking has become one of the key factors by which some analysts are gauging how the return-to-work movement is unfolding following the COVID-19 pandemic lockdowns.

To that end, San Jose coworking and office space make up one of the most active markets in the country, which is a boon for freelancers, small business owners or remote corporate employees looking for the unique workspace flexibility that coworking communities have been built upon. So, if you’re in need of an inspiring new work environment, we put together a short list of some of the best coworking spaces in San Jose for your consideration.  

WeWork Valley Towers

Address: 75 E. Santa Clara St., San Jose, CA 95113

This downtown San Jose coworking space on Santa Clara Street is surrounded by sophisticated urban design and quaint old architecture. Workspaces here span multiple levels throughout a light-filled structure. The facility includes dynamic lounges for informal talks, as well as collaborative conference rooms and private offices for quiet, solo working. On-site amenities also include a variety of ways to unwind during the day, such as a wellness center, arcade and sun-drenched outdoor terrace.

Commuting to and from here is also a breeze with easy access to major motorways and the VTA light rail, as well as commuter trains at Diridon station, which is only minutes away. What’s more, WeWork Valley Towers also incorporates some of San Jose’s best elements, such as bold patterns, brilliant colors and references to local architecture. Here, the patio is ideal for organizing networking events, and the spacious conference rooms are ideal for team meetings.

Spaces by Santana Row

Address: 3031 Tisch Way, San Jose, CA 95128

This unique and stimulating San Jose coworking space is located in the heart of Santana Row at the confluence of the Silicon Valley and West Valley districts. Elegant, contemporary design creates an energizing environment that encourages creative thinking and the property is strategically positioned among a network of global technological corporations in Silicon Valley. Powerhouse neighbors include Google, Apple and Facebook.

Take a break from the daily grind by browsing the racks of countless designer stores and fashionable boutiques in the area. A short distance away are various sidewalk cafes, where you can enjoy lunch while mingling with the creative spirit of like-minded innovators. Meanwhile, Route 60 connects the space to the Santa Clara Caltrain station, and Route 23 offers a quick and convenient connection to downtown San Jose.

Premier Workspaces Silicon Valley Center

Address: 2570 N. 1st St., 2nd floor, San Jose, CA 95131

The Silicon Valley Center provides hourly and day office bookings, as well as both short- and long-term workspace reservation options. Full-time office spaces come with high-speed internet and personalized phone answering service with voicemail, as well as mail handling and distribution.

Premier at Silicon Valley Center also offers virtual office services, which include a professional business address, mail handling, personalized phone answering and access to conference room space. This San Jose coworking space is also highly accessible via several major freeways — including the 101, 237, 87 and 880 — and is just minutes from the Mineta San Jose International Airport. There’s also free parking nearby and the Valley Transportation Authority (VTA) Component light rail runs down First Street, with multiple stops near the Silicon Valley Center.

Regus North San Jose Center

Address: 2880 Zanker Rd., Suite 203, San Jose, CA 95134

This San Jose coworking space boasts an abundance of amenities and conveniences, including easy access to major transportation connections, meeting rooms, an on-site lunch spot, unlimited free coffee, an outside terrace and sandwich service. Working in the center of a busy business park, you’ll be in a great position to network with professionals from prominent high-tech firms. Focus on your business with ease at this North San Jose coworking space and, when you need to unwind outside, visit the nearby McCarthy Ranch Market, which has numerous excellent restaurants and other attractions.

WeWork Riverpark Tower

Address: 333 W. San Carlos St., San Jose, CA 95110

Located just minutes from the alluring sights, sounds and culinary delights of San Pedro Square Market, this San Jose coworking space includes all of the signature perks you can expect from WeWork. This includes on-site staff, fully equipped printing stations and private phone booths. Here, you can find focus and inspiration across four floors of elegantly furnished lounges, conference rooms and private offices. Commuting is also highly convenient, thanks to the space’s central South Bay location and easy access to public transportation. Moreover, the San José International Airport is only a 10-minute drive away.

Whether you’re at the beginning stages of a start-up, need flexible terms and space to grow your burgeoning business or are in need of an inspiring work environment, it is easy to find the best San Jose coworking space for your goals.

The coworking industry has grown considerably worldwide during the last decade. And, one of the biggest growth spurts seems to have occurred in New York City, where a new coworking community opens its door every week, on average. In particular, Brooklyn office and coworking space has been raising the standard and boasting amenities you might only expect to see at some of the finest country clubs.

