Things may be looking up for New York real estate agents as the market for the city’s luxury apartments shows signs of recovery. Prices for properties worth over 2.5 million dollars are almost back to where they were before the financial crisis. They are now only three per cent lower than before 2008 – a huge improvement on the 13 per cent drop in the year following the crisis.
However, this has not been mirrored by easier ways to purchase says Jacky Teplitzky of Prudential Douglas Elliman Real Estate: “If people are still looking to put 20 per cent down payment, I can tell you, that is not going to work anymore. You have to think in most cases you have to put 25 per cent and up.”
As well as tougher mortgage lending by banks and the bigger downpayments required, the stagnant state of the housing market is pushing more people into renting. New York’s the luxury flats are still in high demand by people renting, according to Dawn Doherty from Streeteasy.com: “There were four buildings in the 3rd quarter of this year that, on average, the apartments were 13,000 dollars a month. Certainly, some were much higher than that. And we saw those buildings rent out within two months. 100 per cent.”
It is not the same picture for the rest of the US. The country’s leading home price index shows a one per cent decline for September and October – which, some analysts say, points to a double dip in the market.