Both condominium complexes (1 & 5 Renaissance Square comprise two separate complexes) at the Ritz Carlton have experienced a more uneven recovery than Trump Tower. This is probably because the finances of both complexes caused some concern for a couple of years. This was mostly due to the unfortunate timing of the openings and the financial travails of the original builder (Louis Cappelli). As a result, the Ritz Carlton took a bit longer to recover from the housing recession.
Nevertheless, in 2014, both complexes came back to life all at once posting a near 30% increase in median sales price when compared to 2013. Higher prices have been sustained and augmented with a median price increase just north of 7% of 2014 as of August 2015.
This is similar to what was seen at Trump Tower, although the gains were more gradual and started earlier in latter half of 2012. Prices are now back to where they were during the initial sales phase in 2007.
The chart below (derived from the HGMLS) shows the median sales prices for both towers from 2012 to mid-year 2015. Note that since the two towers are separate condominiums, their numbers are given separately when discussing median sales prices.
Since new units still represent the majority of listings that are for sale in 5 Renaissance Square, there is a price differential between the two buildings that can’t be ignored. Like most new construction, there is little to no negotiating room on pricing for a new unit. Hence the higher median sales price. By contrast, the units in 1 Renaissance Square are all resales. For those not wanting to pay top-dollar, purchasing a resale is something that should be under consideration. It should also be noted that a recorded sale for $9.5 million in 2014 at the Ritz is certainly a new high water mark for the city of White Plains.
The chart on sales volume (derived from the HGMLS) reflects the total number of units sold on the MLS in both towers. It should be noted that as in most new construction, it is likely that there were sales that are not recorded on the MLS, so more units may well have been sold. Sales volume for both complexes shot up in 2013 and that volume has been sustained with normal variation. If the present trend continues, sales volume for 2015 will exceed what was seen in 2013 and 2014.
In 2015 the news for sellers is positive. Prices have recovered and demand is strong. For sellers, it is important to remember that the highest prices are going for brand new units and that that has to be taken into consideration when pricing a unit for resale. Nevertheless, the market is a strong one. Newer luxury condos are in short supply in Westchester, so supply and demand is working for you.
Potential buyers are working with a sellers market and must be realistic. No one is going to be able to “steal” a condo under these conditions. One thing I warn my buyers against is the urge to try and “beat the market”. These attempts never truly work because the market sets the price. There are gains to be made in this market, but those gains are being made through appreciation, not bargain hunting. But prices have only just recovered from their lows and there is room for appreciation.
© 2015 – Ruthmarie G. Hicks – https://thewestchesterview.com – All rights reserved.
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