Buying a home in Manhattan just got a lot easier, thanks to a record turnaround in the market not seen in nearly a decade. In fact, recent market activity indicates that 2019 has become the year of the buyer. You may want to hold off your apartment search in the outer boroughs and find your steal of a deal right here in the heart of the city.
Here are 5 reasons why you should consider buying an apartment in Manhattan right now:
- More Available Units
While sellers have had the edge in negotiations for years, recent data suggests that transactions have been slowing down. According to the 4Q 2018 Miller Samuel Marketing Reports, Manhattan experienced a 6% decrease in median sales price year over year, with a 12% increase in inventory. And this past quarter 1Q 2019 marked the 6th consecutive quarter of year-over-year sales decline, the longest streak since 2008-2009.
There are many factors that may have influenced this drop in sales, including affordability concerns, the disconnect of the housing market from the robust overall economy, and the new tax law. Regardless of the reason, the fact remains that Manhattan has a surplus of units available, giving buyers the most favorable market in a decade.
- Dip In Prices
As one might expect, the result of an increase in available units throughout Manhattan has lead to a decrease in average payments made by buyers. According to the Q4 2018 Miller Samuel report, average sale prices for units dropped 3.6% year over year, going roughly from $2,000,000 to $1,900,000.
- Strong Local Economy
While high inventory and low prices would suggest a softening economy, this is not the case. As cited in the New York Quarterly Economic Update, Q4 saw an increase in economic growth throughout the entire city. Average hourly earnings are up with solid job growth across most industries. This should be encouraging to those looking to buy or rent in Manhattan, as solid financial footing makes it easier to commit should the time come.
- Low Interest Rates
Mortgage rates are already historically low. But with the Federal Reserve’s recent announcement that interest rates will not rise through the entirety of 2019, we can expect mortgage rates to dip further. According to Fortune (March 21, 2019), the 52-week low drop rate in average mortgage rate fixed for 30 years is 4.34%, making this the best time in years to be a buyer.
- Global Economic Uncertainty
According to Bloomberg, the Global Uncertainty Index, a measure of unpredictability in 20 countries (including US, China and Eurozone), reached a record high in December 2018. This has led to fewer transactions by foreign investors in New York City – particularly those from China, the UK and many South American countries where economies are collapsing.
In fact, China’s recent crackdown on money leaving the country has had a significant impact on NYC realty, as China had been a key foreign investor in Manhattan for years. This translates into more opportunity here at home.
Manhattan remains one of the most dynamic residential markets in the world. By all indications, now is the time to buy.
For more information on buying an apartment in NYC, or any real estate questions you may have, contact Batra Group at (646) 202-1877.