About a year ago, the president of sales for Town Residential, Wendy Maitland, said that there were more than 2,000 NYC properties on the market for less than $2 million, including NYC luxury real estate. Town Residential is one of the largest real estate firms in New York. Maitland also said there were more than 400 NYC properties on the market for more than $10 million. The average price for a co-op in 2015 was $1.2 million, and condos were averaging $1.7 million. Those prices represent a 13 percent increase over 2014, and according to Maitland, 2016 will be another banner year for real estate agents in New York City.
The main reason agents from Town Residential are having such a good year is the firm has connections all over the world. Foreign buyers are flocking to NYC Properties like they were free. But nothing is free in New York City, and as it turns out there isn’t anything cheap when it comes to real estate. Town Residential Founder and Chief Executive Officer, Andrew Heiberger, told an interviewer recently that Manhattan is experiencing a real estate market that is changing the dynamics of the city. Manhattan prices are still increasing because foreign buyers want to put their money in the United States. And there is no better city in the United States to own real estate than New York City.
The Brexit vote has generated a great deal of uncertainty in financial markets around the world. Investors are nervous about the UK’s ability to keep their economy strong after the deal to leave the European Union is finalized. But European investors aren’t the only nervous investors that are pouring money into NYC properties daily. Asian investors are pulling out of Asian markets, and buying property in New York City.
No one is sure when the bubble will burst in New York City, but according to Town Residential agents’ developers can’t build new buildings fast enough to satisfy the amount of foreign as well as domestic investors that are shopping for real estate in New York. They all want a deal, but deals come with high price ticket in NYC.