2013 Manhattan Real Estate Market

Happy New Year - 2013

2012 ended in Manhattan with a very strong real estate market. There was increased activity during the last quarter. One of the busiest holiday seasons I've experienced. Activity was seen in all price ranges from "affordable" to "luxury" activity continued right through the holidays.

2012 ended with extremely low inventory and high demand. Properties priced right are in play. Many first time buyers as well as sophisticated buyers have realized that owning can be cheaper than renting.

With interest rates at all time record lows and rents continuing to rise, there continues to be a strong desire to own a home in Manhattan as both a primary residence and as a good investment. Many foreign investors continue to invest in NYC real estate as one of the safest and smartest places to park their money.

Last night Congress finally voted to advert the fiscal cliff. Income tax will be increased for singles earning over $400,000 and couples earning over $450,000. The tax rate will increase from 35% to 39.6%. Capital gains and dividends will rise to 20 percent from the current 15 percent for the same income thresholds. In addition to the capital gain and dividend rates, health care reform will levy a new surtax of 3.8 percent on capital gains for those tax payers with incomes above $200,000/$250,000. The primary residence $250,000 single $500,000 capital gain exemption remains.

New York City has lead the country in economic recovery and job growth. For every 100 jobs that were lost in the national recession, the rest of the country has gained back only 40. In New York City, we’ve gained back 200. And those jobs generate tax revenue that in turn supports services in the rest of the country. New York City is the nation’s largest economic engine.

New buildings, both new construction and new conversions will come to the Manhattan market in 2013. New inventory is much needed.

On the Upper West Side, 101 West 87th began selling on December 7th, and already has many units in contract. The building features a mix of 62 one to four bedroom residences and a plethora of amenities which include a courtyard garden, garden lounge, children’s playroom, sky terrace, and a fitness center.

Coming new development sites for 2013
56 Leonard	Q1 2013
404 Park Avenue South	Q1 2013
Baccarat Hotel & Residences	Q1 2013
Halcyon/East 51st Street	Q1 2013
Printing House/421 Hudson Street	Q1 2013
93 Reade	Q3 2013
361 Broadway 150 Charles	Q4 2013       2013
Four Seasons	2014
Tower Verre	2014
West Village Residences	2014

There are also units available in current new development sites. Low inventory and demand for housing in Manhattan will most likely continue in 2013 and prices seem likely to rise.

For more information: http://www.nycnewdevelopments.com/

Wishing all a prosperous 2013.