21 Jan Fourth Quarter Results Show 2012 as Growing Year for NYC Real Estate
The New York real estate market demonstrated quality improvement over the fourth quarter of 2012, and looks forward to a growing and prospering year in 2013, according to recent reports from Halstead. The fourth quarter showed 40% more closings and an increase in luxury, high end sales.
Over 12,000 apartments sold in Manhattan in 2012, approximately 3.5% more than 2011. Gregory Heym, Halstead’s Chief Economist, stated that his quarterly report showed the average price of apartments in the heart of New York City rose by 7%, compared to the same time one year ago. In addition to being nearly 8% higher than the previous quarter, this figure which is approximately $1.487 million, is the highest it has been of all of 2012. The median price of $836,000 also represents a 6% increase from the year prior.
Heym states there were approximately 2300 closings in the final quarter of 2012, 40% more than last year. The surge in closings was mostly caused by the uncertainty of tax laws and related issues that were holding up Congress during the latter part of 2012.
In comparison with 2011, high-end apartment sales over $5M increased 33%. An increase of 44% took place in the ultra luxury market for apartments over $10 million. And the average price of a co-op increased by 16% during the last quarter to reach $1.285M.
Low mortgage rates, a decrease in unemployment and a growing confidence in the market led to the boom in the housing market. With this in mind, 2013 is expected to be a competitive market due to its low inventory, yet still growing and improving.
For those US Immigration Fund clients who are investing in New York City projects such as The Charles or the multi-use development at Bryant Park, investing in a home or apartment will prove profitable. As the market continues to grow and inventory continues to shrink, prices will rise.