The New York City real estate market is currently a buyer's market, meaning there are approximately more active homes for sale than there are buyers. The supply of homes is outpacing demand, favoring homebuyers who are managing to have a good influence on price negotiations. This is Zillow's real estate market forecast for New York, New York and the New York-Newark-Jersey City subway. According to their forecast, the dynamics of supply and demand are likely to push prices higher again in the next 12 months.
Still, the increase in inventory is one of several signs that we may have reached its peak of absurdity. The proportion of homes that have to lower their price to be sold is finally rising after a historic decline, according to real estate research firm Altos Research. Housing construction has returned to its highest levels since before the Great Recession, even with wood prices in the stratosphere. Although there aren't many homes on the market, there are a lot of new homes on the way, buyers just need to have a little patience.
Eventually, people won't be able to sell their house for 100,000 more than they bought it a year ago, as I'm seeing in rural areas. But this correction will be nothing like the total collapse in real estate prices during the Great Recession, when some real estate markets experienced a 50 percent drop in values. The full recovery of New York City's real estate market and the economy as a whole depends on potential future closures in New York City, as well as on the speed and efficiency of vaccine distribution, which can help businesses reopen at full capacity with no restrictions at all. While demand and price gains are cooling, any correction is likely to be modest, economists and housing analysts say.
If there aren't enough homes for every buyer who wants one, as in recent years, the housing market looks a bit like “The Hunger Games,” in the words of real estate agent Anna Fiascone, a real estate agent in the suburbs of Chicago. But, buyers, focus on not wanting to waste time when finding a home that fits your budget and your family. A new report from real estate agency Redfin showed that, while demand from homebuyers woke up a bit in August, last week's latest mortgage rate hike turned it upside down. This is because a small group of super-expensive houses can ruin the average and make normal houses look more expensive than they actually are.
Just remember that a real estate market forecast can only give you an idea of what you can expect if you buy or sell a home in the coming months. This is a positive indicator for buyers in spring and summer, as many sellers are trying to capitalize on current market dynamics by trading while the market is rising. The housing affordability index fell by 31.5% to 87, compared to June last year, when it was 127. Other types of housing that are prevalent in New York City include detached single-family homes, duplexes, townhouses and homes converted into apartments. For months, housing economists have been predicting that the housing market would eventually cool down as home values became a victim of its own success.
Inventory shortages and strong buyer demand continued to drive home prices higher, and multiple offers on a limited number of homes were commonplace in most market segments. .