Real Estate Market Was Stable In 2011, Experts Say
Experts recently spoke with NY1's Jill Urban about the year in real estate, and they said the market held steady and even saw some improvements on the rental side.
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Paul Purcell of Rutenberg Realty says despite the economy and the continued mortgage issues, things on the sales side held steady in the real estate market in 2011.
“We had a market, and that’s the good news. Some places around the United States didn’t have a market at all,” says Purcell.
The market didn’t see an abundance of new inventory, so things tightened up and prices held strong. That’s thanks in part to an influx of international buyers.
“I think the biggest trend has been a continued influx of foreign investment. Economies like China and Russia that are a little precarious, those people see the United States, particularly New York, as a very solid investment,” says Douglas Heddings of Heddings Property Group.
Foreign buyers still see New York as a bargain compared to other international cities. Heddings says another trend this year was marathon negotiations.
“It’s taking weeks to come to terms on an accepted offer. There is so much uncertainty in the market that buyers don’t want to feel like they are overpaying and sellers don’t want to feel like they are giving their property away,” says Heddings.
One the rental side, inventory dropped and prices exploded, especially on the high end.
“The high end got even hotter, and there were bidding wars on $25,000-a-month apartments,” says Purcell. “We haven’t seen that in a very long time.”
And those high prices trickled down to every level of the rental market. With rental prices so high and mortgage rates so low, the rental market did help jump start things on the sales side.
High rentals could drive the sales market even more in the coming year, which could bring rents down.
Overall, it was a stable year, so what’s in store for 2012?
“I think the overall market in 2012 is going to be healthy,” says Heddings. “It’s an election year, so there will be obvious trepidation about the market. Hopefully we’ll see the mortgage situation loosen up a bit. Prices will remain stable, may even appreciate a little bit, but I think overall 2012 will be a good year for real estate.”