Market continues to rise on strength on booming economy

As demand rises while the supply is tight, prices will trend upward.

As demand rises while the supply is tight, prices will trend upward.

Market continues to rise on strength on booming economy

“The strength of the housing market and robust demand for housing is citywide, in every borough and across every housing type,” said John Banks, REBNY President.

“This uniform improvement across the board is both a by-product of and a contributor to New York City’s vibrant economy, which continues to experience positive population and job growth.”

The entire NYC market saw increases in total consideration, sales volume, and average sales prices in the second quarter of 2015, according to the Real Estate Board of New York’s (REBNY) Second Quarter Residential Sales Report.

In Manhattan, total consideration for residential sales surged 20 percent year-over-year to $5.96 billion, while in Brooklyn, total consideration for residential sales increased 10 percent to $2.16 billion.

The total consideration for residential sales in Queens also rose 15 percent to $1.6 billion year-over-year.

The average sales price of a home in New York City increased 12 percent to $923,000 from $826,000 in the second quarter of 2014.

This rise was driven by a substantial uptick in average prices in all boroughs and particularly large average price increases in Manhattan.

Similar to the results in the last two consecutive quarterly reports, Manhattan condos again had the largest effect on the overall average sales price for a home in New York City this quarter.

The average price of a Manhattan condo increased 31 percent year-over-year to $2,353,000 while the number of sales increased 2 percent.

This large average price increase was partly attributable to more closings at 157 West 57th Street where six sales over $20 million dollars were recorded during the quarter, including one over $90 million.

Excluding the 157 West 57th Street sales, the average sales price for a Manhattan condo was $2,143,000, a 19 percent increase year-over-year.

The home sales markets in Brooklyn and Queens saw sizable average price increases of 9 percent year-over-year, while the Bronx and Staten Island saw average price increases of 7 and 6 percent respectively.

The total number of homes sales in New York City increased by five percent year-over-year to 11,262.
Year-over-year sales volume in: Queens rose 5 percent to 3,409 sales; Brooklyn increased 1 percent to 2,782 sales; and the Bronx rose 11 percent to 728 sales in the second quarter of 2015.

New-Home Sales Climb to 7-Year High

New-Home Sales Climb to 7-Year High

New-home sales surged to the highest rate since February 2008, as the new-construction market continues to gain ground this year. Sales of newly built single-family homes increased 2.2 percent, reaching a seasonally adjusted annual rate of 546,000 units in May, according to a report from the Commerce Department.

“Our builders are seeing motivated buyers and the release of pent-up housing demand,” says Tom Woods, chairman of the National Association of Home Builders. “However, builders are facing supply-chain challenges, which is affecting the inventory of new homes.”

Sales are nearly 20 percent higher than the pace in May 2014. New-home inventories remain tight at 206,000, a 4.5-month supply at the current sales pace. That’s pushed the average sales price of a new home sold in May to $337,000.

“This month’s new-home sales report is consistent with other government data and rising builder confidence that indicate a continual recovery of the housing market,” says David Crowe, NAHB’s chief economist.

Regionally, new-home sales were mixed in May. They rose 87.5 percent month-over-month in the Northeast and had a 13.1 percent boost in the West. However, new-home sales dropped 5.7 percent in the Midwest and 4.3 percent in the South.

Source: National Association of Home Builders and “New Home Sales Up 2.2% in May,” Forbes.com (June 23, 2015)

Staten Island summer housing market heating up | SILive.com

STATEN ISLAND, N.Y. — With Staten Island homes selling more quickly this year than last year and home prices rising to near pre-recession levels, the summer housing market is already heating up and has promise to be red hot. >>>Staten … Continue reading

BUY, SELL, RENT. WHAT SHOULD YOU DO?

BUY. SELL. RENT. Choices, choices, choices.

Let’s take a look at who has the wind at their back in this market.

Landlords/Investors After the recession homeowners who were forced to sell are still unable to get back into the housing market, either because of credit issues or because they are being priced out of the market by the competition. There is a shortage of inventory, and there are many cash buyers with deep pockets swooping in, especially in the single family housing market. Investors make up a large portion of these cash buyers, and they turning the homes into rental properties, taking advantage of the current shortage. Rental rates are rising and occupancy is high.

Sellers If ever there was a time to sell, this is it. With the shortage of inventory, if a home is well-priced, it is going to go into multiple offers and selling quickly, most probably over the asking price. However, the downside here is that if a seller is thinking of selling and buying another home in Los Angeles, then they will put themselves in the pool with all the other buyers competing for the same homes. A seller cannot make their offer contingent on the sale of their own property as it will not be accepted, so unless they don’t have to rely on the sale of their own property to buy then they should think carefully. However, don’t worry about buying at the top of market because you are also selling at the top of the market.

Buyers If you are sick of paying someone else’s mortgage and have decided that it makes more sense to buy than rent, just be strong and stick with the market. Keep making offers until yours is the successful one. Yes it could be near the top of the market right now, but real estate will always be a good investment, and whenever you buy you will look back and be glad you did. Your alternative is to remain in the ranks below.

Renters Sometimes it just does not make sense to buy. Your rent is so cheap. You love the area in which you live and would not be able to afford to buy there. You don’t have the down payment or your credit is not good. You are nervous about committing yourself to a mortgage. These are all valid reasons not to buy. But, the rental market is a fickle one. Right now rents are on the rise, vacancies are down , and competition is high, making buying a home look more and more attractive. Do the math and see what makes more sense long term.

Staten Island named Americas No. 2 place for couples to live | SILive.com

Staten Island named Americas No. 2 place for couples to live | SILive.com.

Mortgage News Daily for August 22, 2014

Mortgage rates moved lower for a second straight day following a much-anticipated speech from Federal Reserve Chair Yellen in Jackson Hole.

Read more here>>> Mortgage News Daily – Mortgage And Real Estate News.

Mortgage News for August 15, 2014

Mortgage Rates Drop Quickly to 2-Month Lows on Ukraine Turmoil

Read It Here>>> Mortgage News Daily – Mortgage And Real Estate News.

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