Other US Cities Offer Better Upside than NY Suburbs
A major real estate story of the past year has been the movement of buyers from cities to suburbs, prompted by the pandemic to leave behind small spaces and crowds. Tight inventory in regions like the suburbs of New York City has sent home prices there soaring, but now, with more Americans vaccinated and cities reopening, real estate analysts anticipate a shift in demand back to urban areas. Contrary to the perception that there has been a mass exodus from cities, Redfin found that the median sales price on urban homes in the U.S. rose by 15.9% from February 2020 to February 2021. In Manhattan, there were 130 contracts signed on high-end homes priced at $4 million or more in May, up from just 17 at the same time in 2020, amounting to a 665% increase, according to a report this week from Douglas Elliman. And the credit ratings company Fitch Ratings has predicted that suburban home price growth will level off as the year continues. Suburban markets in other parts of the U.S. will also see a gradual flattening of demand, brokers say, and urban markets may now offer better opportunities for stronger returns on investment.
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