The news is starting to coalesce around the 2017 real estate market in New York City, and all indications are that it will be a busy season. A recent report from StreetEasy indicates that in Brooklyn and Manhattan, resales are seeing rising prices, while there is a low inventory of available homes and as a result, fewer price cuts are being extended to buyers.
With interest rates still relatively low at just under 4% for a 30 year mortgage, at Feeder we’re expecting to see a fast moving real estate market this spring and summer in New York City. Already we’re seeing the difference in prices when comparing this year to last year. February’s real estate prices for Manhattan properties were 1.3 percent higher than last year and Brooklyn’s pricing rose to 5.2 percent higher than 2016.
And while we’ve been seeing an increase in the sale price for properties, we’re also seeing that there is seven percent less inventory than last year. All of this added together means that 2017 is shaping up to be a hot real estate market for New York City.
But, with all that said, it will be interesting to see what happens as more units come on the market. The New York City skyline is currently dominated by construction cranes — particularly in Brooklyn. As those units come on the market, we may see a slight cooling, especially if that is combined with rising interest rates, as we’ve been anticipating. But those properties that are being built are, for the most part, at a higher price point. So while they will affect the supply and demand of real estate in New York City, it will only be in one segment and not spread out throughout the market.
But if you aren’t ready to buy yet, take heart. At Feeder, we’ve been seeing a decrease in rental prices in parts of Manhattan and Brooklyn. And while those decreases haven’t been across the board, they are extensive enough that if you are looking for a new home and haven’t put together a down payment to buy yet, you may be in a good position for a nicer home at a lower price.
Additionally, Brooklyn will be having a large amount of new rental properties coming online and as developers work to fill those units, we expect to see greater concessions made to applicants to get the buildings occupied. In those buildings, it is likely that you’ll be able to negotiate for a month or two of free rent — which is not an insignificant amount of money.
All told, we’re excited for the 2017 real estate market in New York City. Like other years, we expect it to be fun, dynamic, with a few surprises mixed in. If you’re ready to find a new home, we would love to be your guide as you navigate the New York City real estate market. At Feeder, nothing brings us greater joy than making your dreams come true.