As the real estate market continues to find it's place (at least in terms of U.S markets), values have proven to be quite diverse in many areas of the country. Much of the west coast has experienced enormous appreciation (especially in many areas of California). Other cities/states including Seattle Washington and Portland Oregon have also seen huge spikes in housing prices and lack of availability. In summary, many of the western states have enjoyed moderate to high levels of appreciation which has been driven by both domestic and international buyers who are driving up the market, especially the luxury market.
As we shift to the east coast, New York (specifically Manhattan and neighboring boroughs and communities) have experienced the very same extreme appreciation levels that have not been seen since the Great Recession. That being said, the luxury market in particular are seeing a slowdown in purchases, days on market and lower than usual sale prices. Foreign buyers have notably been a key factor during the ride up in New York and surrounding boroughs. Now that many of our international buyers have slowed in their purchasing power, lower values may be on the horizon.
In summary, I think the big question for New York and to some degree, many cites on the west coast will depend on the buying power of the Chinese. With a looming real estate financial bubble at there doorstep, how will investors react? How will the Chinese government react? How will this affect U.S markets? I am sure these topics will come up as we end 2016 and move into 2017
City in China
As a highly experienced Real Estate Broker Associate in the Florida market, I have seen appreciation vary widely based largely Florida's geographic market and capital(once again) dictating value for those markets. I have lived and worked in many parts of Florida(including Miami). We have all heard the saying "When the U.S sneezes the world get's a cold" While we now live in a much more integrated world and this statement is much less relevant than it was 10-15 years ago. I think it should be noted that the same saying might be a more relevant statement for Miami. "When New York sneezes Miami gets a cold". Many reports are showing that developers are pulling back, sales are slowing and profits from recent sales were actually made have dropped dramatically. The same issues and challenges that New Yorkers are beginning to face are a fact of life in Miami much of the real estate sector. Not surprisingly the luxury market which is extremely overbuilt while thousands of new units will be entering the market during the next 24th months. Hunker down!!
My advice, seek realistic returns in second tier communities that offer many or most of the same amenities as those of first tier cities. Seek out locations where big companies are adding space and infrastructure is being built to support growing demand. As a North Florida realtor and native, I have seen this area grow dramatically with large scale/global companies like Amazon and IKEA add opportunities for thousands of new workers. Prices are modest and values have not been driven by international influences that come and go with time, creating a roller coaster ride for long term value investors. A solid return is the goal for 2017.
Happy Investing! Schastlivyy investirovaniye ! Investire felice ! Hyvää investoimalla !