The rising stock market is causing more investors, particularly ones from other countries to start moving their resources into the real estate market. This is because the stock market is being influenced by artificial methods of the federal treasury, creating billions of dollars in a program known as Quantitative Easing. This has helped to bolster the stock market and allowed it to reach new heights, but the program will be ending in 2015 which is now fostering fears of a drop. So naturally investors are looking into other markets like real estate as alternate investments.
With baby boomers retiring and moving out of their homes for a variety of reasons, this will actually help support the supply of new homes to the market in a gradual way. Because the Baby Boomer generation is the largest in the US, the number of homes over the next two decades will gradually grow and have an impact on real estate prices. However, the impact will be so gradual that it should not affect the current boom in the foreseeable future.
When taking the current conditions into account, there is no indication of a NYC real estate bubble forming. Instead, it appears that the rise in property prices is part of a natural economic process when coming out of a recession. This is good news for those who are interested in purchasing a new home for themselves or investors who are looking to earn a profit over the long term.