Whether you’re looking for unique alternatives for your one-person start-up or need an elegant

The coworking industry has grown considerably worldwide during the last decade. And, one of the biggest growth spurts seems to have occurred in New York City, where a new coworking community opens its door every week, on average. In particular, Brooklyn office and coworking space has been raising the standard and boasting amenities you might only expect to see at some of the finest country clubs.

Whether you’re looking for unique alternatives for your one-person start-up or need an elegant spot for your team of 20 to take meetings with the movers and shakers of the financial world, there’s an option for everyone. Read on for our short list of some of the best coworking spaces in Brooklyn, from the boutique that caters to the few to the huge spaces that cater to the masses.

WeWork Williamsburg

Address: 134 N. 4th St., Brooklyn, NY 11249

If you want Williamsburg, you want to check out this Brooklyn coworking space. Located in the heart of one of the most popular neighborhoods in Brooklyn, this is a truly modern coworking space. Taking up the entire second level of a newly constructed building — and located directly above a Whole Foods — it’s modern working at its finest.

The laid-back atmosphere here attracts everyone from small businesses to large corporations, many of which are in the technology sector. There are also endless dining, fitness, and entertainment options along Bedford Avenue, and the coworking space itself can be accessed via many public transportation options, including the L, G, J, M and Z subway lines.

Regus Brooklyn Heights – MetroTech

Address: 1 Pierrepont Plaza, 12th floor, Brooklyn, NY 11201

Say hello to the talent-rich Triangle of Innovation, a notably fertile economic environment, where businesses have been known to see rapid growth and success. The versatile One Pierrepont Plaza Center in Brooklyn Heights offers a selection of engaging and active workspaces. Expect the typical amenities — such as free coffee and tea; business-grade Wi-Fi; and use of a business address — then add on extras, like free usage of community meeting rooms and unlimited access to global business lounges, to see what makes this spot unique.

Located in an ever-changing landscape that’s consistently ahead of the loop, there’s no better place to reach your full potential. With stunning views of Brooklyn’s skyline and fully furnished individual and shared office spaces, there’s no shortage of amenities at this top location. Then, after work or during a long, mid-week lunch, members can enjoy a break along the Brooklyn Promenade, where they can choose from various highly rated waterfront restaurants.

WeWork Montague St.

Address: 195 Montague St., 14th floor, Brooklyn, NY 11201

From its views of the Brooklyn Bridge, Statue of Liberty, and Empire State Building to its vinyl-listening station, it doesn’t get any more Brooklyn than this coworking community. Surrounded by Montague Street’s greenspaces and parks, this Brooklyn coworking space is nestled within a historic neighborhood. WeWork occupies four floors at the property and, because it’s within convenient proximity to several Brooklyn courthouses, the space is also home to many law firms, in addition to innovators and entrepreneurs working in various other industries.

Commuting to and from here is easy, with the 2, 3, 4, 5, N, and R lines easily accessible from neighboring Court Street and Borough Hall subway stations. Cadman Plaza is also located nearby, and a parking garage is available on the same street. Come to this location to enjoy the historic beauty and step outside to take advantage of the hip eateries, bars and entertainment options that are unique to Brooklyn Heights.

Orchard Workspace by JLL

Address: 15 MetroTech Center, Brooklyn, NY 11201

Take the elevators up to this workspace and you’ll be greeted by the words “A Tree Grows in Brooklyn.” This is a more subdued Brooklyn coworking space design, featuring classic colors and elegant suites. JLL’s Orchard Workspace is a flexible option tailored to support both individual and team members in growing their businesses. Specifically, the Workspace includes custom suites, private offices and meeting rooms, all with lightning-fast connectivity.

Located just steps from The Commons — a 3.5-acre, landscaped plaza that offers year-round community activities and events — and within a short walk of dozens of great stores, restaurants and cafes, the Orchard Workspaces is an excellent choice to consider. Add in the five major metro lines that are only a few blocks away, and it’s easy to see why this is appreciated as one of the best coworking spaces in Brooklyn.

Spaces Fort Greene

Address: 41 Flatbush Ave., 1st and 2nd floors, Brooklyn, NY 11217

This beautifully designed workspace is located in the heart of downtown Brooklyn, and the modern approach of the space is tailored to fulfill the needs of today’s entrepreneurs. Plus, this Brooklyn coworking space makes it easy to work and connect with like-minded innovators and refine ideas over a healthy lunch and a fresh cup of brew. Meanwhile, members are never too far from the legendarily vibrant atmosphere of Brooklyn, as the space is just minutes away from Barclay’s Center and the Brooklyn Arts Museum, as well as some of the finest shopping and dining that the borough has to offer.

