While there are those who will steadfastly claim that Manhattan real estate is virtually bullet proof, many are worried that modest second-quarter gains in apartment prices augur a possible drop-off in demand during the second half of 2012, according to The Wall Street Journal. Economic and political uncertainties are paradoxically believed to be both a driver of demand and inhibitor of decision making by buyers. Economic turmoil in Europe may be driving sales of higher-end properties as a New York is seen as a safe haven for capital. But worries over Europe's debt situation and uncertainty over the U.S. presidential election may be giving some buyers pause. Others feel that perhaps a drop in the latest median price of sales indicates that demand is being driven by first-time home buyers and that an uptick in prices has others concerned about buying into an up market.
As usual there is conflicting evidence supporting both worry and confidence. People are feeling antsy though. Market reports come out next week, and it's unclear whether more data will calm or jangle real estate nerves.
· Worries Weigh on Manhattan Market [WSJ]
· Market Analysis [Curbed]