The New York real estate market is dynamic, expensive, and will give any investor a pause.
The market as a whole has seen impressive year-over-year growth in the past years. But then, will the New York real estate market continue on this path into the New Year? Does the market hold any promise for investors? These and more are the focus in this quick look at expert predictions for this state’s real estate trends in 2020.
A Brief Overview of the New York Real Estate Market
Only a few other American cities come close to the fame and vibrancy of New York.
These qualities are perfectly reflected in New York’s real estate market and have made it a top choice for investors looking for long-term investments. Despite being one of the most expensive real estate markets in the United States, the demand has not slowed and the market has been growing impressively.
According to Zillow, the New York real estate market has a median value of $647,115. Compared to last year, this represents a 0.7% decline. Price per square feet in New York is $674, significantly higher than the average for the New York-Newark-Jersey metro area that has an average price per square feet of $288. That said, what will this real estate market look like in 2020?
Up until now, it has seen development at a steady pace. The recent global trade and political uncertainty, however, seems to be rubbing off on the market. Zillow predicts that house values in this renter-dominated market will plunge a further 1.3% within the next year. But then, real estate experts have also weighed in on the fate of the market for 2020 with several predictions about what to expect this year.
New York real estate in 2020 will most likely be a buyer’s market
This is possible when you consider that there may be an over-saturation of inventory in the market even with more inventories expected to be released within the year. This compelling article in the New York Times explains succinctly why “It’s absolutely fantastic to be a buyer.” Coupled with the uncertainty that may come with 2020 as an election year, it’s possible that the market may hold steady and give buyers a negotiating advantage.
New legislation may change a few things in the market
We’re expecting new laws about renting sometime this year. As it is, this could help renters and also hurt them in the long run. Neighborhoods like Manhattan will see demand increase due to sheer affordability. In neighborhoods without rent-stabilized apartments, we can expect that the reduced opportunity for new market-rate homes can delay new developments. Over time, the demand can end up driving up homes in this neighborhood.
Strong rental market predicted
Although home prices may have taken a dip lately, rental prices in New York continue to soar, reaching new highs. More than 70% of the population here are renters and the demand for rent is still reasonably competitive. The global unrest may also spur some would-be buyers into renting as well.
Bottom Line
The New York real estate market is poised for even more growth over time. According to Little Big Homes, home prices are expected to be higher in Q3 2021 than they were in Q3 2018. If you’re looking for a market with long-term promise, New York should still be a consideration for you, especially right now, before the prices jump further out of reach.
This information, based on New York law, was provided courtesy of The Law Office of Christopher J. Arrigali, P.C. It is intended to inform, not to advise. No one should try to interpret or apply any law without the assistance of legal counsel. Please click here for the full disclaimer.
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