Dear Friends,
Here’s a great start for a new year; the Second Avenue Subway is up and running!!
During our “trial run” down the new line we observed newer systems and technologies, much like the ones we have seen in other stations. The platforms are wider. The tracks, obviously new, are clean and drain properly (no rodents!).
Some of the entrances require that you take an elevator ride down to the platform, similar to some Brooklyn stations, which can be unpleasant during rush hours. One surprise we enjoyed very much is that each of the new Second Avenue subway stations – 96th,86th, 72nd and 63rd streets – is decorated with contemporary art murals featuring works by Sarah Sze, Chuck Close, Vik Muniz and Jean Shin.
Most importantly - Upper East Side residents, retailers and pedestrians along Second Avenue who’ve endured this prolonged construction project and the increased noise and air pollution it generated, have regained their quality of life. Surrounding blocks can finally resume some semblance of NYC normalcy, with the added bonus of easier access to mass transportation. They can also anticipate increases in property values along the subway line.
In our 2011 Market report video we predicted that the track will extend down to the lower east side by 2020. As it stands today, the next phase is on hold.
As 2016 drew to a close, Manhattan sales volume slipped from 2015 levels but remained much higher than long term norms. The luxury market (top 10% of all sales) set records for average sales price and average price per square foot largely from the closing of new development sales contracts signed one or two years ago, as construction on those developments reaches completion. Some of that volume can also be attributed to savvy and able buyers who were able to negotiate significant discounts on properties at the “soft” high end of the market.
Listing inventory is slightly larger than last year, but still tight, a cause for concern to the buyers who are pressed to get off the sidelines due to rising rates.
There is a lot to look up for in 2017; a new president (and possibly new personal and corporate tax breaks), the scale of rising interest rates, the continued development of Hudson Yards in Midtown West and Essex Crossing in the Lower East Side and upcoming mayoral elections in November, to name a few.
We expect a healthy real estate market for the coming year.
Happy and healthy 2017, and thanks for reading.
Ariel
Ariel Tirosh & Team
Licensed Associate Real Estate Broker at Douglas Elliman
917.750.5654 | atirosh@elliman.com