With stock market swings, trade wars and a government shutdown ringing in the new year, 2019 may seem like a precarious time to purchase property in New York City. But even though there are valid causes of uncertainty at both a macro and micro level, the NYC real estate market still has many attractive opportunities, and current market conditions favor buyers.
What may give some buyers cause for concern is that the NYC market is currently in a slump, which means more inventory, lower prices, and motivated sellers. But all markets go through cycles, and this current cycle means that buyers can often find good deals and wide selection when searching for a home.
“The common consumer follows a herd mentality,” says Mukul Lalchandani, The Modern Agent. “If everyone is buying, others follow suit, and that is when prices are high. In a slow market, people prefer to wait and watch, and this is when the savvy buyer comes in and scoops up deals.”
Overall, active inventory rose 11.8% from Q4 2017 to Q4 2018, led by listings for studios and 1-bedroom apartments, according to The Douglass Elliman Q4 2018 report. The real estate company also notes in its report that there’s been a 5.8% year-over-year drop in median sales prices (just under $1 million) for NYC apartments, with Q4 2018 showing the fifth consecutive year-over-year quarterly sales drop.
Moreover, real estate listings company Streeteasy saw that the share of listings on the site with a price cut in 2018 hit the highest levels since the financial crisis. However, the company notes that the average amount of the price cuts has not changed, with most sellers only making small changes to attract buyers. “This strategy didn’t work in 2018, and isn’t likely to in 2019,” says Streeteasy in its 2019 outlook.
So in 2019, sellers might have to make further concessions, thereby tipping the NYC real estate market further in the favor of buyers.
“Personally, I have seen developers offer up to 20% off the asking price, while others have given attractive concessions, such as up to 5 years of common charges paid upfront,” says The Modern Agent’s Lalchandani.
The Modern Agent helps buyers navigate this market and find great deals by blending our local NYC expertise with our international sensibilities. By staying plugged into ongoing cultural and technological trends locally and internationally, we’re able to infuse a sense of modernity, brilliance, integrity, and ease into everything we do.
We also see that NYC market conditions and the needs of New Yorkers often differ from other markets. New York is truly unique, and the changes in the world around it don’t necessarily affect the city the same as they might elsewhere. So for those sitting on the sidelines wondering whether it’s a good time to buy property in NYC, 2019 could be ripe to jump in while the availability of amazing apartments and flexibility of sellers remains high.
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The above article is not intended to constitute investment advice. The article is for informational purposes only. The information in the article is general in nature and does not take into account individual circumstances. Please consult a licensed investment professional for investment advice.