The various cycles of real estate can play a pivotal role in your decision to purchase a home. After all, the market can tend to favor one party over another, depending on whether it is a seller or buyer market, and larger economic factors can also play a role. Here is what you need to know about the real estate cycle to help you decide when is the right time to buy your home in Staten Island.
The Phases of a Real Estate Cycle
There are several stages of the real estate cycle. The first phase is generally known as recovery. This stage most often identifies with the end of a recession. Rental growth can appear to be flat and other factors may make it feel as if a real estate slump is in progress. Despite this appearance, those who know what to look for can see signs that an upswing is coming.
The second phase is often marked by expansion in those signs that suggest growth, such as job growth, rising rents, and low vacancy. Developers often use this time to start projects, predicting that they will be able to add to the supply without overreaching the demand.
The third phase is when decline begins, and the supply outpaces the demand. The final stage is a recession, when rents and prices decline, and high vacancy rates are typical aspects. Clearly, if you are looking to purchase a home, it is important to understand the local market.
The Local Market in Staten Island
When it comes to translating the real estate cycle to the local Staten Island market, it is important to recognize that being close to New York City can have an impact. Prices in the city remain high and it is evident that the real estate market there is starting to slow, but Staten Island’s market is thriving.
Plus, Staten Island home prices are rising, despite the decrease in the city’s average sale of home prices. Part of the reason that Staten Island’s market continues to thrive is that its prices remain lower than the other boroughs and offering affordable options for those looking to make a home purchase.
There are also the benefits of a low interest rate environment, which makes it an appealing time to buy a home.
Recognize that the best time to buy is when you are in a position to make a purchase, but also while the interest rates and sale prices are still relatively low. While understanding the real estate cycle can help you to better understand your local market, each market has its own unique aspects. Working with a real estate agent who is familiar with your local market can be key to maximizing your budget to get the best house for your family.
Ultimately, the best time to buy a house depends on your personal situation and the impact of the real estate market on the seller’s property. To determine if now is the best time for your home purchase, you need to start by understanding what is available. Contact us today to find out what homes are available on the market and schedule your house tours.
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.