The market in New York City apartments for rent is always dynamic, and that still rings true right now, and more than ever. Currently, development of condos and new commercial buildings is on the rise. However, interest rates and the stock market may affect the real estate market positively or negatively.
Here are the top predictions for 2016:
Interest rates will rise while prices drop. Warnings have been given about interest rate hike, and it looks like the hikes will eventually hit this year. When this happens, the housing demand will drop, causing a downward spiral in prices. All of this swirled together will lead to a decrease in buyer confidence, which will then make deals hard to close. Buyers will need contingencies, which will in turn increase demands on sellers. Buyers will also take time before any decision is made, which will even involve viewing property multiple times before signing a contract.
Focus will be mainly on prime neighborhoods. When the market prices start going down, prime areas will first be targeted as other neighborhoods struggle to keep up. The difference in prices will grow as realistic sellers adjust their prices to the current market, while the unrealistic ones will likely keep their high prices. Unrealistic sellers will thus miss out on profiting from this market. People, like baby boomers, will still be looking to buy up property in New York. Baby boomers are still an important group in the New York market, and they usually move to the city; buying property to downsize or to be close to family.
Incentives offered by rental owners, such as no application fees, reduction in rent or a rent-free first month will tempt buyers into renting as opposed to buying. Demand for low priced luxury condos; between $1 and $3 million will have an increase in sales while those over $10 million will not be as popular.
Many people may look to place like TOWN Residential to help the navigate the murky market. TOWN is a New York luxury real estate services company. With a specialty in sales, marketing and leasing of luxury property. It is has become the leader in this sector. Since its establishment, it has raised standards in the luxury real estate market.
Led by founder and CEO Andrew Heiberger, TOWN Residential has recruited the top professionals in the industry to offer the best service to its customers. It has offices in most of the New York City’s top neighborhoods, to provide customers with better access to its services.