The New York City real estate market is never static and is constantly undergoing pressures that lead to movements in desirability, demand, and ultimately to the pricing of real estate. Understanding these movements can be difficult for market participants but can have a large impact on the cost of or sale price of real estate. In an area like New York City, where real estate is particularly expensive it often takes a professional real estate company to sort out the noise and understand the issues being faced. One such entity is Town Residential Real Estate.
Town Residential Real Estate is an agency that has a significant amount of experience in the New York City apartments for rent market and even puts together a quarterly analysis of the real estate market in a report they issue known as “The Aggregate” which parses governmental statistics and data and provides insight and analysis on these movements to give their customers an better understanding of the local market. In January 2016, Town Residential released their 4th quarter report which provided some insight into the direction that the NYC market will take in 2016.
Some organizations use this and other data to create predictions for the 2016 real estate market. A recent article by the New York Daily News put together eight predictions based on their expectations for the NYC real estate market that generally involve a tightening of prices, further movements towards more attractive parts of NYC, and increased interest in new development buildings.
The impetus for these predictions was thought to be raises in interest rates that were caused by the Federal Central Bank raising rates in 2015 and future increases in 2016. In addition, challenges in foreign markets such as China may be contributing to the decrease in demand from foreign investors. Finally, demographic changes are also underlying many of the movements in NYC real estate including baby boomers increasingly moving into the city after downsizing their homes in the suburbs. Overall, there is an expectation of a decrease in the demand and prices of NYC real estate which results in slower transactions.