The New York real estate market has experienced a boom in the last six years with more and more construction. This was matched with higher property prices, approximately 2% growth per annum. The commercial real estate market in New York has almost come to a standstill. Things were especially slow for developers in the first quarter of 2017 due to the promises of industry-friendly tax cuts. Stakeholders in the New York real estate market feared lower taxes and higher spending would trigger a rise in inflation. This would adversely affect interest rates, which would be detrimental in the debt-driven market.
More People Own Homes
To determine the appropriate value of property in New York, one needs to look at the income curve, population growth, rate of unemployment and changes in home rent and prices. While the commercial real estate market was riding on hard times, the residential market was still surviving. Sales of homes in New York went up more than 10% since 2016. This could be attributed to the fact that the New York residential real estate market is now a buyer’s market. This means that the buyers set the tone for all transactions. Usually, they state their figures then stand their ground, which would force discounts. A residential property can now stay on the market for 100 days. This is a significant increase from recent years. Owning a home in New York is an attractive idea. However, the luxury homes sector has been experiencing a bit of slow activity.
Away from the Bustle
The outskirts of the city like Harlem have been in demand due to their affordability. This is a significant move that will certainly improve the growth within that region. On the other hand, townhouses have experienced a lowest ever level of inventory with a decrease of 40% since 2016. In the third quarter of 2017, the Upper East Side had an increase in total sales volume. The Upper West Side had negative results with a 35% decline in total sales volume from the same period last year. However, all is not lost because New York City is known for being busy with business, which attracts more residents.
New York is crawling with agents and brokers to match the massive populace with the myriad of properties available. Douglas Elliman Real Estate has been in operation since 1911. The company has 7000 employees and 110 offices, 22 of which are in New York City. CORE is another big New York real estate industry, player. Cayre Osher Real Estate was started in 2005. They have since marketed and sold more than 30 new development projects. The company employs more than 170 professionals to cater to their ever-expanding clientele. Two former Citi Habitat brokers established BOND New York in 2000. Their work is mostly focused on high-end rentals. Elika Associates is a brokerage company. They find, manage and negotiate the purchase of Manhattan real estate. The company has been a buyers’ brokerage since 2007.
New York Real Estate Market Direction
There are many players in the New York real estate market with different capabilities and areas of focus. Whether the market can continue to hold all of them remains to be determined. With some big projects stalling and notable companies flailing, all one can do is hope for the best. At the same time, there is a lot of hope with the real estate companies seeking to take the industry a notch higher. Things are expected to get even better with the advancement in technology, which goes a long way in influencing how the markets operate.