Manhattan serves as a center for the most powerful forces in finance, art, and of course, real estate.
From 2016 to 2018, the New York Real Estate market experienced an increase of inventory since most sellers resisted market changes and a majority of buyers decided to wait for better prices.
However, the Queens real estate market, especially in Long Island, is attracting a number of investors due to an increase in new developments near the subway.
While the market seemed to be doing well in other states, New York seemed to be lagging at the beginning of 2018. However, by the middle of the year, the slowdown that affected New York began to affect the rest of the country. As home prices decreased around the U.S., there was a greater increase in the number of home buyers.
Overview for New York Real Estate in 2019
During the first few months of this year, a notable change took place in the market. More properties went into contract and the decline in prices slowly decreased. Additionally, the average number of days that a listing was on the market decreased.
The current spring real estate market in Manhattan has reached a stable level of prices and properties are receiving multiple offers in just a few weeks. The market is much more active with price levels that are 10 percent to 25 percent below the highest prices of 2015.
The market is much more active with price levels that are 10 percent to 25 percent below the highest prices of 2015.
Manhattan’s Luxury Market is Gaining More Activity in 2019
Manhattan recently signed 23 contracts for luxury properties with a value of $221 million in just one week. One of the contracts has been considered the most expensive deal of the year so far.
The top sale from the third week in May is a three bedroom penthouse that spans over 7,175 sq. ft. from JDS Development Group and Property Markets Group.
Located at 111 West 57th Street, it sold for $58 million. Another top sale in the luxury real estate was a unit for the same asking price. This listing is located at 212 Fifth Avenue.
Another top sale in the luxury real estate was a unit for the same asking price. This listing is located at 212 Fifth Avenue.
Manhattan’s real estate market is currently in its sixth straight week of strong luxury home sales.
Why is Manhattan's Market Gaining More Power?
According to Redfin, the average home sales price in New York for the last month is $550k — a decrease of 8.3 percent compared to June 2018.
Additionally, 3.5 percent of properties were sold under their listing price and spent an average of 151 days on the market.
Declining interest rates at the beginning of the year have also led to a greater increase in buyers during the spring season.
Across Manhattan, the supply of new condo projects is increasing from quarter to quarter as new developments hit the market at a steady price.
Reports indicate that young buyers tend to prefer Brooklyn to Manhattan, as it wasn’t affected as much by fluctuations in the market.
Ultimately, the New York real estate market, particularly in the luxury sector, has reached an equilibrium and is experiencing a great level of activity.