The consequences of New York real estate sentiment

The New York real estate market has improved for both the buyers and sellers in this year as per the survey carried on by the Siena College Poll. As per the survey, more than two thirds of the New York residents believe that the real estate NYC has improved. The respondents were asked about their feelings on both the current and future buying and selling markets in this city by using the statistical analysis to award scores as -100 to 100. Where the score 100 is awarded if everyone polled responds positively and the score -100 is awarded if all responds negatively.

The New York state’s overall real estate sentiment was pegged at 17.7 percent during the third quarter of 2013 that reflects the citizens’ optimism about the New York real estate market. The real estate is in the thriving zone with people seeing a steady growth in the real estate values with both buyers and sellers coming out in the open. However, with the advantage for buyers over sellers having gone, New Yorkers see real estate as an attractive investment option. The latest three-month report released by the State Association of Realtors also reflected the positive real estate sentiments with market showing signs of returning to normalcy. Closed and pending housing sales jumped to 17.4 percent in July, August and September-2013 compared to the same period in 2012.

The Siena poll predicts that the real estate market will only continue to stabilize and grow. Across the state, the overall future score was 24.8 in the third quarter that is down by 4.8 points from the previous three months. The real estate NYC is facing the aftereffects of the completion of one year of post Hurricane Sandy with New York area homeowners drowning under the wave of foreclosure notices. In the hurricane-ravaged Queens, foreclosure activity was up by 61% while the median price of homes went up by 16%.

The foreclosure activity in the New York City and the Long Island surged 33% in the first nine months of 2013 compared with the same period last year indicating that Sandy victims are unable to keep up with their mortgage payments or are choosing to abandon their damaged homes as per the special report from RealtyTrac. Manhattan was the only borough surveyed by RealtyTrac where foreclosure activity was down post-Sandy implying that Sandy victims in Manhattan were more financially stable and those who are not able to make their payments were able to find real estate buyers for their homes. Real estate buyers are purchasing the foreclosed homes sold by banks in a big way because they are priced below the actual market price. According to CoreLogic (California based real estate data provider) overall, there were 48,000 completed foreclosures in the United States in August, down from 72,000 in August -2012 which is still higher than the national rate of 2.36 percent. The states with the highest foreclosure inventory as a percentage of mortgaged homes are Florida (7.9%), New Jersey (6.2%), and New York (4.9%).

New York Global Real Estate is a well-recognized name in the New York real estate sector in locating, buying, marketing and investing in the residential real estate market. Sellers can put their New York properties for sale by utilizing the advisory and consultation services being offered by New York Global Real Estate.

The changing status of New York real estate brokers

The New York real estate scenario is becoming multilingual with more and more international buyers flocking into the market. Being able to interact with foreigners is becoming a prerequisite qualification of success for New York real estate brokers. The international investment in the New York real estate especially of luxury condos for sale in NYC is growing steadily over the last decade and it has totaled to about $ 1.96 billion during the half of this year as per the report of Real Capital Analytics. With the buyers becoming international, the New York real estate brokers have also changing their essence of doing business.

There has been noticeable increase in the number of brokers who are speaking foreign languages especially in and around Central Park south where one can find brokers speaking every other language except English. Some of the city’s top producing agents are hiring assistants and sending them to school for broker’s recertification. Moreover, every one of them is a Brazilian, Canadian, Asian or of other nation. As of now, speaking a foreign language is almost a skill that is an essential requisite for working as a New York real estate broker.

Majority of New York real estate firms are employing brokers who can speak more than one language as they feel it is important to accommodate buyers and sellers from diverse backgrounds. Some of the agents recruited by the real estate firms in this city speak Portuguese, Spanish, French, Chinese, Swedish, and Hebrew and sign language in addition to English. The clients of these real estate firms are quite delighted that the agents are speaking in their own language and there is an increase in the trust of these clients.

