Town Residential NYC Apartments for sale is a luxury real estate firm that is considered to be one of the premier firms in New York City. Their expertise in their local market provides them with the ability to provide real insight into the real estate market. It is for this reason their quarterly report known as The Aggregate is much anticipated by real estate market participants.
Town Residential’s The Aggregate 4th quarter 2015 report is available on the Virtual Strategy Marketing website And should be read to learn about the recent price increases in the New York City market and why these increases occur.
The report discussed the fall swoon in prices that typically occurs every year and shows a downward movement in real estate prices after the active summer period. In the fourth quarter of 2015 the data showed that this fall swoon didn’t occur as prices increased rather than decreased. The Aggregate showed that real estate prices didn’t only increase from the prior year 4th quarter which would show overall growth of about 5%, but also that prices increased about 3% from the 3rd quarter in contrary to the seasonal fluctuations.
This is a strong move upward in prices and not what was anticipated by many real estate professionals who are looking for a stabilization or even a decline in prices after the strong and long period of increases that was experienced since the recession. Beyond that, many people expected a decrease in real estate prices in New York City after world markets became dislodged, particularly in China, as they believed that foreign demand was driving demand in New York City. When this didn’t occur in the data many people started to question the underlying thesis underpinning the New York City real estate market.
The Aggregate provides some insight into the data and have shown that the sale of several high end developments that are new to the market have distorted the averages and are hiding weakness in sales of existing units. This view, with segregated sales in the report, is more consistent and supportive of the ideas that market professionals had and shows the high likelihood of future market weakness.