The Strengthening Manhattan Residential Sales Market

The Manhattan residential real estate market continues to show signs of strengthening and firming which bodes well for sellers and may foreshadow a lost opportunity for buyers sitting on the sidelines hoping for further price declines.   The reasons for the current resurgence in the real estate market can be traced to several factors: 1) job losses have been less than anticpated, 2) New York City’s economy has performed better than expected during the recession, 3) Wall Street rebounded sooner and stronger than expected, and 4) interest rates continue to remain low, as inflation has hit a 44 year low.

Major residential real estate brokerages firms are reporting a nearly 90% increase in closing in the 1st quarter of 2010 as compared to the same period in 2009. It must be noted, however, that the 1st quarter of 2009 was disasterous for apartment closings as the after effects of the Lehman Brothers collapse, and the effects of the Madoff debacle brought the residential real estate market in NY to a stand-still. Prices have also shown to be turning up from the dramatic lows seen in the 1st half of 2009 as demand has increased, albeit at prices far below the high’s of 2007 and much of 2008.

All of the signs point to a steadily strengthening residential real estate market. That would be good for everyone.