2014 was a record setting year for NYC real estate, with the fourth quarter reaching historic highs in all the boroughs. At SPIRE, we broke records across all sectors - growing into one of the city's top mid-sized firms and recognized as one of NYC's standout brokerages by The Real Deal. As we head into spring, we are already well on track to another record breaking year, and same can be said of the real estate marketplace.
Buying Power Fueled by Historically Low Interest Rates
2014 saw record setting pricing amidst constrained inventory, a trend that will soften through the new year as 6,500 new condo units (half of which are already in contract) are expected to hit the market creating much welcomed relief for buyers. Early market indicators predict stabilizing real estate prices which will slow to 3.9%, approximately half the growth rate seen in 2014 . Respectively, inventory in Brooklyn and Queens is predicted to see considerable growth, a continued trend from 2014 that saw an increase of over 8% in both boroughs. (Source: Streeteasy) With historically low mortgage rates still under 4% plus colder weather and buyer competition slowing down condo sale activity, buying in the first quarter will allow more room for price negotiations. Interest rates are expected to rise due to the end of the Federal Reserve's largest stimulus program launched in 2008. To take advantage of this favorable market, consider buying in the first quarter of the year. If you are considering buying and would like to work with a neighborhood specialist, contact our residential team today.
Spring Season is Selling Season
2015 is projected to bring even more buyers to market, making it a great time for sellers to capture peak prices. Historically, Q2 has been the strongest period due to the influx of Wall Street buyers who've recently received their bonuses. This along with a strengthening economy, robust international demand, low interest rates, and a decrease in unemployment place the most potential buyers in the market than during any other period. Additionally, April, May and June are among the highest number of lease expirations, incentivising would be buyers to align closing dates with lease end dates. We will continue to see a healthy and active real estate market with the upward trends and growth seen in 2014, where $3 billion in sales were completed in the last quarter at a record setting median price of $942K, albeit at a more tempered rate. (Source: Streeteasy) If you are considering selling or would like a more in-depth market analysis, contact our residential team today.