The prices for New York City condos have seen a decline in
the first quarter as new buyers prefer to buy moderate to lower-cost studios. They
are also happy to manage themselves in one-bedroom units, which is mainly
because of the previous rising rent of the city’s condos and apartments.
However, the good news for condo owners in New York is that the
prices for New York City condos have suffered the least decline out of
the major metropolitan cities across the states. After the housing market peak,
the prices of the New York City condos registered a fall of 14% since its last peak. However,
the counterpart cities like Los Angeles, San Francisco and Chicago have
registered a dip of 40 percent, 35 percent and 33 percent respectively.
The price listings for all condominiums and co-ops drastically
changed in the last three months. The decline was registered first in Manhattan
and Los Angeles. Astonishingly, more than 50% of the sales revenue was
accounted for studios and single bedroom units.
The increasing price and sophisticated feature-based accommodation
has made the rental market too hot for people to make an investment. They are
finding it easy to buy a starter home to cater their basic needs.
The low rates of interest are letting more people take a step ahead to buy
their starter home at a very early stage. This resulted a hike in the prices of studio
deals by 19 percent over the last fiscal year.
Over the last several years, the market peaks in the prices
for condos, both for sale and rent has made tenants think of
buying their own home. People have found themselves comfortable living
in a small cozy home, rather than spending lavishly in condos. Going
for a clear mathematical assessment will
let you know that you will be profited after buying your home, rather
than
taking a condo on rent. Katharine Tuckerman makes a monthly payment of
$2,200
which includes her mortgage and maintenance and she says it’s less than
what
she would have to pay for a condo on rent for the same size.
Is it The Right Time to Buy a Condo?
Everything has its peak and so has its fall. The prices of
condos have really declined; however, statistics show the alarming increase in
the price of studios and single room apartments. This implies the prices will
balance shortly in the near future; maybe we have to wait for a few months to
get another ‘top story’ in real estate. This is really a good time for
investors to buy a condo or even individuals can consider it as a good option. Condominiums
do have their own benefits and added advantages of security, social life,
community gathering and others. However,
if you can pay the huge price during the time of buying the condo (a bit reduced
and not so huge now), then you can enjoy the comfort and luxury for the rest of
your life.
The speculation of price decline in New York City condos and
other areas was prompted after the market prices reached the upper
threshold. It is only a matter of time that the prices will
settle to its normal levels because people are once again moving toward condos,
especially for rents as condo owners are providing a rebate these days. With
continuing economic stability, people of the New York City will once again look
forward to owning a condo, so its best if you can manage to own one now and
take advantage of the present price decline.
