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Real Estate Bubble Slowly Deflating, Not Bursting
By
Jen Chung
Published Jan 3, 2007
Modified Mar 7, 2008
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By
Jen Chung
Published Jan 3, 2007
Modified Mar 7, 2008
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Real estate pundits are calling the downturn in the New York residential real estate market, as the NY Sun reports, a "soft landing" versus a "bubble burst." Apparently the fourth quarter was pretty good for some real estate brokers!
What happened? Real estate appraiser Jonathan Miller, who prepared a report for Prudential Douglas Elliman (one of three reports released yesterday), said there were less properties on the market and sellers were setting realistic asking prices. Who knew? The Corcoran Group's CEO Pamela Liebman mentioned foreign investors, empty nesters who are tired of the suburbs and lower mortgage rates as reasons why the market has stayed strong.
As far as the rental market is concerned, rents rose to an average of $2,719/month (a 6.5% increase). Which works out to just under a $700 average for you and your three roommates! And the average price of a Manhattan apartment is now $1.14 million, increasing by 5% from 2005 (the median increased by 9% to $760,000).
Everyone is looking to 2007: The Observer, UrbanDigs, PropertyGrunt [Via Curbed]
Photograph of construction from last summer by Jesse Chan-Norris
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Jen Chung
Jen Chung is a former WNYC and Gothamist editor.
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