Have you tried buying a New York home over the last couple of years but faced too many challenges to succeed? During the pandemic, the real estate market favored sellers as homes were in high demand, mortgage rates were at record lows, but there weren’t enough homes for sale to keep up with the demand. These factors, combined with rising home prices, may have led you to put off the purchase of a new home. But times are changing, and buyers may now find themselves in a better position to succeed. If you’re in the market for a New York home, then this is what you need to know about today’s market.
Buyer demand is leveling off
After a long period of record lows, mortgage rates are now higher than they were during the pandemic. This is part of the federal government’s strategy to help combat inflation. When rates were low, it created huge buyer demand. If you were house-hunting a year or two ago, then you no doubt faced stiff competition. But rising mortgage rates have helped to cool buyer demand. There are fewer people in the market for a new home right now, which helps to increase your chances of having your offer accepted.
The housing supply is growing
Another bit of good news for New York homebuyers is that the supply of houses for sale is growing. During the pandemic, buyers greatly outnumbered sellers. Housing inventory has been declining since the Great Recession, but data shows it is trending back up. With demand easing, homes aren’t selling as quickly as they were. This means when you’re house hunting, you’ll have more homes to choose from.
Bidding wars are becoming less common
Have you found yourself in the middle of a bidding war recently? Getting outbid on a home can be discouraging – especially if it happens more than once. But buyers will be happy to know that bidding wars are becoming less common. And while you may still find homes that receive multiple offers, the bidding wars on those homes are less intense. When you’re ready to make an offer on a New York home, rely on your agent to help you make the strongest offer possible.
Keep an eye on mortgage rates
Mortgage rates have increased this year, but they have also been fluctuating. If you’re ready to shop for a mortgage, then pay close attention to the mortgage rates each day. The rate you receive on your loan will impact how much house you can afford. Know how much you can spend for mortgage payments each month, and keep track of mortgage rates so that you aren’t making an offer on a home that you can’t afford. Conversely, lower rates mean you may be able to afford a higher-priced home, which can help give you more choices.
Be open to expanding your search
Finally, while inventory is on the rebound, it’s still lower than it has been in the past. If you’re having trouble finding a home that meets your needs, then consider expanding your search. Don’t be afraid to look at other neighborhoods or types of homes. You may end up finding exactly what you’re looking for!
Contact Keller New York today
Are you ready to jumpstart your journey to becoming a New York homeowner? Then contact the Keller New York Bronx office at 718-697-6800 or the Eastchester – Scarsdale office at 914-713-3270. Our team has expert knowledge of New York real estate and can help you achieve your real estate goals.