Housing Bubble
Neglia Appraisals Releases New Study of Effects of 9/11 on NYC Real Estate Market
NEW YORK, /PRNewswire/ -- The headline banner on the website www.nyrealestatetrends.com leads the reader to a comprehensive analysis of New York City real estate conditions before and after 9/11, demonstrating the effects of the attacks on residential real estate.
Graphs are included which illustrate and summarize the effects of 9/11. Data is analyzed comparing overall sales volume and prices in the last quarter of 2001 (e.g., just after 9/11), to each of the previous four quarters, as well as to the first half of 2002. Property types studied include one and two family properties and condos throughout all five boroughs of New York City. Average sale prices are also examined, comparing 1995 levels to levels at the end of 2001.
The Neglia study shows that the attacks of September 11 had a profound, but short-term, effect on residential real estate in New York City. Volume of sales, as well as property values, indicate pronounced changes between August 2001 and June 2002, the period for which comprehensive data was available for this study.
In spite of the negative affects on real estate after the attacks, single family properties in New York City still showed an increase in value by the end of 2001. Citywide, by the end of 2001, the average sale price for a single family dwelling in New York City was $278,418, an increase of 45% compared to 1995 levels.
Predictably, Manhattan real estate was more severely affected by the attacks of 9/11 than any other borough. By the middle of 2002, prices for Manhattan condominiums were still significantly below pre - 9/11 levels. Condo sales volume also decreased significantly in Manhattan, compared to three of the previous four quarters. The highest decline was between the last quarter of 2000 and the last quarter of 2001, indicating a 34.8% decrease in number of sales.
The website is available to anyone interested in the fluctuations of the residential real estate market in New York City. All information is compiled and analyzed by Domenick Neglia, CEO of Neglia Appraisals, Inc. a residential and commercial real estate appraisal company based in Brooklyn, New York.