Looking at New York real estate listings can be daunting and overwhelming. As you browse sites like Trulia, Zillow, and Streeteasy, it’s hard to know where the up and coming areas are and where you’ll get the best value for your money.
Fortunately, The Modern Agent is always keeping an eye on how New York City neighborhoods are changing and where buyers can find modern homes for a good value.
Overall, since the peak in 2017, the market has been on a gradual downward trajectory. With interest rates still historically low, a surplus of inventory and many motivated sellers, deals abound. The Modern Agent has witnessed deals recently made at 20-30% below the 2017 peak, so if you’re considering moving to New York or investing in New York real estate, now may be a once-in-a-decade opportunity.
Below are my predictions for three of the top New York City real estate areas where buyers can potentially enter the market before further growth occurs and the pendulum swings back toward a seller’s market.
NYC’s Best Areas for Real Estate
Lower East Side, Manhattan
Once famous for its tenements being home to immigrants moving to New York in the 19th and early 20th centuries, the Lower East Side has transformed over the past few decades into one of the hottest areas of Manhattan real estate. Full of vibrant nightlife and trendy stores, the neighborhood is once again morphing into a more upscale destination, such as with the recent build-out of the Essex Crossing development site that overlooks Delancey Street.
While still under construction, a number of buildings that are part of this development have already been completed, and the site will eventually host the largest indoor food hall in the US, an underground park and the new Andy Warhol Museum, amongst other attractions. Thus, buyers still have an opportunity to grab a slice of this prime New York real estate before the neighborhood becomes even more of an attraction for those moving to New York and those who want to enjoy its offerings. Look for more luxury New York real estate listings to pop up in this area in 2019 and in the coming years.
Still relatively sparse, Greenpoint is wedged in between the skyscraper neighborhood of Long Island City and the highly desirable area of Williamsburg. Greenpoint is an increasingly attractive neighborhood for those moving to New York, and prices are quickly catching up to other trendy areas of New York real estate. In certain cases, prices have already surpassed some parts of Manhattan real estate such as Midtown. The median asking price for a home in Greenpoint is around $1.4 million, according to Streeteasy data. That’s right around the average in Williamsburg and catching up to averages in the Upper West Side and Upper East Side ($1.9 million and $1.8 million respectively).
However, there are still pockets of opportunity within the neighborhood, and a number of luxury condominiums and parkland are slated to be built in Greenpoint over the next few years, connecting and transforming the area into a contiguous waterfront from Williamsburg to Long Island City. As such, expect to see prices climb higher, particularly as more exceptional food and services enter the neighborhood. There’s still room to catch up to the high end of New York real estate listings, and the relative sparseness compared to other neighborhoods means it could still be a good time to buy before more development takes place.
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.
Prospect Lefferts Garden and Flatbush, Brooklyn
Much of Downtown Brooklyn has seen a massive transformation, with some New York real estate listings in this area rivaling Manhattan real estate prices. As such, buyers and investors are moving further into Brooklyn to find value, such as on the east and south sides of Prospect Park — the Prospect Lefferts Garden and Flatbush neighborhoods respectively.
Currently, prices in these neighborhoods tend to be below other trendy areas of New York, so this could be a good time to buy in before the real estate dramatically appreciates. In particular, Flatbush is quite affordable for New York real estate standards, with an average asking price of $715,000, according to Streeteasy data. Yet the area is already seeing considerable gains in the resale market, and these neighborhoods and surrounding areas will witness a host of new developments over the next few years. That will likely drive up average prices for neighborhoods that are 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.