As the real estate market continues to shift and housing prices within New York City continue to rise, the middle class appears to be at risk of being priced out of Manhattan. With that reality, many of the other boroughs are grabbing the attention of those looking to buy a home of their own.
Staten Island has consistently proven to offer families a place to own a home at an affordable price point. With that in mind, it is important to understand how the real estate market is trending in this borough.
If you are in the market for a new home, here are 5 Staten Island real estate trends to watch.
It Is a Buyer’s Market
Inventory continues to increase in Staten Island, with it reaching the point where multiple-offer scenarios have been almost eliminated. Over the last several years, Staten Island home buying had reached a frenzy, one that appeared to push houses out of the affordability range for many millennial buyers.
However, as with many real estate trends, the increasing number of homes on the market is readjusting those factors. Now buyers have a chance to get into the market and make their home purchase with less competition driving up the prices.
Interest Rate Hikes Benefit Buyers
It can be hard to understand why interest rate hikes are a positive for buyers. The reality is that as interest rates go up, the number of buyers is going to decrease. Simply put, the increasing interest rates translates into a few hundred dollars a month and that could impact the affordability for some buyers as their monthly out-of-pocket expenses increase.
Knowing your budget and being open to locking your rate can be key to moving forward in this current market and deciding what works for your budget. Plus, these rate increases can help stabilize real estate markets.
Sales Are Slowing
The benefit of slowing sales is that houses are staying on the market a little longer. It gives buyers the chance to shop around before making a decision, instead of quickly putting in a bid to avoid losing a potential new home.
The increasing number of homes in the market reflect the demand of sellers to let go of their starter homes and move into a home reflecting their families’ growing needs.
Favorable for Buyers and Downside for Sellers
All of these factors mean that buyers have more options and less bidding wars. At the same time, sellers who are priced well can still walk away with a nice profit. Sellers need to recognize that in a buyer’s market, their houses are likely to sit on the market longer than they would in a seller’s market. Overpriced homes may be on the market even longer.
For a seller looking to get rid of their property, it is important to price against the competition to keep it from sitting for too long. However, this market can also benefit those sellers if they are looking to buy in the same market.
Home Values Continue to Increase
While the home prices in Staten Island are not racing upward, there is a consistent trend of steady growth. According to Zillow, housing prices increased 5.8% over the past year. For sellers, it means being able to sell with a profit. At the same time, these prices are still affordable in comparison to Manhattan or other boroughs.
The trends of Staten Island homes for sale are moving in favor of buyers. If you are considering making a move to Staten Island, then contact our team today.
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.