New York is back, baby! And if you’ve been toying with the idea, now is the time to buy. The demand stream in the market is steady, which means you’ll have some competition, but there is inventory out there and mortgage rates won’t stay this low forever. All of this demand (some experts are saying that home sales that were going to take place anyway as part of the natural cycle are being squeezed in now as well) also means it’s a great time to sell.
Part of the current market rush is due to stats we’re seeing across the nation showing some early signs that the supply and demand imbalance is beginning to level out. According to the U.S. Commerce Department, the supply of new homes for sale was up more than 5% in May as compared to the previous year. On the whole, U.S. consumer confidence hit a 16-month high.
U.S. buyers aren’t the only ones gaining confidence. Foreign buyers are trickling back into the NYC area. While the pandemic made it impractical for them to pick up property in the U.S., interest is rising as travel restrictions are waning. According to The Real Deal, international buyers listed New York among their top five preferred locations. In fact, some of the biggest purchases made so far this year have been by international buyers. Joe Tsai, executive vice chairman of Alibaba and a citizen of Taiwan and Hong Kong, purchased a two-unit package at 220 Central Park South for $157 million — the biggest residential sale in the City to date in 2021.
International buyers are seeing the same trends we are in the luxury market: waning price discounts. The average apartment sales price in Manhattan increased 12% last quarter. It’s creating a very real sense of urgency.
After attempting to unload his home in North Haven on and off since 2019, former Today show host Matt Lauer listed the Hampton’s estate again, now with a price tag of $44 million. It was first listed in June 2019 for $44.8 million. Meanwhile, Casper co-founder Luke Sherwin purchased a Park slope townhouse for $5.025 million in all cash and Shark Tank’s Robert Herjavec purchased a One57 condo on Billionaires’ Row for $34.5 million (a $13 million discount).
In construction, new homes are coming to Jackson Heights. Shorewood Real Estate Group is planning a 227,000-sq-ft mixed-use project that will include 125 residential units. Overall, new residential projects were down in New York City through the first quarter of the year; just 98 multifamily projects were proposed, the lowest amount for a single quarter in a decade. However, luxury homes had the most new development sales above the $3 million threshold in two years.
The City of New York was also active in the real estate market in July. It acquired land for schools in Inwood while selling development rights in Greenpoint. The City is also spending $122 million to purchase 14 sites in the Bronx, with plans to convert them into permanent affordable housing.