In the early days of coworking, entrepreneurs in need of highly flexible workspaces had few options available. Today, there are hundreds of coworking locations within New York, many of which are located in the very heart of Brooklyn. Check out availabilities and make your booking today!

Key Takeaways:  

Key Takeaways:  

Wary of current financial and economic dynamics, increasing numbers of buyers are pausing home purchases. As a result, some cities are beginning to see early signs of cooling price trends after nearly two years of soaring prices. One of the urban centers showing signs of some deceleration is New York City (NYC), which closed 2021 with its highest median sale price and largest number of transactions in at least 10 years.

However, at the end of Q2, the NYC median sale price contracted for the first time in two years, ticking down 1% year-over-year (Y-o-Y) from $764,000 to $755,000. Conversely, sales were on the rise, totaling 9,242 unique transactions, up 11% over the same period last year.

Median Sale Prices Rise in 77% of NYC’s Most Expensive Neighborhoods

Of the 56 neighborhoods that posted the 50 highest median sale prices (the result of five ties), 43 neighborhoods recorded price gains. This included 11 neighborhoods where year-over-year increases reached 30% or more. What’s more, not only did 77% of the city’s most exclusive neighborhoods experience price increases, but two neighborhoods — Brooklyn’s Manhattan Beach and Jamaica Estates in Queens — actually recorded price surges of more than 100%.

Additionally, the number of neighborhoods with medians of $1 million or more also rose from 31 in Q2 2021 to 38 in Q2 2022— an increase of 23% Y-o-Y. Of these, 19 were located in Manhattan, 16 in Brooklyn and three in Queens.

And, while NYC’s median sale price ticked down, the city’s priciest neighborhoods overwhelmingly experienced increases, as evidenced by the #50 most expensive neighborhood’s median: Manhattan’s Sutton Place claimed the last spot in our ranking with an $883,000 median. For comparison, in Q2 2021, it was Turtle Bay that claimed the spot with an $840,000 median.

At the other end of the spectrum, 12 of the priciest NYC neighborhoods logged declines in their median sale prices, and half of these were in double-digit territory. But the sharpest price drop by far was the West Village’s 35%. No other neighborhood surpassed 20%.  

Explore the interactive map below for at-a-glance price and sales insights for NYC’s neighborhoods in Q2 2022:

Meanwhile, most of the city’s priciest neighborhoods saw sales activity further accelerate, as 32 neighborhoods closed more residential sales in Q2 2022 than during the same period last year. Notably, that included DUMBO, where transactional activity more than tripled, surging 229% Y-o-Y.

At the same time, sales activity decelerated in 22 neighborhoods during the second quarter of this year, whereas that was the case in only two neighborhoods in Q2 2021. Moreover, of the 22 locations where sales slowed, five neighborhoods saw transactional activity decline by 30% or more.

Hudson Yards, TriBeCa & SoHo Maintain Lead with $3M+ Medians

With a median sale price of $1,235,000 and a 10% Y-o-Y increase in the borough’s median, Manhattan (as expected) remained the priciest of the four boroughs analyzed. And as is usually the case, Manhattan also claimed most of the city’s 10 most expensive neighborhoods with seven entries, including the five priciest.

At the top of the list, Hudson Yards, TriBeCa and SoHo maintained their places as the most expensive neighborhood trio, with all three in the $3 million and above price range.

Specifically, Hudson Yards remained the #1 most expensive NYC neighborhood, despite a 10% Y-o-Y price drop that brought its median down from $5.71 million to $5.13 million. Although the number of sales in the city’s newest neighborhood shot up 150% — the second-sharpest increase in sales activity among the city’s top neighborhoods — in terms of actual deals, that represented an increase from just six sales in Q2 2021 to 15 in Q2 2022.

But Hudson Yards wasn’t the only Manhattan neighborhood with staggering rates of increases in sales activity. It was joined by Little Italy, the Lower East Side, Sutton Place and Turtle Bay to claim five of the 10 sharpest gains in sales activity for Manhattan of the city’s most expensive enclaves.

Still the #2 priciest neighborhood in NYC, TriBeCa retained its position with a $3,477,000 median. That came as the result of a 7% Y-o-Y appreciation of the neighborhood median, reversing the negative price trends of Q2 2021. However, TriBeCa sales declined, closing 72 sales — 21% fewer than in Q2 2021.

