Since the end of the 2008 recession the real estate market in New York City apartments for rent has been on a tear with average prices per unit and square foot increasing year after year. The Aggregate, which is a real estate report that is issued by Town Residential on a quarterly basis was released for the fourth quarter and provides raw data which indicates that the trend upwards has not been modified and prices in the fourth quarter have increased by 5% from the prior year.
Town Residential is one of the premier luxury real estate agencies in the New York City area and their Aggregate Report, which h is available on Virtual Strategy Marketing’s website, provides the insight of their professional real estate agents and executives. This provides additional insight above and beyond the raw data presented in the report and helps to serve as a valuable resource to readers.
The fourth quarter Aggregate report discovered a discrepancy between the average rate of increase and the marketplace which is meaningful to real estate participants. While the average prices for apartments and square footage increased in New York City, the figures appear to be distorted by new development projects coming online during the fourth quarter that have higher prices than existing inventory does. This has led to a variation in the real estate prices when the new development data is juxtaposed to existing inventory. New development units are still very attractive to buyers as they have modern amenities and appeal to the social standing of many people, but the pricing pressures on existing inventory including an increase in the number of days units are staying on the market, has led to a divergence of pricing.
Overall, for buyers who are looking for existing units this provides them with some additional bargaining power given the sheer number of units available on the market. Over 7,000 units were listed on the market in Manhattan alone at prices ranging from the sub $2 million market to over $10 million luxury market. If you are looking to purchase or sell a unit reach out to Town Residential to provide you with more information regarding the options available to you.