The demand for new luxury condos NYC is building is not just from local shores. Demand is being felt around the world as people flock to the city seeking luxury homes.
Soaring Prices, Sinking Inventory
Prices for new luxury condos NYC has to offer are averaging the highest they have ever been. In fact, at $1,700 US per square foot, it is hard to imagine so many people are still seeking to make these major real estate purchases. Increases in prices have risen as much as 25 percent in the past year, yet demand continues to rise with the prices. Contract activity rose 15 percent, the highest it has been since 2008. Inventory continues to decline with levels 17 percent below 2012. Levels are 50 percent below the peak inventory levels reached in 2009. This is largely due to the lack of new build introductions available on the market.
World Wide Demand
The low inventory is not just noted by New Yorkers. In fact, real estate clients from around the world are following the real estate market in New York and the lack of new luxury condos NYC has to offer. This has driven people to follow stories behind new developments and contact property management companies with offers to purchase units over the phone.
Lack of New Development Investment
A lack of dollars being invested into new development could be what is driving the need for new luxury condos NYC needs. Looking back, in 2007 for example there were over 8,000 new units in development or available on the market. Between 2000 and 2009 the average units on the market were about 3,000 units per year compared to plans over the next few years of just 2,000. There is an average of 26 percent increase in pricing with 43 percent decline in lowering prices. All this combined makes it a sellers’ market with plenty of competition to drive the prices higher.
With all things considered now is the time to buy. While prices remain at an affordable $1,700 per square foot if inventory becomes available now is the time to consider making a purchase. Although it is a sellers’ market, you can still take advantage of pricing before the rise in demand and lowering available units prices most buyers out.
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