What are the New York City real estate market predictions for 2021? New York City has a track record of being one of the best long term real estate investments in the U.S. The New York real estate market has been booming year-over-year. NYC home prices nearly doubled in the 2010s. With supply and demand continuing to favor sellers, prices continue to rise year over year.
According to NeighborhoodScout’s data, the cumulative appreciation rate over the ten years has been 47.57%, which ranks in the top 30% nationwide. This equates to an annual average New York house appreciation rate of 3.97%.
During the latest twelve months, New York’s appreciation rate, at 4.68%, has been at or slightly above the national average. In the latest quarter, New York’s appreciation rate has been 0.75%, which annualizes to a rate of 3.02%, which is a positive forecast.
According to Curbed by Miller Samuel/Douglas Elliman, the median home sale price for all of New York City in the first quarter of 2010 was $383,699. Prices started rising in 2013 and by the end of 2018, that number had almost doubled to $658,000.
2018 was the sixth consecutive year of home price gains in New York City. Since last year the NYC home prices have remained flat. The real estate market was already cooling off and the pandemic has further slowed it down after NYC became its epicenter.
Let us look at Zillow’s data. Since 2015, the median home price in NYC has appreciated by roughly 28.24%. At the start of 2020, the typical value of homes in New York City was around $624,000. At present, it is $645,143.
The typical value of homes in New York state is $346,328 and the typical value of homes in New York-Newark-Jersey City Metro is $497,090. These values are seasonally adjusted and only includes the middle price tier of homes.
Here’s Zillow’s housing market forecast for New York, NYC, and New York-Newark-Jersey City Metro. According to their forecast, the supply and demand dynamics will likely push prices north again over the next 12 months. The New York housing market will favors sellers over buyers.
- New York City home values have gone up 1.6% over the past year and the latest forecast is that they will rise 6.7% over the next 12 months.
- New York (statewide) home values have gone up 5.1% over the past year and the latest forecast is that they will rise 7.6% over the next 12 months.
- New York-Newark-Jersey City Metro Metro home values have gone up 4.7% over the past year and the latest forecast is that they will rise 6.3% over the next 12 months.
Please note that this is an overall market forecast and cannot be deemed 100% accurate. The ongoing pandemic has dramatically changed the dynamics of New York’s real estate market and it can vary from neighborhood to neighborhood. Submarket reports from local brokerages like StreetEasy show that prices continue to fall in Manhattan, and have begun falling in Queens.
Brooklyn was showing an increased buyer activity in August, especially at lower price levels and in the Prospect Park submarket but overall there was a price drop of 2.4% in October. The economic impact of pandemic makes everything more uncertain. The market outlook appears fairly bright for Brooklyn, uncertain for Queens, and likely weak for Manhattan, which has record levels of inventory and many potential buyers looking elsewhere. People are moving out and buyer interest in suburban neighborhoods and areas with low population density has spiked.
For sellers in New York, it is a great time to sell. Motivated buyers are looking for houses for sale, and you are not competing with as many property owners. Many sellers have chosen to back out amid this pandemic.
For buyers in New York, the mortgage rates are at their lowest. Sellers are listing more properties. New listings increased by 9.7% y-o-y in October. The rate on a 30-year fixed-rate mortgage has fallen to below 3 percent, according to Freddie Mac. As we write this, it is holding at 2.88%. The 15-year fixed-rate mortgage is 2.36%. This is the lowest monthly average commitment rate on a 30-year fixed-rate mortgage since Freddie Mac began tracking in 1971.
Any homeowner looking to cash out and sell off their property should do it in the current phase. However, if you looking to buy a home, you should consider a thing called a tipping point. Nationally, the median tipping point is around two years but in New York, it’s 5.8 years.
The higher a home is priced, the longer you’ll need to stay in it to invest pay off relative to renting. It is smarter to buy a property if you plan to be in an area for seven years or longer.
As seen on: Norada