Um, the Current State of the NYC Real Estate Market?(??)
Being in an industry that is 100% commission, with zero benefits, where business is never handed to you, and is intrinsically tied to an extremely volatile and unpredictable market is a bit stressful. Some magical combination of the stock market, the job market, interest rates, the general health of the economy, global events, general elections, and the whimsy of arbitrary human tendencies becomes the dealer of the hand of cards you have to play for anywhere from 6 to 18 months. On the broker’s side, when you’re handed a royal flush, life is great. Buyers are getting deals, sellers are walking away in the green, people are upgrading, and the market is strong and consistent. But when you’re handed a tricky hand with questionable promise, things get precarious. People enter strong markets confident and without questions; a risky market will give many a reason for pause and that’s when the questions and concerns begin.
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Every news outlet and media source has their opinion about the current state of the New York Real Estate Market. Regardless of whatever side of the political aisle you may be on, you must admit most news sources exaggerate and sensationalize their stories and many people believe those words as the cold, hard truth.
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But to put the current market in short: Welcome to the Wild Wild West; it’s wholly a buyer’s market however sellers are in denial of such so cue an epic stalemate.
^Me, every evening and most mornings.
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We’re in a season of correction for the real estate market, however the adjustment is happening begrudgingly so. Sellers are clinging to outdated price expectations set when interest rates were lower and the old federal tax law was still in play. Buyers are grappling with rising interest rates and the new federal cap on mortgage interest deductions. Buyers know the market condition and most sellers’ dilemmas so they’re on the hunt for the lowest price possible and taking their time to do such. In lieu of a strong economy, the real estate market in New York is plagued with this disconnect, causing slower conditions particularly in the one-bedroom segment of the market that is more heavily reliant on financing and effected by interest rates.
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Sellers need to be cognizant that buyers are additionally straddled with the new tax law changes – effecting mortgage interest, state, and local deductions – which is deflating their sense of urgency. While the market is shifting and adapting to current pricing standards, sellers must understand the reality: in order to move their properties, pricing cannot be based on old expectations. Sellers must pander to the buyers, who have plenty of options and are in no rush. If you’re looking to buy and have the financial capabilities, welcome to the best buyers’ market we’ve seen in years, in which the seat of power is all yours.