Real Estate Pricing in New York

Real Estate Pricing in New York

In March 5, 2018

The real estate of New York has witnessed one of the worst quarters in the last 6 years. The prices and sales of real estate have fallen gallantly in the 4th quarter in germane to the report from Miller Samuel and Real Estate of Douglas Elliman. The sum total volume of sales has fallen to about twelve percent in comparison to the previous year’s fourth quarter. For the first time, the sales price as per the average calculation has fallen below two million dollars in about 2 years.The real estate prices and sales price have taken giant fall in the 4th quarter, moreover, it is predicted that it will fall further in this year 2018 in lieu of the latest implication of tax rules.

The overall total of the volume of sales has fallen twelve percent in comparison to the previous year’s fourth quarter- This is the lowest level in the past six years as per the reports presented by Miller Samuel and Real Estate of Douglas Elliman. The sales prices on an average basis have fallen below 2 million dollars.

The New York brokers say that decline has been witnessed the outcome of uncertainty because of the tax plan set as per the Republican, as the ultimate buyers held it till the details mentioned in the new law was clear enough for them. Moreover, mostly the buyers have also since then have rushed in to showcase their rebound.

Also, the New York market concerning luxury is also suffering because of the extremely priced apartments and the high end. The superior oriented analysts have reportedly said that since the sales are in a rebounding phase at the beginning of the 1st quarter of the year 2018, the new tax law stating restrictions and limitations in the deductibility of local taxes and state are likely to add subsequent pressure like before to the housing prices of the New York City, especially on those which are at the top.

Also, there is likely to be a great impact on the sales and prices as stated by the CEO and president of Miller Samuel – Mr.Jonathan Miller. He has said that it might take up around a year to two years to witness the complete impact in totality. The New York’s high-end market has shown great cracks. The inventory concerning luxury apartment which was ten percent has grown by 15 percent at present. Now, there is also a seventeen-month-old supply of apartments in New York, which is up from about ten months a year. Also with the rise of gigantic new condo oriented tower in every nook and corner of New York, it is predicted that the numbers will increase considerably.

As opposed to the current development, Miller cited that the holding up is too strong with an up in the median price for sales by two percent over the past one year. The price for the new development has fallen by seventeen percent past one year and the sales number has fallen down to twenty percent.

This year the new development will raise adding inventory. Though the low-end demand for apartments which are priced 1 million dollars to 2 million dollars is strong, the sale of the apartment costing more than five million will be difficult. This is because in this part the rich are discrete regarding where and when to purchase a home and with the price of owning the home in the city going up, the apartments with the target at the rich will visualize the biggest hit in price.