When the real estate bubble burst shortly after the market hit its peak in 2007, many markets throughout the country took a huge hit. None were affected more than New York City and the surrounding area.
From commercial to residential real estate, things slowed down considerably. While some areas are slowly climbing their way back to pre-bubble levels, it appears that the Big Apple has completed its comeback.
A report issued by Massey Knakal Realty Services shows that all types of property sales picked up during the first half of 2014, reaching a total dollar volume of $27.4 billion. When compared to the same six-month period of last year, this is an increase of 88 percent.
When you look purely at the number of property sales throughout the city, currently sitting at 2,643, you will see that the region is on pace to break its all-time record.
Making this even more impressive is the fact that the cost of real estate in the area is rising, with prices per square foot increasing by 8 percent.
Sales in the Bronx, Brooklyn and Queens reached $7.1 billion during the first half. If this holds up throughout the rest of the year, the three boroughs will blow away the record set in 2007 by 45 percent.
The New York real estate market is known for being one of the most expensive in the country. Even though things took a turn for the worse for several years following the 2007 bubble, the market is beginning to pick back up and 2014 is on a record setting pace.
Source: Crain's New York Business, "NYC property sales near '07 bubble levels" Erik Ipsen, Jul. 15, 2014