The real estate market has been through a tumultuous few years in the United States, but despite rising prices, nearly 6 million homes were sold in 2022. The greater New York area is one of the most challenging places to find housing. Understanding the New York real estate market is essential for buying or selling a home.
You’ll know fair prices to list your home at when selling a home by following the recent trends in the housing market. Working with a NY real estate agent is beneficial, but following the trends will help you time your transaction for the best deal.
Fortunately, you’ve found the perfect guide to the recent changes in the New York real estate market. Continue reading to move forward with your real estate transaction today!
Inventory Shortages
The persistent housing shortage is one of the most consistent trends in NY real estate. It’s a challenging time for sellers but an uphill battle for buyers seeking housing in the greater New York area.
New York has had 43 consecutive months of decreasing housing inventory, and that looks to stay the same in the future. A lack of inventory makes finding a home challenging for families and individuals looking to move to the Empire State.
Closed Sales Decline
The number of pending and closed sales have also declined in the New York real estate market. Closed sales dropped by over 20 percent between May 2022 and May 2023.
Pending sales have also dropped significantly. These statistics point to a real estate market that is slowing down. The primary factor encouraging the slow market is the lack of inventory within the real estate market.
Rising Interest Rates
In addition to the lack of inventory, buyers face rising interest rates. The increase in interest rates is slight, but it makes a massive difference in what you’ll pay to own the home after the 30-year loan term ends.
Housing is already difficult to afford for many aspiring homeowners. Rising interest rates make the challenge more significant for those who wish to move to New York.
Buyer’s Market
Despite the statistics pointing toward low supply and high demand, the trends point toward a buyer’s market. Homes are staying listed for longer, and there’s more supply than demand in the market in 2023. You’re facing challenges if you decide to sell my home today.
It’s worth noting that real estate in New York City’s different neighborhoods. Some neighborhoods have high demand and rising prices. Tribeca is the most exclusive and expensive neighborhood. Consider the community you live in when selling a home in New York.
Conquer the New York Real Estate Market Today
Owning real estate in New York is a fantastic asset, but it’s critical to understand the New York real estate market before listing your home on the market. The current conditions have created a buyer’s market, rising interests, and housing shortages. The top neighborhoods in New York City have stable and expensive pricing for buyers who want to move.
Learning the ins and outs of real estate is difficult, but the proper guidance will help you when buying or selling a home. Check out more of our Lifestyle and Home Improvement content to maximize your real estate investments!
