RISMEDIA, January 3, 2011—Now that 2011 has arrived, real estate professionals are looking forward to the year ahead in hopes that real estate markets across the country continue their recovery. Stephen G. Kliegerman, executive director of Halstead Property Development Marketing offers the following new development predictions for the year ahead.
More demand and less inventory for new developments: Since 2008, many construction and development plans in New York City have been put on hold, which has created a historically low inventory of new units coming to market now. As a result, an increase in demand and purchasing activity was seen in 2010, and it is expected to increase in 2011.
Early 2011 will be the time to buy: With interest rates beginning to rise, although still at historic lows, coupled with reasonable prices and new mortgage financing options like zero pre-sale requirements from some lenders as well as FHA and SONYMA that allow qualified buyers to purchase, the first quarter of 2011 is shaping up to be one of the most ideal times to buy in new developments in recent history.
Non-traditional sales season: Just as we saw in 2010, the sales season for 2011 may not follow the traditional path. Marketers will expect the unexpected as they continue selling well throughout the winter holidays and summer months, which have traditionally been the slower times of the year.
Tamed amenities: Developments across the board will feature less over-the-top amenities as many buyers do not want to pay high costs associated with their upkeep in maintenance and common charges. Thus, the current inventory of un-sold development listings may appeal to any buyers who still expect such amenities and may not be able to get them in the future.
Increasing rents will lead to sales: Over the past 12 months, rents have risen city wide while incentives from landlords such as free rent, no fee rentals and moving costs have disappeared. With rents rising, many renters who have been sitting on the sidelines will once again see purchasing as a viable option and will begin to purchase in mass in 2011.
NYC job growth will create demand for housing: NYC created 30,000+ new jobs in 2010. This is poised to continue and will continue to enhance the demand for housing and further bring equilibrium to the supply vs. demand equation.
About Stephen Kliegerman:
Stephen Kliegerman, executive director of Halstead Property Development Marketing, is responsible for the operations, direction and management of new business, client relations, pre-development planning, marketing and sales for Halstead Property Development Marketing. As a Licensed Real Estate Broker for more than 20 years, Kliegerman previously owned and operated his own real estate brokerage, management and consulting firm, Herbert H. Kliegerman Associates, Inc. In 1998, the firm merged with Halstead Property and Stephen was appointed Executive Director of Downtown Sales. He was then promoted to start Halstead’s Development Marketing Division in 2005.