In my late January Bracha blog, I told readers about how the Manhattan market was in for an upsurge this year and now there’s even more promising news.
According to a recent Real Deal article investors are once again looking at Manhattan as a solid investment.
Rental prices are going up as well. WNBC New York News reported yesterday that rentals for a two-bedroom condo in New York City has risen 10 percent from last year and that by summer, it could be difficult to find one.
The New York Daily News reported recently that “Manhattan rents are through the roof.” Studios are up seven percent from last year and one-bedrooms, up nine percent.
Three-bedrooms have jumped up 12 percent!
Another recent article in the New York Times, “Charting a Climb From the Depths,” reported that “...the least Pollyanna-ish real estate watchers are looking at a February surge in contracts signed on properties listed for more than $4 million as quite something. That is because 70 of the listings went into contract last month, the highest number of any month going back to January 2007, well before the housing crisis crushed the high-end market.”
According to a Bloomberg article in January of this year, condo and apartment sales in Manhattan did fall 7.2% in the fourth quarter of 2010, but that’s because of the end of tax credits.
Jonathan Miller said, “Flat is the new black...recovery used to mean getting better. Now it means it’s not getting worse.” I agree with Mr. Miller and I believe we’re going to be on a solid track of real estate gearing toward what we were accustomed to, pre-Lehman Brothers.
In November of last year, Chief U.S. Economist Ian Shepherdson predicted that 2011 will prove to be a “true turning point for unemployment” and as lending institutions loosen their hold on credit, small businesses will once again be able to get loans, which will result in an annualized growth between three and four percent.
New York’s jobless rate dropped in November, the lowest since April of 2009 and “the city’s financial industry added 5,900 jobs in the 12 months through November.”
What does all this mean? What I've been predicting all along! This year, 2011, is going to be a promising year for real estate. People are having more confidence about spending and that means investing in real estate. Once again, as I’ve always believed, investing in real estate is one of the best investments--period.
New construction in Park Avenue South has driven prices up as the New York Times reported last week. Known as one of New York’s up and coming neighborhoods, Streeteasy has reported condos selling between $1,400 to $1,500/square foot.
Keller Williams® Realty outpaced the market in every way, through productivity and profit share. Units closed were up six percent from December 2009 to 2010. Overall the company’s associates saw productivity year on year percentage increases across the board in listings taken (up 13 percent), contracts closed volume (up 9 percent) and contracts closed units (6 percent).
Interest rates are still low, but demand for Manhattan housing will steadily climb. It’s the perfect time to invest in or buy a luxury condo or co-op in New York City!
To learn more about our Manhattan properties or to find out more about Keller Williams New York City, call me or my team at (212) 838-3700 or visit our website. kwnyc.com.
Furman, Phyllis. New York Daily News. Manhattan rents going up and vacancy rates going down; average studio now $1,886. Mar 9, 2011. (Accessed 11 Mar 2011).
Kershaw, Sarah. The New York Times. Charting a Climb From the Depths. Mar 6, 2011.
Mooney, Jake. The New York Times. Southern Pride, of a Kind. Feb 27, 2011.