In 2019, the NYC real estate market went through some significant changes, such as rent reforms and a decrease in luxury condos sales. These changes have an impact on everyone, including landlords, renters, sellers, and buyers. Depending on what category you may fall into, the 2019 changes will have a unique impact on each group.
If you are in the market for rentals, you will see that due to the amount of competition, rents are not going to decrease anytime soon. If anything, the rent prices will continue to rise, and there will be less of a chance of landlords offering any types of concessions. Also, landlords are increasing rental rates on market-rate tenants.
Another option would be to consider co-living opportunities with these companies advertising hassle-free renting, flexible terms, and lower upfront fees compared to the traditional rentals. It’s important to research the company, check the business’ reviews, and read the fine print. Just be sure to complete your due diligence.
If you’re looking to buy in 2020, it may be your year to do so as the market conditions are favorable for price drops. There has been a decrease in the number of sales in NYC for the past two years. Because of this, the prices of condos are being dragged down, mortgage rates continue to stay drastically low, and developers are offering extravagant incentives to close deals. These trends are forecasted to continue throughout 2020.
Sellers in the market need to have realistic expectations and realize that the sales prices have declined. Most likely, the seller will not get a higher price than their neighbors did just six months ago. If the seller is looking to trade up, now may be a good time since the weaker the market is, the pricier condos are. If you need to sell, now is the time to do it as the market is at a place of uncertainty.
The real estate forecast in NYC has shown that the market has slowed down, rental prices have increased, and sellers are looking at lower price tags when selling their homes. Because of this, negotiations for a lower cost are more likely to happen. Buyers should explore all their options and keep their eyes open for deals.