As many real estate professionals will tell investors and those looking to move, the market often over corrects itself for previous problems. In 2008, the housing market nearly completely collapsed, including the luxury condo market in the United States and throughout New York City. That happened with the luxury market as the financial institution started to correct it self. Several years later, the luxury condo market is starting to even out and, as Town Residential points out, the market is a bit inflated but starting to correct itself.
Town Residential is a major financial real estate firm that works throughout New York City, offering assistance to both buyers and sellers of high end real estate. Due to this, it has insights into how the market is fluctuating and what to expect not only in coming months, but throughout the year. As the company points out now, the current market trend looks like it is going to be cooling.
Now, as of the end of the first quarter in 2016, the average price for a NYC apartments for rent and luxury condo is $1.1 million, which is up 17 percent over the previous year. However, most investors who know the market understand it is over valued and inflated. Due to this, it is likely the market will continue to cool and, either remain the same or drop just a bit. On top of the markets cooling, the financials of the industry are not there either. More properties are being added to the luxury market on a monthly basis. This means those on the market for top tier real estate will have more market options available to them, which in turn will drive down the price, as well as the cooling market in general. So, for those who are looking to purchase luxury real estate, they should hold off for a few months (if not the rest of the year) as more properties will be available and the prices will drop off.