NYC $ 6.1 Billion Surplus Good for real estate

By
Real Estate Agent with The Corcoran Group

New York City ended fiscal 2006 with a record $6.1 billion surplus from Wall Street profits and surging real estate values. Wall Street firms paid workers in the city a record $21.5 billion in bonuses in 2005. Wall Street bonuses fuel the manhattan real estate market. NYC Real estate tax collections were $1.2 billion more than anticipated, personal income tax collections exceeded estimates by $1.3 billion.

Mayor Bloomberg has done a great job keeping the city fiscally strong. I wish George W. Bush had the fiscal discipline of Mike Bloomberg.

When the city is strong financially so is NYC real estate. The real estate market in NYC has cooled or changed to a buyers market due to a surplus of inventory from a huge boom in new construction. The same thing happened in the late 80's and early 90's but the city was not as fiscally strong.

The next 24 months will be a long term buying opportunity for savvy buyers. I've always been the kind of REALTOR® that has been an honest advisor. During the frenzy the last couple of years I always considered my customer's financial situation, appropriate mortgage products and their risk. I always explained the risk in waiving mortgage contingencies and or possible appraisal issues when in bidding wars.

Buying an apartment in Manhattan was like a beauty contest. Multiple offers and bidding wars on ordinary apartments "The Highest and the Best". I prefer the market we are in now. My skills and knowledge are more valuable now to both sellers and buyers.

I do not think now is the time to speculate in Real Estate. If you bought last year during the peak and are forced to sell in the short term you might lose money. However, I honestly believe now is a great long term opportunity for first time buyers and those that need a bigger place to live in or a second home for those that can afford it.

While prices may still come down, rents are rising and mortgage interest rates are also rising. There are a lot of properties to choose from and prices are negotiable.


Bloomberg News.

 

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Location:
New York New York County New York
Tags:
buyers market
inventory
manhattan
wall street bonuses
nyc surplus

Comments 5 New Comment

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Rainer
111,189
Carole Cohen
Realtor, ePRO
Howard Hanna Cleveland City Office

Morning Mitchell. Your first post? Your natural communication abilities were apparent even then!  Just out of curiosity, has the NYC market changed much in the last 6 months or so?

February 09, 2007 09:48 AM
Rainmaker
508,110
Mitchell J Hall
Lic Associate RE Broker - Manhattan, NYC
The Corcoran Group

Hi Carole,

Yes it is HOT again. Many buyers are going to miss out because they are reading about national real estate in the media. Manhattan is not like the rest of the country. Las Vegas and Miami are definately not Manhattan.

Inventory is disapearing, even the all the new buildings are selling like hot cakes. All that Wall Street money has been trickling down to every price range. Open Houses are crowded and bidding wars are not un common.

Funny how I thought it would take 24 months when I wrote that post to absorb the inventory. I guess Manhattan just had a little glip in the Market during 2006. 2007 seems very strong so far.

February 09, 2007 10:40 AM
Rainmaker
1,390,798
Maureen McCabe
Columbus Ohio Real Estate
HER Realtors
Mitchell's first post wow ... saw it on Karen's blog!  You are getting close to your anniversary. 
June 24, 2007 10:46 AM
Rainmaker
508,110
Mitchell J Hall
Lic Associate RE Broker - Manhattan, NYC
The Corcoran Group

Hi Maureen,

First I joined, I lurked, then I made some comments and then I finally blogged.

June 24, 2007 10:55 AM
Rainmaker
1,390,798
Maureen McCabe
Columbus Ohio Real Estate
HER Realtors

I think I joined a week or so after your post and then forgot all about AR for a week or two until I heard from Ann Cummings and Eileen Landau about "associating" on ActiveRain.   ???  I came back and invited a bunch of people and then realized AR was blogging.  I did not lurk I think I posted the first entry the first or second day I was here officially...

I was not smart enough to lurk.  You were smart to lurk.

June 24, 2007 11:11 AM
Show All Comments
Rainmaker
508,110

Mitchell J Hall

Lic Associate RE Broker - Manhattan, NYC
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