People seeking a home in New York are finding it increasingly difficult to find an available home. A combination of limited available homes plus growing demand for those homes means housing prices are being driven up across the board, even as interest rates for mortgages remain at record lows. Even luxury properties are rising in value, despite their higher associated cost, as more prospective homeowners compete for the limited inventory.
The number of homes available on the market in New York has dropped by 12% since December of 2019, with the number skyrocketing to 18% among entry-level homes. This number is up even compared to November, when the drop was only 9.5% overall compared to November 2018, or 16.5% among entry-level properties. This has caused real estate prices to rise, as even luxury properties, normally avoided by average home-buyers due to the high purchase price and high property taxes, are being snapped up.
There are several reasons for this continued inventory shortage in the housing market. First, many current homeowners are simply not selling, keeping older homes off the market that would otherwise buoy the amount of available supply. Second, many millennials are turning 30, which is an age at which many become first-time homeowners, further spiking demand. Additionally, low interest rates make mortgages particularly appealing right now, making the cost of home ownership relatively cheap, even with the inflated home prices. Added together, it means that many people are looking to buy new homes, even if there aren’t any homes to sell.
If you are looking to buy or sell real estate, you may need legal representation to help you navigate the difficulties of the current market. Wingate, Kearney & Cullen, LLP represents buyers and sellers of residential and commercial properties including co-ops, condominiums, single-family homes, and multiple family dwellings. Wingate, Kearney & Cullen, LLP assists our clients in achieving their goals through a diversified real estate practice. For more information or to schedule a consultation, call (718) 852-5900 or fill out our contact form.