Tight inventory remains a challenge for buyers, especially for properties in turnkey condition. Older condominiums and co-ops that require renovations still present value opportunities, but the increasing cost and complexity of remodeling have deterred many potential buyers. Renovation costs have surged, with mid-range projects that once cost $250 to $300 per square foot now exceeding $700 per square foot, according to the report. This divide has led to a market where well-maintained, move-in-ready homes command premium prices, sometimes rivaling figures from a decade ago, while properties in need of significant work linger on the market.
Rental market influencing buyers
The rental market continues to exert significant influence on buyer behavior. With rental prices remaining high and units often disappearing within 24 to 48 hours of listing, many renters are opting to purchase properties instead. However, competitive bidding wars remain more common in the rental sector than in home sales, where price stabilization has been the prevailing trend. Median rental prices in key neighborhoods have reached record highs, with Manhattan’s median rent exceeding $4,500 per month.
Overall market condition
Despite uncertainty stemming from national economic policies, the New York real estate market appears to be maintaining a stable trajectory. While large year-over-year gains seem unlikely in the near future, experts suggest that the current climate presents opportunities for careful buyers to invest in homes that will retain their value over time.
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