2019 will be an unprecedented time for most Americans. As the new year rung, the country was faced with many uncertainties: partial government shutdown, an unpredictable president and a wavering stock market. On the other hand, New York City’s real estate market has been beating to its own drum and will continue to do so in 2019.
Since the peak in 2017, the market overall has been on a gradual downward trajectory. When funds from China became restricted we saw a slump at the higher end of the market – those properties above $3 million. We are now seeing the effect spread to lower-priced homes under $1 million. Even boroughs like Brooklyn, which has been bullish for so many years, is now starting to see signs of a slow down. All of this has now created a favorable market for buyers. With interest rates still historically low, a surplus of inventory and many motivated sellers, deals abound. I have witnessed deals made at 20-30% below the 2017 peak. If you have been considering entering the New York City market, this may be that once-in-a-decade opportunity.
With all of this being said, there are still pockets of growth opportunity. These are my predictions for Top New York City Neighborhoods 2019.
Lower East Side, Manhattan
2018 saw a massive undertaking with the build out of the Essex Crossing development site that overlooks Delancey Street. A number of buildings that are part of the development have already been completed. This site will host the largest indoor food hall in the USA, an underground park and the new Andy Warhol Museum, amongst other things. Currently, this neighborhood is known for its vibrant nightlife but that will soon change as the neighborhood morphs into a more upscale destination.
Still sparse, Greenpoint is wedged in between the skyscraper neighborhood of Long Island City and the highly desirable area of Williamsburg. A number of luxury condominiums and parkland are slated to be built over the next few years, connecting and transforming it into a contiguous waterfront between the three neighborhoods. Although prices in the neighborhood already reflect this opportunity, as Greenpoint develops, expect to see exceptional food and service enter the neighborhood.
Wedged in from all sides, this micro-neighborhood begins above Flatiron and between the burgeoning neighborhood of Hudson Yards and the sleepy area of Murray Hill. Nomad is centrally located to shopping, transportation and has some of the best new restaurants in New York City. Notable new tenants will be the Virgin Hotel and the Ritz Carlton. There are a number of high profile developments already in the works for the neighborhood but expect more to come as the neighborhood continues to grow well into 2019.
Long Island City, Queens
This area is known for its high rise apartment buildings that litter both the waterfront and interior. Originally I wasn’t a fan of this area, which felt more like a lifeless concrete jungle, but today it is well worth considering mainly because Amazon announced it will open its second headquarters here, bringing 25,000 high paying jobs to the neighborhood. Fourth quarter 2018 already saw an increase in price for the neighborhood. However, with a lack of condominiums, I expect prices to continue rising, with individual investors facing stiff competition from the many large landlords that saturate the neighborhood.
Prospect Lefferts Garden and Flatbush, Brooklyn
Much of Downtown Brooklyn has seen a massive transformation, with condominium sale prices today rivaling those in Manhattan and forcing buyers and investors to drive further into Brooklyn to find value. Prospect Lefferts Garden and Flatbush, located on the opposite side of Prospect Park and Pacific Park, is just that location. Already seeing considerable gains in the resale market, these neighborhoods and its neighbors will witness a host of new developments inching up average prices for a neighborhood that is currently dominated by brownstones and small apartment buildings.
I entered the real estate market in 2008 at the exact time we hit a global recession. Buyers who took advantage then, mostly investors, tended to be the ones that fared best over the long haul. Reflecting on those hard times, I feel that today we are much more economically and financially stronger and buying opportunities abound. For the savvy buyer or investor, buying at this time will allow them to look to the future and hopefully see the same type of gain.
Looking for a deal but feeling overwhelmed? The Modern Agent helps first time home buyers and seasoned investors with acquiring real estate in New York City. With over a decade of handholding, we can help to demystify the process and help you get to your goals. Contact us today.