Q4 2014 REAL ESTATE MARKET REPORT
The Federal Reserve Beige Book reports that construction and real estate activity expanded across the country in the fourth quarter of 2014, and banks reported steady demand for consumer and residential mortgages.
’s co-op and
condo market showed continued strength at the end of 2014 that has seamlessly
carried over into the new year. On the rental
side, rents in New York City Manhattan
and Brooklyn are up five percent from a year ago while Queens
rents have been fairly steady. Luckily for all sectors and boroughs,
multi-family construction remains robust.
Lean inventory and strong demand were consistent themes when discussing an increase in
average sales prices for 2014. In a November report, Streeteasy noted that New York City ’s inventory was “nearly 20 percent
beneath a five-year monthly average.” REBNY also alluded to this in its most recent
report, which notes that Manhattan ’s
residential sales market experienced rising prices but weakening sales volume.
Large price increases in Manhattan (especially at luxury building One57) were
instrumental in the 11 percent increase in the average sales price of a New
York City home, and the average condo price increased 37 percent. Furthermore, The
Real Deal reports
that New York ’s
average sales price reached an all-time high of $1.7 million. Manhattan
Manhattan remains dominant, Brooklyn
is not to be ignored. REBNY reports that high prices in Brooklyn also
drove New York City’s average sales price
increase, and that the average Brooklyn condo
price increased 13 percent. The
Real Deal reports
that average sales prices rose 9.7 percent from 2013, set a record high in
2014, and master appraiser Jonathan Miller points out that Brooklyn
is the only borough where prices have exceeded pre-financial crisis highs.
In 2015, Streeteasy’s data scientist predicts that condo prices will increase at half their breathtaking 2014 pace. Such a slowdown would be a welcome indication of prices settling into a healthier, more sustainable growth rate that could benefit all stakeholders: Sellers may be motivated to put their homes on the market in order to capture peak prices. This in turn would lead to greater inventory that could empower
buyers to be more assertive about negotiating asking prices. Manhattan
Have you been thinking about selling your Real Estate? Now is the best time! Ask me about it.
Lic. Assoc. Real Estate BrokerRealtor NY & CT
Graduate Realtor Institute (GRI)
Accredited Buyer Representative (ABR)
Certified Negotiator Expert (CNE)
Charles Rutenberg Realty
127 East 56th Street, NY NY 10022
Working by referral. Let me help you find a home, too!
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