London 7/1/2008-While property prices in many parts of the US and UK are experiencing some upheaval, two major cities have had relatively stable, if not rising, prices. New York City, and in particular Manhattan, and London, are still the leaders in their respective countries for housing prices. While the strong market in each of these cities has made it difficult to many to buy in, another phenomenon is the city dwellers cashing out and moving to less-expensive and larger homes outside the city.
Recent articles in The New York Times and several UK media outlets have indicated that homeowners in New York and London have been selling their properties at all time highs. Instead of looking for another city home, they then move outside the city and are able to purchase much larger homes. This trend indicates that property is still a good investment in these major urban areas, while there are plenty of deals available in the suburbs and more rural locales.
One couple recently sold their Manhattan apartment for just under $900,000 USD and purchased a three-bedroom home in Norwalk, Connecticut for about $200,000 less. Including the commuting costs into the city, they will still have about $1,000 more per month of income to spend as they see fit.
One broker notes that the flat market outside of the city, with rates still rising in town, makes this a great time to think about selling and moving. Dottie Herman, president of Prudential Douglas Elliman, said: “You can negotiate better in the suburbs because their market is — at best — flat, and there’s a lot of inventory.” At the same time, she continued, “The prices of the city haven’t gone down. They keep going back up.”
The same phenomenon is taking place in London and the surrounding areas. While prices overall in the UK have continued to rise, London prices have led the way, increasing at much greater rates. This allows those who own property in the city to sell and buy larger homes in the suburbs, albeit with a bit of a commute.
With property in the cities at all time highs, it’s a good time to consider making that move.
