Back HomeThe Stability of the Manhattan Market
Photo Via CNBC
New York city has always had a (relatively) stable real estate market, even during times of turmoil such as 2008. However, there has been an increasing supply of condos in Manhattan from the developer’s side, yet a slow of growth on the buyer’s side. This could partially be due to the increase in condominium prices, which have reached an all time high. According to Douglas Elliman, “the average apartment price in Manhattan hit a record $1.95 million in the fourth quarter of 2015” (1).
Analyst Ron Insana, considers this to be a “dangerous oversupply and slowing demand for the New York City real estate market”. Apartments are sitting idle for roughly 90 days before being sold, the longest time on market since January 2013 (2). The high vacancy rates could either lead the developers and property managers to drive prices down or begin to sell off some of the properties. “If there are discounts at the city’s tallest buildings anytime soon… there is a possibility to make money shorting those entities most exposed to an edifice that is likely about to get wrecked” (2). For Manhattan, the after-shock of a national real-estate crash may be worse than the earthquake that rocked the nation itself (2).
(1) CNBC
