|
Hi LivNY!,
Reflecting on 2023, it's undeniable that 2023 posed significant challenges for the real estate landscape in New York City. High-interest rates throughout the year and inflation slightly above the Federal Reserve's target led to a cautious market, where buyers and sellers engaged in a strategic waiting game.
However, resilient times are part of the real estate journey. Despite market uncertainty, some homes continue to find buyers, and opportunities arise for those who assess prices objectively. It's crucial to remember that real estate news tends to lag behind what’s truly happening in New York City real estate. Now, more than ever, partnering with a reputable agent well-versed in thorough market research is essential for setting a competitive price for your home.
Here are some key observations for 2024:
Mortgage Rates: November saw a 10-week low in mortgage rates, the most significant one-week drop in over a year. Such movements typically stimulate housing demand. If the Federal Reserve maintains benchmark interest rates this month, there is potential for further declines in mortgage rates in 2024. While a return to 2% rates is unlikely, a new normal is expected, influencing buying and selling activity.
Rental Market: The record highs of 2023 in rental prices seem to be behind us as prices decline, and vacancy rates increase. Predictions indicate rising rental inventory in the spring, creating downward pressure on rental prices.
Inflation: After almost two years of interest rate hikes, the U.S. economy appears to be aligning with the Federal Reserve's intentions. Inflation, which peaked at over 9% in July 2022, has recently receded to 3.5%, approaching the Fed's 2% target. If inflation remains subdued, there is a possibility of rate adjustments by mid-2024, impacting consumer confidence and potentially boosting buying activity.
Navigating out of 2023 underscores the importance of adaptability in the NYC real estate market. Whether you are a seller, buyer, or investor, staying informed about the evolving economic landscape is crucial for making sound investment decisions.
| 
