The worst of the recession—big-time failures of investment banks and mortgage companies, huge banks in trouble, companies laying people off in the thousands—may be over. There are some signs of hope, and residential buildings that were long stalled are now getting off the ground. In most parts of the city, foreclosures are down. And loans seem to be more available.
But the hoped-for recovery still seems, at least to many people, to be as far away as ever. The unemployment rate fluctuates back and forth. Small businesses are still in trouble. And this must have an impact on the real estate market, especially the condo and co-op market.
New York is somewhat different than many cities in the country, in part because of the number of wealthy people who live here on either a full-time or a part-time basis. But in the same city, young people are staying longer with their parents because it’s more difficult than ever for them to get that first jobs. And in many workplaces, people who leave simply aren’t being replaced. How are these seemingly contradictory trends being reflected in the market?
What’s the general demeanor of the residential real estate market in the city and its suburbs, especially compared to the rest of the country?
Real estate professionals have several answers and they tend to agree that things are on the upswing, although they could be better. Earlier this year, we reported that the mood of the market is “cautiously optimistic,” and that still seems to be the case.