The Market: Wall St. Weighs On New York

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With Wall Street and the banking industry getting hit hard since last fall, even the normally recession-resistant New York market is feeling pain during this downturn.

May 01, 2009
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Market Update

With Wall Street and the banking industry getting hit hard since last fall, even the normally recession-resistant New York market is feeling pain during this downturn.

 

The S&P/Case Shiller index shows an accelerating decline in New York prices. The index uses same-home sales to illustrate price changes, with 100 equaling January 2000 prices

It’s not just Manhattan that feels the impact of a downturn in the financial sector, it’s also the areas that surround New York, says Sal Ferro, president and CEO of Alure Home Improvements and our top New York Market Leader.

“We are feeling it firsthand in the areas that we service,” Ferro says of his East Meadow, N.Y., company.

Still, Ferro thinks that a recovery in the New York market is not far away. Alure has seen slight increases in business in March and April after bottoming out in December and January.

“It’s not going to be an incredible overnight rebound,” Ferro says. “I feel comfortable that we’ve hit bottom and we can see the light at the end of the tunnel.”

The growth opportunities are in core areas such as kitchens and bathrooms, which are up about 19 percent for Alure so far this year.

Ferro says that’s because homeowners who can’t sell their homes are looking to make the improvements that make their homes more useful and enjoyable for them, rather than remodeling with resale in mind as many had in the past.

New York Market Leaders


  Specialty 2007 Volume
Alure Home Improvements Full-service remodeler $50,315,608
Home Remodelers Group Full-service remodeler $15,760,920
Karp Associates Full-service remodeler $13,600,000
Remodeling Consultants Design/build remodeler $7,660,000
Jarro Building Industries Full-service remodeler $7,442,071
*The 2009 Market Leaders list will appear in the October issue.


 

Market Update

Metro Area Population: 18,815,988

Change in home values: Down 9.5 percent from 2007; up 81.1 percent since 2000

Existing home sales: 2008 sales were down 16.2 percent from 2007

Median household income: $52,633

Unemployment rate: 8.2 percent (up from 4.7 percent in 2008)

Sources: U.S. Bureau of Labor Statistics, U.S. Census Bureau, S&P/Case-Shiller, New York State Association of Realtors

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