The surprising comeback of real estate in New York continues
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The city is back, and so are the cost of living.
The New York Times reports that rumors of New York City’s demise have been greatly exaggerated, and despite falling rents and selling prices at the start of the Covid-19 pandemic, Manhattan real estate markets (and Brooklyn and Queens) have made a remarkable turnaround – with luxury homes in the lead.
Even as the Omnicron variant goes down, the sales and rental markets sometimes exceed pre-pandemic prices. In fact, there were more apartments sold in Manhattan in the third quarter of 2021 than at any time in more than three decades.
Sales in Brooklyn and Queens have also hit record highs, but tenants who were able to take advantage of reduced rates in 2020 are being hit by rent increases of 30-40%.
And with the statewide moratorium on evictions set to end later this month, many who can’t afford the increases could be on the move.
Spurred on by the return of affluent tenants and buyers who fled the city at the start of the pandemic, the median sale price of an apartment in Manhattan in the third quarter was $ 1,115,000, nine percent higher than ‘at the same time in 2019, according to the brokerage firm Douglas Elliman.
The document predicts that 2022 could bring even more gains, as international investors begin to make a comeback, with the most recent increase in sales coming from local buyers. Add to that the possibility of a higher cap on state, local and property tax deductions, and the recipe for a supercharged market appears to be complete.
The evidence seems to back it up: 8.3% of sales in Manhattan came after bidding wars, which is above the usual 5-7% range, according to the Gray Lady.
[New York Times] – Vince DiMiceli
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