Quick pulse on #trends

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Unfortunately not a post about Fanny Packs but I still have hope

People love to refer to the NYC Real Estate market as one unified conglomerate, which can be seen in the recent cry that everything is softening. The market in New York is not the 1% seen both on “Million Dollar Listings” and at the bottom of my newsletter.  The very high end luxury market is one small faction of the larger whole; as you trickle down, the supply/demand varies tremendously and the influence of forces such as new development have differing impacts. Yes, the market is softening at the top, as seen in a recent 24 million dollar price chop on Manhattan’s most expensive listing, but the prices from the 2014 market were ungodly and realistically unsurpassable. As you travel down the price gradient, the market gets much stronger, especially in the under 1.5m bracket (particularly resales) where there is less supply and much more demand. As NYC has a record number of employees calling the city home, the market can’t slow to a halt but it’s definitely moving more so sideways than drastically rising. This can be attributed largely to uncertainty, what I believe is the biggest factor influencing the New York Real Estate Market right now. And why are people so uncertain you say?

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^This.
*takes a break to go to Washington’s grave to cry with him*
Historically, no matter who the candidates are and what the dark future of the world forecasts, real estate (and every market for that fact) observes definite hesitation during the election cycle but typically rebounds with an uptick following the realization that the world didn’t end and the President isn’t going to completely and fundamentally change the fibers of our country.  With any modifications to the 1031 capital gains tax happening a bit down the road, and largely dependent on the future of the House, the real estate market should remain largely unaffected by the results of November’s overdrawn blood bath. So now more than ever, any acquisitions need to be viewed as a long term gain. There has not been a single 10-year-period in this city where value has gone down. Of course in short term windows (i.e. the darkness of 2008) the market fluctuates, but long term, this still stands to be the most stable, appreciating investment. For other trends, there is a great article following the change in apartment size over the past 25 years, quite expected with the surge of new developments trumping the supply of older tenement buildings and their generous floor plans. For the future of rentals, the influence of Air BNB will continue to have a weighty impact on the supply and in turn, pricing. This will be extremely important to watching, seeing that Tribeca and Nomad tied for July 2016’s highest median rent for a one-bedroom apartment at $4,500, with Greenwich Village ($3,900), Gramercy Park ($3,890), and the West Village ($3,850) trailing behind ever so expensively. I’ll leave you with these nuggets of knowledge but if you want my opinions about other things, let me know and we can chat so I’m not further giving myself carpel tunnel.