A Year in Review (Preview)
Although more recent data may hint at a slight pullback, overall, the national real estate profile has looked bullish for most of 2017. The Manhattan real estate market, on the other hand, was and is a more topsy-turvy affair — and that’s really the best word I can use to describe it.
For the most part, prices have been on the decline since 2015, and some data even shows today’s overall prices at 2014 levels. But what really makes our current real estate market so hard to pinpoint is Wall Street. With a real estate market so closely tied to our city’s No. 1 industry, why is everyone asking: Has there been a decline?
2017 started with a correction in the luxury market of properties priced at $4 million and up, due largely to an oversupply of and under-demand for luxury new development. Not surprisingly, this had a drastic effect on the resale luxury market. Some areas of the city report over 300 days-on-market averages for luxury listings, and there are still more homes being built in this segment, leading many to suggest a further glut. All that seems to send shockwaves through the city, causing a trickle-down effect, which in turn, makes the $2 million and $3 million dollar sector feel the pinch.
Buyers were extremely cautious at this segment. Deals were getting done, but at lower closing prices than expected, causing real estate brokers and their sellers to get creative to bring the deal to the closing table. But what has remained hot throughout 2017 has been the $1 million and under sector and the $1 million to $2 million range. These have markets have kept us busy all year. Dubbed the workingman's (person’s) apartment, these buyers have taken advantage of low interests rates and competitive pricing from the sellers. Closing prices haven’t really risen here, but there has been a record number of transactions in 2017, and the lower markets have driven the overall real estate market as a whole.
So, what do we foresee in 2018? Stay tuned as the crystal balls begin to glow and the talking heads tell us what to expect.
- Hello Chicago! Starting this week, we’ve officially found our newest place in the world in Chicago. Stay tuned to watch Compass Chicago come to life — seasoned agents, charming neighborhoods, and plenty of gorgeous homes.
- Compass has been named as one of the 20 most competitive startups.
- Compass is now valued at a $1.8 billion valuation!