What a Closer Look at Manhattan’s Real Estate Market Reveals for this Year
As 2017 kicks off, many developers and landlords predict that the current New York City real estate market will force them to offer more concessions and discounts to potential buyers. The most likely reason for this is the large number of new apartments — mostly luxury condos — that will be entering the market this year. But a closer look at a borough such as Manhattan yields even more information on how market prices are changing for which types of apartments and where.
StreetEasy compiled a report that focused on the last quarter of 2016. It found that in the sales market, Manhattan as a whole witnessed only 1 percent growth from last year. The rental market was also similar, with only a 1.2 percent growth compared to last year.
This is in contrast with how both sales prices and rents have consistently risen by a higher percentage in the past few years. So for those wondering whether to buy or rent, this is a good indicator that it's time to start looking. In addition, with landlords facing the potential of listings spending an increased number of days on the market and having an increase of inventory, you might be able to grab a few concessions, such as free month’s rent or price cuts. In the fourth quarter, almost 40 percent of all Manhattan sales had a price cut.
This pattern isn’t uniform throughout Manhattan’s real estate market though. While price growth has slowed down for mostly luxury apartments, Uptown Manhattan has seen considerable price growth. In Harlem, Inwood, Washington Heights, Hamilton Heights, and Manhattanville, the median resale price grew 8.8 percent. Rents here also increased by 6.2 percent.
StreetEasy’s economist Krishna Rao predicts that demand and competition will continue to increase in Uptown Manhattan where prices are relatively lower and much more affordable than the rest of Manhattan. And for luxury apartments, price cuts may continue to occur until demand picks up again.
You can read StreetEasy’s full report here.