So, is 2016 the right time to sell property in New York USA? 2015 was not a bad year for the property market in New York. At least, things got off to a great start, with rising prices and record sales, but cooled down towards the end of the year, when affordability became the biggest concern.
Indeed, ensuring affordable housing for all remains New York Mayor Bill de Blasio. Here are the New York Real Estate trends to watch out for in 2016.
#1: It’s Advantage Buyers in New York
For the first time in years, sellers won’t have all the advantage in New York. New York is slowly but surely turning into a buyer’s market, largely because of the glut of new developments that have come up. For the first time in years, the supply is actually greater than demand. This has made sellers more careful about how they price their properties. They no longer enjoy the power they once used to have over buyers.
#2: Luxury apartments to take a hit
Luxury apartments, and by that we mean apartments that used to fetch $100 million, will now be sold for a lot lower. We expect price cuts across the board in the luxury segment. Sales of such properties are expected to be sluggish. The prices haven’t completely dropped off, they are at the level they were at 2 or 3 years ago. But certainly, luxury apartments in New York are selling for a lot less that they were just 12 months back.
#3: The Cautious Developer
New York developers are not known to be the cautious kind. They are the most optimistic bunch of people you will ever meet. But the new desire for affordability seen in the property market today has taken them by surprise. This has led them to buckle down and become more cautious. Many new developments have been either curtailed or stopped altogether. Nobody wants to be caught with unsold inventory.
#4: Luxury rentals rule the New York property market
High-end rentals or luxury rentals completely dominate the property market in New York. Rental prices have shot through the roof. Most of the rich investor bankers and hedge fund managers would rather rent a luxury apartment than buy one. These are very sophisticated investors and they just don’t want to be caught buying at the top of the market. Like everybody else, they are waiting for things to cool down. So this is great news for those who want to earn a decent rental income from their New York property.
#5: Affordability is BIG
Mayor Bill de Blasio has made affordable housing the cornerstone of his administration. What’s different this time is that architects have come out with more creative designs for affordable housing.
As Claire Weisz of WXY Architecture + Urban Design explains, “With designers having more leeway on the details of the form and affordable housing units being required on site, that should mean that both architects and developers will adapt their ideas to a greater variety of sites in more neighbourhoods than before.”
So we expect a lot of developers to try their hand at providing more affordable options to apartment seekers in New York. There is an intense competition among providers of affordable housing in New York, as this is where all the action is in 2016.
#6: Baby Boomers LOVE New York
New York is no longer just a city of the young and the restless. A number of Baby Boomers are following their children to New York and buying apartments here. Many Baby Boomers find the New York City life more fun and exciting than living in a retirement home in sunny Florida. Also, there is this desire to be close to their children and grandchildren, which drives them to come here.