If you’re interested in real estate news, it’s important to pay attention to the residential market. Home prices are soaring, while mortgage rates continue to climb. Here are some trends to keep an eye on in the New York City real estate market:
Home prices continue to soar
One of the reasons home prices have continued to soar is a slowdown in the construction of new homes, which began with the pandemic and continues to derail plans for home building. New construction was down 4% in January and sales rose by nearly 37%, according to CoreLogic’s Case-Shiller Home Price Index. While the overall increase in home prices is still impressive, it is significantly less than the 17.3% growth rate reported in March 2017.
The rise in home prices is a combination of a low inventory of available homes and rising mortgage rates. According to the CoreLogic index, home prices rose 18.6% in June, the highest rate in 30 years. This is a sign that the balance of power is shifting back to buyers, but home prices continue to soar regardless. With inflation at a 30-year high, it is important to note that a slowdown in home sales in July does not necessarily mean that home prices will drop.
Mortgage rates rise
The latest mortgage rates increase comes on the heels of the Federal Reserve raising its benchmark interest rate 75 basis points to a range of 1.5% to 1.75%. This is the first increase in four years and the result of the Fed’s effort to contain rising inflation. The rate has already jumped to a record high. However, the rise in mortgage rates has prompted many sellers and investors to rethink their strategies.
Although home prices continue to soar, mortgage rates have continued to rise. The average 30year fixed-rate mortgage rate recently topped 5%, up from less than 3% a year ago. As home prices continue to rise, higher rates are putting many would-be homebuyers out of the market. But, buyers who are undeterred by the rising rates are likely to find other ways to purchase a
New York City tops list of best places to live
The city of New York is home to over twenty million people. Some choose to live in the crowded Big Apple while others opt for the peaceful upstate. Some seek the hustle and bustle of the financial and pharmaceutical industries. The diverse property news of New York City has something to offer everyone. Read on for some of the top reasons to live in this dynamic metropolis.
There’s a place for you in New York.
According to U.S. News & World Report, New York City is the best place to live in the U.S., among the 150 largest metropolitan areas in the country. The magazine takes into account the top 150 metropolitan areas in each category. For instance, it groups cities within New Jersey with cities in New York and Philadelphia. Because of this, New Jersey would have a much larger representation in the top 150.
Trends in New York City real estate
One of the most interesting aspects of New York City’s real estate market is the fact that it is still relatively young compared to many of the national markets. The recent pandemic has largely dampened the market, but it has altered the dynamics of the market, making it more buyerfriendly than ever before. In spring, for instance, New York City real estate sales reached their highest levels in decades. In the summer, however, sales prices plummeted as a record number of apartments came onto the market. The resulting inventory was reduced, and prices began to rise again.
Despite the current low inventory, rents have increased in Manhattan for the first time since the early 1990s. However, this is due to a combination of factors. For instance, zoning regulations and tax breaks provide incentives to landlords in the city. Despite these obstacles, New York City has continued to experience strong buyer demand, and rental rates have recovered. While the current market is still volatile, it is likely that a few of the many current trends will continue.