Location, location, location — these are the timeless key words used to describe real estate buying and selling especially in New York. In 2017, the Big Apple experienced a lot of changes in infrastructure. Read about these rare occurrences that have resulted in five trend.
Slowest Price Growth
The year 2017 will be one to remember. The Manhattan sales market was predicted to experience slow growth based on the area’s high resale prices that paralleled the high demand.
According to StreetEasy, luxury is what was “dragging the market down to earth.”
In 2015, the luxury segment was the first market to have price reductions. However, experts expect the median resale price to increase marginally by 0.7 percent.
In November 2017, the price is projected to be $985,585.
2.Rising Rents Lead to Homeownership
As rents increase and outpace income, renters will look for more feasible options: homeownership.
In Queens, the rent has increased to just over 4.0 percent per year-over-year. In November 2016, Manhattan prices are expected to increase 2.0 percent over the subsequent 12 months. Brooklyn’s prices will increase by 1.0 percent.
The Transportation Factor
Time is money. That fact is never more evident than in New York. Transportation and its ability to move residents quickly affects the rent and sale prices of highly desired neighborhoods.
The Second Avenue Subway and the 7-train extension to Hudson Yards are just two major developments in public transportation that will affect the upscale Upper East Side.
In Williamsburg, residents are willing to pay top dollar to close proximity to shopping, cultural venues and subways.
Kingsbridge – Hot, Hot, Hot
Located in the Bronx, Kingsbridge has made its way to the top of StreetEasy’s Hot Market Index based on Key Performance Indicators including annual change in sale price and population growth.
New city funding has provided world-class shopping and clean, safe neighborhoods.
Long Island City is the locale of 9,000 newly built rentals. Brooklyn has 5,000 units.
So Developers are rethinking their sales strategies and modifying their business plans to include the conversion of rentals to condos. Selling them is also an option, according to Dna Info, https://www.google.com/amp/5/www.dnainfo.com/new-york/20161220/asteria.
One thing is for sure, New York is always in a state of change or reinvention with the goal to serve its demanding residents. So the real estate market will reflect these demands and continue building and driving higher prices.
David Milberg is a financial expert from NYC.