People around the world are dreaming about moving to the Big Apple. They want to experience life in the concrete jungle and see how good a fit they’d be. Most of them take the plunge and move. But those who stay face another question – is now a good time to buy a house in New York City? That is a difficult question to answer because it not only depends on the current NYC real estate market but also you – the buyer. More specifically, it depends on your needs, preferences, and of course, your budget. As for the market, we thought we’d help you out a bit so you can make a better decision on whether or not now is a good time to purchase a home in New York City. As for the rest, that’s up to you!
The New York Housing Market Trends
You can’t know whether now is a good time to buy a house in New York without looking at real estate trends for 2022 and checking the statistics first. Let’s crunch some numbers:
- Closed sales =13, 649 – there is a 14,6% decrease
- Pending sales =10,494 – there is a 4.0% increase
- Month’s supply of inventory =2.3 – down from 3.7
- New listings on the market = 7,896 – 12.3% decrease
- Total active listings = 30,654 – 30.4% decrease
All of the increases and decreases compare this and last year. As you can see, the situation may not be ideal for buying a house in New York, but it is a far cry from terrible. It is also important to note that the global pandemic is to blame for all the increases and decreases mentioned above. NYC real estate market (and many other industries) was severely hit by the whole COVID-19 situation. But all is not lost! According to real estate experts, New York is slowly recovering. Until then, use the following info as your guide:
- the median sale price is $855,000
- the median price per square foot is $898
- Tribeca is the most expensive neighborhood
- Riverdale is the least expensive neighborhood
Again, your decision should depend solely on you and your life situation.
The Unemployment Rate
You may be wondering why we are mentioning the unemployment rate right now. Well, it is rather simple – nobody should want to buy a house somewhere where the unemployment rate is… well, perhaps a bit too high. High unemployment rates imply a poor economy, difficulty finding a job, etc. So, whether you plan on buying a house in New York for yourself or as an investment, it is essential to think about employment, that is, unemployment.
Currently, New York City’s unemployment rate is 9.0%. That is good news, given that the unemployment rate last year was 9.5%. It means that the city is on its road to recovery! And, when it comes to New York City’s outskirts, the situation is also improving: in just a year, the unemployment rate decreased from 5.1% to 4.8%. It is expected that the situation will improve even more in the upcoming months.
Still, whether or not you have a secure job waiting for you in NYC is also something that could make or break your decision to buy a home in the Big Apple and move, especially if you’re moving long-distance. And if you do, there are some great moving companies in NYC that make sure that the entire state is covered and that this long-distance move to your new home is stress-free.
Currently, New York Has a Seller’s Market
New York’s real estate market is back! Everyone seems to want a slice of the Big Apple. So, if you decide that you want to buy a house in New York, you should know that competition is brutal here. Currently, the state of New York, and the city of New York, both have the so-called seller’s market. This means that there are a lot more buyers than sellers. And with that burst of demand, the hope of more affordable housing seems to be fading. Naturally, prices of homes are higher, the number of days they are staying on the market is lower, and bidding wars are fiercer than ever! However, one good news is that the predictions for 2022 show that this city still has a long way to go before reaching the inventory drought.
Cash is Everything
Since there are more buyers than sellers, homes are just flying off the market. This means a lot of competition and a lot of bidding wars. Competing in a sizzling hot real estate market can become incredibly slow and cumbersome. If you’re prepared to take specific steps that will make you stand out, this might be your time. Otherwise, the chances are you might probably lose the home of your dreams. Believe it or not, a house that once suited your budget can become unreachable in just a day.
Knowing how much house you can afford and offering to pay cash, for instance, may fortify your negotiating position. An all-cash offer brings plenty of benefits to the seller! It can show the seller that you are serious and ready to buy the house instantly. Thus, think about how much you can shell out and make sure you have that money. Moreover, have all the financial details ready too – talk to your financial advisor, loan lender, mortgage lender, etc. If you are prepared to do all of this quickly, now is the time to buy a house in New York. If you are not, maybe it is better to stay patient a bit longer.