At long last, the good news is here: New York real estate prices are on the rise. Every major real
estate brokerage firm in the city reports that across-the-board prices rose from 1993 to 1994. Although there are areas that remain flat or even took a small dip, the bulk of the market improved last year.
In response to a strengthening economy and a tightening rental market, more buyers are entering the market for the first time, while families already in co-ops and condos are trading up to larger apartments. Even studios and one-bedrooms, which saw a severe glut in the last several years, are being absorbed into the marketplace and have experienced price increases.
The market is very, very stable, says Alan Rogers, managing director of Douglas Elliman. We've gone back to basics, with real estate as a long-term, non-speculative investment. People view apartments as a home, and families are staying five years or more. It's a much healthier market.
Janet Gifford, senior vice president at The Prudential MLBKaye International Realty and manager of their West Side office, says, '94 was definitely better than '93. There is very little product, indicating that prices will continue to rise. The one-bedroom market did well for the first time in a long time; we're selling one a week now, whereas for a while, brokers didn't want to handle them at all. Today, she says, good one-bedrooms with views of Central Park or the river command well into the $300,000's. And while a classic six could be had two years ago in the $400,000 range, they are now selling in the $500,000 to $600,000 range.