The first quarter of 2019 provided a breath of fresh air to New York City’s real-estate market, which dragged in the latter quarter of 2018 and returned less-than-desirable volume and price results during the preceding five years. Financial experts and property analysts had little to offer the situation in terms of forecasts and predictions, including when the market would return to its historically strong position.
It seems as though the return is imminent. Modest reductions in the Big Apple’s real-estate prices have spurred countless buyers and renters to invest in homes. These price reductions varied from five percent to 20 percent, but the attention and results they brought with them proved significant. Moreover, the immediate fiscal byproducts of the reductions have been mostly offset by the overall impact of the maneuvers. Stated in short, prices were too high to begin with, and sellers have finally started to lower their demands, attracting additional business in the process.
What makes NYC’s Q1 2019 real-estate boost even more impressive is the fact that the period wasn’t exactly populated by news that should have benefited property values. While the national economy continued to grow, Amazon’s long-planned move to open a massive production facility in Queens was nixed by what can only be described as petty politics. The tremendous economic benefits of the move, including ample investments in nearby resources and facilities, were also lost, to the dismay of most residents.
A few sizable property investments from out-of-state purchasers also aided NYC’s real-estate market, however, as did an increase in the rental and purchasing frequencies of native New Yorkers, who undoubtedly responded to the aforementioned modest decreases in rental and sales prices. The end result has been, in brief, the revitalization of areas that were previously sagging, including traditionally underutilized parts of Brooklyn and Manhattan. And when things bode this well for sagging areas, they almost always bode even better for traditionally in-demand spots.
Only time will tell what the future of New York City’s real-estate market will look like, but with the national economy being as developed and powerful as it is, and with NYC’s first-quarter results being so encouraging, all signs indicate that good things are on the way for the most populous city in America.