There appears to have been a bit of a reversal in the direction of Manhattan apartments, which may indicate that the peak in real estate prices has been reached. This follows a trend that follows other markets including China, Miami, Australia, London and now the venerable New York City real estate market may suffer.
The suffering that Manhattan has been minor to date and comes at the heels of a historic rise in real estate prices. Many people have been predicting a downturn in real estate after this rise and some brokers are indicating that the economics surrounding the New York City real estate market are no longer logical and don’t fit with reality. Therefore a cool down period is expected in terms of real estate prices in Manhattan.
The first sign of this downturn is an increase in the vacancy rate for Manhattan apartments which have increased to one of the highest points of the last decade. The vacancy rate in Manhattan was 2.87 percent during the month of November, which is up from 2.31 percent a prior year. The vacancy rate has not been as high as it was in November 2015 since the summer of 2006.
If you are a lessor, you need a high quality broker to represent you and get your unit rented among the increased vacancy rate. No longer is it simply a matter of putting your unit on the market and having it rented. If you are a landlord, you should consider using Town Residential Real estate to represent your apartment and help to get it rented in a competitive market. Town Real Estate is an expert in renting units for landlords and effective in quickly placing your apartment by helping you to price your unit effectively and at a market rate and advertising your apartment well.
Likewise, if you are a renter looking to take advantage of the market you should contact Town Residential Real Estate who can help you to locate an apartment and to take advantage of the competitive pricing available. An experienced real estate agent like Town Residential can explain to you the market and can help you negotiate amenities like a free month of rent.
The decrease in prices may make it a better option to wait before renting units as despite the increased vacancy rate, prices are at a high as they have climbed almost 4% from the prior year with average prices of $3,361. Many are predicting that the peak is at hand and rental interest will decrease from here.