It’s a good time to own a small building or townhouse in the East Village. So far in 2015, the East Village market for small buildings and townhouses is moving at record prices and speed. Volume is up and so is value. Here’s the information you need to stay ahead of the curve as the market continues to race forward.
1. More buildings and townhouses are selling this year. In 2012, 43 buildings sold. In 2013, 54 buildings traded. But in 2014, only 29 buildings changed hands. This year, though, the East Village is rebounding quickly. In fact, 13 buildings have sold and 3 more are in contract over just 3 months. This high volume shows that investors are moving to capitalize on the plentiful opportunities in the East Village to create value-add investments in townhouses, rental buildings, and new development.
2. Prices are rising. In 2012, East Village buildings sold at an average of $620 per square foot. In 2013 it was $878, and in 2014, it rose to $902. This year? Buildings are trading at an average of $1,110 per square foot, an increase of over $205. This jump indicates that buyers have started to realize the true value of investments in East Village buildings and townhouses.
3. Buying an East Village townhouse offers great value. Last year, several townhouses in Chelsea sold for over $2,500 per square foot and in the West Village, two sold for over $4,000 per square foot. Compare that to the East Village, where just last month, 526 East 5th Street, a beautifully renovated 20-foot wide, 5,200 square foot single-family townhouse sold for $6.5 million ($1,250 per square foot). And its the only single-family home on the entire block! This week, on Artists Row, 263 East 7th Street hit the market at $7.25 million after a full renovation ($1,576 per square foot). If you’re looking for an unrenovated project, just pop across the street to 264 East 7th Street. The 1842 Greek Revival house just saw a price drop to $3.995 million ($1,080 per square foot).
So what does all this mean? First, if you are an East Village property owner, its a great time to consider selling. The market is hot and the neighborhood is getting its fair share of attention. Second, if you’re looking for a townhouse in downtown Manhattan for under $1,500 per square foot, just keep your eyes on the East Village!