While the national residential market appears to be on the brink of a crisis, New York hasn’t even felt a bump, and the first quarter residential market reports have the numbers to prove it.
“The whole country is going crazy and Manhattan is not. I feel like we’re in another world,” said Esther Muller, co-founder of the city’s Real Estate Academy, referring to consumers outside the city who were tempted by mortgages offering 100% financing.
While on the face of it the deals appeared ideal, many people have been stung by no-interest mortgages whose repayments climb rapidly after two to three years. “In New York, the banks and the coop boards did not allow them to finance 100%, and the buyers are much more qualified,” said Muller.
Another factor that played a part in the national housing frenzy was investors. “Throughout the country, there was a lot of over building, and investors took advantage of the opportunity and came in to buy and sell and move on. In New York, we have relatively few to no investors in our market,” explained developer, Daren W. Hornig, managing partner of Shea Commercial.
All of these factors set New York apart from the rest of the country. “We had a great first quarter..." - Manhattan Coop Mortgage