Weakening Real Estate Environment?
Most residential moves take place between Memorial Day and Labor Day. So - amid talk of a weakening real estate environment - how is this moving season shaping up? In New York City, apartment sales are holding their own but there are some troubling signs. Recent activity shows an annualized 5% to 10% gain in both transactions and apartment prices. Good, right? Yes, but not compared with a 25% increase in both areas in the same quarter last year. Also, apartments are taking longer to sell (with averages up to 130-140 days compared to 90-100 days in 2004-2005) and the number of listings have ballooned (6,900 co-ops and condos on the market versus 4,300 a year ago). Sound like a good time to buy? Perhaps, but consider that average apartment prices in New York City have remained roughly the same: $423,659 for a studio; $700,201 for a one bedroom; $1,491,060 for two bedrooms; $3,295,963 for three bedrooms, and $7,175,170 for four bedrooms!