Featuring real estate articles and information to help real estate buyers and sellers. The Nest features writings from Georges Benoliel and other real estate professionals. Georges is the Co-Founder of NestApple and has been working as an active real estate investor for over a decade.
2021 was the year of skyrocketing real estate prices, and New York was no stranger to that, but relief may finally be in sight. Time magazine and StreetEasy have produced their own set of predictions for the state of the NY real estate market in 2022, and at the top of their forecast is a course correction. Let’s discuss the upcoming 2022 Property Market. There are already signs that a little bit of calm is starting into the red-hot market, with bidding wars on the way down – where will this leave buyers?
Part of the market evening out will be the settling of mortgage rates. Forbes approximate that rates will gradually increase uptick, but there is a crucial bit of information hidden there. While rates continue to rise, so do rents, and at a far greater level.
It makes more long-term sense to make the jump into a purchased property, even if current prices are relatively high. Furthermore, as mortgage industry expert Ryan Kelley highlights, the rise of digital lenders is creating cost savings at several points in the home purchasing cycle.
Keeping inflated rents in your pocket instead, putting it into mortgage or equity makes more financial sense.
There’s been an upward trend in commercial property financing in the city and some smaller towns. The Real Deal highlights the Wells Fargo-led refinancing of One Vanderbilt as the leading symptom to the tune of $3 billion.
This is driving up prices elsewhere in the city; the influx of luxury accommodation associated with higher commercial office spending is at the root of that.
Despite the course correction, there’ll still be extensive haggling and bartering to be done within the market. Syracuse magazine notes that many asking prices have been anything but that in NY and especially central NY. Most sellers are getting far more than the ticket price indicates, given the heat of the market, and that will outlast any course correction.
Housing stock remains low, so it’s essential to arrive prepared for that by having extra cash in the pocket.
Prices may flatten, but the market is still bumpy. Buyers should be aware of that before diving into the NY property market once again. However, housebuilding will rise in the future. As a result, there may well be a less volatile market to look forward to.