2012 Shapes Up Well for Manhattan Real Estate

Written By Aby Thomas | August 30, 2012
2019%2f09%2f13%2f12%2f07%2f47%2f147044a1 bf5d 4470 923c 1d45bbcb7264%2ffile

2012 has been a year of several amazing achievements. Queen Elizabeth II marked the diamond jubilee of her reign over the United Kingdom. Michael Phelps thrilled and wowed us At the London Olympics by becoming the most decorated Olympian of all time with 22 medals to his credit. Christopher Nolan’s last installment of the Batman trilogy, The Dark Knight Rises, lived up to all its hype, grossing over $941 million worldwide. And now, here’s something that could be added to the list: 2012 has been the hottest market for Manhattan real estate ever since the economic downturn hit it in 2008.

We’ve all seen the signs. Every so often in the past few months, we have been alerted with an almost certain regularity to news items showcasing how another piece of amazing real estate in Manhattan had been sold. Vacancy rates of apartments in the city have been steadily increasing, and rents have continued to shoot up, with massive spikes in the rents for certain neighborhoods in New York City. All of this has been heralded as good news for the city’s economy, as these were clear indications that the real estate market is recovering from the lull it was suffering from.

An article published on UrbanDigs.com analyzed the market forces of sustained new contract activity, declining inventory trends and price action for the past few years, and the results confirmed that the last few months of 2012 have seen “the strongest six months of action” in the Manhattan real estate sector since 2007. Despite the comparatively lower number of new listings in the market, there has been no decline seen in the deals being made and closed. The latent demand of buyers who have simply watching the real estate market for the past few years since the downturn has suddenly stepped up, entering the market and making very laudable purchases of some amazing apartments in the city.  

All of this has therefore resulted in the “very tight inventory conditions today,” which results in buyers who are more eager to close deals on homes as quickly as possible. So, what can be expected to happen in the remaining months of 2012? Predictions are aplenty. With the decline in inventory, one possibility is that stalled development projects will see new life breathed into them, thereby probably altering the staggering home prices as well. Questions are also being raised as to whether the market will be able to sustain these trends up till the end of the third quarter of the year. But given the behavior of the market so far, it seems very unlikely that we’ll be seeing a dip anytime soon.

Blog Archive


This information is not verified for authenticity or accuracy and is not guaranteed and may not reflect all real estate activity in the market. © 2021 REBNY Listing Service, Inc. All rights reserved. RLS IDX Data display by Elegran LLC. IDX information is provided exclusively for consumers’ personal, non- commercial use and that it may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing.

Elegran LLC may or may not be the exclusive listing agent of the properties being displayed on Elegran.com. All data displayed on Elegran.com is presented for informational purposes only and should be independently confirmed by all customers. All Information is compiled from both public and private sources including, but not limited to the RLS, MLS and ACRIS; each of which is assumed to be reliable. All information displayed is subject to errors and omissions regarding apartment specifications and final sale prices, and further, any unit listed may have had its listing withdrawn without notice subsequent to such information being compiled. No representation is made as to the accuracy of any description (ie: listing, close sale data, and/or building description) of any building or individual unit. All measurements and square footage are approximate and all information herein should be confirmed by customer and/or their attorney. Elegran LLC, its members, affiliates, and contributors adhere to New Your City, New York State, and United States Fair Housing Laws.