Are you thinking about investing in real estate? Let’s face it - for the past few decades, New York has been one of the most interesting real estate markets in the country. While it’s certainly tough to get into, for those who manage to, there are great real estate investment options aplenty. But as everything else in the Big Apple, this market is very dynamic, much more so than in the rest of the country. So, if you want to invest in the near future - you’ll need to know all about the recent NYC real estate trends. Don’t worry though - that’s just what we’re here to tell you about!
In the world of real estate, the balance between the supply and demand side of the market is constantly changing. However, if you look at recent NYC real estate trends - you’ll see a rising imbalance in favor of the latter. That’s right - recent market reports show that, while New York City’s real estate market is still quite pricey, especially when it comes to housing - we are in the middle of a buyer’s market. Numerous experts have surveyed the conditions in the real estate game around town, and the trend is definitely not in favor of sellers.
In fact, reports show that while the sheer number of listed properties has risen, at the end of the day, the number of completed sales has declined. What does this mean in practice? Well, for example - should you decide to move to Brooklyn, in the current climate, you’ll definitely have your pick of affordable homes. And much more so than a few years ago! Of course, this doesn’t mean you can’t make a profit as a seller in the current market, but if you can afford to wait for the winds to change, that would definitely be a wiser course of action.
Of course, simply comparing the number of listed properties and the number of sold ones doesn’t necessarily indicate anything. But if you look at other relevant statistics, you’ll definitely find them pointing towards these NYC real estate trends as well. For example, if you take a look at the prices - you’ll see that buyers have been making very low counter offers. Some of these have been as low as 25% less than the initial asking prices of the sellers. And if you need some perspective on this, the local real estate market hasn’t seen such offers since the mortgage crisis of the previous decade.
Also, if you take another look at the properties on sale, you’ll realize that certain types are staying listed for much longer than in the previous years. Indeed, it’s clear that the number of days spent on the market has been increasing at the same rate as apartment prices. And while days on market have actually gone down for cheaper apartments - the opposite is true for luxury properties. From this metric, it has never been more apparent that New Yorkers are seeking affordability, and in this market climate they have a chance at lowering prices in many cases.
If you’re looking at the most important among the recent NYC real estate trends - it’s worth examining the number of properties on sale again, but for a different reason. You’ll notice a large upward spike in inventory on the real estate market. And sure, this is a trend that has been noticeable since around 2013, but never before at such a quick pace; the number of listed properties has risen around 10% from the previous year!
Let’s face it - New York City is not one of the most expensive real estate markets in the world for no reason. In the Big Apple, construction costs and land expenses have been soaring upwards for decades. This has been increasingly inhibiting the development of new properties. But in recent years, the city government has made an effort to combat this. In tandem with the local real estate board and the construction industry - they’ve made progress in increasing new supply. And at the end of the day - this also contributes to the development of a buyer’s market. With so many affordable options out there, selling high-end apartments has never been more difficult.
Also, as the owner of a rental property - you’ll be happy to learn that rental properties are on the rise these days. When it comes down to it - for many people, homeownership is a big commitment. After all, simply moving around every few years and worrying about whether they will obtain the right packing materials at most is a preferable option for many; especially when compared to worrying about mortgage payments and rising debt. In fact, some of the outer boroughs now have neighborhoods with similar rental prices compared to Manhattan neighborhoods!
While we can definitely spot a few overall NYC real estate trends, you should note that these may differ quite a lot from borough to borough, and even from neighborhood to neighborhood. So, don’t expect the same sales decline to occur on the East Side and in Manhattan. In order to make sound and informed decisions on the marketplace, you definitely need to get into the details, and explore the specific areas where the property is listed.
At the end of the day, making a profit as a seller in the current buyer’s climate isn’t impossible. You simply need to understand your position in the current NYC real estate trends, and adjust your profit expectations accordingly. As we’ve mentioned above - keep in mind that you will actually see a hotter rental market than you’ve probably expected.