Price increases in real estate markets and its advantages
Did you know that in the real estate market, knowing the trends can take you to the top?
New York City boasts one of the most recognizable housing markets in the world. Fueled by a vibrant economy and iconic status, it consistently attracts a wave of residents seeking a piece of the Big Apple dream.
However, before diving into this dynamic market, understanding current trends and price points is crucial.
This year is shaping up to be a pivotal moment in real estate, marked by evolving demand, shifting supply dynamics, and changing pricing patterns.
With the impending impact of fluctuating mortgage rates, the NYC housing market is poised for what could be a transformative year.
New York City Housing Market Report – 2024
Home Sales in Real Estate Market
The home sales data from StreetEasy shows a notable uptick in activity this year. In July alone, 1,984 homes entered contract, a significant 12.5% increase from the previous year.
As a resident of New York City, it has been fascinating to see the landscape shift, with more buyers showing intent to purchase despite historically high mortgage rates.
A keen observation from my experience is that the market is particularly vibrant for properties in the middle price segment, which is seeing a faster turnover. Homes priced between $750,000 and $1.7 million spent an average of 61 days on the market, down from 71 days last July.
The rapid movement in the mid-priced homes category illustrates a resurgence of buyer confidence as more potential homeowners feel the pinch of rising rental costs and view purchasing as a favorable long-term investment.
Home Prices in Real Estate Market
As of the latest data, the median asking price in New York City remains at $1.1 million, a figure mirrored from earlier this year, suggesting that although prices have stabilized at high levels, the peak might not be far off.
It is crucial to look at these figures in the context of the broader economic environment.
With the Federal Reserve expected to cut interest rates in September 2024, mortgage rates are gradually decreasing, making home affordability a little better for buyers.
However, the typical home sales are still pushing against an average median price point, which can feel daunting.
Interestingly, condo prices in Brooklyn are notably on the rise, averaging nearly $1.1 million—a 9.7% increase from last year.
This continues to reinforce the notion that as neighborhoods develop and offerings diversify, some areas are becoming prime targets for higher returns.
One can’t help but reflect on the shifting preferences that accompany these price trends; buyers are now leaning more towards condos over co-ops due to greater flexibility in financing options.
Housing Supply
New condos are appearing at a robust rate, signaling an important shift in inventory. For the first time since 2019, new condo listings have overtaken new co-op listings, with a remarkable increase of 5.5% year-over-year.
With 3,694 condos listed between May and July, it’s clear that sellers are responding to market demands—particularly in Manhattan and Brooklyn.
From my perspective, this change is not just about numbers; it’s reflective of a broader attitude towards ownership in NYC.
Many buyers are now willing to consider condos over co-ops, largely due to their more lenient financing arrangements and lack of rigid application processes. This trend is particularly relevant for first-time buyers, who often face hurdles in traditional co-op applications.
However, inventory is not uniform across the city. The overall housing stock remains tight despite a surge in new listings.
As of July, there were 17,618 homes on the market, just a slight decline from last year, indicating that while sellers are more willing to list their homes, the inventory levels still create a competitive environment.
NYC Housing Real Estate Market Trends
Analyzing the various market trends gives great insight into what to expect as we head deeper into the year.
The rise in new listings combined with a decline in total inventory paints a picture of a market that is in transition. Homes in the lower third price range (under $750,000) are also witnessing increased interest, with new contracts rising 13.5% year-over-year, which indicates a growing pool of buyers looking to enter the market.
One of the more compelling aspects of the current market dynamics is the increasing prevalence of price cuts.
Data indicates that 10.4% of homes on the market reduced their asking prices in July, compared to 10.1% the previous year.
This suggests that while the demand remains strong, sellers might be reassessing their expectations, paving the way for more balanced negotiations as inventory rises.
Particular neighborhoods are driving the competitive nature of the market. For example, Queens has become more competitive for starter homes, with 402 new contracts being signed despite a decrease in new listings.
As an observer of local trends, I find it noteworthy how neighborhoods like Jackson Heights and Astoria are emerging as hotspots due to their desirable features and more affordable pricing.
Real Estate Market: How Connekter Fits Into My Business?
In addition to professional support aimed at getting new potential clients, Connekter is a sure way to save time and resources. And, in a way, many of its advantages are based on that premise.
Connekter works with pre-qualified clients. These are clients who already know our services. Therefore, they offer a greater guarantee of sales and greater security. In addition to easy integration with CRMs and other platforms.
Depending on the time, the information in Connekter is also centralized. That is, everything is in one place. The leads go directly to the client. Then, the client can manage them from a control panel. Easy access and management.
The time you would spend on that can now be spent on other things. For example, exploring new trends. Or simply doing your daily activities. You can always visit our partner blog, where we publish up-to-date information.
Data segmentation at Connekter is another strong point. By collecting information, the platform groups the data. To do this, we take several criteria into account. These include the client’s budget and level of interest, as well as the area or location.
Let Connekter integrate into your routine. Guarantee time and security. At the same time, you improve your results on the road to success in the changing world of real estate. Write us today!
Extra resources:
- Real Estate Investing for Beginners: 12 Expert Tips for Buying Your First Investment Property. https://www.redfin.com/blog/real-estate-investing-for-beginners/
- Turning Real Estate Goals into Achievements: A Step-by-Step Guide. https://medium.com/@DennySeybert/turning-real-estate-goals-into-achievements-a-step-by-step-guide-4f31c1beb592
- Meet the Mentor Who Changed My Entire Real Estate Journey
