That being said, I’ll venture a couple of observations about the current market and how it is likely to play out in 2014.
Strong Demand: Throughout 2013, strong buyer demand continued to drive prices up. We saw many sales at or above asking, especially on Central Park blocks in the eighties and nineties. In many cases, people are beginning to see these blocks’ true value and bid accordingly. 64 West 87th Street and 49 West 92nd Street are two examples that went for significantly above the asking price.
This high demand is likely to continue into 2014. Excitement is high, luxury renovations are more and more common, and as a result, the market is continuing to show strength. I foresee even more buyer enthusiasm.
Increasing Inventory: Sellers know the market is strong and that 2014 is a great time to sell. As a result, we are likely to see even more inventory in the coming year. This increased supply may curb prices slightly. Hopefully this will keep us away from any “bubbles” while allowing the market to grow at a strong, reasonable pace.
I would love to see this market settle right at that sweet spot on the economics graph where supply meets demand and everybody is happy with steadily growing prices that reflect the true value of these beautiful homes.