The current trends in the real estate market in NYC

The current trends in the real estate market in NYC

In December 7, 2017
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Going by reports in major real estate magazines and news articles, the real estate market in NYC has seen good times in the last year and the trend is to continue. Fearful of decline in sales following the election of Donald Trump and his anti-immigration tactics, the real estate market in New York City has not disappointed. Overall New Yorkers and the City, both, are seeing positive trends. Here are some noticeable trends:

Influx of disruptive technology

Every industry is getting disrupted by technology, by a new upstart, and other factors. The same is happening to the real estate industry in New York. Technology is changing the way real estate companies practice. Firms are now using online technology and data analysis to keep track of consumers in the asset buying and selling process. Apps, listing tools, and data analysis are giving real estate companies new ways of working, marketing and gathering information about new buyers.

Inflow of foreign buyers

As reported by Fortune, foreign buyers are still interested in buying properties in New York City. Fueled by interest from buyers from China who are on the lookout for safe places to invest their wealth, as the economy in the homeland shows signs of uncertainty. This trend of growing amounts of capital from Asian countries is here to stay.

New constructions continue

Factors such as higher wages, looser credit and increased demands from buyers have resulted in continued new constructions in the city. Property Shark reported New York as the hottest rental market as new construction hit a record new high. An analysis of apartment construction in 2017 conducted by RentCafe, an apartment search website, and based on Yardi Matrix data revealed that over 345000 rental apartment completions were expected in 2017. This points to new home constructions being in demand for sales and rent in New York. From residential buildings to large-scale infrastructure projects, new constructions continue.

Queens has been a favorite

According to reports in Bloomberg, properties in Queens have been selling fast. The reason? Affordability. While buyers in Manhattan and the costlier sections of Brooklyn are taking more time to sell, Queens is seeing easy sales. Grant Long, senior economist at StreetEasy shares, “We’d expect to see competitiveness in areas that are more affordable. There’s a huge demand for affordable units in the city.” (Bloomberg.com, Oct 2017)

Trends in Manhattan

Reports by Inhabit Corcoran revealed detailed reports of real estate trends in the Manhattan area. Here’s what was reported:

  • Manhattan’s resale co-op market has been, consistently, the most robust of any product type.
  • Manhattan inventory increased year-over-year for the seventh consecutive quarter.
  • The Manhattan market has now experienced two consecutive quarters of annual growth in closed sales as a result of improved contract
    activity during the first six months of 2017.
  • Listed inventory has stabilized this year.
  • The resale condo market was the only market to experience decreases in both closed sales and inventory versus last year and is the only
    product type with more than six months of supply.
  • Similar to Second Quarter 2017, new developments registered a year-over-year increase in closed sales.
  • The luxury market is defined as the top 10% of closed sales in terms of price. (www.media.corcoran.com)

Increase in luxurious amenities

As per reports by City Realty, renters are seeking more amenities that will make their residential communities feel trendier and more luxurious. “NYC renters are not only looking for doormen, they are seeking landscaped roof decks, fitness centers, in-unit laundry, on-site parking, resident perk programs and more. They are seeking the sophisticated urban lifestyle”, said a property manager in a report.

Neighborhoods that buyers and tenants were keeping tabs on
Astoria for its convenient proximity and transportation to Manhattan, properties in Downtown Brooklyn for its affordability, increased development on all the outer edges of Manhattan and properties in Jersey City and the Bronx.
With exciting trends in the real estate market in New York City, property owners, property seekers, interested buyers, tenants, architects, interior designers and real estate firms, are all hopeful and looking ahead.