Demand for Two-Bedroom Apartments in New York Rebounds

Demand for Two-Bedroom Apartments in New York Rebounds

Market share in New York for two-bedroom apartments has started rising in the past months. According to estimates from area-based analysts, those apartments accounted for about 39% of total market for apartments in the city. The figure is higher compared to 30% market share of such types of apartments in the first quarter of 2009.

Price analysts estimate that median price for apartments with two bedrooms have reached $1.3 million so far this year. That is a rebound compared to the median price of $1.272 million estimated in 2009, which was up to 20% lower compared to the median price of $1.6 million in 2008. The median prices have logically and apparently started stabilizing.

For many years, two-bedroom apartments had served as the main workhorse of the Real Estate market in New York City. Such apartments usually account for a significant market share of total apartments being sold. However, when the economic recession hit, property buyers have started fleeing the market. As of 2009, market share for such two-bedroom apartments (compared to all apartments sold) fell 25% from about the typical 40% prior to the recession.

Analysts noted that such a drop occurred after homebuyers realized that it could be more practical and affordable to buy three-bedroom apartments. Families, logically, realized that it is more ideal to own a bigger apartment at about the same price, sometimes even lower, compared to the price tags for the popular two-bedroom apartments. Such practical consideration simply took sales easily away from two-bedroom apartments.

Property observers emphasize that signs are clearer that the popularity of two-bedroom apartments is starting to bounce back. It is also inferred that most homebuyers, who were drawn back by price issues in the recession, are now showing signs of renewed interest in buying the apartments again.

It should also be noted that most buyers of two-bedroom apartments today are first-time buyers. There are indications that families who prefer one-bedroom and studio-type apartments are showing signs of disinterest in such apartments in favor of two-bedroom apartments.

Another sign of renewed interest and rising demand for two-bedroom apartments is the declining volume of inventory. In September 2009, up to 3,000 two-bedroom apartments were held in inventory of property sellers. In September 2010, the same inventory dropped to about 2,400.

For more news and information about the property market not just in New York, but also in the rest of the US, visit foreclosureconnections.com. The Website regularly posts latest and insightful developments about the industry as a whole.

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