Pied-A-Terre Seekers Going Toe To Toe With First Time Buyers
Real estate experts say a pied-a-terre boom being fueled by those living just outside the city limits is adding to an already competitive market. NY1's Jill Urban filed the following report.
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With rental prices so high, mortgage rates low and sales prices stable, we are now seeing a mad dash for many people to buy. Low inventory is definitely making the sales market more competitive, but it seems one type of buyer is now a big player in the game.
"Right now all the open houses that we are doing are overwhelmed with buyers. And the buyers I am seeing now are buyers from the suburbs. I haven’t seen that before. I have seen first time home buyers. I also deal with a lot of foreigners but I have never seen the suburban buyer out here in droves," says Prudential Douglas Elliman Executive Vice President Victoria Shtainer.
Shtainer says many people from the suburbs are realizing now is the time to buy a second home here in the city.
Vlad Vinnik, who lives about 15 miles out of Manhattan and always planned to get a pied-a-terre one day, says now is the time to seize the moment.
"Prices and low mortgage rates. It’s a good time to buy because in my opinion real estate in New York is just going to go up and I am looking for a place to spend part of my life in the city," Vinnik says.
He also says he is tired of staying in hotels on the weekends and wants something more permanent. Like many pied-a-terre buyers, he sees it as a good investment and an opportunity to test the lifestyle.
"The plan for most of them is to test the city out, keep their primary residence and go back and forth and see how much they would use both homes," Shtainer adds. "And then if they see they use the Manhattan home more than their suburban home, they cash out and they like to buy something bigger in the city."
Right now, most of these buyers are looking for smaller apartments: Studios and one bedrooms. Shtainer says the majority of them are looking to spend between $500,000 and a million dollars -- the same price point as many first time homebuyers -- which is why it’s getting so competitive.
In addition, pied-a-terres are only allowed in condos and a handful of coops, so the building options are limited.
But even if the hunt is a challenge, many of these buyers say they’ll do whatever it takes to finally own their piece of Manhattan.