The worst of the recession is over, and many observers believe the recovery is well under way. With the exception of some coastal areas, the city has climbed out of the worst of the effects of Superstorm Sandy. What’s next?
Will the city’s co-op and condo real estate market go back to the heady days of the mid-2000s, when the sky seemed to be the limit, or will moderation be the key? Will foreign investors continue to plunk down huge sums of money for New York City condos? And what effect will the administration of new Mayor Bill de Blasio have? These are just some of the questions we will examine in this look back at the co-op and condo real estate market for 2013 and a look ahead to the first quarter of 2014.
What’s the general mood of the industry? According to the pros we spoke with, it's basically positive. “The market has been the most active since the recovery, which started in 2010,” says Wei Min Tan, a broker with Manhattan-based Rutenberg Realty. “Last year witnessed records in prices, low inventory and sales.”
“Our sales are a good 7 to 10 percent over last year, depending upon what neighborhood, and prices went up 3 to 5 percent,” says Rich Schulhoff, CEO of the Brooklyn Board of Realtors. “We have seen nothing but growth in the last year and a half across the board—single-family, multi-family, condos and co-ops.”
The upturn is happening despite a low number of units available. “The year ended with the fewest available fourth-quarter listings in 14 years and investor levels roughly 20 percent below 2012,” says Lisa Vaamonde, an associate real estate broker for Brown Harris Stevens Residential Sales. BHS has several locations in Manhattan, Brooklyn and Palm Beach, Florida. “Despite the lack of available product, the number of sales was actually higher in 2013 than in 2012.”