Bloomberg reported last week on a situation that Suitey has been closely monitoring for the past several months. Real estate around the country has come a long way since the fiscal crisis of 2008. The recovery has been particularly explosive in Manhattan, where a certain bracket of affluent would-be homebuyers are finding themselves amidst scarce inventory and contentious bidding wars.
The reason why they’re being left behind? The title of the article says so itself: plainly, there are no $3 million apartments left to buy. “Non-luxury” apartments (which the article classifies as anything under $3 million) comprise about 90% of Manhattan’s real estate. The other 10% fall into the luxury category. Developments such as One57 (mentioned recently on this blog) and other super-luxe residences are commanding all the attention of developers while foreign money snatches them up years before completion. The demand for these non-luxury homes, no doubt a product of today’s favorable lending climate, coupled with the ever-diminishing supply, has caused a sharp increase in property value among these hopeful buyers. The result has been a rather painful home-buying process. Read the article and weigh in under “comments” to tell us what you think!
