The real estate market in New York City has been heating up very quickly over the past few years. While some areas have seen an increase in house prices, this is not the case for most of the city. Withdrawals from the market due to higher demand and limited supply has left many homes vacant or with only one occupant.
This article will talk more about which neighborhoods are experiencing growth, as well as what factors may be contributing to the strength of the market. We will also look at how much inventory there is and if it’s growing!
I’ve included all the info here for you so that you can get a full picture of the current state of the NYC real estate market. There’s no need to familiarize yourself with the same information twice – I’ll keep it concise and easy to read.
Slow sales
Another factor that has affected the market is the lower number of homes having to close. While some areas have experienced a decrease in closings, most have seen a steady decline in this key performance metric. This means there are not as many homes receiving a sale or moving off the listing stage.
Closing can take several weeks depending on how much work needs to be done outside of the house. The real estate agent must find a lender who will lend you money for your home, get all necessary permits and do an inspection to make sure it’s safe and legal. Then they negotiate with the seller on what price they agree on before getting the keys!
This process takes time so people are staying in the house longer which creates more opportunities for them to list their own home or buy another one. More buyers mean there are always houses available and sellers choose to accept less because they know they will find someone soon. It is totally dependent on the area and the type of home being sold but overall, the market is slowing down due to this.
House conditions
The condition of your house is an important factor in determining if it is undervalued or overvalued. Are there any major repairs needed? What kind of renovations do you want to make?
It is very difficult to determine whether or not your home is expensive due to poor maintenance, or if you actually like how your home looks, so you pay a high price for it.
Weigh both sides and come up with an appropriate value!
There are many ways to evaluate the health of your home. Some things that can have an effect on the market value include: roof, interior, and exterior damage, as well as soil coverage around the foundation.
Roofs and roofs-are they old, leaky, and need replacing or does it look nice and shiny like new. Interior items such as furniture and decorations play a big part in filling your house with “value”.
Exterior features such as beautiful landscaping and walkability are key in attracting potential buyers. Soil coverage around the foundations can also affect the cost of yours and neighboring properties.
Get a house now
Even with the market in decline, it is still a great time to buy a home! While it may be harder to find a home that you love for under $500,000, you will have more options than ever before as to where you want to live.
There are many ways to purchase a new property including through the traditional bank loan or private money sources like your friend’s who know you well.
You can also choose from the various strategies of buying real estate such as owning a small portion of a larger property, investing in a duplex, or even selling part of yours and renting out the rest. All of these strategies depend on your budget and what kind of lifestyle you want to have.
We recommend doing some research and figuring out which ones make the most sense for you so that you do not waste any money.
Property taxes
While it is true that property tax rates have increased dramatically in New York, there are some tricks you can use to keep your costs lower. The best way to do this is by investing in properties that already come with a house or apartment!
By buying an existing building, you get all of the benefits of owning a home without having to pay for a landlord-enterprise! It also helps save money in fees such as association dues and utility bills.
Another way to reduce real estate taxes is to become a resident of another state. This means moving away from New York State and reclassifying your residency. By doing this, your residence will be taxed in the new state while still being within commuting distance of work so you don’t have to worry about paying high NYS real estate taxes!
And lastly, make sure to research how much each school district’s average yearly cost per student is so you know what kind of education their children are receiving. Some districts offer more spending per student than others, which can influence whether or not you choose to send yours there.
Housing shortage
The other major factor holding back housing market activity is the lack of available homes for sale. There are simply not enough houses to go around, which is why you consistently read about people with empty rooms in their house or sellers having to increase their price due to no takers.
When there are more potential buyers than properties, it creates a situation where everyone wants the same number of houses – making it impossible to find your dream home!
This has been going on for quite some time now, but it has become much worse in the past few years due to low supply and high demand.
Supply is low because many homeowners decide to sell instead of renting, so they don’t update their property or invest in new upgrades. And while they may be trying to hang onto their house as long as possible before selling, this doesn’t help the overall availability of homes for sale.
Demand is also strong since most people can’t afford to buy a house right now, so they look like they will remain renters for life. Also, many young professionals prefer living in cities so they aren’t buying either.
These factors all contribute to the housing bubble that we have today. When prices rise, it seems like everyone wants to get into the market, creating even more competition for each individual house. This makes it expensive to purchase an average size house, which only adds to the scarcity.
Buyers are back
In recent years, there have been many reasons to believe that the real estate market in NYC has entered into a period of sluggishness or even bear market. With prices staying relatively flat or declining, potential buyers have become increasingly reluctant to invest their money in a property.
But now, things seem to be looking up for homebuyers in New York City. According to data from Movoto, one of the largest house-hunting websites, more people than ever before were listed as “actively seeking” a homes this past month than at any time since they started keeping track over five years ago!
In fact, slightly more individuals reported being actively engaged in housing searches in April 2018 than during either May 2017 or June 2016. Even those not actively searching for a home had an average interest level of 4 out of 5, with almost half responding with a rating of 1 or 2 (very low) on a scale of 0–5.
This shift towards greater engagement is occurring across all price ranges and areas, with no obvious reason why. Some speculate that rising affordability may play a role, while others posit that strong employment opportunities and cultural diversity make it easier to find your life here.
Slow down
This past year has been very different for real estate in our city. With all of the talk about a housing market downturn, people have become cautious. Many are even choosing to stay home instead of going out!
This is not the case for everything, but overall, we are seeing a slow down in activity. Fewer numbers of homes being listed or sold, longer closing times, and a lower number of showings and offers really put pressure on the sellers’ side.
On the buyer’s side, there are less deals coming together as buyers want to be sure that they will get what they want before agreeing to make a purchase. We also see a drop off in investors looking to buy and renovate properties, which can sometimes push up prices for non-owner occupied houses.
Overall though, this is a good thing because it gives individuals and families more time to find the right property for them while limiting overpriced listings and empty transactions.
If you are thinking about buying or selling a house in the next few months, now may not be the best time unless you need some capital quickly.
Potential market changes
There are many factors that could determine whether or not this is a seller’s or buyer’s market. The upcoming election in November, for example, can have an effect on how close people want to buy and sell properties.
If there is no clear winner at the end of the presidential race, some experts say it could create confusion as to who buyers and sellers will trust. This could make it more difficult to move materials and you never know what might get trashed during such a frenzy!
Another factor that could play into a seller’s market is if they choose to list their property early next spring when most students return for school. During the winter break, student population drops off which means less potential house hunters.
This article will talk about other signs of a seller’s market and what you can do to be prepared for one.
