Foreign interest helps New York City evolve
Real estate in New York, New York, is in the midst of a transition. On one hand, rising rents has forced prospective buyers to jump into homeownership, which has helped deplete the housing inventory in the Big Apple. On the other hand, median asking price in the city is down month-over-month and year-over-year.
According to the Department of Numbers, the median asking price in New York City as of September 3, 2012, is $339,900. This metric is down 2.3 percent from August 2012 and 2.6 percent below what was seen a year ago. Additionally, home listings are down in much of the Big Apple, with only 41,159 properties on the market. According to the source, inventory is down 4.6 percent month-over-month and down 18 percent compared to September 2011.
Another sign that the Big Apple real estate market is on the mend is the influx of foreign property buyers. According to Fox News, the second international tenant to lease space at Ground Zero's One World Trade Center was recently announced, while a few blocks away South Korean company Young Woo purchased the old AIG Insurance Company buildings.
The news source reports that the United States is a prime location for Asian companies, and that New York City is the ideal metro area for new business. Additionally, this foreign interest brings needed capital into New York City's economy, creates jobs and increases home value in the greater area.
"Big numbers in the billions, China, India and South Korea and Singapore are coming around," Managing Director of Bracha Group Gie Faan Kim said to Fox News about the growth of international property buyers in New York City. Kim goes on to say wealthy Asian families buy homes in the Big Apple so their kids can get an American education.
Homebuyers who want to take advantage of New York City's growing economy may want to invest in property before it's all claimed by foreign investors. While inventory is down in the Big Apple, there are new projects slated for construction in some of the city's emerging neighborhoods, including parts of Brooklyn. Recently, The New York Times ran an article that spoke to the growth of Brooklyn, especially with all of the new projects - The Barclay Center - taking place in many of its neighborhoods. Brooklyn, among other communities, continues to adapt to new economic conditions, which may provide buyers with new living options down the line.