You've heard of a bull market and a bear market, but a tornado market? That's the term real estate professionals are currently using to describe New York City's dramatic real estate climate changes.
It means that the city's real estate market is completely unpredictable, and no one knows what it will do next, just like a tornado. One house might sell the same day it's listed at or above the asking price, while a similar one just a block away could stay on the market for months without a single bid.
Tornados are Unpredictable
For the first three quarters of 2022, the median sale price in New York City held steady at about $755,000, and the third quarter closed with a 4% year-over-year drop in sales volume, both signs that the market is slowing after the crazy heights it reached in 2021.
But no one knows what to expect in the fourth quarter and beyond. So many variable factors influence the market that even the most experienced professionals are hesitant to make predictions.
Pricey Real Estate in NYC
Even with steady and slowing prices, New York City still had some of the most expensive neighborhoods in the country, with Hudson Yards, on Manhattan's west side, landing at the very top of the priciest list. In 30 of New York's 50 neighborhoods, the median price for home sales was over $1 million. Pair that with the national mortgage interest rate for a 30-year-fixed loan at about 7.5%, and it certainly stands to reason that the market should slow. Buyers this year know they will be paying three times as much for the same house over the life of their loan as they would have paid just a year earlier.
It makes sense that the industry should cool off and demand should drop, but nothing makes sense in a tornado. No one can say with any certainty what will happen next.
There's No Substitute for Good Advice
If you're interested in buying real estate, it's more important than ever that you have someone you trust to give you advice. Attorney Melvin Monachan understands the New York City real estate market, and he understands the laws that pertain to it. He can help you make sense of all your options and advise you on the smartest moves you can make and when you should make them. Call today at 347-389-1682 or contact us online to schedule a consultation.