2012 a great year for New York City real estate market8 Feb 2013 1:47 PM
Because of its constant influx of new residents and enduring appeal, New York City has recovered from the most recent U.S. housing market downturn more quickly than other regions. Recent data suggests that this may have been the case with the recession of the late 2000s, as the Big Apple has been improving by almost every housing metric for the last several consecutive months.
According to the New York Daily News, New York City real estate is officially in recovery mode. In fact, 2012 ended as the second-best year for the city's housing market in terms of volume of sales, price gains and demand.
"The improving economy, lower interest rates, rising residential rents and the continuing safety and vibrancy of the city are driving the housing market," Mike Slattery, vice president for research of the Real Estate Board of New York (REBNY), told the news source.
Although progress has been mounting for more than a year, the last quarter of 2012 saw especially large improvements. The total number of home sales climbed nearly 25 percent on a year-over-year basis, and the average price of a home rose another 12 percent, the source reports.
The considerable gains witnessed in the New York City real estate market shouldn't be too surprising, as the country as a whole saw similarly marked improvements over 2012. However, the gains in New York City are particularly worthy of note not only for their scale, but also for their uniformity.
While the home values across the country rose an average of 5.9 percent over the course of 2012, they rocketed 8.3 percent in New York City, according to the Real Deal. Even more impressively, these gains were seen across the boroughs, particularly Brooklyn and Queens, which experienced year-over-year increases of 10.7 percent and 7.6 percent, respectively.
"Strong demand paired with limited inventory in many markets helped fuel a robust and often rapid recovery in overall home values," Stan Humphries, Zillow's chief economist, told the source.