There's no question it's a seller's market right now in downtown. We're up from 2007 prices, inventory is low, and the area keeps evolving into an exciting destination. We've gone from the low of $300/sf to about $625/sf on average today. And while the prices are pretty stable, there have been some price drops. Bidding wars have slowed down and the units that have been priced in a greedy way have shown price drops. Buyers who've been looking are not having to overbid as much. We don't know how much this micro-dip will last, but in any case, Sellers still hold the power right now because the inventory remains low.
In the near future, South Park will be getting the most condo inventory because of condos like TEN50 and Metropolis coming on the market--and everyone wants the latest and greatest.
Historic Core and Financial Districts remain desirable because of low inventory and lots of business regeneration (The Bloc, Grand Central Market).
Arts District is one of the hottest areas due to low inventory, but there are tons of apartments being developed. Good for condo owners, not as great for investors.
Little Tokyo is still very hot due to the location next to the Arts District and all that River Development.
Fashion District is the next up-and-coming neighborhood. Lots of conversion activity from derelict buildings to live/work lofts, plus the development of THE ROW just a few blocks away is going to be a game changer.
Skid Row adjacent, which is essentially the Little Tokyo Lofts and other artist rental lofts, are benefiting from the Fashion District activity.
