- The sales market will have a very active 2nd quarter as sellers act more pragmatic and buyers want to lock in rates before the three federal reserve policy meetings. This will be evident in the number of properties that sell at or above the listing price.
- March active sales inventory numbers will be up from 2015. A lot of sellers held off or took the apartment off the market in fall of 2016 and will want to get a head start on the spring competition.
- The luxury rental market ($6500 and up) will continue to struggle. Many apartment owners and landlords will struggle to get the rent previously achieved. Approximately 25,000 new luxury units will hit the NYC area this year, which will further dilute this market.
- As such, the amount of rental concessions (shows softness) in the luxury market during the summer of 2017 will stay above 20%, which is way up from previous years.
- The softness in the non-luxury rental market will still be seen until late in the second quarter of 2017, as there will continue to be a high supply on the market throughout the winter and spring.
- The looming L train shutdown in 2019 will lead to a year-over-year decrease in rents for Williamsburg.
- You will hear of more friends and family that are able to renew their lease without an increase in rent. Landlords and apartment owners won’t want to risk losing an existing tenant over price.
- Astoria prices and rents will rise at a higher percentage than its surrounding neighborhoods. Ferry service from Manhattan to Astoria is slated to start in the spring. In addition, the city earmarked $30m to improve Astoria Park and is trying to push ahead with a streetcar service that would terminate in this neighborhood.
- The Second Avenue subway will lead to higher prices and rents. The spread between 3rd/Lexington Avenue and 1st/York Avenue will be lowered and Yorkville will be one of the hotter NYC neighborhoods this year.
- Mortgage credit will likely be more available due to looser lending standards and will help to prop up the first-time homebuyers market in the second half of the year.