Klara Madlin
president, Klara Madlin Real Estate

Q. Which part of Harlem is faring best as the overall market slows in the city?

A. Central Harlem from Morningside to Mount Morris, from 110th to 125th streets.

Q. Which part of Harlem is faring worst?

A. Some sections that border Washington Heights north of 155th Street and east of Broadway. The infrastructure hasn't gotten there yet.

Q. What is the most underrated neighborhood in Harlem as far as there being an upside in prices?

A. East Harlem, north of 125th Street and east of Fifth Avenue, what used to be called Spanish Harlem.

Q. What is the most overrated neighborhood in Harlem?

A. Around 125th Street, the central Harlem corridor; it came up the first and fastest.

Q. Which is the strongest property type in Harlem right now -- condos, co-ops or townhouses?

A. It's hard to say. A lot of the townhouses that used to fly out, the sellers have overpriced them and there is not a lot of inventory. The buyers are leery because they need work. There's no longer a deal. Co-ops sell if priced right -- a lot have come on to the market recently and at really high prices. [Condo] developers have not lowered their prices.

Q. Is there too much new condo inventory coming to market in Harlem?

A. There's too much condo inventory throughout New York. I saw this happen before in the late '80s to '90s. Some became rental buildings. At the moment, it seems that the demand is still there. It's still cheaper to get a condo in Harlem.

Q. What is the most exciting new condo project (that you are not involved with)?

A. The Dwyer condos: they are warehouse lofts at 123rd and St. Nicholas that are more like a Downtown loft building. Most others are brownstones that are floor-throughs or brand-new buildings that look alike.

Q. What group of buyers is the most active right now in the overall Harlem market?

A. Young couples in their 30s and 40s and professionals that think Harlem is an exciting place to live because it is still on the island and they are priced out of Downtown. Mainly, it's Manhattan, although we are getting people from Europe who live in Manhattan, too. They think it's kind of cool and aren't as afraid of Harlem. They don't have the same impression as other Manhattanites.

Q. What group of sellers is the most active right now in the overall Harlem market?

A. The condo developers for both small and big projects. Townhouse owners were cashing out over the last two years -- this year there are a few, but most cashed out already. Some are attempting now, but they are trying to get prices that are way over the top, so I don't know how serious they are.

Q. How have the big brokerages done in relation to the mom-and-pop brokerages in Harlem?

A. [The big brokerages] have a lot of the new condo developments. But the smaller agencies have the customers that we share and the sellers of the townhouses -- people who have been in the neighborhood for a long time, so they have a little bit of distrust for the big companies.

Q. A stereotypical notion is someone moving to Harlem from farther south in Manhattan, buying and renovating a townhouse. How active is this segment right now?

A. Not as active as it has been because the prices are too high now. If you are paying over $1.4 million for a shell, you are not getting those people anymore. I think those people are going to go to the Bronx. It's hard to find a shell for $800,000, and you will have to put in at least $500,000 by the time you are done and it would take a few years. But the average apartment in Manhattan is over $1 million, so maybe it's worth it.

Q. Is there a need for some sellers to lower their prices now that the boom is over?

A. They are pricing 15 percent over what will sell. People don't even want to look to make a lowball offer. Though, still today, if you underprice, you'll get a bidding war. The customer makes the market. The customer has seen a lot; they know what things are worth.

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