Following a period of intense bidding wars in 2015, the real estate market in New York City is undergoing a market correction. Residential sales in New York City have decreased by 18.6% year over year, while inventory has increased 8.2% over the same period.
There are multiple externalities which may arise as a result of greater competition in an environment where new inventory is continually coming online. Fewer buildings will be sold above asking price, a trend which is already manifesting. Increased market rivalry may spur some building owners to invest significantly in tenant improvements in order to compete with new inventory. Asset valuations may be altered to reflect less demand for occupancy, and therefore higher vacancy.
Cosmopolitan Capital Funding has a comprehensive understanding of the New York City real estate market, and real estate markets across the country. Our staff’s knowledge of the real estate market, and passion for structuring mutually beneficial deals, drives everything we do. Contact Cosmopolitan Capital Funding today to learn how we can serve your real estate financing needs, and capitalize on current market opportunities.
Christopher L. Kelly is the Chief Executive Officer of Cosmopolitan Capital Funding, LLC, responsible for the operations and management of the company and reports to the Board. Mr. Kelly has specialized in mortgage banking for over 30 years. During his career he has acquired experience in effectively all aspects of the mortgage banking business.