The new millennium has taken the real estate industry for a pretty wild ride. Nothing but up, up and away have gone prices, with inventory availability down to a severe low, keeping it interesting. Yet real estate is a still hot commodity…and a solid investment. Despite last year’s nail-biting stock market fluctuations, patience-trying political transition and worry-provoking issues concerning the national economy, real estate has stood tall through it all, especially in major cities. In fact, economists say we’re enjoying one of the healthiest real estate markets in history, and anticipate no chance of a downward cycle within the next two years. Add to the mix solid job growth in major metro areas plus lowered interest rates to inspire even skeptical buyers, and you can bet real estate will continue to weather the storm as a top performer as predicted.
Take New York. Based on year-end 2000 sales statistics calculated by The Corcoran Group, there’s no question that Manhattan’s luxury real estate market will ever be the same! The astonishing renaissance of New York City has demonstrated its resilience to threats of sluggish economic conditions with phenomenal increases in the average sales price indices over 1999’s record high levels. One thing’s certain…owning NYC real estate is still the ultimate status symbol among ultra-status conscious New Yorkers. The past year may have been a roller coaster ride for Wall Street, but our real estate clients have remained extremely calm and confident.
Other cities nationwide are also experiencing similar trends and exceptional market strength. Let’s first look at New York City’s remarkable stats, then we’ll jet across country to see how other major cities stack up…
It you can make it there, you can make it anywhere, right? Real estate growth made it big time in the Big Apple last year, setting the pace for our other big cities. We’re seeing several dichotomies in trends, however. First, there are still more buyers than sellers in the market. Buyers today have more cash to spend, yet seem more hesitant to commit than last year. Even those willing to take the plunge may have to wait, due to the still prevalent shortage of nice apartments (except for super-expensive properties over $10 million, which are readily available). While the days of wild bidding over asking price may be gone, competitive bidding on choice properties continues as an everyday occurrence. Prices are still on the rise but apartments are taking a bit longer to sell, with deal signing time also lagging somewhat.