TriBeCa was yet again followed by SoHo, the #3 priciest neighborhood with a $3.45 million median, which was the result of a 32% Y-o-Y increase that was influenced by the larger square footage of sold homes: On average, these were 18% larger than those traded during the same period last year. Notably, sales activity was fairly stable in SoHo, with just a minor downtick of 44 registered sales in Q2 2022, as opposed to the 46 recorded in Q2 2021.

Next, Hudson Square climbed two positions to land at #4 with a $2,591,000 median sale price — this despite the fact that it logged the sharpest drop in sales activity, down 63% Y-o-Y. However, its median sale price rose 40% Y-o-Y, which lifted the median from $1,848,000 in this neighborhood that regularly finds itself in the top 10.

In fact, Hudson Square was one of four neighborhoods among the city’s 10 most expensive that surpassed the $2 million threshold compared to the same period last year. It was joined by the Flatiron District and Little Italy in Manhattan, as well as Brooklyn’s two priciest neighborhoods: Red Hook and DUMBO.

Brooklyn Claims Sharpest Price Increase as Manhattan Beach Median Surges 147% Y-o-Y

While Manhattan’s median sale price climbed 10%, Brooklyn’s median ticked down 1% Y-o-Y, dropping from $828,000 to $821,000. But, despite the borough’s median trending downward, Brooklyn was actually the scene for seven of the 10 most significant increases in neighborhood median sale prices, in addition to three of the 10 highest gains in sales activity.

Although it came in as the 29^th-priciest NYC neighborhood, Brooklyn’s Manhattan Beach posted a $1,085,000 median sale price in Q2, the result of a 147% Y-o-Y surge. Thus, Manhattan Beach claimed the largest rate of price increase among the 50 most expensive neighborhoods. For comparison, just one year ago, Manhattan Beach had a $439,000 median — far from NYC’s most expensive areas.

Brooklyn further cemented its status with three additional neighborhoods: Red Hook, DUMBO and Gowanus — all three among the city’s 10 most expensive: Red Hook claimed NYC’s #6 priciest neighborhood with a $2,096,000 median that followed a 69% Y-o-Y price increase, the fourth highest among the city’s 50 most exclusive neighborhoods. That gain was fueled by a more than 600-square-foot increase in the average size of homes sold here.   

Another regular member of NYC’s 50 most expensive neighborhoods, DUMBO was the #8 priciest NYC neighborhood with a $2,033,000 median after a 36% Y-o-Y increase. That gain was driven by 31 sales at 180 Front Street at a $2.35 million median sale price. However, DUMBO’s top accolade in the second quarter was its surging sales activity, which shot up 229% Y-o-Y — by far the largest increase in transactions among the city’s priciest neighborhoods.

Gowanus closed out the city’s top priciest neighborhoods at #10 with a $1,582,000 median. This was the result of the third-highest price gain among the top 50, lifting the Gowanus median 87% from $845,000 a year ago. That gain was fueled by a 16% increase in the average size of sold homes, as well as five sales at 450 Warren Street at a $1.85 million median.

Queens Sales Accelerate 20% Y-o-Y, the Sharpest Rate Among the Four Boroughs

Represented by 10 neighborhoods among the city’s most expensive, Queens price trends remained flat Y-o-Y remaining at a median sale price of $550,000. Sales activity, however, was on the rise in the borough, with 20% more deals closed in Q2 2022 than the same period last year.

In fact, Ditmars-Steinway had the fourth sharpest increase in sales activity among NYC’s top neighborhoods. However, in actual number of sales, its 138% surge translated to an increase from eight transactions in the second quarter of 2021 to 19 deals in the second quarter of this year. Ditmars also ranked as the fourth-priciest neighborhood in Queens with a $999,000 median sale price, although at the city level it came in at #34.

As is most often the case, the priciest neighborhoods from Queens placed in the bottom half of our ranking of the city’s 50 priciest neighborhoods. The most expensive neighborhood in Queens was Belle Harbour, coming in at #28 with a $1.1 million median following a 26% Y-o-Y appreciation, the result of a higher volume of sales over the $1 million mark. It was one of only three neighborhoods in the borough with medians over $1 million, joined by Hunters Point — #31 at $1,077,000 — and Hollis Hills at #33 with a $1 million median sale price.

One other Queens neighborhood that made its mark was Jamaica Estates at #44. It broke into the top 50 following a 121% Y-o-Y pricing surge that lifted its median from $418,000 to $923,000. As such, Jamaica Estates marked the second sharpest median sale price increase among the city’s most exclusive neighborhoods, surpassed only by the 147% Y-o-Y price jump posted by Brooklyn’s Manhattan Beach.

