Friday, October 2, 2009

New York, New York


By Laura Reginelli


New York City. It’s the city of dreams, the city that never sleeps. It has also been the city of unreasonably high rents due to such high demand. A housing bubble on the Manhattan market has caused prices to skyrocket for numerous of years. However when the recession hit, rent prices took a turn for the best for once.

According to Bloomberg.com, “Manhattan apartment prices fell for a second consecutive quarter, helping drive the biggest gain in sales in more than 13 years as buyers seized on discounts.” With prices falling so rapidly, Manhattan residents have been eager to look around, investigate new apartments and acquire a deal that they never thought would be possible. As the unemployment rate rose to over ten percent, prices of apartments fell drastically in response.

Many seem to believe that the housing market is starting to become more stable in New York City. During the recession, three-bedroom apartment’s prices dropped radically in comparison to those of one-bedroom apartments.

Although the recession and the fall of Lehman Brothers sent shock across the nation, not all that came with it was necessarily evil. The Manhattan housing market, one of the most expensive in the nation, saw a decrease in prices that was unheard of. This coupled with the $8,000 tax credit for first-time homeowners has drastically increased the amount of real estate deals going through in New York City.

Sources: http://www.bloomberg.com/apps/news?pid=20601103&sid=a747Z6Y7yhBU
http://www.nydailynews.com/money/2009/10/02/2009-10-02_manhattan_real_estate_sales_stabilizing.html

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