Experts: New York Mortgage Activity Picking Up in City
The fourth quarter is invariably the slowest and weakest period of the year for the New York housing market - and the Big Apple is no exception.
Because of the holiday season, residents of the five boroughs are far more interested in shopping for gifts and taking kids to see Santa than shopping for a new residence. But this year is different, according to real estate agents and experts around the city who report that the market is buzzing again.
Veteran real estate broker Deanne Esses of Bellmarc Realty was miserable two months ago, the New York Sun reports, as prices were down everywhere, inventories were swelling, sales were slowing, and her firm was doing so poorly that a fair number of brokers left to pursue other careers.
That vacation, according to Esses, is over — which is good news if you’re looking to sell an apartment and bad news if you’re looking to buy one.
“We had a great November, the market is getting much better, and I think housing in the city may finally be turning around,” Esses says, believing that a large part of this might reflect higher rental prices.
“Rentals are getting so steep it may be cheaper to buy an apartment than to rent one,” she says.
One reason for the peppier housing picture, it’s believed, is Wall Street’s big year-end bonuses. Last year, they totaled about $21.5 billion. This year, they’re expected to run about 10-15 percent higher.
Some other positives are said to be the curtailment of new construction, limiting the available supply, the city’s improving economy and employment picture, and the weak dollar. Also, buyers are increasingly realizing all the housing slump talk they read about in the newspapers is all local, and in many cases, irrelevant.
Jonathan Miller, a leading real estate appraiser, also confirms the housing pickup. “We’re seeing a decided increase in the number of transactions,” he said. “The upper end is one of the best performing sectors of the market, notably apartments at $3 million and up.”
What about overall inventories? Including new construction, they’ve leveled off, holding at about 7,600 units the last couple of months. Overall, that is still higher than the average 4,000-5,000 units that have been on the market over the last five years - but it’s trending positively.
The bottom line: With city housing humming again, if you’re a buyer, the message is clear — act sooner than later or pay more for your New York mortgage.