Jamaica Estates’ rapid rise was fueled by a larger share of single-family detached home sales compared to year-ago figures. That was further bolstered by a 10% increase in the square footage of sold homes, which rose to an average 2,200 square feet from a 2,005 square-foot average last year.

For more information, explore New York City’s 50 most expensive neighborhoods in Q2 2022 in the interactive table below:

Methodology

Median sale prices were calculated based on closed residential property sales recorded in ACRIS between April 1 and June 30, 2021, and April 1 and June 30, 2022. Residential asset types included single family homes, condos and co-ops. Package deals were excluded.

Median sale prices were only calculated for neighborhoods that recorded at least five sales between April 1 and June 30, 2022. Year-over-year changes in median sale prices or the number of sales were only calculated for neighborhoods that also recorded a minimum of five sales between April 1 and June 30, 2021. Additionally, median sale prices were rounded to the nearest $1,000.

The boundaries of some Manhattan neighborhoods may vary, as data on several small neighborhoods is included in stats for larger areas. For example, Central Park South is included in the Theatre District-Times Square area; NoLita is included in Little Italy; NoHo is included in Greenwich Village; and Carnegie Hill, Lenox Hill and Yorkville are all included in the Upper East Side.

NYC-based boutique law firm Pardalis & Nohavicka brings the latest legal updates from the world of real estate. Pardalis & Nohavicka handles an eclectic array of matters, representing individuals and business owners in civil litigation, criminal cases and business transactions, currently litigating and representing clients throughout the United States and around the world. 

In today’s hypercompetitive real estate market, bidding wars on

NYC-based boutique law firm Pardalis & Nohavicka brings the latest legal updates from the world of real estate. Pardalis & Nohavicka handles an eclectic array of matters, representing individuals and business owners in civil litigation, criminal cases and business transactions, currently litigating and representing clients throughout the United States and around the world. 

In today’s hypercompetitive real estate market, bidding wars on valuable properties are common. Fortunately, there are a few ways to resolve any challenges created when buyers compete against one another, as well as when multiple offers are placed on a property. Below, we’ll cover what a bidding war is, as well as the risks that some buyers and investors may be willing to take in a bidding war.

A bidding war is when multiple buyers are competing to purchase a residential property. This happens when there are multiple offers on a single property, which then increases the property’s asking price.

Investors and realtors start bidding wars by deferring showings of the sale of a home. For instance, they might list the home for sale at the beginning of the week, but then may not show the house until Friday. Then, multiple cash buyers put offers on the property, thereby driving up the property’s price. The seller then puts up an offer deadline on the home.

In New York City, a bidding war is escalating in the luxury apartment industry with two- to four-bedroom apartments becoming hot commodities as of early this year. Specifically, the availability of inventory — as well as young people returning as the COVID-19 pandemic eases — is causing people to look for homes in Williamsburg, downtown Manhattan, West Village and Chelsea.

As an example, a realtor recently put a luxury apartment located in Greenpoint, two blocks from McCarren Park. and, within the course of 90 minutes, had already shown it to 18 people and secured six applications for rentals.

The best way to avoid a bidding war is to have an adequate amount of cash on hand. This allows the buyer to avoid waiting for mortgage approval to secure the purchase of their home. That’s because a serious cash bidder is most likely to prevail over non-cash bidders in most bidding wars.

Buyers can avoid bidding wars by agreeing to waive contingency clauses in the real estate sales contract. The most common contingency waived is the home repair inspection.

Ordinarily, a home repair inspection requires the buyer to spend $400 to $1,000 to have a licensed inspector search for structural defects in a home. Inspectors often check for leaky roofs; defective heating or air conditioning systems; unsafe radon levels; or latent rodent or insect infestation. The inspection may also reveal undisclosed high levels of mold, asbestos or lead paint in the home.

Waiving the home repair contingency usually makes the buyer more attractive to a seller in a bidding war because the seller won’t have to wait weeks for the inspection to be completed before closing on the property. However, while this may be good for an anxious buyer who’s eager to buy their first beach home in the Hamptons, they may also be walking into some obvious pitfalls after closing — which will raise  their expenses moving forward.

By waiving the home contingency inspection, the buyer risks immediately incurring the responsibility after closing for thousands of additional dollars to fix home leaks, deteriorating floors, and defective appliances potentially affected by faulty wiring or water damage.