An article published this week in the New York Times featured some great figures and quotes on the city’s condo market.
The overall sentiment expressed in the piece? “The condo sector appears to be clawing its way back…”
“Workers are pouring concrete. Lenders are negotiating loans. And projects once written off as dead are coming back to life, which is stoking hopes that this comeback, unlike previous false starts, has some momentum,” C.J. Hughes wrote in the July 12 Times.
While no one is expecting the market to return to pre-recession levels of new development, brokers, analysts and developers are anticipating a slew of projects to be released over the next few years.
“I would call it a swell,” Stephen Kliegerman, president for new development marketing of Halstead Property, told the Times. “It’s not a wave yet, but it’s certainly not a drizzle either.”
In the same article, Kelly Kennedy Mack, president of the Corcoran Sunshine Marketing Group, pegged the number of new condo units to be released each year at 1,500.
That’s plenty more than the 900 that were released each year during the market downturn.
Mack also noted that the price per square foot is expected to rise from $1,400 to $2,000 once all the planned condos are built. That’s pretty significant, as you can probably imagine!
The Times drew a parallel between the return of the New York condo market and the bending upwards of housing price indexes in May. As noted in the Wall Street Journal, May was the first time in seven months that the Case/Shiller index rose after 7 consecutive months of declines.
Let’s hope this trend continues…