2012 ended with extremely low inventory and high demand. Properties priced right are in play. Many first time buyers as well as sophisticated buyers have realized that owning can be cheaper than renting.
With interest rates at all time record lows and rents continuing to rise, there continues to be a strong desire to own a home in Manhattan as both a primary residence and as a good investment. Many foreign investors continue to invest in NYC real estate as one of the safest and smartest places to park their money.
Last night Congress finally voted to advert the fiscal cliff. Income tax will be increased for singles earning over $400,000 and couples earning over $450,000. The tax rate will increase from 35% to 39.6%. Capital gains and dividends will rise to 20 percent from the current 15 percent for the same income thresholds. In addition to the capital gain and dividend rates, health care reform will levy a new surtax of 3.8 percent on capital gains for those tax payers with incomes above $200,000/$250,000. The primary residence $250,000 single $500,000 capital gain exemption remains.
New buildings, both new construction and new conversions will come to the Manhattan market in 2013. New inventory is much needed.
|Coming new development sites for 2013|
404 Park Avenue South
Baccarat Hotel & Residences
Halcyon/East 51st Street
Printing House/421 Hudson Street
West Village Residences
There are also units available in current new development sites. Low inventory and demand for housing in Manhattan will most likely continue in 2013 and prices seem likely to rise.
Wishing all a prosperous 2013.