You may know very little about the New York City housing market, due to its pricey reputation putting off buyers from even looking at the accommodation on offer. However, you might be interested to know that a strange phenomenon (last observed in 2009) is happening to New York’s real estate. It’s turning New York from a seller’s dream to a buyer’s heaven, so now might just be the time for you to leap in and find that amazing property which you’ve always dreamed of but never dared to ask for. Without further ado, here is the current economic situation going on with New York’s real estate.
Almost everywhere else in America, real estate is a seller’s game. One property might get multiple buyers and offers, making the market competitive for those looking for property and easy money for those selling. You’d think that, in New York, where housing prices soar and rarely go for under the seven-figure mark, the sellers would be having a wonderful time with profit galore, but this actually isn’t the case.
New York is putting the ball in the buyer’s court, so to speak, since properties which we would expect to have several offers are now only receiving one, and that one is usually the final buyer, despite many low-ball offers. In fact, in Manhattan, properties are going for an average of approximately four point five percent less than the asking price - of course, this is only an average, but it says a lot about the housing market at the moment.
“Not only are low prices becoming more commonplace, but longer waiting times for properties to get offers are now the norm in New York City,” Sue McDonald, a real estate expert at Last Minute Writing and Writinity, states, “and the waiting times only increase with the prices of the property. A property going for one million dollars will usually expect to wait around for about one hundred days before even getting an offer, and, as we’ve seen, those offers are usually much lower than the asking price - and singular.” If you’re offering a higher-priced property, then you have to be in it for the long haul, because those properties will be waiting around one hundred and sixty to one hundred and seventy days for their offers.
What This Means
As an investor or a genuine property-buyer, this is good news, especially on the waiting times end of things. “As properties sit around, unused and requiring maintenance, etc., the owners will become more desperate to sell, and many are understandably stubborn about their prices, making the wait even longer for them.” Philip Browder, a journalist at Draftbeyond and Researchpapersuk, says. “But as they see the market inflate with unsold properties, and fees like housing tax start to pile up on their bills, they’ll realize that they need to sell and start to mark down their properties. This is the time to reach in and grab what you can because sellers are getting desperate and it’s your time to capitalize.”
However, if you are a seller in the New York housing market, it can be a difficult decision. Of course, if you’ve got no problem with keeping your property for the time being, try to stick it out and maintain the property for as long as possible while the market evens out, because it will eventually level out as the prices lower and the majority of sellers realize that their properties just aren’t worth what they once were. Just make sure that you recognize this too: the value of your property is changing whether you like it or not, and staying in the past will just make sure that you fail to make a sale. Once the market stabilizes, consider the prices of similar properties and drop, if necessary, to that level, since, otherwise, you’re just alienating your market, which is never good when you need to sell them something.
New York’s housing situation is exactly what it says on the tin: opposite to everywhere else in America, but not just because of the prices this time. Buyers, for once, don’t beware and feel free to step into this housing market, which is now a playground for those who would like a previously high-costing property, since the seller will now be more likely than ever to accept a low-ball offer. However, sellers should be careful to stay out of the market if possible due to the sheer number of properties inflating it and to wait until a more stable time arrives to sell.
About the Author: Dan Chapman works as an editor at both Lucky Assignments and Gum Essays. He has a personal interest in real estate and has found success where he least expected it, now wanting to share his new-found knowledge and experiences with the world.