It has been some time since we wrote a post on real estate in New York City. Just as the economy appears to be continuing on a upward trend, so has the real estate market in our region. In fact, residential home sales enjoyed a record year in 2017.
As we near the end of 2017, the old adage “the more things change, the more they stay the same” has some added meaning. Towards the end of 2016, a slew of luxury and high-end residences remained unoccupied as many potential buyers and renters presumably were ambivalent about making changes because of the uncertainty following the impending change of administrations. With that, landlords began offering a number of concessions in the hopes of attracting renters.
Whether you are in the business of “flipping” residential properties or taking part in a major commercial redevelopment effort, there are a number of considerations involved in making sound real estate purchases. Indeed, the property’s current condition, environmental assessments and cost-benefit analyses are principal issues, but other legal pitfalls await the unwary.
At first glance, baby boomers and millenials couldn’t be any different. After all, millenials revel in communicating by text message and email, while baby boomers prefer face-to-face conversations and still use telephones to call someone. Baby boomers tend to work for fewer employers over the course of their professional lives, while millenials feel comfortable with the “gig” economy.
The start of 2017 had all of the required elements for a market slowdown. A new president, a skeptical stock market, years of past real estate growth, and a teetering dollar. However, despite all of the predictors of a slowdown, New York City’s commercial real estate market has defied the odds.
With the optimism in New York City’s real estate market, it is no surprise that foreign real estate investment is expected to grow in 2017. After all, more commercial property is becoming available (and more valuable). This cycle continues to attract buyers coming from abroad (primarily through foreign investment funds).
For most people, the 2017 real estate market will begin with a mark of optimism. For others, it begins an era of uncertainty given the recent interest rate hike by the Fed. For the luxury apartment market in Manhattan, the proverbial “honeymoon” is likely over.
The real estate market in New York is poised to begin the new year with optimism toward growth. Most people in the market for new properties understand that mixed use facilities that incorporate retail, office and residential living spaces have the versatile options that investors, retailers and homebuyers look for.