Manhattan continues to be one of the most active and competitive real estate markets in the U.S., if not the world. Manhattan real estate continues its march upwards, with Douglass Elliman reporting that the average Manhattan co-op & condo sale price reached $1,538.203 in the fourth quarter of 2013 with nearly 3300 sales, up over 7 percent from last year and the most in 25 years. Correspondingly, Manhattan townhouse sales also set a 17 year record.
Rates in Manhattan
As rates for the benchmark 30-year fixed-rate mortgage continues to remain relatively low, buyers are taking advantage of lower rates, especially with higher rates on the horizon. Rates in the Manhattan area ranged from 4.13 percent to 4.77 percent on a loan amount of $600,000, according to figures published from Bankrate.com.
The mortgages surveyed in the Bankrate.com survey carried discount and origination points that averaged around 72 basis points. Monthly payments averaged around $2,800.00-$3,100.00 monthly. Across the nation the 30-year fixed-rate mortgage rate held steady at 4.5.
Prepare to Spend
As one of the most notoriously expensive and cut-throat real estate markets in the world, buyers in Manhattan should keep in mind that quick, decisive movement along with the old adage of “Money Talks” is what works best. Most buyers will find themselves in the market for condos & co-ops, although brownstones in Manhattan starting at around $2 million dollars can be found in upper Manhattan in Harlem, Hamilton Heights and Morningside Heights.
Most brownstone buildings elsewhere in Manhattan easily reach over $5 million and will easily go beyond that level in many cases. Brownstone buildings can be separated into multi-family properties, similar to many buildings in other boroughs such as Brooklyn and Queens that provide a great investment opportunity, as these buildings tend to maintain their value.
Getting What You Pay For
It goes without saying that given the vast amount of culture and convenience along with the cost associated with such access, buyers in Manhattan should also be aware of the unique nature of each neighborhood and what amenities it offers. Most price appreciation has taken place in neighborhoods that are either undergoing gentrification or have seen significant development recently; upstart uptown locales such as Inwood and Morningside Heights, along with market stalwart Chelsea and the newly trendy Financial District and Nolita have seen double-digit price appreciation given their status as neighborhoods undergoing a renaissance.
Other neighborhoods such as the Upper West Side, Soho, Tribeca and the Upper East Side have also seen healthy price growth, given its status as some of the most historically priciest real estate in all of Manhattan. Some parts of the Manhattan have not experienced the blockbuster growth endemic elsewhere in Manhattan such as the Lower East Side, Carnegie Hill and the Fifth Avenue/Park Avenue corridor.
The status of Manhattan as the prime real estate market in New York does not look to be threatened in the near future. Wealthy investors and speculators from abroad will keep the market healthy and prices high for a long time to come, but of course this comes at the expense of affordability. But then again, could Manhattan ever be called affordable?
*Please note that these rate estimations are from Bankrate and were factual as of February 1st
via:http://www.totalmortgage.com/blog/rates/manhattan-real-estate-overview-and-mortgage-rates/23965
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