As if any more evidence was needed to show that the New York City housing market is frenetic, evolving and ever-expanding, new data on the first two quarters of the year show that the housing market is still growing; and condominiums seem to be at the center of the growth.
The new data shows that "new development inventory" experienced a dramatic 148 percent jump over the course of the first two quarters of the year; but that was offset by a 161 percent jump in sales volume. According to the data, the four areas that saw the biggest increase in sales were SoHo, TriBeCa, Manhattan and the Lower East Side.
As a result, condominium prices are increasing; and it could be forcing many people to enter the market for a condo earlier than they expected. Another side effect of these numbers is that developers are trying to match demand by building new condos or improving their existing real estate. For each party, there is something to know given the climate of the current market.
For potential buyers, you will want to ensure that the premises is in good order. You'll also need to be prepared to set aside a lot of time to find the right place for you.
The bigger risks could lie with the condo developers, who will want to make sure that their improvements or conversions are up to code and appropriately done. They also need to make sure they are following all the protocols and necessary steps of New York real estate law. An experienced attorney could provide invaluable support to a condo board or condo developers in this regard.
Source: Real Estate Weekly, "New condo prices soar as builders race to keep up with demand," July 24, 2013