The StreetEasy New York City Market Report for the second quarter of 2016 was recently released and it indicated that the median price for Manhattan residential real estate increased 2% to $994,558. Now, that's a decent increase in most books; but for New York, it's the slowest rate of growth that we've seen since April 2012. Homes in Manhattan sat on the market for a median of 62 days.
What are the key factors driving the market?
There are several market-moving trends at work at the moment. First, the hot real estate market across the U.S. is beginning to slow. In the very global New York City market, that trend is compounded by economic pressures in China, weak oil prices in the Middle East and Russia, and a very strong dollar.
If you're thinking of putting your home on the market,
what does this mean for you?
Well, real estate markets aren't monolithic and New York City is no exception. Although the super high-end of the market is languishing and that can be a harbinger of things to come, most of the market in Manhattan and other parts of the city are still flourishing. In addition, it depends where you live. Upper Manhattan is still growing strongly, increasing 5.9%. And parts of Brooklyn continue to surge. Plus, nearly 98% of sellers are still receiving their asking price.
Finally, the long-term prospects of a crowded market like New York, where space is at a premium, continue to look good. For buyers with a longer view, the city is still very much an attractive market.
That said, at the moment the signs are there for the slowdown to continue and move into middle range part of the market. If your property is not in the upper stratosphere of price range & you've been thinking of selling, it may be a good time. You could be hitting the top of the peak before a broader slowdown takes effect.
If you need an assessment of your particular property and situation, contact us. We'll be happy to help.