Stocks fall, but NYC real estate sales skyrocket
Economists have mixed emotions about the stability of the United States economy. A batch of varying economic signals affected major stock indexes on Tuesday, October 2, 2012, and the outcome drove metrics lower, the Bradenton Herald reports.
Mosaic, the country's largest fertilizer company, said weak demand from China and India influenced the organization's profits last quarter, which affected U.S. stock readings. However, a recent measure of American home prices posted the largest increase in more than six years, which spurred confidence in the national housing market.
Real estate in New York, New York, also saw improvements last quarter. Manhattan apartment sales rose in the third quarter of 2012 to the highest measured level since the financial crisis. This uptick comes despite low inventory, as demand and consumer confidence levels strengthen the area's real estate market. The latest data comes from reports that will be released by New York City's major brokerage firms on Tuesday, and is reported by The New York Times.
According to the news source, housing prices were flat, with some reports showing increases and others indicating no change at all. The number of Manhattan apartment sales in the third quarter rose to 2,790 - a 12 percent year-over-year increase and the highest total since 2008, a Brown Harris Stevens and Halstead Property report states. The Corcoran Group noted a 17 percent jump in sales to 3,821 for the same period.
"It's all about consumer confidence coming back," Halstead Property President Diane M. Ramirez said to The New York Times. "New York has so shown its true grit," she added, and suggested the city can handle "almost whatever comes at it."
The volume of sales increased, but inventory hit a seven and a half year low with 5,847 listings in the third quarter of 2012. This metric is down 24.3 percent from a year ago, Elliman data reports.
"We're hitting a point where it's getting critical," Miller Samuel President Jonathan J. Miller said in the recent Prudential Douglas Elliman report. He added that if inventory continue to remain low, "[buyers are] going to see prices edge higher."
Even with reports on Tuesday that show the Dow Jones industrial average fell 75 points, the Standard & Poor's 500 index dropped three points and Nasdaq declined two points, recent housing statistics in New York City paint a favorable picture for Big Apple residents. Buyers who want to invest in homes with appreciating value might want to snatch up one of the remaining homes for sale in New York, New York.