New York real estate – prices rising wildly but not the inventory
2021 was a remarkable year for the New York real estate market in terms of the number of transactions and demand for properties there. Meanwhile, we have observed a number of new trends emerging in the last year that can be guiding principles for the years to come. For instance, a rising split between luxury coops and condominiums, to buyers being lured by townhouses, to New York investment metrics – the tremendous deal volume indicates these trends in 2021.
Effect of the global pandemic on New York real estate
The COVID-19 induced global pandemic affected the realty market negatively, but after an initial downturn, the New York realty market has seen an incredible increase in property prices – in double digits on co-ops, condos, and townhouses in the last year.
The reasons behind this remarkable increase can be many such as COVID-19 had significantly disrupted the conventional buying and selling patterns of properties. Eventually, the supply was sharply crimped. However, there was more demand for bigger homes and townhouses (due to ample open space) on the outskirts of the city and several buyers utilized their savings to buy these properties.
The sale and rental markets in New York City have taken longer than usual to get back to pre-pandemic levels.
Property prices are increasing but inventory is depleting
As it was previously mentioned that it took longer for New York real estate to bounce back and for a number of potential buyers, it is becoming challenging. The property prices across the USA have been increasing tremendously but inventory has touched bottom. The property supply level has reached record lows and according to the National Association of REALTORS, the competition for available properties gets fierce, every time a property comes on the market for sale.
Increasing property prices, inflation and increasing interest for New York properties have created an imbalance and affordability issues, too. The pressure is being disbursed to the surrounding and smaller areas such as Staten.
“Record inflation and upcoming interest rate increases from the Federal Reserve, along with the limited listing inventory, are going to put continuing pressure on our local real estate market,” said Sandy Krueger, CEO of the Staten Island Board of Realtors (SIBOR).
Due to inflation, the potential buyers are experiencing reduced purchasing power and resultantly, they are forced to pay significantly more per month than they were this time, last year. Due to this trend, the market can slow down as more and more buyers are being priced out of the market.
According to SIBOR: new listings in Staten Island have decreased by 19.7%, to 433, since 2021; pending sales have decreased 7.9%, to 351; inventory levels have fallen 46.1%, to 1,019 units.
According to the report, house sales have reached their highest level since 2006 and the country’s real estate market has been performing better than it was in 2021. And it is calculated that national sales are up by 8.5%.
Home sales would have been much higher if not for skyrocketing sales prices and a scarcity of homes for sale in several regions, which forced many purchasers to put their home purchases on hold for the time being.
The New York real estate market particularly has been roaring back to pre-pandemic levels, which adds more to its charms. If you are also planning to be a part of this thriving market, feel free to contact the team Copperstones at +44 203 888 5555 or write us at enquiry(at)copperstones(dotted)net to discuss your investment plans, and inquire about the availability of properties in the leading developments across the country.
Please submit your enquiry and a member of our team will get in touch with you soon.