New York City Income Property Market Report [2nd Half 2007]

A survey of New York City Income Properties

In the second half of 2007 credit tightened considerably as the losses in subprime mortgages worked their way through the financial markets. While indicators are somewhat mixed, in general during this period prices for income property remained stable throughout the city, though the number of sales dropped, in some instances quite dramatically. This reflects the “wait and see” attitude that characterized the period, with fewer buyers bidding and sellers reluctant to lower prices. The fundamentals of the market remained strong, however, with high apartment rents and very low vacancy. The prospect of turning over below market rent-regulated units to higher market levels continues to attract investors, and credit, though tighter, was still available albeit from different sources. Cap rates and gross income multipliers remained stable...