Virtual Strategy Marketing first ran this story about TOWN Residential and their analysis of the end of 2015. TOWN Residential works in the residential and commercial markets as a seller and developer, and they publish their figures every year in their own magazine. This article explains what TOWN has gleaned from their own numbers, and there are implications for 2016 within the article.
#1: 2015 Ended Well
2015 was a banner year for apartments for sale in New York, but the numbers were so high that it seemed they would never stop rising. Investors were paying more and more over the course of the year, and anyone who was buying moved quickly to avoid the rising tide. TOWN watched as prices became stable at the end of the year, and they predict that prices will remain stable in 2016.
#2: Who Benefits From High Prices?
Developers and sellers like TOWN Residential made quite a lot of money in 2015 from rising prices, and sellers were able to sell their properties at a premium. Buyers were paying more for their properties as the year went on, but anyone who was willing to wait saw price stop rising at the end of 2015. The furious nature of the growth on the market caused a rush on many properties, and TOWN was hardly able to keep up.
#3: Will 2016 Be Different?
2016 will be a much different year from 2015. The high prices in New York will remain mostly stable, and buyers need not immediately move to purchase a property simply because its price could jump overnight. The uncertainty in the market has been replaced with stability at prices that are all-time highs. New York is a hotbed for development, and every seller or developer in the city will make just as much money in 2016 as they did in 2015.
TOWN Residential’s analysis of the 2015 real estate market in New York shows that prices have finally stopped rising. A bit of inflation will cause minor price increases, but the frenetic price increases that happened in 2015 seem to have ceased.