While the economy and the housing industry are making a comeback from the 2009 recession, it has been a slow and steady process. On the upswing, the outlook for Manhattan is quite positive. Over the last year, Manhattan’s had an increasingly improved economy with better job opportunities and an expanding real estate sector. Experts believe that this will be a continued trend, and because of this, you can expect Manhattan’s prices to continue to be on the rise.
1. Expanding Economy
Image via Flickr by (vincent desjardins)
According to the New York City Economic Research & Analysis’ June 2014 Economic Snapshot Report, over the last few months, New York City saw an increase in both private and public sector jobs, climbing by a total of 2,700. The unemployment rate is also on the mend, going down to 7.9 percent in April. After looking at the numbers, it’s obvious that Manhattan’s economy will continue to improve through increased employment and falling unemployment over the upcoming quarters.
2. Current Real Estate Pace
While Manhattan’s real estate market seems to be moving at a much calmer pace from last year, the market is still vivacious. Recent market reports show that for the second quarter of this year prices, inventory, and sales volume are all up compared to this time last year. However, the numbers are still unusually low, thus making it a highly competitive marketplace for real estate.
3. Limited Inventory
This year has seen an 18 percent increase in inventory from the same time last year. While this is a good indicator of Manhattan’s rising housing industry, especially from the record low at the end of last year, the supply of inventory still remains relatively low. This means that prices will remain high while the inventory slowly climbs.
4. Days on Market
In addition to the low inventory level, the average days on market have decreased by roughly half. With only 82 average marketing days, this quick turnaround time means that Manhattan’s real estate market caters towards the seller. This doesn’t necessarily mean that buyers will be forced to buy at higher prices, just that buyers need to be willing to act fast. Risking low bids may no longer be an option.
5. New and Luxury Developments
New and luxury developments are also influencing higher prices. Over the last year, luxury developments have seen a strong double-digit price increase, is 38.3 percent higher this year than last. The entry-level threshold has also increased, allowing for base prices to move higher. The newer developments are taking this into consideration. Helping increase the inventory level, newer developments are not only raising the price per square foot but are also making units larger which in turn increases the listing and selling price.
With the growing economy and an increased real estate pace, along with limited inventory and increased demand, one can say that the housing market has definitely improved. This upward, increasing healthiness of the housing industry will result in a continuous growth of prices.
Principal Broker & Director of (NAEBA) National Association of Exclusive Buyer Agents, Since 2013. Gea has been quoted in reputable industry sources New York Times, Wall Street Journal, USA Today, Mansion Global and The Real Deal to name a few.