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Riding the Real Estate Rollercoaster: New York City Market Trends Unveiled

By Columbus International,11 March 2024

Here are the latest developments in the New York City real estate market.

In the current landscape of the New York City housing market, the equilibrium between buyers and sellers holds significant importance. With a consistent decrease in housing inventory and a rise in median prices, the market tends to favor sellers. The limited availability of homes places sellers in advantageous positions, potentially leading to more favorable deals. However, this doesn’t necessarily translate to a gloomy outlook for buyers. The increased demand and fluctuating market dynamics offer opportunities for those looking to make strategic investments in real estate. The surge in home prices in New York reflects the impact of dwindling housing inventory and heightened demand. Consequently, the prevailing trend indicates that home prices aren’t declining but rather experiencing growth, signaling a robust market with the potential for lucrative returns for sellers.

The year 2024 began much like its predecessor, with low housing inventory and fluctuating interest rates around 6.5 percent, as reported by the New York State Association of REALTORS. The average rate on a 30-year fixed-rate mortgage saw a slight decrease from 6.82 percent in December 2023 to 6.64 percent in January 2024. However, compared to the same period last year, the interest rate has shown an increase from 6.27 percent, highlighting the dynamic nature of the real estate market. One notable shift in the market is the continued decline in housing inventory, persisting for 11 consecutive months in year-over-year comparisons. Across New York, the inventory of homes for sale decreased by 10.2 percent, dropping from 39,544 homes in 2023 to 35,492 units in 2024. This limited supply presents challenges for buyers but also creates an environment where sellers may find opportunities to capitalize on the scarcity of available homes. New listings experienced a modest decline of 1.5 percent, totaling 9,279 in January 2024 compared to 9,423 in the same month of the previous year. Closed sales witnessed a more significant decrease, dropping by 3.8 percent from 7,486 to 7,203 homes in January 2024. Conversely, pending sales increased by 8.9 percent, indicating a potential rebound and heightened activity in the coming months. January saw a 6.7% increase in the number of homes entering into contracts, marking a positive turn as buyers returned amidst declining mortgage rates. This surge, slightly higher than the average over the past five years, is attributed to the drop in mortgage rates during November and December, enticing buyers back into the market post-year-end holidays. However, despite this uptick, challenges remain. Highly-priced homes are staying on the market for longer periods, keeping the city’s median asking price elevated.

Elevated asking prices, coupled with rising mortgage rates, are prompting sellers to make concessions to attract buyers, illustrating a nuanced market scenario. As of January, the median asking price in NYC stood at $1.095 million, reflecting an 11.7% increase from a year ago. This uptick is largely due to a slowdown in the luxury market, where homes priced at $4.975 million and above are taking longer to sell. The median asking price in Manhattan rose by 8.4% year-over-year to $1.68 million, indicating a resilient market experiencing notable shifts. While luxury listings in Manhattan witnessed an increase in median asking prices, the typical luxury listing received only 93.2% of its initial asking price, indicating a shift in power from sellers to buyers at the highest end of the market. In Brooklyn, where inventory is limited, the median asking price surged by 16.8% to $1.05 million. Meanwhile, Queens offers a more affordable option, with a 4.2% year-over-year increase, resulting in a median asking price of $624,900. The NYC housing market grapples with the aftermath of elevated mortgage rates and median asking prices, limiting the pool of potential buyers. While the monthly mortgage payment on a median-priced home rose by 16.1% year-over-year to $5,619 in January, the median asking rent increased by just 0.1% to $3,500. With a considerable number of potential buyers still on the sidelines, those who can afford to stay in the market now have more room for negotiation. The median asking price for homes entering into contracts in January was $925,000, 15.5% lower than the overall median asking price of homes on the market. This disparity indicates a market where more affordable homes are gaining traction among buyers, while the luxury segment experiences a slowdown. Despite the recent decline in mortgage rates, the outlook for the New York City housing market remains complex. Seller concessions, aimed at attracting buyers, have become more prevalent. In September 2023, when mortgage rates were above 7%, 2.7% of for-sale listings mentioned seller concessions. Despite a subsequent decline in average mortgage rates to 6.7%, concessions in January held steady at 2.3%, showcasing a significant increase from the 1.4% average in 2021.

Regarding negotiations, buyers are finding more areas to maneuver. NYC sellers are increasingly willing to offer concessions explicitly in their listings, helping to reduce closing costs for buyers without reducing the asking price. One notable concession gaining popularity is the rate buydown, with 1.7% of sponsor condos offering this option in January, a significant increase from the 0.1% average in 2021.

Trump Looks for Information Regarding the Future of His Family’s New York Real Estate Holdings (Wall Street Journal)

By Columbus International,11 October 2023

According to The Wall Street Journal, Donald Trump’s legal team has sought clarity from New York State Supreme Court Justice Arthur Engoron regarding a ruling that could potentially strip the former president of control over part of his real estate empire.

Justice Engoron recently ruled in a civil case brought by New York State Attorney General Letitia James, stating that Trump and his company had committed fraud by falsely valuing his properties. This ruling could significantly impact the Trump family’s business entities, potentially affecting hundreds of entities, including real estate assets like Trump Tower. The judge has ordered the cancellation of legal certificates that permitted these entities to conduct business in New York and instructed both parties to identify a receiver to oversee their dissolution.

This decision could also affect trial proceedings set to begin on Monday, where further allegations of fraud will be addressed. Trump’s lawyers have sought clarification on the ruling’s impact, including whether affected properties will be sold or managed by the receiver. James’ lawsuit alleges that Trump inflated his net worth by falsely valuing his properties, potentially impacting his ability to obtain favorable bank loans. In addition to canceling business certificates, James has sought $250 million in penalties. Trump has accused James of pursuing him for political reasons, arguing that asset valuations are subjective and that no one suffered financial harm.

