New York City ended fiscal 2006 with a record $6.1 billion surplus from Wall Street profits and surging real estate values. Wall Street firms paid workers in the city a record $21.5 billion in bonuses in 2005. Wall Street bonuses fuel the manhattan real estate market. NYC Real estate tax collections were $1.2 billion more than anticipated, personal income tax collections exceeded estimates by $1.3 billion.
Mayor Bloomberg has done a great job keeping the city fiscally strong. I wish George W. Bush had the fiscal discipline of Mike Bloomberg.
When the city is strong financially so is NYC real estate. The real estate market in NYC has cooled or changed to a buyers market due to a surplus of inventory from a huge boom in new construction. The same thing happened in the late 80's and early 90's but the city was not as fiscally strong.
The next 24 months will be a long term buying opportunity for savvy buyers. I've always been the kind of REALTOR® that has been an honest advisor. During the frenzy the last couple of years I always considered my customer's financial situation, appropriate mortgage products and their risk. I always explained the risk in waiving mortgage contingencies and or possible appraisal issues when in bidding wars.
Buying an apartment in Manhattan was like a beauty contest. Multiple offers and bidding wars on ordinary apartments "The Highest and the Best". I prefer the market we are in now. My skills and knowledge are more valuable now to both sellers and buyers.
I do not think now is the time to speculate in Real Estate. If you bought last year during the peak and are forced to sell in the short term you might lose money. However, I honestly believe now is a great long term opportunity for first time buyers and those that need a bigger place to live in or a second home for those that can afford it.
While prices may still come down, rents are rising and mortgage interest rates are also rising. There are a lot of properties to choose from and prices are negotiable.