New York News
New York City real estate has impressive first quarter30 May 2013 12:21 PM
The housing market has been improving across the country, but few cities experienced such an impressive first quarter as New York City. After several years of straggling sales, the Big Apple showed tremendous improvement in the first three months of 2013, as prices and demand both surged.
Big city gains
According to Business Insider, Manhattan real estate is one of the housing market's true success stories, as home values have shown significant and steady gains. The source reports that home prices climbed 18 percent in a year-over-year basis during 2013's first quarter. With distressed properties excluded, those gains rose to an unparalleled rate of 21 percent.
Spurred by mounting interest among foreign buyers and investors, Manhattan townhouses and other properties have experienced the most price appreciation. Although it weathered a rough few years in the aftermath of the recession of the late 2000s, Manhattan home prices have had several strong months in a row, likely aided by growing optimism throughout the country.
The increasingly positive outlook among homebuyers has unsurprisingly resulted in a tight market across the country, but this is especially true in New York City. According to Time, buyers are often being forced to bid against one another - often well above the initial asking price - when they find a desirable home. According to CNN Money, more than two-thirds of listings drew multiple bids during March.
Big gains in the luxury market
Although price appreciation has been seen throughout New York City's housing market, the luxury sector has experienced the largest gains. According to World Property Channel, properties listed above $5 million have been selling at a record-breaking pace, even outpacing the rates they were selling at during the peak period in 2008.
Manhattan has no shortage of high-priced homes, but the increasing demand has taken a noticeable bite out of the city's luxury market. Between foreign buyers and newly optimistic American investors, the inventory for top-tier houses and apartments is as low as it has been in quite a while.
With the growing demand, it shouldn't be surprising to learn that home values are surging in places that are further and further from Manhattan. According to CBS, homes in areas like Brooklyn and northern New Jersey are also seeing their values rise.
"A big trend that we continue to see is that housing demand is pushing out along the train lines into the suburbs. Places in New Jersey that connect to Manhattan are certainly at the leading edge of what's happening," Jeffrey Otteau, President of the Otteau Valuation Group in East Brunswick, N.J. told the source.