Large urban areas, including New York City, have seen new residents coming into their areas after the end of the Great Recession and its subsequent recovery. Those looking for higher paying career opportunities and amazing social opportunities have found these urban centers are the place to be.
However, all the demand for housing has left the housing prices of these cities continuing to rise. In order to find housing that is affordable, many home buyers are looking at secondary markets around these cities, including Staten Island, allowing them to take advantage of benefits of urban environments in a budget friendly way. The housing forecast for 2019 seems to be mixed in terms of growth and who are going to be the newest round of home buyers.
Here are five real estate trends for the East Coast related to this shift to secondary markets to keep in mind.
Secondary Markets Mean More House for the Money
When it comes to finding a home in an urban environment, such as New York City, the amount of house you can get for your budget is going to be significantly smaller in terms of the home’s footprint. Once you step out to secondary markets, such as Staten Island real estate, you are able to get significantly more square footage with your budget.
However, these secondary markets also offer opportunities to still enjoy all that urban centers have to offer, making it a viable option for first time home buyers or those looking for more space for their families.
Home Prices Are Rising Slower
Another benefit of the secondary markets is that housing prices tend to rise slower. Demand is still evident but there are not as many instances of multiple bids on one property. While it is not exactly a buyer’s market, there are signs that it is shifting away from a seller’s market in terms of the high demand.
Why the slowdown in home prices? In a nutshell, the previously increasing mortgage rates had impacted the ability of some individuals to purchase a home. Demand was therefore being driven down, and that helped to slow the fevered pace of home price increases.
Declines in Housing Sales
While many markets remain strong and stable, the reality is that there are going to be declines in home sales within the context of long-term trends. That slight decline in home sales are going to keep home prices from rising too quickly in a majority of markets, particularly secondary markets, such as Staten Island real estate.
Mortgage Rates in Decline But For How Long?
There are also reports forecasting that mortgage interest rates are going to remain low as the Federal Reserve continues to try to balance between the trade wars and maintaining strong economic growth. However, recent rises have also meant that refinance applications are declining slightly.
Modest Inventory Gains Impact Buyers
For Millennials, the reality is that even with relatively low mortgage rates, the amount of inventory in many areas will continue to go down. The lower inventory is due in part to the slowdown in building new housing stock. Secondary markets, where families are downsizing or simply looking to move into a different area, are going to provide the housing stock for families looking for a larger home.
Staten Island real estate is primarily a place where housing stock remains plentiful and with interest rates remaining fairly low, home buyers can enjoy the benefits of being close to the city without paying the high prices of the urban core. If you are looking to purchase a new home, then contact our real estate team to learn more about the options available on Staten Island.
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.