As 2017 is coming to a close, real estate experts and analysts are making predictions of the industry for the upcoming year. In an article covered in the Real Deal Magazine, StreetEasy’s senior economist, Grant Long, has given his few cents regarding what we can expect next.
1.) The L-Train, The Ferry and Surrounding Properties
The L-Train has been scheduled for a shutdown in 2019, and as a result, sales within the surrounding area may see decreases as buyers—especially in the Brooklyn area—search for a home that sits close to a convenient commute. On the other hand, the NYC Ferry Service is set to expand in 2018, and this can bring some new sales and development opportunities in Manhattan and the Bronx.
2.) Extra-generous Offerings from Landlords
High-end luxury rentals have seen a growing supply over the past year. For 2018, Long expects that landlords may be more generous in their transactions with prospective buyers—including discounted rents and possibly even a month (or two!) of free rent.
3.) Less Emphasis on Amenities
Amenities have always been used by sellers and developers to incentivize potential buyers. Long, however, predicted that the number and type of amenities of a particular property may not always guarantee a change of heart from a buyer—especially if that buyer has seen a better (and even more affordable) offering. While sellers will still tout the available offerings of their properties, they are more likely to place a higher emphasis on other tactics to engage with buyers.
4.) “Affordable” Luxury
2017 saw the supply of luxury condos surpass buyer demand. Property cost has been a large part of the conversation, and in order to appeal to buyers, Long expects that premium property sellers will be cutting prices. Of course, these moves will make luxury living even more accessible for the ultra-rich of New York. Whether “normal-rich” New Yorkers will be able to afford these discounted prices will be another point of interest for 2018, especially since homes under $1,000,000 still remain popular among them in this highly competitive market.