For the past few years, one of the brightest real estate markets in the country has been the New York City luxury real estate market. While prices for high-end condos and other projects in New York City have increased in value considerably in recent years, it appears that the trends is declining.
While the average sales price in New York City is up about 17% compared to where it was just one year ago, the average price is heavily inflated by just a few major developments across the city. When taking that into consideration, the average price is pretty stagnant compared to other real estate markets across the country. Along with the decline in median sales price, the amount of sales is likely to slow down in the coming year. Part of this is due to the fact that interest rates are likely to rise in the next 12 months, but it is also due to the fact that many developers and sellers are taking units off the market. It seems that some sellers may choose to convert the units to rental for a few years until the pace of the market picks back up in the future.
According to the chief executive at Town Residential, the main reason why property values have cooled is that sellers finally see the increases to be unrealistic and that homes that have been listed for sale for awhile will likely see price declines. The opinion from Town Residential is highly regarded as the company is considered one of the premier real estate firms in the city. Town Residential provides a number of different brokerage and leasing services to individual owners and larger corporate developers across the city.
Town Residential is also well known for its premier market research capabilities. The company spends a considerable amount of time analyzing sales in all areas of the city.