New York City real estate is a sustainable investment
Real estate in New York, New York, wasn't as affected by the real estate crisis as other major metro areas. In fact, much of the city maintained high rental prices, increased purchase demand and experienced stable home values, according to Real Estate Weekly. These three factors made Manhattan - and the rest of the city - seem like the ideal place for real estate investors and even affluent homebuyers. However, little has changed since the nation emerged from the recession.
The Big Apple has, in some respects, recovered from the 2007 financial meltdown, but the housing market remains stagnant. New York City real estate is neither booming nor declining, and while that trend is a sign of stability, it leaves little room for growth and improvement.
According to On Numbers, New York City home prices haven't returned to pre-recession levels in 2012, despite increased activity across the United States. Currently, the metro area ranks 60th among 102 regions when measuring change in housing value since 2007. This number comes from the latest report by the Federal Housing Finance Agency (FHFA). In fact, housing prices in the Big Apple dropped 17.44 percent between the second quarter of 2007 and 2012, according to On Numbers, and this year's FHFA index reads 223.43 points, down from 270.61 in 2007. The FHFA compiles housing prices in each metro area into a quarterly index, which is tied to a value system of 100 points that was created in 1991. A rise in the index is associated with an increase in real estate prices.
While the latest numbers don't show New York City to be a growing and thriving city, trends could be worse. In fact, stocks rose after a positive housing report was released on September 18, 2012. According to The Wall Street Journal, the Standard & Poor's 500 stock index eased two points to 1459 as a direct result of the real estate report, and the Dow Jones Industrial Average rose six points to 13559. These upticks don't translate directly to an improved housing market, but the figures do show how dependent the nation is on a stable real estate sector, which may be closer than many may believe.
Homebuyers who feel confident in a recovering economy should consider investing in New York City property as a way to Contribute to the future of the United States.