While everyone by now has heard about the glut of the luxury apartments in the Manhattan real estate market, what about the rest of the market? The market below $3 million continues to move well and we have seen upticks in activity of foreign buyers/investors who are looking for a safe haven for their money. The stock market right now is breaking new records but how long will this last? On the other side of the spectrum, even during the financial crisis Manhattan real estate values did not drop much except in developing neighborhoods. It just took longer to sell. Given that there is still scarcity below $3 million and especially family sized apartments, the lower end continues to move well.
Unlike during the Financial crisis of 2006-2008, Manhattan real estate developers have been only building luxury and super luxury for the last several years with only a few exceptions. Now, financing for these developments has dried up as lenders are risk averse and hesitant to lend funds to sell Manhattan super luxury apartments in an already glutted market. The below article talks about what lengths even one of the most well known Manhattan developers had to go to secure financing. Where do you think Manhattan real estate values are heading?