G+ March 2024 Market Update
The NYC real estate market, which showed a softer pace in 2023, is gaining momentum. This shift is mostly due to pent-up demand and the anticipation of lower interest rates. Two months into 2024 and the current robust sales data corroborates our forecast of a warming market.
So…Is it a Buyer’s or Seller’s Market?
The answer is – BOTH... and Springtime in NYC should bring a terrific market for buyers. (And sellers, too!)
On the sales side, the current market conditions are optimal due to limited inventory and substantial pent-up demand. Recently we have seen sales transactions characterized by multiple offers, resulting in properties sold at or above the asking price. This creates an excellent environment for listing your property.
On the buyer side, most signals are strongly suggesting interest rates to decrease later this year and property prices are likely to increase. It is possible that now represents the final opportunity for the near future to secure a reasonably priced deal.
In this unique market, opportunities abound for both sellers and buyers. The coming months could be the ideal window to capitalize on these favorable conditions. Whether you are considering entering the market to buy or sell, there is no time like the present!
2023 is behind us, New Yorkers have survived the shockwaves of skyrocketing mortgage rates and rising home prices. As we head towards Spring, here is what we predict for New York’s housing market:
Home Sellers will return to the market in 2024: Sellers who chose the sidelines in 2023 will come back.
Interest rates will stabilize by the 2nd half of 2024: Mortgage rates hit 7.79% in October 2023, the highest level in 23 years. However, the rate dropped to 7.35% in November due to the softening labor market and slowing economy. Even the annual inflation rate went from 3.7% to 3.2%. We think the rates will remain plus or minus around 6%, but they will stabilize in the second half.
The number of home buyers will rise: The historically high interest rates averted buyers in 2023. But mortgage demand rose after the interest rates lowered to 7.35% in November. The easing inflation and stabilizing rates will bring back house hunters.
Home prices will continue to rise: Home prices will continue to rise until the low supply-high demand dynamic changes.
New home constructions sales will increase: Builders and sellers will compete for buyers in 2024.
Remember, there are NO bad decisions in NYC real estate, only choices made without enough information. At the end of the day, unless you have a time machine that goes backwards, there is no better time to be in the real estate market in NYC. We encourage you to reach out. Let us assist you in making informed decisions to maximize your real estate endeavors.
