The Real Estate Housing Market in New York is Heating Up!
The real estate housing market in New York City is heating up! Whether you’re looking to rent or buy, it’s likely that you want to find the best deal on a home and neighbourhood that fits you and your family’s needs. Fortunately, with the advent of online real estate marketing and advertising, there are more tools than ever before to help you make smart decisions about buying or selling your home in New York City!
Luxury homes and apartments are the top sellers:
The real estate housing market in New York has never been more competitive with high-end homes and apartments dominating the market. Luxury homes are some of the most sought-after, as these investments are often considered to be some of the best. Out of all of the top five residential sales this year, all were for luxury homes exceeding $5 million. While these numbers might seem shocking, it’s worth taking a look at how international buyers have impacted the real estate housing market. In 2017 alone, 5% of NYC buyers were international buyers, which really shows a shift in buying patterns and demonstrates that there’s a global economy emerging right before our eyes.
Supply and demand determine prices:
One of the major factors that determine the real estate housing market in a certain city is supply and demand. The more demand there is for housing, the higher the prices go. In contrast, when there’s too much housing or not enough people wanting to buy homes, then prices are driven down.
When it comes to the real estate housing market in New York City (NYC), home prices are at an all-time high according to data released by real estate brokerage firm Douglas Elliman.
In fact, 2018 was the third consecutive year where home sales outpaced new listings with the inventory at its lowest level since 2009 according to their data report. As of September 30th this year, less than 2 months from now NYC will have 1 million residential units sitting vacant according to CoStar figures–a very significant number given that nationwide we’re only at 9%.
Investors & foreign buyers are driving up prices:
In the past five years, foreign buyers have been a driving force in the real estate housing market. The number of international buyers has risen by 44% since 2012, and they are purchasing properties at an average price of $1.4 million. In addition, since 2013 investors have been spending more on commercial properties than the residents themselves. This has led to rising prices and an increased rate of rent which many critics believe is pricing out locals who want to stay in the city that they love.
Properties are sold before they hit the market:
The real estate housing market in New York has been heating up. The median sale price of a single-family home reached $1 million for the first time last year, and interest rates are still at historic lows. That’s led to an increase in the number of so-called bidding wars, where two or more buyers compete to buy a property before it even hits the market. More than 40% of houses sold last year were under contract before they went on the market.
Inventory remains low:
New York’s real estate housing market has been heating up lately. Inventory remains low, meaning there are not many homes on the market to choose from. Homes that do come on the market quickly sell and some homeowners are selling their homes at a loss just to move and find a place they can afford. The high cost of living in New York City has put pressure on many residents who cannot afford to live or purchase property there.
Fastest Sales Records Broken:
In April 2017, the fastest sales records were broken in the real estate housing market in New York. The median price of an apartment sold last month was $1.2 million, more than double what it was just a year ago. In Manhattan, there were 651 closings at a median price of $1.6 million, while Brooklyn saw 1,325 closings at a median price of $895,000. These record-high prices are driving buyers away who don’t want to spend so much money on rent and mortgages but are still desperate for homes or apartments to buy or rent.
Best time to buy property as an investment:
People are often looking for the best time to buy a home as an investment. Many people start looking into their options when they see the market heating up and prices rising. Experts will always tell you that buying a property as an investment is much different than buying a property for personal use. There are many factors involved with an investment property, such as what kind of return it provides, how liquid it is, and how much risk there is associated with it. In order to determine if the real estate housing market in New York is right for you, first answer these three questions:
*What kind of return does your potential investment provide?
*How liquid is your potential investment?
*How risky or uncertain are you about your potential investments?
Tips for home-buying:
Making the move to a new home can be a stressful event. But the real estate housing market in New York is heating up, which means now might be the perfect time to make that transition. If you’re ready to buy, here are some things to consider:
- Location- The real estate housing market will vary depending on what you’re looking for. If you need more space for your family, it might be smart to look outside of the city limits. But if you just need a cozy place that’s close by, then head downtown or into Brooklyn and Queens.
- Type of Home- There is many different types of homes out there and it’s important that you find one that suits your needs and desires.
Do you want an apartment? A condo? There are several top real estate groups in NYC whose team is fully equipped to meet the real estate needs of all of their residential and commercial clients. If you want to buy or sell, don’t hesitate to contact them.