Back Home2016 NYC Market Predictions
Although the market is cooling down, New York City sales prices are at an all time high (1). 2015 brought New York City residential rental prices to all time high, and 2016 looks to be no different.
The rise in rental prices in New York City, and the ever- increasing mortgages rates as seen throughout 2015, buying is looking like an attractive option to many investors and prospective buyers. The suggestion is to “purchase sooner rather than later,” as rising rates could slow the buying process midway through 2016 (2).
The Manhattan luxury housing market is slowing down, with prices dropping since February through October of last year. That being said, with the price fall there is an increase in demand for homes “with fierce competition for home buyers” (2).
Photo via StreetEasy
With the rise of buyers’ interests in Upper Manhattan also calls for a rising demand of neighborhoods in outer boroughs. Areas such as Jamaica, Queens and Pelham Parkway in the Bronx are predicted to be a couple of the highest neighborhoods in demand this upcoming year (1). This is partially due to “…a population growth since 2011, more access to public transportation, and an increase in buyers” (3).
Alan Lighteldt of StreetEasy believes that 2016 will decrease growth in the market due to the “extremely low rental vacancy rates and a cooling in the sales market…” (1). Despite the decline in the housing market, the prices in Upper Manhattan in areas that are undergoing gentrification like Harlem and Inwood will increase to a predicted total of 10.2%, “…which is close to five times the city’s overall growth rate’ (3).
Between the cooling rates and the increase in demand for properties in up and coming neighborhoods, 2016 should make for an exciting year (and competitive) year in New York City Real Estate.
Written By Kylie Keller
(1) StreetEasy
(2) Home Buying Institute
(3) NY Curbed
