Over­view of LI Real Es­tate Mar­ket 10 Years Af­ter the Crash

The Jewish Voice - - REAL ESTATE - By: Ilana Siyance

Long Is­land was blessed with a busy and bustling year in res­i­den­tial and com­mer­cial Real Es­tate. There was healthy de­mand for homes, sta­ble of­fice rents, and lim­ited re­tail and in­dus­trial va­can­cies. Con­sumer con­fi­dence has not been higher since 1999 and 2000, says Ann Con­roy, pres­i­dent of Dou­glas El­li­man Real Es­tate’s Long Is­land Di­vi­sion. “Peo­ple trust in the econ­omy on Long Is­land, peo­ple are buy­ing houses. They still know it’s the best place you could put your money… and they be­lieve in the re­gion,” Con­roy ex­plained.

De­spite the ev­i­dent growth, the Real Deal had a re­cent ar­ti­cle ques­tion­ing where the mar­ket stands in the af­ter­math of the 2008 crash. A decade ago, fol­low­ing Lehman’s down­fall, the global mar­kets fell into fi­nan­cial cri­sis. In the fourth quar­ter of 2008, Long Is­land condo and sin­gle-fam­ily home sales fell to 4,427, from 5,292 in the third quar­ter. By the first quar­ter of 2009, the num­ber of sales plunged to 2,872, as per data com­piled by ap­praisal firm Miller Sa­muel for Dou­glas El­li­man.

The ques­tion raised is, has the mar­ket fully re­cov­ered the losses it ex­pe­ri­enced dur­ing the cri­sis. While 2017 was a vi­brant year for the res­i­den­tial real es­tate mar­ket, it still hasn’t reached the heights it hit pre­crash, Con­roy says. “We’re al­most there — we’re not there yet.” The me­dian sale price on Long Is­land sin­gle-fam­ily homes and con­dos was at $415,000, as of Q4 of 2017, ac­cord­ing to Dou­glas El­li­man. Be­fore the crash, at its peak in the third quar­ter of 2007, the me­dian price (ex­clud­ing the Hamp­tons and North Folk) was $442,380. Just for ref­er­ence, at the low­est point in the cri­sis, by Q4 of 2011, the me­dian sales price for Long Is­land homes had hit $339,000. When gaug­ing the LI hous­ing mar­ket based on avail­abil­ity, the Real Deal re­ported that in Q4 of 2017 there were only 10,273 Long Is­land homes avail­able in the mar­ket. In Q2 of 2008, there were 26,145.

As for Long Is­land’s com­mer­cial mar­ket, it never ex­pe­ri­ence the sig­nif­i­cant down­turn that neigh­bor­ing ar­eas like Man­hat­tan saw, ex­plains Ellen Rudin, the manag­ing direc­tor of CBRE’s Long Is­land and NYC Outer Bor­oughs of­fices. “The beauty of Long Is­land, if you will, is we have not overde­vel­oped — we didn’t have the lows that many re­gions had be­cause we’re a very con­sis­tent mar­ket,” said Rudin. To­day’s av­er­age of­fice rent is at $27.73, as per CBRE. That is down only by about a dol­lar, from where it was dur­ing the fourth quar­ter of 2008.

The av­er­age ask­ing re­tail rent per square foot was $27.06 in q4 of 2008, as per Costar data. In Q4 of 2017, the av­er­age ask­ing rent stood at $28.53, sig­ni­fy­ing an in­crease over pre-cri­sis lev­els. Sim­i­larly, for in­dus­trial spa­ces, the av­er­age ask­ing rent per square foot in Q4 of 2017 was $12.47. That fig­ure ex­ceeds the level dur­ing Q4 of 2008, dur­ing which the av­er­age ask­ing rent was $10 per square foot.

Ann Con­roy, pres­i­dent of Dou­glas El­li­man Real Es­tate’s Long Is­land Di­vi­sion said, “Peo­ple trust in the econ­omy on Long Is­land, peo­ple are buy­ing houses. They still know it’s the best place you could put your money…and they be­lieve in the re­gion.”

Newspapers in English

Newspapers from USA

© PressReader. All rights reserved.