The real estate industry has seen some major changes since the beginning of the pandemic. Namely, the shift from a buyer’s market to a seller’s market. While no one can truly predict what’s going to happen in the real estate industry with complete accuracy, there are always forecasts for what’s likely to happen in the near future especially when it applies to New York Real Estate.
Take a look at some forecasts for New York real estate for the remainder of 2022.
1. Home Sales Are Going to Go Up
One thing that can be agreed upon for 2022 is that home sales are going to continue to climb. The median sales price increased by 9.2 percent compared to last January from $228,900 to $250,000 in the country. According to NYSAR, new home listings increased from 11,226 units in February 2021 to 11,658 homes last month – a 3.8 percent increase, which marks the first time since May 2021 that new listings were up in year-over-year comparisons.
2. The Price of Homes is Going to Go Up
The price of homes has traditionally increased over time so there’s no surprise there. Specifically, the price of homes is expected to increase by up to 6.2 percent. As of last month (February 2022), New York home prices were up 12.6 percent compared to the same time last year. Homes in New York sold for a median price of about $805,000.
3. Demand for New Homes Will Remain Strong
Experts predict that the demand for new homes will remain strong throughout the remainder of 2022. While the demand for new homes will remain strong, housing inventory will still be low. The number of homes actively listed for sale dropped by approximately 180,000 homes at the end of 2021. Inventory was 27 percent lower compared to the same time in 2020.
4. Condo, Co-Op, and Townhouse Construction Will Increase
With the rising cost of single-family homes in New York, townhouse, co-op, and condo sales will likely increase. New York City’s skyline is going to drastically change in 2022 with the construction of several new buildings, condominiums being a major focus. Some of the projects include:
So, if you’re looking to purchase a piece of New York real estate, consider looking into these options.
5. Mortgage Rates will Continue to Increase
Mortgage rates leapt over three-tenths of a point in February and according to Freddie Mac, the monthly average on a 30-year fixed-rate mortgage increased from 3.45 percent to 3.76 percent from January 2022 to February 2022. That marks the highest rate since July 2019.
While the future of New York real estate will be ever-evolving, some things are for certain. Construction of new homes of all types is evident, though inventory remains low for now. However, there’s hope for the future of New York real estate, whether you’re an agent, a buyer, or a seller.