Real Estate Predictions for NYC

New York City real estate appears to be undergoing a bit of a sea change, as predicted in a recent article by The New York Daily News. This article predicted eight predictions for the NYC apartments for rent market in 2016 and the impact of these changes will in total lead to a decrease in real estate prices and slower deals between buyers and sellers.

There are various factors for the sea change noted above, but overall the major reasons noted was the increase in the value of the dollar and volatility in foreign markets which reduced investment in the NYC real estate market by foreign investors, the increase in interest rates both in 2015 and predicted increases in 2016 which will raise the borrowing costs for borrowers, and just general malaise in the market after the large run up in real estate prices since the Great Recession. Since the market downturn real estate prices have been accelerating and there has started to show a larger gap between borrowers and sellers of real estate, which was identified in a quarterly real estate report by one of the premier New York City real estate agencies, Town Residential Real Estate.

Town Residential is one of the leading real estate agencies in New York and has a long history in serving customers in the market. They identified in their quarterly report many of the same trends that the New York Daily News is predicting and many of the same causes.

Other predictions cited in both the New York Daily News article and Town Residential report was a belief that new development projects would continue to prosper and prime real estate locations would also attract significantly attention, while existing buildings and sub-prime locations would suffer, comparatively speaking. Buyers are expected to be more aggressive in their offers and deals will take a lot longer to be consummated with sellers either lowering their asking prices or offering additional incentives to lure buyers in. As such, these factors will result in a more challenging market overall.

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