The year of 2017 began with low inventory in New York. The result was bidding wars followed by the selling of homes above their asking prices. In other words, the world of residential real estate transactions mirrored that of previous years in the Empire State.
With that, the trend of rising prices, buyer fights over houses and lower inventory does not appear to be changing anytime soon in 2018. Part of the reason for this is that many home sellers will not list since they have not found their new homes first. Also, when they finally stumble upon the houses they want, buying them can be challenging because their current homes are not yet under contract.
More sellers must be willing to put their homes on the market to meet the demand for homes among buyers. Alternatively, more builders could provide inventory, but this is becoming increasingly challenging with many towns and cities making it harder to build. If neither of these happen, interest rates would likely have to go up to decrease the number of consumers willing to jump into the housing market. The result would be fewer buying wars and, therefore, potentially lower home prices.
The current sellers' market may encourage many sellers in New York to try to unload their homes for top dollar this spring. However, failure to understand the legal aspects of real estate transactions can cause a potentially promising deal to go belly-up. A qualified attorney can provide the guidance that both sellers and buyers need to achieve their unique goals in the complex New York real estate world.
Source: boston.com, "Ask the Realtor: How to break the gridlock in a frustrating market", Anthony Lamacchia, Jan. 25, 2018