The New York real estate has recouped well post Sandy super storm that caused about $ 42 billion in damages across New York State with damages amounting to $ 19 billion in New York City alone. Majority of property were destroyed or were deemed inhabitable in all five boroughs after the storm touched down on October 29 last year. However, in spite of the storm, the long lasting impact of super storm Sandy on real estate NYC was minor. According to the New York real estate brokers , about 80% of property is nearly renovated and repaired back where they were before Sandy.
Many of the housing units are in the process of being repaired and the storm’s devastation did not affect the real estate interest among real estate buyers in any of the boroughs. Majority of residents are choosing to rebuild rather than to relocate. As per the statements of the New York real estate brokers, the storm has only affected the coastline with just about 1% of New York real estate. International real estate buyers are continuing to show interest in the city and the selling market has gained some strength but buyers are opting to consider locations away from flood zones as values in those areas are down between 2% to 5%.
Fewer New York homes for sale have been taking place across Rockaways in Queens and in Brooklyn. However, in the New York City the New York apartments for rent and the cost of New York homes for sales are hovering through the roof even in newly mapped flood zones in Manhattan. The Manhattan Condos for sale market has rebounded even after the Sandy flooded basements and lobbies last year with sales having taken months to jack up in heavily damaged areas such as Rockways and Staten islands’ that were located in flood zones.
In Manhattan’s financial district, sales were 44% compared with pre Sandy numbers and median prices rose by 15%. Sales increased in the hard hit neighborhoods such as Howard Beach, Queens where sales jumped by 37% though the median prices were lower by 10%. Sales bounced back even in the hard hit Staten Island neighborhoods in the third quarter. The negative impact of the Sandy was particularly acute in neighborhoods in the outer boroughs.
According to real estate brokers, fewer unrepaired damaged homes are listed for sale in and around the city. The inventory of repaired homes with newly renovated basements plus new boilers and electrical wiring is shrinking. In the Rockaways, where majority of basements and many ground floor levels were swamped, the real estate buyers are interested due to their attraction towards lower prices. Majority of them are worried about the availability of affordable federal flood insurance than another storm.
The StreetEasy study found that the Manhattan real estate market paused for a while after Sandy smashed New York. During November-2012, the listings in flood zones dipped by 21% and the number of contracts signed slipped by 24% compared with November-2011. However, the numbers bounced back with contract signing in TriBeCa and the West Village soaring faster than in any other areas. By April-2013, contracts were up by 28%.
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