New York real estate just had its most challenging quarter in several years. This downturn isn’t great news for anyone looking to sell but if you’re in the market to buy, now might be a perfect time. Real estate trends fluctuate hard and fast from quarter to quarter, so make sure you know the lay of the land before you act.
Whether you’re buying, selling, or planning to sit on your investment for a while, it’s to your benefit to always know what’s going on in real estate. The real estate market is a barometer for the economy as a whole, given that most people’s biggest asset is their home.
Staten Island has one of the most exciting real estate markets in all the five boroughs. There are many changes on the horizon so look for these 4 real estate trends in coming years.
1. Supply and Demand Changes
Like anywhere in the New York City area, you’ll find there isn’t enough housing to create a big dip in pricing. Demand will probably outpace supply just about everywhere in New York. However, Staten Island is one borough where you do see a decrease in population, which could lead to lower prices at least for the short term.
If things stay relatively stable, however, prices will continue to climb, with average prices bumping up against the level of affordability average New Yorkers can handle.
As the 18-45 demographic is largely absent in this borough, it’s mostly older people who might be looking to downsize from a family home to something smaller. If you’re in this demographic, you’d probably love to be able to sell your house as soon as possible. With more people taking this approach, there could be a flood to the market of 3-4-bedroom homes, which could start attracting younger families.
Where it might be hipper to try to find a place in north or central Brooklyn, Staten Island could be the place with the right price for a family.
3. Millennials Priced Out
The few millennials who could get places on the Island in the past 10 years might have contributed to a shortage, which raised prices. However, with prices going to levels they can no longer afford, the pendulum might swing in the opposite direction.
A flood of sales or new rentals could be the result of the millennials on the Island leaving. This exodus could create a higher supply to meet a mid-ranged demand, dropping prices significantly.
4. Looming Student Loan Debt
Student loan debts are affecting Americans of every age and just abnoopener nofollowout every tax bracket. With more than 40 million people dealing with loan debt, it can be harder to get a good mortgage loan.
As more people are locked out of the mortgage market, lenders might have to make riskier investments or come up with alternatives. The option is many homes are foreclosed upon and there are a lot of vacancies, which can affect the area’s home prices.
Real Estate Trends On Staten Island Can Change In An Instant
No matter where you live on the Island, you could be seeing major changes in the neighborhood in the coming years. Just like Brooklyn and Harlem saw a flood of a new generation of residents, Staten Island could be next.
If you’re a first-time homebuyer, check out our guide for first-time buyers to help you make the right decision.
Wonica Realtors & Appraisers are Staten Island’s #1 independent full-service real estate firm, serving the needs of the community for over 30 years. Whether you’re buying, selling, renting or relocating, our staff of highly trained professionals will provide quality realty services with personal attention to your individual real estate needs.