Some Housing #'s - Expect Strong NYC #s

A: While actual construction of new homes across the country rebounded in February, building permits dropped with the Northeast especially hard hit with a 30% decline in permits issued. Building permits are more of concern for us over here in NYC as this sharp decline shows that builders are scaling back a bit on future construction projects; although this drastic decline could also be weather related its important to step back and take a look at the 12th decline this number has had in the past 13 months - looks like a trend to me.

According to Yahoo Finance:

The Commerce Department reported that construction of new homes and apartments rose by 9 percent in February to a seasonally adjusted annual rate of 1.525 million units. That represented a better-than-expected rebound after construction activity had plunged by 14.3 percent in January to the slowest pace in more than nine years.

But builders' applications for new permits, considered a more reliable gauge of future activity, continued falling in February, dropping by 2.5 percent to an annual rate of 1.532 million units. That marked the 12th decline in the past 13 months in building permits and underscored the construction industry's steep slump.

With all the action over the past few months in New York City real estate, one has to expect that the sales numbers and pricing numbers for Manhattan apartments will come in strong. So, when it does happen try not to get caught up in the idea that New York City housing is beginning a new round of a bull market. Rather, sellers should be very happy with the performance of NYC real estate in the face of a nationwide slowdown and all the mortgage woes out there. As I noted many times here, NYC real estate is seasonal and the months of JAN - MARCH are typically the most active months of the year and the best time for sellers to get top dollar for their homes.

For buyers, this is the time of most competition, packed open houses, less negotiating power, and bidding wars. If you have been an active buyer for the past 8 weeks, you know what I mean!
If possible, try to wait 3-5 months when the market typically dies down during the hot summer months with the understanding that inventory will be tighter and you won't have as many options to choose from!

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