Although co-ops represent some of the most desired addresses in New York they are also known for a harsh history where prospective owners had to pass notoriously difficult boards, meet rigorous income standards, and abide by inflexible “house rules” when it came to renovations and resale. Due to this infamous history co-op sales have been dropping and more prospective buyers have been looking to buy condos. So the question is does this mean co-ops are becoming a thing of the past?
Co-Op Sales Are Dropping
In the prior year co-op sales priced $5 million and up fell nearly 20%, and in co-ops priced $20 million and up sales declined 25%. This is all despite the fact that co-ops compose 70% of Manhattan’s owned housing units.
Condos Are Rising in Popularity
There are a few pros to condos in comparison to co-ops that it is enticing to prospective buyers. These are:
- Condos have a more immediate buying process.
- They are generally full-service buildings with gyms, high-tech amenities, and on-site daycare services.
- Condos allow more freedom to sell or rent the space.
Co-Ops are finding it hard to compete with these enticing pros condos have.
The 5 Valuable Benefits Co-Ops Still Offer
- The bright side to the fall out in sales of co-ops is that there are great deals out there for qualifying patience buyers.
- Co-ops, on average, are more affordable compared to their condo counterparts.
- Co-ops still count for some of the most prized real estate in New York making them a better long-term investment.
- There are never foreclosures in co-ops because everyone is in equal financial standing.
- Co-ops have more tools to raise needed funds and to handle delinquent apartment owners.
The truth is that real estate is cyclical. Even though sales have dropped recently for co-ops it does not mean it is the end. Co-ops still offer comparable benefits to condos, and they represent the most luxury housing in the city. Co-ops will never truly go out of fashion.
All Area Realty Services is New York City’s leading real estate management company specializing in full-service property management for cooperative and condominium boards in the Manhattan area. Contact us today if you're looking for a professional property management company.