Harlem beats rest of Manhattan to recovery
Harlem real estate fell further than the rest of Manhattan during the bust, but with a recovery taking hold it’s now flying higher. Citing Streeteasy.com data, the New York Times reported that the median home price in Central Harlem rose 18 percent between 2010 and 2011, while the median price in East Harlem rose nearly 5 percent, compared to an island-wide increase of just 1 percent. Similarly, while inventory decreased just 2 percent across Manhattan in 2011, it decreased in Central Harlem by 5 percent.
By contrast, prices in Harlem fell 16 percent during the bust, compared to just 3 percent for Manhattan as a whole.
The figures represent an increase in demand brought about by prices that were already relatively affordable, which also helped buyers secure low interest rates and federal incentives.
Now some Harlem developers are increasing prices, the Times said, such as at Fifth on the Park. Others are preparing to bring their developments to the market, including Kane Ventures’ 5 West 127th Street and L+M Devlopment Partners’ project set to break ground on West 116th Street between Lenox and Fifth avenues.
However, the Times noted that the Harlem recovery could be thwarted when the backlog of foreclosures in the area begin to hit the sales market. [NYT]