Why New York City Real Estate Market Is Not In ' Free Fall '
Why New York City Re general United Sta New York C
New York City, United States Of America
I believe in the value of New York real estate — unlike, obviously, the writers of the sensational headline that appeared in the New York Post last week, which identified our real estate market as' free fall.' It's not. The desire to sell documents coupled with a certain failure of interpretation of data may lead to serious misapprehension.
Indeed there has been a multi-year drop in the price of Manhattan real estate, more than in other boroughs. Because those values continued to be higher they had to fall more, of course. The situation though lacks any sense of free fall. The 2019 market reality is both far less catastrophic and far more complex than the alarmist headlines might imply.
It began to seem obvious at the end of 2015 that our market especially at the top end, was due for a correction. The combination of six years of steadily rising prices and a growing glut of unsold stock levels, first on the high-end condo market, but slowly expanding to most price ranges in both condos and co-ops, has contributed to buyers ' reluctance. Then the self-perpetuating process began: more inventory levels stayed on the market, although inflation slowed and stocks rose even more. 2016 was the presidential election year, which also led to caution among the buying population. The following year resulted in the loss of SALT (State and Local Tax) deduction that had a significant impact on New Yorkers pay some of the country's highest state and local taxes. Buyers have become even more vigilant. Sellers, on the other hand slowly adapt to the new realities. It is the truism of the real estate markets that, as prices rise, good news flaunts all, buyer and seller alike; buyers adjust quickly because they want to secure a property until prices rise higher. In the declining market, it falls very differently. Buyers tend to get ahead of the market, assuming the news is worse than it is and buying accordingly Sellers pose a much greater challenge for market liquidity Reluctant to admit that the demand has shifted against them, many sellers cling on to unsustainable prices for longer than they should.