The luxury real estate industry is reporting that as rising average sales prices take hold of the city, sales are decreasing. While not completely unusual during a difficult housing market period, many are implying that now is the best time to buy because prices simply won’t be going lower anytime soon.
The Wall Street Journal has claimed that “buyers are pounding the frozen pavement hunting deals” and adds, “weakness, however, persists for new projects, which saw rampant overbuilding during the boom.” The journal also notes that median prices have fallen some 23 percent from a year earlier to a median $1.19 million, according to Corcoran. There are also higher interest rates on large loans, which subsequently saw median prices fall 22 percent to $2.9 million, adding increased frustration for the luxury segment of the housing market.
Some are noting that many have jumped to the conclusion that things are in “recovery,” however one site points out that a “jump in activity is all too easily construed as a recovery,” and that people should not ignore that there has been a 90 percent drop in new build applications.
To this end, the New York Times has been noted as commenting that “people feel the market has pretty much bottomed out.” But it was CNN that dared to ask if bonuses will “save the day for Manhattan real estate,” adding, “People feel there’s stability in New York. The fear factor is gone. The year 2009 started out in absolute fear. This year is starting off in hopefulness.”
Many real estate agents are agreeing on one thing; now is the time to buy because prices will not be falling anymore. Whether they increase, or rather when, how quickly, and by how much they increase, will be determined in time.