Developed and developing areas in Brooklyn, New York have also attracted much attention as of late – particularly due to its price-per-square-foot gains. According to PropertyShark, between 2004 and 2012, three neighborhoods in particular — Williamsburg, Prospect Lefferts Gardens and Gowanus — have had the most significant growth on a price-per-square-foot basis. In Williamsburg, a waterfront section of Brooklyn, residential prices have soared to $736 per square foot from $269 in 2004 — a whopping 174 percent increase. In Prospect Lefferts Gardens, prices increased 63 percent to $382 a square foot, up from $235 eight years earlier. In Gowanus, prices rose 52 percent during the same period to $668 per square foot, up from $439. Now that’s what I call a smart investment!
Heading into 2013, real estate experts predict home prices in Manhattan are set to soar as inventory continues to thin and historically low interest rates drive former renters to become home buyers. Most new developments in Manhattan have yet to be completed, and there’s not much large-scale residential construction anticipated till 2014.
According to StreetEasy, the number of Manhattan condo contracts rose 5.5 percent in November 2012 compared to the same month in 2011 — with the Upper East Side posting a 16.2 percent increase. There were also 17.2 percent fewer condos on the market compared to 2011, while the median listing price has risen 10.4 percent in Manhattan compared to 2011.