In this article, as the title states, we’ll discuss the current NYC real estate trends. We at Ben Hur Moving & Storage NYC will show you what is currently happening with real estate trends during summer/fall 2022. As you could see and experience, 2020 and 2021 were difficult years with the COVID-19 pandemic. Now in 2022, this hasn’t stopped it’s just different, for buyers, sellers, renters as well as investors. So let’s take a deep dive into the ever-changing NYC real estate market and its trends!
Current real estate trends and the economy
As you may have already heard, numerous factors affect the economy as well as the current NYC real estate trends. One extra thing that affects the real estate market is the seasons, as you may know, it usually starts slowing down during the fall/winter. But one of the major factors that are messing with the real estate market is post-pandemic inflation. Just take a look at the money being printed during the pandemic, that’s $13 trillion solely in 2021. Only $3 trillion was used for infrastructure, while $5.2 trillion was used for COVID-19-related expenses and 4.5 trillion for quantitative earnings. We as one of the most reliable movers Manhattan can tell you that the inflation is kicking mostly due to overprinting dollars. To put it this way 80% of all dollars in existence were printed in 2020 and 2021 alone. In addition, current inflation is 8.52% compared to 9.06% last month (August).
So let’s put it simply this is not the best year for buyers. So there is a good reason for this, a lot of people sold their homes in the previous two years. But now the market is 16% lower for those who want to buy. It’s partially because people don’t want to sell their homes. So because of the previously mentioned inflation rates the FED raised a 30-year fixed mortgage to about 6.02 % this week. We as a company that offers self storage NYC have a lot of renters this year. Since people wanted to move to a bigger place or change their current home, they’re looking for places for extra storage. This trend is ongoing and it’ll follow through the winter to 2023.
Rising prices of NYC real estates
This is another problem caused by this domino effect in our economy that affects current NYC real estate trends. Other things are affecting the economy such as the rise in fossil fuel prices. As many economists are suspecting the price of gas is affecting everything and as it’s standing now it’s not that good. Being one of the best Chinatown movers we can tell you that the moving industry has been affected as well. First of all the prices of gas have risen, before that the pandemic hit us hard with less moving in general. Now, who knows what’s next in this economic climate? Well, there is one more thing and that is the fear of recession. That’s one of the driving reasons after all of these. Since the US economy is about to fall into recession by the end of fall or 2022 and at the beginning of 2023 for sure.
Other factors to consider when it comes to current NYC real estate prices
Now we’re not fearmongering this is how it is and the times are likely to pass as well as good times. Luckily it’s not like in Europe, where the prices of natural gas and other things have risen to 8 or 9 times. In contrast, at least the prices of fossil fuels in the US have dropped to $4 per gallon, which is the lowest in months. Our advice is to save at least 10% to 20% of your income. Be careful about the food prices and overspending since food is about to go triple or double in price. People aren’t aware but in 2022 we’re still eating most of the food from the last year. Since there was a disruption in the food market and the production of pesticides, insecticides, etc. the prices are likely to go up.
Other than that, there is ongoing microchip inflation. As you’ve probably heard, due to multiple external and internal factors, prices have been rising. Also, the covid has disrupted the tech supply chain as well as the whole microchip industry. So this is all contributing to the rising of prices overall, which is forcing prices to go up. Now there is one good indicator that we’ll cover in the next paragraph the demand for houses is falling. The reason behind this is that the demand is usually lower in the fall and much more. Like in biology so it’s in an economy, everything is connected.
Falling prices in fall and winter 2022
So the median price of the house is $650K which is 9.09% lower than in 2021. But don’t forget that prices from 2020 increased by 23% and in 2021 by 16%, so it’s still quite high. But take into consideration that prices during the peak season have risen as usual. As we all know inflation will keep rising but the demand for houses is dropping, which is good for buyers! In addition, some economists speculate that the housing market is about to crash, but we think that that’s less likely. We think that this is only a seasons thing and we would agree with that. So make a wise choice and don’t buy a house that you can’t still fully afford. We’ve also noted that a 15-year fixed finance rate has gone up to 5.2% while 10-year fixed rates are 5.03%.
