The Power of New York City Real Estate
Summer has always been a hot time on the market for New York City real
estate. Home and condo sales are remaining strong through value and price increases. NBC writes “The total monetary value of completed transactions in the first quarter actually rose 15 percent, to $12.3 billion. The number of sales rose 2 percent to just over 12,000.
Condo sales drove the market, with record prices in Manhattan, Brooklyn and Queens. The average price of a condo in Manhattan topped $3 million in the first quarter, up 27 percent from a year earlier” (1).
AM New York writer Heather Senison interviews different real estate experts in the field to weigh in on the advantages of purchasing real estate in New York. Senior Economist at Street Easy Grant Long says “If the [value of the home] increases, that is increasing your wealth,” he said. “Similarly, every time you pay down your mortgage that’s effectively increasing your assets” (2). Long continues to say that the market still remains competitive in the boroughs of Manhattan and Brooklyn). More specifically, in areas where the subway is being expanded and neighborhoods are becoming increasingly populated (Upper Manhattan as well as parts of Eastern Brooklyn).
NY Curbed provides some insight into the stats for the pricing after the first quarter. Emily Nonko writes “sales prices ended up high for the quarter —mostly because “legacy” contracts from up to two years ago caused record closing prices. Compared to last year, the price per square foot for all Manhattan sales increased 7 percent to $1,760 (a record), while the average sales price rose 7.7 percent to $2,098,459 (also a record). In the luxury market, the median price was was $6,567,712, up 9.5 percent. For a new development unit, the median sales price surged 44 percent to $2.965 million” (4). The numbers clearly show that new developments in New York City are by far the most sought out after properties, especially when in comes to the luxury market sector. The Manhattan market has continued to show strength, making it a great time to invest in property.
AM New York reports the rise of new developments and boom in certain areas of the market. “New developments include residences in the massive Hudson Yards project on the far West Side and One Riverside Park in Lincoln Square. They’re booming in Brooklyn too, with buildings like the Oosten at 429 Kent Ave. in Williamsburg and the Pierhouse at 90 Furman St. in Brooklyn Heights. Queens is also experiencing growth, with new offerings including The Harrison at 27-21 44th Drive and the Grand at Sky View Parc complex in Flushing” (3). Seeing as new development continues to make for a competitive market, there will be much activity in the real estate industry in the near future as demand continues to rise.
Prices in New York will still be on the rise (i.e. the market value and property value of anything purchased to this day will increase). Johnathan Miller says in NY Curbed that “With a slow rise in resale inventory, and fewer bidding wars, we could see a little more sales volume in 2017 despite rising interest rates” (4). Those seeking real estate investment should act now to take advantage of rising prices.