In the wake of the housing market collapse, the luxury properties in New York City were the talk of the town, as they appeared to be immune from an unstable economy. However, in recent months there has been a slowdown in activity in this sector.
While the Big Apple's high-end real estate market is still successful, industry experts say it's not dominating conversations like it used to, according to real estate magazine The Real Deal. So far during the first quarter of 2012, there have only been 17 transactions on homes with price tags more than $10 million. By comparison, there were 25 sales of this magnitude during the third quarter of 2011 and 28 in the second quarter.
Instead of high-end properties, smaller units, comprised of studios and one-bedroom apartments, are now dominating the market as buyers scale back the amount of money they are willing to spend. One-bedroom sales have accounted for nearly 40 percent of all transactions so far in 2012.
As both the high-end and low-end of the local housing market continue to demonstrate successful trends, despite economic hardship, purchasing a home for sale in New York City could prove to be a profitable investment.
