Real Estate News

Report: Resales help improve NYC home market

Published: 10 Apr 2017

An Elliman Report for the first quarter of 2017 showed some potentially significant shifts for the New York City housing market. As a famously expensive region, the need to address affordability is one possible sign of a move toward buyer interests, even with month-to-month rental price increases.

As the report said, the average amount for a rental in January was indeed higher than it was for December 2016. However, it also represented a slight decrease over the same metric from a year before, when the amount was $4,073: by comparison, the average Manhattan rental cost $3,933, which averaged $62.73 per foot. Compared to this, the average rental for the luxury sector decreased steadily and was 13.6 percent lower than the January 2016 level.

Writing on this research, Forbes highlighted the way landlords have had to adapt to a costly market, with greater discounts for real estate developments as well as flexibility for different deals, despite a high amount of landlord concessions, which the Report said hit a record level of 30.9 percent.

Forbes spoke to Douglas Elliman's CEO, Dottie Herman, who described exactly why the market has swung in a favorable direction for buyers.

"Sales activity is up," Herman said."There are more deals being made because of the willingness of the seller to negotiate with the buyer. People are willing to make deals."

This obviously doesn't necessarily speak for affordability across the rest of the state or country. ATTOM Data Solutions recently revealed its Home Affordability Index measures for the first quarter of the year.

The source said that affordability had dropped for the U.S. overall, based on a decline starting in the third quarter of 2016. This stands out starkly from the peak affordability, which came in 2011. If it continues on its current path, this drop in affordability could eventually drop below the historic average.