2005 wasn't bad, was it?
bet the Under
There’s a good-sized Manhattan loft in a north Chelsea conversion from earlier this century that sold in August 2005 for $1.575mm. Because they thought that 2008 was not like 2005, they tried to sell about 20% above that, but that did not work. The current asking price is close enough to the 2005 clearing price to suggest the smart money will take the Under, and not the Over on 2009 vs. 2005 here.
This loft does not have the light or proportions of others on higher floors in the same building, but it has a very nice level of finishes, rather high ceilings, a lot of space for the money (well under $1,000/ft), a great location (the nabe grew up around it). My sense is that — back in the day — it was priced (and traded) closer to the rest of the building than it will in This Market. (There’s a smaller loft that found a contract quickly off an ask much closer to $1,000/ft, for example.) Overall, there is nothing wrong with this loft, but it seems to be being punished for relative disadvantages that did not seem so disadvantageous in other (prior) markets.
If these sellers stick it out, and go wherever they have to go to find a willing buyer, the 2009 clearing price will be lower than it was in 2005. The rest of the building seems to be in a more recent year, which strikes me as strange.
© Sandy Mattingly 2009