With the autumn real estate season starting after Labor Day, it’s important that home buyers and sellers understand how the market has changed this year and what we expect to see throughout the remainder of the year.
Starter homes are still in high demand with many new listings receiving multiple bids. However, the higher ends of the market have softened, with homes sitting longer and price reductions commonplace. Middle-market homes are starting to experience this softening as well.
What is causing these market changes? There are a number of possible factors:
- For many years, foreign buyers have driven the higher ends of the market, fanning the inflation on seven-to-eight figure priced homes. With fewer foreign nationals investing millions in NYC apartments, Gold Coast homes, and Hamptons properties, demand has diminished.
- While there is still a lack of inventory for middle-market homes, I’m seeing the mindset of homebuyers changing. Many are no longer willing to pay what they perceive to be the exorbitant asking prices of sellers attempting to max out their sale price.
- Economists are predicting a possible recession in 2019 or 2020. (It’s important to understand recessions are an inevitable – often healthy – part of a normal economic cycle.) Could buyers be procrastinating to see what the market will bring? But those waiting may later kick themselves due to opportunities they’ve miss out on.
As a public service, in 2015, Mortgage Wealth Advisors launched our Home Opportunity Initiative to educate New Yorkers on the affordability and opportunities for homeownership. Even as the real estate market changes, there are opportunities abound.
For more information or a no-cost analysis
to determine the opportunities for your family,
call me at 516-302-1090.
And if you know someone else contemplating buying or selling their home,
please introduce them!
I know they would benefit from a 15 minute conversation with us.
Warren Goldberg is President of Mortgage Wealth Advisors, a Certified Mortgage Planning Specialist®, and a published author. His interviews include Blog-Talk Radio, Newsday, The Daily News, Anton Press, and the Long Island Herald. Since 1992, he’s been sharing his financial knowledge and wealth-building strategies, including how to properly use your mortgage as a financial tool. His clients regularly express their trust and appreciation by recommending friends and family call when in need of mortgage, real estate, and financial guidance.