NEW YORK—Much like the summer temperatures, the residential real estate market in Manhattan is starting to heat up.
Street Easy, a New York-based company that offers real estate tools for buyers, brokers, and renters, released their Q2 report Tuesday, showing downtown was the clear winner for the quarter.
The median price in downtown rose 14.5 percent over last year. The increase was due in part to a larger inventory, as well as popularity of the area, according to Sofia Song, vice president of Research at Street Easy and author of the report.
The new development median price for downtown jumped 32.3 percent over last year. Song said fewer projects had been planned since the bubble burst of 2008, leaving little to choose from.
“What we are seeing is people are returning to the luxury market and they are also finding because there are so little new development products out there, what’s left is kind of getting picked up, rather quickly,” Song said.
Overall inventory decreased by 5.9 percent on last year, an indication that units are moving in Manhattan.
Buyers looking for bargain deals saw a sharp decline in price cuts for Q2, with 19.8 percent fewer price cuts than last year. “The fact that inventory is declining and that properties are getting snapped up more quickly indicates an increase in seller confidence,” Song said.
The rental market has been high, but Song believes low mortgage rates are giving people a reason to get back into the market and buy. “That is why you see such a huge increase in the number of one- and two-bedrooms going into contract,” Song said.
If contracts are any indication, the second half of the year looks favorable. “We are up 21 percent from a year ago and 28 percent from last quarter. I expect we are going to see some strong market numbers for the next quarter,” Song said.
The Epoch Times publishes in 35 countries and in 19 languages. Subscribe to our e-newsletter.
