Most recently, a strong and stable U.S. economic backdrop, coupled with a much anticipated delay in Federal Funds rate increases has enabled buyers to take advantage of low mortgage rates. Figure 2 shows the steady downward trending average 30-year mortgage rate.  As of April 23rd, 30-yr mortgages were offered at 3.65%, down from 4.33% in April 2014.  While this is higher than rates a few years back, they remain at historic lows, and few economic pundits forecast a rapidly rising interest environment for the foreseeable future.

 

 

 

This, combined with healthy New York fundamentals has resulted in continued momentum for an active NYC property market.  Across Manhattan, absorption rates in months (i.e. months it takes to sell a listing) lies at 4.4.  For properties below USD $2 million, absorption rates lie well below the 10-year average.

 

 

 

 

Activity remains active across various price points in the market.  To highlight the continued strength of the NYC luxury property market, for example, Eric Rosen of Halstead Properties noted that a record-breaking 157 contracts for properties listed above USD $4 million were signed in May 2015.  That equates to sales volume of USD $1.2 billion in May! 

 

With average sales prices +10% higher from Q4 2014 to Q1 2015, demand, and more importantly investment opportunities, remains attractive, provided you have a trusted advisor to help find great investment opportunities. 

 

The Global Properties team at OKAY.com offer personalized introductions and advisory to best-in-class real estate brokerages and the most experienced agents across our network of over 500 international partners.  

 

If you are looking for great investment opportunities in New York (or other markets), contact us today.