THEIR COUNTRIES CHANGE, BUT NOT FOREIGNERS’ INTEREST IN HOMES HERE
Foreigners are once again buying in Manhattan, energizing the still-fragile market. In recent months, according to brokers and developers, the money has been just as likely to come from South America or Mexico as Europe or the Middle East.
The dollar, more than anything else, drives international sales, and because it remains weak globally, New York is still a good deal for many buyers.
But while the number of foreign buyers largely stays the same, the players change. In the 1980s, it was the Japanese who came house-hunting in droves, while in the 1990s it was Middle Eastern investors flush with oil-profits cash or newly minted Russian tycoons who rose from the rubble of the fallen wall.
REBNY CONFIRMS BOOST IN THIRD-QUARTER SALES CITYWIDE AND 7 PERCENT RISE IN PRICES OVER A YEAR EARLIER
The New York City residential sales market is regaining its health, and then some, as confirmed by yet another analysis, report Crain’s.
During the third quarter, the number of sales in the five boroughs rose 18 percent compared with the same period last year, according to a report released by ResidentialNYC.com, the listing site affiliated with the Real Estate Board of New York. Last week, five market reports covering just Manhattan provided similar good news.
Citywide, the total dollar value for residential property sales increased 26 percent, to $8.36 billion, during the third quarter in comparison with the same period last year. That figure was up 11 percent from the prior quarter. Unlike other recent reports, the survey by ResidentialNYC.com covers the five boroughs and all housing types—condos, co-ops and single- to three-family houses.
On its own, Manhattan displayed a 25 percent spike in transactions for the quarter. The increased activity was attributed in large part to the rebound of condo sales across the city.
RISING PRICES IN THE CITY CAUSE A BOOMLET IN THE SUBURBS
Brokers say that so far this year, Manhattan’s bedroom communities have undergone a boomlet in sales and rising prices as city dwellers have been looking for housing bargains in nearby suburbs that were hard hit during the downturn.
WITH TIGHTER RENTAL MARKET, WATCH OUT FOR SCAMS
With Manhattan’s rental-housing market tightening, the danger is growing that apartment hunters will fall victim to scams, real-estate agents and white-collar crime experts warn.
The most common scam involves legitimate rental offers, which scam artists are doctoring and posting on listing services such as Craigslist for lower rents, agents say. Eager victims send deposits only to learn that the apartment’s actual owner knew nothing of the deal. The deposit, of course, is never seen again.
ADJUSTED FOR INFLATION, RENT IN MANHATTAN IS ACTUALLY LOWER THAN IN 1995
“The actual median rent in the first quarter of 1995 was $2,000, but the cost of living was also less,” says appraisal executive Jonathan Miller in a blog post that includes a neat chart. “Actually, the inflation adjusted median rent doesn’t fall below the current $3,000 level until 3Q 1994 when it was $2,877 ($1,700 actual) . . .”
KIPS BAY DECORATOR SHOW HOUSE AWAITS YOUR ENVY
At 106 E. 71st St., the place has various opening and closing hours. But you can visit until Nov. 11. Admission to the fund-raising event is $30.
STUDIO APARTMENTS GO BEGGING
The market for smaller apartments has started to lag as the spiked demand from first-time buyers peters out and lower prices for bigger places has sparked more interest from home hunters. In the third quarter, sales of studios and one-bedrooms were 45% of the market, down from 51% a year earlier, according to a report by appraiser Miller Samuel.
The median sales price for studios in Manhattan declined by 8.5 percent in the third quarter from the previous quarter to $375,000. The median sales price for one-bedrooms declined by 4.5 percent from the prior quarter to $610,000.
Meanwhile, median prices for three bedrooms in Manhattan increased by 3.8 percent and those for apartments with four or more bedrooms rose by 29 percent compared with the previous quarter.
Licensed Associate Real Estate Broker
Senior Vice President
Charles Rutenberg Realty
127 E. 56th Street
New York, NY 10022