In the beginning of August, it was noted that for 8 recurring weeks, the sale of luxuries homes had plunged drastically. Out of the contracts that were signed, none was above the 10 million dollars threshold. This was the first time such a case recurred since the Sandy storm which occurred in October 2012. However, this turned around after 6 contracts, some worth over 8 million dollars, were signed in mid-August 2017.
In Manhattan, New York City, the top most condominium buildings according to CityRealty 100 went for 2,788 dollars for each square foot. These prices are usually based on the rating, reputation, and history of sales in the area. There has been a consistent rise in price by 3.4% per annum for over the last 10 years. Oil and S&P combined compound growth over the last year is still lower than that of the sale of condos.
In America, the number of homeowners is not equal among races. Out of the households per race, 64.4% of whites, 41.1% of Hispanics, 32.7% of blacks, and 54% of Asians own homes. The white is the leading group in homeownership in America. In 2017, the rate of white people who own homes is at 59%, while the minority homeowners are at 34%. The difference is a huge 25% between these two groups of people. Due to this difference, the gap between the rich and the poor is quickly coming into play. The whites account for more than half of total home owners in America, and this has clearly brought down the number of whites who rent houses.
In most metropolitan areas, the gap in home ownership is increasing for the Blacks and decreasing for the Asians. The State of America should try coming up with intriguing ways to make the ownership of homes more affordable and available for the minority to bridge the growing gap in equality.
So far, the sales of commercial buildings in Manhattan has reduced by almost 40% in 2017, when compared to the same period the previous year. Office sales and Retail sales have reduced by 48% and 44% respectively. Investment sales alone decreased by 49% in the same period. During the first 6 months of 2016, investment sales accrued to a sum of 21.2 billion dollars, but for the first half of 2017, they accrued to a sum of 10.8 billion dollars. The transactions also decreased from 508 to 467 over the same period of time in Manhattan.
Two of the largest office sales that occurred in the U.S last year yielded about 4 billion dollars during the first half of 2016. Most of the office sales were in Manhattan during that year. A diversifying trend has however been noted in 2017. Sales have shifted from New York City to other places such as Boston, San Francisco, Charlotte, Bayrock, Los Angeles and Washington, D.C. The top most sales in 2017 have come from these regions. The Asian community is still trying to close the gap in ownership of buildings. They have purchased 245 Park Avenue, Manhattan which costs over 2 billion dollars this year. This has further reduced the ownership gap between them and the whites and increased the gap between them and the blacks in New York as a whole.
Retail investment has reduced by 18.7% in the United States during the first half of the year compared to the same period last year. Generally, the vacancy of the retails has stabilized but the rent has gone up by 5%. Demand has held ground in strong markets, but there are still other markets that are struggling. Investors are shying away from the struggling markets by liquefying their investments and this has led to the huge drop this year.