Will the Real Estate Industry’s Heat Continue Into 2021?
While we’re all exhausted after the tumultuous year we’ve experienced, it's important to stay on our toes and be prepared for next year. Whether you’ve met some setbacks or found solutions in these chaotic times that have paid off, having a solid plan in place for 2021 is crucial to your success.
The most active market in the state, NYC, has had a bumpy 2020; between the pandemic and rising rental prices, many city-dwellers have been pushed to rethink where they call home, while communities outside of the city have seen booms in real estate activity from those craving more space.
New York City is among the most expensive and competitive housing markets in the nation. It has also been one of the hardest hit by the COVID-19 pandemic. Even with these obstacles, New York buyer's interest would not be shaken, making a comeback after the reopening of the economy this summer which led to a very active home-shopping season in the fall.
2021 New York Real Estate Outlook: Hot
The current trends show that the New York housing market continues to be hyperactive despite the cold weather with a higher number of sales than normal. The New York real estate market continued to be sizzling hot statewide in October 2020 with both the number of sales and closing prices increasing by double digits compared to last year.
Data from Zillow shows that New York real estate prices have increased by 5.1% in the past year and are expected to go up another 7.6% in the next 12 months. The New York State Association of REALTORS® reported that sales were up as inventory was down in October. As a result, the New York real estate market will remain a seller’s market well into next year.
- Zillow Home Value Index: $349,939
- 1-Year Change (November 2019-November 2020): +5.1%
- 1-Year Forecast: +7.6%
- 1- Year Change on Rent Prices: +0.93%
- % of Homes With Negative Equity: 6.4%
- % Delinquent on Mortgages: 1.9%
- Buyer or Seller’s Market: Seller’s Market
Market Insights for New York State
Although the pandemic continues to grip our lives and change our day-to-day routines, real estate prices are soaring. One would expect real estate to take a massive hit as the nature of the industry is face-to-face interaction, but as the last year has shown us, real estate agents, investors, and the infrastructure we’ve built together in this industry are adaptable and agile.
New York state’s unemployment rate decreased to 9.6% in October 2020, according to the U.S. Bureau of Labor Statistics. While this rate is still high compared to the previous year’s unemployment rate of 3.7%, it’s a good indicator of progress within the state.
Record low interest rates and the need for additional workspace at home will continue to push the market’s value up while increasing competition within the low inventory of homes. Real estate agents in New York must be ready to take on this consistent demand while helping their clients beat out the competition for their dream home.
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