A year and a half ago, only the most optimistic speculators would have told you that NYC real estate would be back with a bang in 2022. Fortunately, they were right, and at least in the NY residential real estate sector, it's a seller's market with small, one bed/one bath apartments listing at over 500 thousand dollars in traditionally less desirable neighborhoods.
While it's good to see competition in the real estate market again, there is some concern that these prices are more attributable to inflation than increased buyer ability.
Inflation vs. Frozen Markets
In an interview with Bloomberg, Bess Freedman, CEO of Brown Harris Stevens, explains that individuals made money and were able to save over the last few years. The result is that there are plenty of New Yorkers ready to buy. She notes while there are signs of inflation, inflation is still better than the frozen real estate market that the city saw during the height of the pandemic.
Ms. Freedman also provides some insight on how NYC housing price increases compared with the rest of the nation, explaining that the rising cost of residential real estate in New York hasn't been as drastic as in other areas.
Interest Rate Increases and Other Market Factors
While inflation contributes to NY real estate prices, supply and demand are the predominant driving factors. Simply put, there's not enough inventory on the market. Most experts agree the Federal Reserve will raise interest rates once or twice in the coming year, and this will slow down the explosive demand that's driven up costs in NYC and elsewhere.
Ms. Freedman also cites several factors outside of inflation which have helped NYC's residential real estate market rebound. Some of these influences include an increased sense of physical and financial security along with a change in local, state, and federal administrations. One underlying theme remains constant: the New York real estate landscape is ever-evolving.
When to Speak to an NYC Real Estate Lawyer
Whether you're buying, selling, or need help with mortgage default, our dedicated team is here to help. When you need real estate legal help, call Melvin Monachan, Attorney at Law, at (347) 389-1682, or contact us online today.