Autumn Outlook: Investing in New York City Real Estate
New York City.
As autumn starts, the weather has cooled as has high-end luxury real estate prices. Third quarter reports show a return to a more “normal” priced market. Recent economic events, last week’s jobs report being lower than expected and the FED holding off on raising interest rates may well affect real estate transactions. New York City real estate is still a wise investment.
Prices to purchase a home in Manhattan, in many popular areas of Brooklyn and Queens continue to set records. With inventory in Manhattan not keeping up to demand and the other boroughs increasing inventory, especially in new development in Brooklyn and Queens, the market remains competitive. The fall is set to return to a more normal market for many properties above $1 million, with some super luxury apartments prices having price reductions but a competitive market nevertheless.
For buyers who want to live in Manhattan, especially downtown, inventory is still very low for condos and coops, leading to high demand for limited supply. With the onset of beautiful new developments, many being represented by Stribling, buyers are looking for more value with new condo developments offering numerous amenities.
For example, here are some of Stribling’s new developments in Manhattan and Brooklyn:
The Shephard at 275 West 10th Street
360 Central Park West
465 Pacific Street
A Look Back At the Third Quarter
Luxury real estate, especially in Manhattan & Brooklyn, continued to sell with record closing prices. A recent third quarter reports such as Elliman‘s states: “Median sales price was second highest on record, since 2008, price per Square foot set a 26 year record of $1,497 per sq. ft and 53.9% of all sales were “at or above” list price at time of contract, a seven year record. Luxury housing prices also did not see the same growth as the overall market.”
There are plenty of cash buyers, with more than 50% of buyers’ who bought new homes in cash last quarter. And there are plenty of more who want purchase a home to live or invest in Manhattan but there are just not enough apartments, according to New York Magazine. The median price, a record since 2008, has risen to slightly under $1 million to around $998,000.
Apartments, $1 million and under are selling within in a shorter time, sometimes not even staying on the market past the first few open houses. Higher end luxury homes are staying on the market for over 70 days with price adjustments. Competition from new developments is also a factor.
The New York City real estate market continues to be strong and attractive for Americans and our friends from abroad since their value will continue to appreciate with low inventory, low interest rates for now and a stable New York City economy.
New market opportunities for real estate investors and home buyers are abundant in northern Manhattan, further into Brooklyn and Queens. There is even talk now of the South Bronx developing luxury condos. Folks from all over the world want to buy, live and invest in New York City real estate. And as the Autumn season hits full swing, new opportunities will abound.
Photo Credit: the living room at The Shephard, 275 West 10th Street http://275w10.com