This is why some New York home prices are skyrocketing

You saw a beautiful home years ago that you wanted to purchase in New York City. At the time, it was listed at $3 million in a prestigious part of town. Today, you see the same real estate is for sale, but it's at a shocking $17 million. What has changed that made its price go up so much in such a short time? How could this happen despite a market that was still in recovery until recently?

If you live in New York or would like to buy property there, one thing to consider is how close in proximity you are to celebrities. Celebrities who purchase property in the area may drive up the cost of a home, making its price artificially inflated.

For example, the average price of a home located in Greenwich Village was approximately $4 million as of 2006. By 2016, the price of a home there had skyrocketed to close to $20 million, namely because of the number of high-profile celebrities making their homes there. With residents such as Sarah Jessica Parker and Julianne Moore, the select area becomes one that many people want to move into. That drives prices up.

It's a fact that having an A-list star nearby can boost prices by around 127 percent. Even B- and C-listers increase the cost of homes in an area by between 43 and 67 percent. This is great news for those looking to sell, but it does price some individuals out of the market.

Your attorney can help you complete a sale or purchase if you intend to move into this area. With the right help, you can make sure your purchase is protected.

Source: New York Post, "How these celebs are driving up NYC real estate prices," Jennifer Gould Kell, Aug. 01, 2017