NY Housing Stabilizes Even With Residential Foreclosures for Sale- By: John Cutts
Although residential foreclosures for sale still account for a large number of homes being sold in most areas of New York, certain areas of the state are showing housing market stability, particularly in terms of residential property prices.
Foreclosed homes in Brooklyn, NY and in other major metro areas of the state are still rising, but prices in areas like Manhattan have improved, giving rise to optimism among real estate businesses. Coop and condominium prices in Manhattan have risen between 7% and 14% during the second quarter of 2010 compared with the 2009 second quarter.
Regular housing is reportedly competing with foreclosure homes in New York in terms of buyers' attention. In Manhattan, the average price of apartments sold during the period was $890,000 based on the data presented by broker firm Brown Harris Stevens and the Halstead Group.
Bargain-priced foreclosure homes are reportedly not the primary choice of home buyers in the past quarter, with more consumers braving the higher priced selection of residential properties. The Corcoran Group has reported that the average price of apartments they sold for the period was $900,000, while Prudential Douglas Elliman reported a figure of $914,000.
Residential foreclosures for sale are still mainstays of the Manhattan market, but the recent quarter managed to maintain price increases that were also evident during the previous two quarters. Another sign that brings hope to real estate businesses is the decline in the supply of residences for sale, which dropped by about 25% from the inventory peak of March 2009.
According to most real estate brokers, majority of metro areas in New York are going back to normal levels as evident in the shortened time that houses for sale are staying in the market. The average time that a dwelling spends in the for-sale market during the second quarter was 127 days, a marked improvement compared with the 2009 second quarter when homes spend an average of 167 days at the market before getting purchased.
Despite the good news, some housing market analysts have cautioned that the state's residential market is still not out of the woods yet. The presence of thousands of residential foreclosures for sale and the ongoing nationwide recession can still pull markets back down, analysts have added.
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John Cutts has been educated in the finer points of the foreclosure market over 5 years.