Canceling business certificates is a drastic remedy, typically reserved for cases involving illegal enterprises or fraudulent schemes. The ruling effectively bars Trump from transacting business in New York, potentially affecting his financial interests within the state, though the fate of his out-of-state assets connected to New York-based corporate entities remains unclear. Despite its potential financial impact, Trump’s business focus has shifted away from New York over the last two decades, emphasizing deals in other states and countries.

Many New York buildings bearing the Trump name have been renamed due to his policies and persona’s unpopularity among New York voters. The Trump Organization’s last significant deal in New York City was a hotel and condominium development in Soho, which underwent a name change in 2017 amid controversy.

NYC Roars Back: Recaptures 99% of Pandemic Jobs, Yet Economic Gains Dance to Different Beats

By Columbus International,4 August 2023

New York City‘s private sector job market has successfully rebounded to pre-COVID-19 levels, although the recovery varies significantly across different industries. The recent analysis was hailed as positive news for the city’s economic outlook by State Comptroller Thomas DiNapoli. He emphasized that while sectors like securities, transportation, warehousing, and offices have displayed resilience and growth, others such as retail, restaurants, construction, and tourism are still struggling to catch up with the national recovery pace.

This study sheds light on the ongoing challenges that New York City continues to grapple with following the economic disruptions caused by the COVID-19 pandemic. The analysis comes shortly after the conclusion of a three-year-long national emergency officially declared by the federal government.

As of March 2023, New York City has managed to restore 99.4% of its total private sector employment figures from March 2020, when the initial cases of coronavirus were reported in the state. Specifically, the analysis reveals a 6.41% surge in securities-related positions, totaling 192,700 jobs, between March 2019 and March 2023. Office jobs also experienced a 3.72% increase during the same period, amounting to a total of 1,513,100 positions, despite a 22% current vacancy rate in commercial office spaces. Transportation and warehousing sectors exhibited modest growth, reaching 130,300 positions. However, the arts, entertainment, and recreation industry underwent a substantial decline of 14.59%, leaving a total of 79,600 jobs, down from 93,200 in 2019.

Tourism faced a similar setback, losing 14.50% of its workforce, which now stands at 243,153 jobs. Retail experienced a reduction of 12.65%, with employment dropping from 343,900 jobs in March 2019 to 300,400 jobs in March 2023. Construction jobs saw an 8.07% decrease, totaling 145,900 positions across the city’s five boroughs. Furthermore, the restaurant sector encountered a 4.54% decrease in staffing.

In total, New York City’s private sector employment currently stands at 4,078,300 jobs, reflecting a 1.06% overall increase compared to the 4,035,500 jobs recorded four years ago. DiNapoli cautioned that industries facing ongoing challenges, including the arts, hospitality, and retail sectors, must regain a substantial number of jobs to ensure the stability and long-term growth of the positions that have already been restored. He emphasized the importance of these sectors, which collectively employ hundreds of thousands of workers, in contributing to a robust and inclusive economic recovery that benefits all residents of New York City.

Rub Shoulders with Nicole Kidman and Domenico Dolce in this New York City Home. The price? Just $9 Million!

By Columbus International,28 July 2023

Get ready for a luxury and glamorous adventure in the heart of Chelsea!

Located at 200 11th Ave, a building renowned for housing celebrities like Nicole Kidman, Domenico Dolce, and Diana Widmaier Picasso, it is now capturing attention with a new real estate offer. This extraordinary paparazzi-proof Chelsea duplex even had its moment in the spotlight during a Vogue photoshoot back in 2015. The Chelsea duplex, spanning an impressive 2,364 square feet, offers ample and sophisticated space, but what truly sets it apart is the private sky garage situated at the same level as the apartment. You can park your car in style without having to descend into an underground parking lot. And all of this can be yours for the price of $9 million, nearly double what it was purchased for in 2010 when it was acquired through the Perdita Real Estate LLC for $5.52 million. The sellers, David Levy and Amanda Bowman, are well-known for hosting numerous charity events in their residence. However, their generosity extends beyond that. In 2015, the same year they were featured in Vogue, they decided to donate a custom-built mansion from 1996, located in Sloatsburg, NY, to the Archdiocese of New York. Initially listed for $8 million in 2009, they later lowered the price to $3.5 million, but still had no takers. Ultimately, their altruistic spirit led them to donate the residence.

The West Chelsea home boasts towering 24-foot-tall ceilings, creating an atmosphere of elegance and grandeur. The panoramic view of the Hudson River adds a touch of enchantment to the overall picture. The design of the residence is truly a sight to behold, with window walls and French doors overlooking the splendid Hudson River panorama. These features have not only caught the attention of Vogue but have also been featured in prestigious design magazines like Casa Vogue and New York Design Magazine. The interior is equally stunning, with folding teak doors that open up to a chef’s kitchen, making it a haven for even the most discerning cooks. The main bedroom suite, situated on the top floor, ensures the utmost comfort and privacy. The spa-like bathroom is a true oasis of relaxation, while a sliding pocket door leads to a third bedroom suite with its own private bathroom. This real estate gem is a testament to the luxury and extraordinary lifestyle of its inhabitants. It presents a unique opportunity to immerse yourself in the elegance and prestige of one of the most coveted areas of New York City. If you’ve ever dreamt of living like a celebrity, don’t miss out on this opportunity, as time is precious, and this dream residence could soon become your exclusive retreat!

Source: New York Post