G+ May Market Update
New York City's real estate market has been steadily evolving from the effects of the COVID-19 pandemic, and the most recent data suggests that buyers are making a comeback, albeit with more discerning taste. Overall, the New York housing market has been struggling due to a continued lack of inventory and rising interest rates.
With inventory levels still below pre-pandemic levels and buyers actively competing for limited inventory, well-positioned sellers can expect strong offers. However, aggressive pricing can lead to more time on the market, and sellers should not expect the same level of competition as last year. With mortgage rates still elevated, the market forecast for 2023 suggests that affordability will continue to be a major factor in the NYC housing market, and buyers will continue to prioritize finding a home within their budget. According to our latest housing report, closed sales dropped to their lowest point in nearly a decade. With fewer homes available for sale, buyers are facing intense competition, while sellers are struggling to find interested buyers.
It’s important to remember that New York City has a track record of being one of the best long-term real estate investments in the U.S. The New York real estate market has been booming year over year and NYC home prices have nearly doubled over the last decade. With supply and demand continuing to favor sellers, prices continue to rise year over year. The cumulative appreciation rate over the ten years has been 79.16%, which ranks in the top 50% nationwide. This equates to an annual average real estate appreciation rate of 6.00%.
The Fed will likely keep interest rates elevated through this year which will lead to a decline in the prices over the next 12 months. Buyers are regaining negotiation leverage, but seller reluctance will keep the balance of power from shifting completely in favor of buyers next year.
The city continues to draw interest from potential new residents wishing to move from other areas and NYC will continue to see an influx of new residents. Despite lower affordability from high rents, the strong demand in NYC rentals from outside the city, coincides with the city's impressive recovery, which had restored 97% of the employment lost during the epidemic by September of this year, according to an analysis by the NYC Office of the Comptroller.
Currently, the New York Metro housing market forecast ending March 2024 is positive and Zillow predicts that New York Metro home values may
If you have some time and are in the mood to discuss the market and what it means to you, please feel free to call me anytime for a no pressure conversation on how to best leverage your assets to profit from this market.2`2rise by 0.1% by March 2024.