There is now a rising trend among real estate brokers to study Chinese culture and learn Chinese language to serve the high-end Chinese clients in New York. There is a rising trend among brokers who are not native Chinese speakers taking course in Mandarin at New York’s University’s School of Continuing and Professional studies. This course informs the students about the customs in real estate transactions, expectations in living standards, the relationship between buyer and seller and the role of the broker as an intermediary.

According to the National Association of Realtors, clients from China have emerged as the second biggest group of foreign buyers in the United States residential market that are surpassed only by Canadians. The report of the Real Capital states that, China leads all foreign countries in New York property for sale deals this year with $ 1.37 billion of acquisitions not including the Chase Manhattan Plaza. Next stands Canada with $ 1.19 billion. The excess capital in China is finding its way by investing in real estate NYC due to the belief that Chinese investors would gain from recovery of the American economy and real estate market. With the New York City having emerged as the biggest beneficiary of the Chinese real estate buying spree, it is evident that some brokers are seeing sense to seek out aggressively for Chinese buyers on their own turf.

New York Global Real Estate is a well-recognized name in the New York real estate sector in locating, buying, marketing and investing in the residential real estate market. Sellers can put their New York properties for sale by utilizing the advisory and consultation services being offered by New York Global Real Estate.

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New York real estate bounces back post Sandy

The New York real estate has recouped well post Sandy super storm that caused about $ 42 billion in damages across New York State with damages amounting to $ 19 billion in New York City alone. Majority of property were destroyed or were deemed inhabitable in all five boroughs after the storm touched down on October 29 last year. However, in spite of the storm, the long lasting impact of super storm Sandy on real estate NYC was minor. According to the New York real estate brokers , about 80% of property is nearly renovated and repaired back where they were before Sandy.

Many of the housing units are in the process of being repaired and the storm’s devastation did not affect the real estate interest among real estate buyers in any of the boroughs. Majority of residents are choosing to rebuild rather than to relocate. As per the statements of the New York real estate brokers, the storm has only affected the coastline with just about 1% of New York real estate. International real estate buyers are continuing to show interest in the city and the selling market has gained some strength but buyers are opting to consider locations away from flood zones as values in those areas are down between 2% to 5%.

Fewer New York homes for sale have been taking place across Rockaways in Queens and in Brooklyn. However, in the New York City the New York apartments for rent and the cost of New York homes for sales are hovering through the roof even in newly mapped flood zones in Manhattan. The Manhattan Condos for sale market has rebounded even after the Sandy flooded basements and lobbies last year with sales having taken months to jack up in heavily damaged areas such as Rockways and Staten islands’ that were located in flood zones.
In Manhattan’s financial district, sales were 44% compared with pre Sandy numbers and median prices rose by 15%. Sales increased in the hard hit neighborhoods such as Howard Beach, Queens where sales jumped by 37% though the median prices were lower by 10%. Sales bounced back even in the hard hit Staten Island neighborhoods in the third quarter. The negative impact of the Sandy was particularly acute in neighborhoods in the outer boroughs.

According to real estate brokers, fewer unrepaired damaged homes are listed for sale in and around the city. The inventory of repaired homes with newly renovated basements plus new boilers and electrical wiring is shrinking. In the Rockaways, where majority of basements and many ground floor levels were swamped, the real estate buyers are interested due to their attraction towards lower prices. Majority of them are worried about the availability of affordable federal flood insurance than another storm.

The StreetEasy study found that the Manhattan real estate market paused for a while after Sandy smashed New York. During November-2012, the listings in flood zones dipped by 21% and the number of contracts signed slipped by 24% compared with November-2011. However, the numbers bounced back with contract signing in TriBeCa and the West Village soaring faster than in any other areas. By April-2013, contracts were up by 28%.

New York Global Real Estate is a well-recognized name in the New York real estate sector in locating, buying, marketing and investing in the residential real estate market. Sellers can put their New York properties for sale by utilizing the advisory and consultation services being offered by New York Global Real Estate.

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