NYC Real Estate Leads the Charge
Posted by: Realestock.Staff in World Economy, New York, International Real Estate on Oct , 2010
Want to get in on a hot market? Look no further than New York City.
In the third quarter of 2010, real estate sales in the city surged in a big way. Sales were 26% percent higher than at this time in 2009, and 11% higher than they were in the second quarter of the year. Bolstered mainly by strong condominium sales across the city, Manhattan lead the way with a sales increase of 25% above the second quarter of the year. Brooklyn was not far behind, with condo sales doubling in that borough.
“The entire market is improving,” said Michael Slattery, Senior Vice President at the Real Estate Board of New York (REBNY). “There is generally an improving mood out there… Interest rates are low and prices are stabilizing.” According to figures provided by REBNY, NYC real estate prices rose considerably in 2010. Across NYC the average increase was 7% over 2009 prices - the average price of a home in NYC is now a jaw dropping $854,000.
On the commercial front, the news was even better. Despite falling rents, the market is strongly up. During the first nine months of the year, commercial property investments in Manhattan totaled $9.4 billion dollars, an incredible 168% increase over the $3.5 billion in commercial property transactions completed in all of 2009. Although the overall vacancy rate edged up to 10.9% new retailers are eagerly picking up leases, particularly as discount retailers like TJ Maxx, Forever 21 and Syms are aggressively expanding to take advantage of current market conditions.
While experts like Slattery have noted that sales and transactions tend to dip in the fourth quarter due to holidays and cold weather, the rapidly growing market and historic low rates may continue to fuel the NYC real estate market’s return to normalcy.
Photo: Jose Wolff, Flickr
Sources: The New York Times, HousingWatch.com, Crain's New York Business, MarketWire, NuWireInvestor
