A new year begins…and with it more activity in the New York City real estate market. Many are asking about progress in the market, especially with co-ops and condos, and the prognosis for 2015. What new projects are under way? What are buyers looking for? Now that the recession is over, what is happening?
There are various opinions about the state of residential real estate in New York City, but the prevailing mood seems cautiously optimistic. Expressing, presumably, the “official” view, Michael Slattery, the senior vice president for research of the Real Estate Board of New York (REBNY), says: “The New York City residential market has been steady for a while now. Sales in both Manhattan and the boroughs are strong, and the increasingly supply from completed projects will help the market active.”
Gary Malin, the president of Manhattan brokerage firm Citi Habitats, is optimistic with some reservations. “Overall,” he says, “the city’s sales market has completely rebounded from the great recession and the average sales price across the five boroughs has reached a record high. However, the downside to this strong market is that pricing has reached a very high level that is unaffordable for many New Yorkers.”
“Despite the challenges faced when purchasing residential property in our city, for both billionaires and average citizens alike, New York City real estate almost always proves to be a wise investment in the long term,” he says.
“Yes, we are beyond `post-recession,’ but the market is still undergoing change since the financial crisis began six years ago,” remarks Dottie Herman, president and CEO of New York City residential brokerage Douglas Elliman. “We have seen tremendous improvement in activity and buzz over the past few years with the help of normal credit conditions. It’s still challenging to get a mortgage.”