The New Development Market Begins to Thaw Out

When the financial crisis hit and the real estate market in NYC came to a grinding halt, New Development Projects suffered the most. There was an abundance of inventory and lenders were adding new restrictions almost daily.

In the spring of 2009 the market began to thaw, transactions began to increase, first time buyers incentivize by the Federal Tax Credit flooded the market and by the end of the summer it seemed like old times again....almost.

Thousands of unsold units in New Development projects sat empty and we began hearing terms like default and foreclosure in the same sentence as Developers.

But, now the cycle is beginning to change. As inventory of re-sales continues to shrink buyers are turning to new construction and the great deals that are still available. Also, foreign buyers, always fans of "New" are back in force taking advantage of the weak dollar buying investment properties.

New Development was the last piece of the puzzle, the real estate market in NYC is back to being Hot and all indications are its going to be a great 2011.