New York City real estate has recovered well from the recession, but it still may not be the best investment for your money, experts say.
Since the housing market collapse in November 2011, nearly 500,000 homes were bought and sold in the city, earning a median return of 33%, according to a new report from the real estate listings site StreetEasy. This equates to a 7.5% return rate per year, or a roughly $163,000 total gain on a median-priced home. That is a healthy percentage, since real estate professionals say home-sellers should aim for a 15 to 20% return on their investment.
Meanwhile, sales prices in New York City rose 30% from their crisis low, StreetEasy found, with the median asking price in Manhattan at $1.625 million in July.
But the Big Apple is falling behind the national market, as home values across the country rose 45.1% since mid-2012, noted a recent study from StreetEasy’s sister company, Trulia.
Additionally, StreetEasy found that those who bought New York City property in the two years before the crisis and sold during the recovery earned a median annual return of just 1.7%, or a $60,000 cumulative gain on a median-priced home. In other words, properties bought before and during the recession that earned the highest returns were “conditioned on having been sold at exactly the right…