Two seemingly opposite dynamics are both influencing today’s real estate market—and its impact on co-ops and condos. On one hand, people all over the United States, including the greater New York area, are becoming more frugal, and learning how to do more with less. On the other hand, thousands upon thousands of wealthy people are streaming into Manhattan and parts of the outer boroughs, pursuing careers in finance, real estate, advertising, fashion, entertainment, corporate law and other high-profile professions.
We may be seeing the backside of the era of high-profile investment bank and real estate company failures and of huge layoffs—but does that mean the recession is actually over? What will happen in the future?
Gary Malin, president of CitiHabitats in Manhattan, sees the mood in the market as “cautious optimism,” and many others in the industry seem to agree.
“The general consensus,” says Paul Purcell, co-founder of Manhattan-based Rutenberg Realty, “is that the market was relatively stable this past year. And the good news for New York City is that we had a market, unlike many places in the U.S.”
And in Manhattan says that his agents “are optimistic regarding 2012, as the final quarter of 2011 has seen an increase in sales volume. Consumer sentiment remains mixed, with confident foreign buyers investing in New York City, while many Wall Street types believing that the sky is falling.”