Long Island City is a hotbed of real estate activity, and a new study finds inventory prices in the Queens neighborhood have soared the first few months of this year. NY1's Real Estate reporter Jill Urban filed the following report.
Low inventory and high demand are certainly squeezing the city real estate market, especially in parts of Manhattan and Brooklyn, sending many buyers to look elsewhere. One area that once took a lot of that overflow, Long Island City in Queens, has now become its own hot destination.
"The market in LIC is pretty hot right now. There's no inventory and because there's no inventory, apartments are being snapped up. We're getting people literally rushing through doors at open houses, offering above ask at open houses and bidding wars are a daily thing right now," says Eric Benaim, the founder of ModernSpaces.
Long Island city has become a hotbed of activity as buyers flock to grab whatever inventory becomes available. According to a new report released by firm ModernSpaces, inventory is low and prices are climbing fast.
"The average price in the area is $835 per square foot, so it's jumped up about 10 percent in the last quarter," says Benaim. "Studios are going for about $450,000, average price of a one-bedroom is above $500,000 and two-bedrooms are over $800,000."
While those numbers reflect all types of housing stock, a big draw is for the new inventory, which in recent years has been coming to market at a rapid pace. But as many developers move towards building more rental buildings and super high-end luxury towers, the average buyers are grabbing what they can now.
"This year alone, there will be about 2,000 new units to hit the market in LIC. Out of the 2,000 this year, only about 100 are condominiums. The rest are rentals," says Benaim.
Most of the new inventory is selling off floorplans, according to Benaim. He says there are bidding wars before homes are even built.
He credits part of the boom with tax abatements. Developer incentive tax abatements have expired, so buildings opening now still have them, but in a few years, those low tax rates will not be available and owning a home in a new building will cost more.
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