New York City has has a good 2015 in real estate sector but overall, United States pricing had flat out by the third quarter and it might be an indication of what to expect this year.
Luxury Daily reports that while it is true that demand for New York City's real estate remains high today and in the forseeable future, domestic and international factors could affect the pricing, not to mention impact of the rising millennial market.
Javier Lattanzio, director of sales at Time Equities Inc., says, "As Internet technology and social media continue to evolve, younger generations are adapting quickly to a variety of options offered in the real estate market. With so many factors to consider such as location, views, architecture, interior design and quality of lifestyle, coupled with increased access to data, there is increased competition between buildings."
"Working in the TAMI (technology, advertising, media and information) and financial industries, high earnings among millennials allow this group to afford luxury residences that offer a desired lifestyle and amenities that are convenient," he added.
Luxury Daily adds that millennials would probably be the largest home buyers this year, most likely followed by Generation Xers (aged 35-44).
Property developer and business strategist Borix Mizhen predicts, "In 2016 we can expect to see builders move away from their focus on luxury homes and rise in more affordable products." Of course, of construction falls, the price increase follows due to imbalance of supply and demand. As anywhere else, it is also particularly true in New York as buyers may want to grab the chance before prices skyrocket even more.
William Ross, senior vice president managing director, Halstead Property Development Marketing for Downtown Brooklyn and Brooklyn Heights advices buyers not to hesitate as prices and time are not on their side.
"The United States as a whole, especially New York, remains a 'safe harbor' compared to investing in the stock market and other more turbulent real estate markets," Lattanzio said. "The industry is still going strong and we may continue to see foreign clients investing in U.S. real estate assets to preserve their own currency value."
There are indications, however, that growth my slow down. Real estate brokerage firm Redfin reports that prices of luxury homes actually fell in the third quarter. It fell year-over-year by 2.2 percent while non-luxury homes increased by 4 precent.
In addition, a trend towards "smart home" will also be seen in the real estate sector, with 2020 as the benchmark to go mainstream.
