Purchasing a home in New York City is a challenging job, especially when you consider the following figures: According to Douglas Elliman’s newest Market Reports, the median sales price in Manhattan is currently just under $1 million, and median sales prices in Brooklyn and Queens have grown to $790,000 and $600,000, respectively. Furthermore, sellers often require a 20% down payment on listings, which means you’ll need at least $120,000—if not much more—on hand.
Meanwhile, according to the most recent census data, the median income in New York City is little more than $57,000. With all of those numbers in mind, purchasing a home may appear not just tough, but also impossible.
However, there is some good news: inventory (the quantity of flats on the market) continues to rise, and with more supply than demand, buyers frequently have the upper hand in negotiating the best offers. Furthermore, the real estate market has recently seen a downturn (especially in Manhattan), and prices are projected to fall further, according to Corcoran broker Stephen Geller. You might not be able to get a townhouse, but there are thousands of apartments available—and if you’re ready to sacrifice on space, you might be able to get a good price.
So, what information do you need to know if you want to buy a home in New York City? This guide aims to demystify the process and serve as a resource for both first-time purchasers and those seeking additional information.
How much do residences in NYC cost?
The short answer is: a lot.
According to Zillow, the median price of properties currently on the market is $779,000. According to StreetEasy’s Price Index statistic, the median asking price of Manhattan houses in November 2019 was $1.6 million; in Brooklyn, it was slightly more than $969,000.
Overall, property values in New York City have recovered dramatically since the 2008 recession. However, the city is being inundated with a record number of units, which analysts believe will cause values to fall, notably in Manhattan and Brooklyn.
Why is it so pricey?
According to real estate guru Jonathan Miller, the fact that New York City is so very expensive isn’t a recent phenomenon—the city has remained a bastion of wealth for almost a century now, despite the ebbs and flows in the marker over the decades. (You can read more of his opinions on the subject here.)
According to Miller, the most recent surge in pricy real estate occurred during the 2008 financial crisis, as markets began to rebound. Capital flowed in from all around the world, causing developers to embark on a construction binge. Because of the city’s limited area, high construction costs, and high land values, developers chose to create luxury complexes, such as those on Billionaires’ Row, which drove up citywide prices.
“New York City has always been affordability-challenged, but this most recent housing boom has only exaggerated it further,” Miller states.
According to Corcoran’s Geller, being the world’s cultural capital has some prestige. “There is a premium for that,” he says, “and historically, people have been willing to pay the price.”
Thanks : curbed