Just as it was last year, the real estate market–including the market for co-ops, condos and HOAs–is on an upswing. The economy seems to have largely (if not completely) recovered from the 2007-08 recession, and professionals don’t see any new downturn in the near future.
To some extent, the real estate market did slow down somewhat during the lead-up to last year’s presidential election. Now experts say things are looking up not only in local markets but nationwide. Still, people are concerned about the long-term impact of the tax bills currently being contemplated in the House and Senate.
The View From New York City
“There is much talk about the tax policy changes,” said Julie Park, a sales agent at Level Group, a real estate brokerage firm in New York City. “Whether or not the water will experience subtle ripples or a tidal wave is anyone’s guess,” she says. “What is concrete is that key economic indicators point to a healthy outlook going forward; interest rates are still low, and Wall Street bonuses are projected to be up. Furthermore, the `affordable’ market has always been resilient, even through uncertain times such as the present.”
Kirk Henckels, Vice Chairman of Manhattan-based brokerage company Stribling, deals exclusively with the New York City luxury market – units that sell for $5 million-plus. ”What I’m seeing in the $5 million and up market is that the number of closings are up compared to last year because of last year’s election pause,” he says.
Summarizing the market in New York City as a whole, the Real Estate Board of New York (REBNY)’s third-quarter report (the most recent available at the time this article was being written), showed that new records were set for average co-op sales prices in Manhattan, Brooklyn, and Queens. Citywide, the average price for a co-op in the third quarter was $836,000.