After more than a decade of the same “seller-friendly vs. anti-buyer” state of real estate affairs in NYC, 2018 brought in a new twist. Assumptions like: buyers always show up, sellers always make money, and renters never have leverage… are no longer valid. And as spring real estate selling trends in NYC would have it, this will continue to go on. With well over 20,000 properties up for sale or rent in the Big Apple, the scales are shifting in favor of the buyers and renters. Spire Real Estate explores just how this overall change is affecting the spring housing trends.
According to various real estate experts and companies, the current situation works in favor of buyers. With a significant rise in inventory, New York City has slipped into a buyers’ market. In addition to having diverse moving assistance options at their disposal, home buyers are now calling the shots and have the bargaining power. You would think that this is great for everyone. However, with apartment sales dropping across Manhattan, Brooklyn and Queens, we can only conclude that buyers are not really eager to make the purchase.
To best answer this question, one has to first examine the current real estate situation, as well as read up on large-scale news regarding NYC. And this is exactly what our team has done with the goal to help you Live Better and enjoy an opportunity to prosper in the Big Apple. So, here are 5 important trends to take into consideration when looking at the real estate trend in NYC:
"You have to consider all the options and factors available."
We already mentioned this fact earlier. 2018 has brought forth a power struggle, where buyers and renters are now holding most of the cards. And this is something that both buyers and sellers need time to adjust to. For buyers, this change in authority has brought about an overwhelming number of purchase offers. This resulted in slowing down the pace in the final decision-making process. For sellers, this change has created a wall between managing to get the buying or renting price for their property.
One of the main reasons why sellers in NYC held all the cards was the lack of property offers in comparison to the demands of buyers and renters. With so many housing development projects currently in play, the inventory has experienced an increase in the past year. According to real estate experts, at the current rate of sales, it will take more than six years to sell all of the new development in Manhattan alone, which totals near to 8,000 units.
"With housing development on the rise, inventory is blooming in NYC"
Everyone is aware that NYC is among the most expensive US cities to live in. This is no secret – it is public knowledge. How does this affect the spring real estate selling trends? Even in cases where sellers are willing to lower the property price, homeownership is challenged through high interest rates. So, homebuyers can’t bid as strongly for properties as they could when interest rates were lower. This is one of the reasons why renting will stay a more appealing options than buying in the months to come.
As mentioned earlier – information is crucial when looking to purchase property. This is a rule of life – the better informed you are, the better deal you will be able to make. This is a rule that you will find in all aspect of life. And when you plan on moving from one city to another one, you need to make sure to stay ahead in terms of news and current situations. Especially when that new destination you are moving to is NYC. The two most influential occurrences that were planned for 2019 were:
"The L train will not be affecting the spring real estate selling trends in NYC"
Behind most decisions to purchase a property and relocate is the criteria of a good neighborhood. This is something most buyers and renters will look for before making the deal. So, which are the top neighborhoods in NYC currently that hold the promise of good living?
As we welcome spring, this process of adjustment is still going on. As a result, there are still plenty of buyers/renters that are negligent to make that final step towards renting or buying property in NYC. On the other side of the spectrum, sellers remain unrealistic in their expectations when it comes to the value they want to receive. Our advice to both parties:
Put all this together and what you get a “Mexican stand-off” scenario. No one is really certain who will start shooting first. However, with the right professional NYC real estate agents and brokers by your side, you will certainly be better informed to make the best decision for you.