The purpose of the Internet in current NYC real estate trends
First, if you’ve seen a bunch of ads for websites like Zillow or something like that? Well in the era of the internet online real estate has improved much more that that. For example, there is a current trend of selling your house to a third party. So you can check websites like Opendoor and Redfin that buy a house from you and then resell it. This is great for people who don’t want to deal with all paperwork and agents or can’t DIY the whole process. After they buy a house from you they’ll inspect the place fix anything if there is something and they’re gonna resell it. Just read the contracts carefully since some have “hidden” or additional fees, which means less money for you. Our professional movers Queens see this happening more than in the past.
Yet another problem with this is that some real-life agents who understand the market better and are better sellers might sell your house for a higher price. Our local movers Bronx, have noticed that especially young people are opting for online options.
Virtual agents and online closing are other popular real estate trends
We’ve already mentioned the company Redfin, so this is one of the companies that offer this service. We can explain this service as a mix of selling the house yourself and working with an agent. Now the commissions aren’t that high like when you’re working with an agent. We advise you just as with Zillow or Opendoor, to read everything, take a good look at commissions and do the math before you sign up for anything. If you’re a young professional check out some of the reasons why more and more young professionals love Queens. We’ve got more topics like this and others covered in our blog section.
Now as we’ve mentioned another popular method is mobile or online closing. To put it in simple terms, you can sell or buy a house without leaving your bed. Just be careful with everything else online, that we have or haven’t covered. Also, our advice is to contact professional real estate agents; even if it seems outdated they’re still your best insurance policy that you’re getting the money that you deserve. So is with moving if you’re moving your business consider contacting some of the most reliable commercial movers Queens that can help you with the move. It’s faster, easier, and more reliable, and get a free estimate on our website.
Current NYC real estate trends include rent-to-own deals
Now in this section, we’ll focus on renting a bit more. We all heard throughout this and last year that renting prices have gone up dramatically. So one of the new NYC real estate trends is rent-to-own deals. So as the name says you can rent a house or an apartment that you would like to own; right so sounds like a dream come true opportunity? Well maybe currently wrong this is probably one of the worst mistakes you can make. This is too risky and there are two main problems with this, you’re paying for rent plus a part of the money will go towards your future house ownership. Just to be clear in June 2021 the median rent in Brooklyn was $2,704 compared to $3,822 in June this year.
Our local movers Brooklyn have moved a lot of people from different parts of NYC, so we know what people are talking about. Also with these rent-to-own deals, you’ll have to pay probably for maintenance some repairs, etc. Furthermore, if you want to quit to break the contract you won’t get any money back. So it’s better to save money for your down payment which is usually 20% but you can sometimes put it down to 10%.
Now yet another bad idea would be to buy a house with no money for a down payment. This is one of the current NYC real estate trends but it’s terrible, some people will have then two loans at once. Just imagine borrowing money from two different companies at two different rates. As we’ve previously mentioned you must have at least 10% to 20% ready because buying a house with 0% of your pocket is a terrible financial decision.
First of all, we want to thank you for reading everything we have prepared about current NYC real estate trends. Now as one of the main factors to consider is your job, your financial goals, and the upcoming recession. This is imminent and it’ll probably hit us by the end of the year. As you’ve probably heard there was a $10, 000 student loan debt relief. So if you’re earning less than $125,000 a year or less than $250, 000 as a couple and you’ve used Pell Grant in college. But still, if you didn’t use Pell Grant you’re still gone quality, you just need to meet these earrings. This is another opportunity that you could use to improve your financial status. Also, the housing crash is less likely to happen this year. So we hope that we won’t see 2008/09 again next year.
There is also the Inflation Reduction Act. This is mostly going to reduce the prices of out-of-pocket medications which are expensive and don’t have competition or generic alternatives. If you’re interested in more about this, look it up online. So that would be it for this article and once again thank you for reading. We also hope that COVID-19 won’t come back to additionally destabilized the economic market. We hope that you liked our sum of all the current NYC real estate trends that we could find. If you need any professional help with the move contact us. Have a great day and a stress-free move!