Neil Shekhter on Emerging Trends in the NYC Real Estate Market
SANTA MONICA, CA / ACCESSWIRE / January 3, 2017 / New York City is known for bustling city streets, towering skyscrapers and extravagant real estate. While there is a lot of talk about the rare $50 million penthouse that occasionally hits the market, most buyers are searching for properties that are more affordable and much more realistic for everyday life in the Big Apple. Most residents of the city dream of spacious properties that are close to public transportation, and this desire certainly controls the real estate market. More often than not, however, residents find that they must consider other options. It is likely that large properties in prime locations throughout NYC will forever remain in high demand, although these five emerging trends in the market may play a role in your next purchase, Neil Shekhter points out.
1. Co-ops vs. Condos
In 2017, there has been a noticeable surge of interest in co-op properties across New York City. In fact, sales increased by a staggering 22.2 percent in the span of one year. This is largely believed to be linked to lower costs of the cooperative properties in relation to condominiums as well as the tax-deductible status of monthly maintenance fees, according to Neil Shekhter, founder, and CEO of Santa Monica-based NMS Properties.
2. Increased Interest in Northern Manhattan and the Bronx
Neighborhoods in the Northern Manhattan area, including Harlem and Morningside Heights, have become four times more popular than they were a mere 25 years ago. This is because these regions offer more affordable prices while still granting residents easy access to other boroughs in the city. Similarly, the Bronx area is increasing in popularity, with plans for neighborhood renovations, public transportation expansions and city cleanups.
3. Townhouses Rise in Popularity
Neil Shekhter explained that apartments and condos have remained a hot commodity in NYC for decades. An emerging trend, however, is the newfound interest in townhouses. While townhouses are significantly more spacious than most apartments, they are not as readily available in the city. The average price of townhouses has increased by a whopping 36.3 percent in the last year. This takes the price of townhouses up to $943 per square foot. This trend is also a likely contributor to the new interest in areas such as the Bronx, where townhouses are more prominent.
4. Buyer's Market
In the past, bidding wars and cash offers were prominent in the NYC real estate market. This year, however, it seems as if the tables have turned. NYC real estate is emerging as a buyer's market, with sellers across the city slashing their prices. As many sellers are looking to upgrade to bigger places where they receive more bang for their buck, they may see a decrease in the resale value of their homes but pay less than expected for their new one per Neil Shekhter.
5. Rising Rent; More Homeowners
In the last 10 years, the average cost of rent in various boroughs of NYC has been on the rise. While the cost of rent has remained fairly stable in the last year, the prices are still much higher than many residents can afford. In efforts to escape the fluctuating costs of rent, many residents are opting to become homeowners instead. Because of this, sales of townhouses, co-op apartments, condominiums and single-family homes are expected to rapidly increase in the years to come.
While the real estate market is an ever-changing field in NYC, it is likely that these emerging trends will stick around for the foreseeable future.
Launching NMS Properties in 1988, Neil Shekhter assumed the role of CEO in January 1995. The real estate management company focuses on multi-family and mixed-use properties in the Greater Los Angeles area and in Santa Monica. At present, NMS properties manages more than 70 properties.
Neil Shekhter - Founder and CEO of NMS Properties
SOURCE: NMS Properties, Inc.