The hot New York City summer!
In spite of the summer heat, real estate activity did not slow down.
Many insiders consider the 4th of July long weekend the beginning of the summer lull, but this year the momentum continued on until Labor Day weekend. Thus, many of us postpone beach or lake vacations until a later date.
Market Observatory
Recently, it was reported that Manhattan has officially surpassed San Francisco, confirming its title as the most expensive city in America, with an average rent of $2,810. Certainly an important milestone, but not so much from an economic perspective as it is confirmation of the strength of New York's real estate market.
It is no exaggeration to point out that only a few months ago headlines like New York City is caused a stir in some authoritative newspapers.
Additionally, the sales front is continuing to improve following the recovery that began in
January. In addition to historically low interest rates, indicators of economic recovery in the United States are quite promising. This month, pandemic unemployment assistance, or federal support for the unemployed, expires; many economists predict that the unemployed will begin returning to the workforce at a time when there is high demand but low supply.
In fact, the real estate market also exhibits a similar dynamic, with a very low supply of properties for sale but a very high demand for them. For example, even some of our clients who purchased properties this summer via virtual tour at the asking price without a mortgage experienced great difficulties in acquisition. The figure is particularly significant considering that most foreign buyers are still unable to travel to the United States.
For those who want to invest, the Brooklyn waterfront remains the most interesting location.
The rents in the area are rapidly returning to pre-Covid values, but condominium expenses and taxes are about half that of most areas of Manhattan. Among our Brooklyn’s portfolio, brownstones, small rental buildings of 3 or 4 units, and boutique condominium units with limited amenities and low monthly costs are performing best.
The luxury market also showed signs of recovery this summer with an increase in sales volume; however, as expected, there was a decrease in volume at the end August.
(Source: Forbes)