New Yorkers Optimistic About the Housing Market - Let’s face it – New Yorkers can be a tough bunch to please. So, when you hear that New Yorkers are optimistic about the housing market for the first time in three years, you know there has to be some strong evidence convincing them that good things are around the corner!
According to a study conducted by Siena College, the level of New Yorkers’ confidence in the housing market shot up nearly 12 points at the end of 2012. In fact, the New Yorkers surveyed said that the housing market had turned the corner and was ready for bigger and better days. They believe that buyers still have the upper-hand, but they say that gap is quickly getting smaller. That’s a huge change from last year’s study, which basically said that rich buyers who had access to a ton of cash were taking advantage of desperate sellers. Those results were anything but optimistic!
But what a difference a year can make! And best of all, the optimism that New Yorkers are feeling right now isn’t some pie-in-the-sky fantasy. There are numbers to support all of these good feelings.
Just take a look at Manhattan, which experienced a full-fledged buying frenzy before the end of the year. Part of it was due to tax changes that were scheduled to take effect in 2013. However, real estate experts said that many of the purchases that took place in December would have normally taken place right at the beginning of 2013 – meaning that the demand was there. Sure, a couple of tax changes may have sped things along, but buyers were still ready, willing, and able to sign on the dotted line. The buying hasn’t just increased in Manhattan, though.
According to statewide numbers released by the New York Association of Realtors last week, the number of closed sales increased 7% between 2011 and 2012. The 4th quarter – which is typically slow, thanks to the holidays – actually saw a 6% increase in sales over last year. In fact, the increase was so great that it prompted Duncan McKenzie, the CEO of the Association of Realtors, to proclaim that the state’s housing market was in “full recovery mode”.
One other thing that’s causing New Yorkers to feel optimistic right now? A shrinking inventory.
In most parts of the country, there are hardly enough homes for sale to scrape together a listing. However, New Yorkers have the opposite problem. At the end of 2011, the inventory was 12.3 months (more than double what real estate experts consider to be “healthy” and “balanced”). By the end of 2012, the inventory had dropped to an 8.8 month supply. That’s still higher than experts would like it to be. However, it’s proof that homes are starting to sell faster than they were a year ago. And remember, this is the same state that had a hurricane to contend with just a few months ago. Even though the recovery from Sandy is going to have a lingering effect on New York’s housing market throughout 2013, it still isn’t dampening the optimism that New Yorkers feel right now!
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