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Some Market Pockets Are HOT!
by: Anthony DiMaio
Real estate is all about location. So, tell me something I don't know! Well, it may be about location, but the dynamics and the market demands of the way we look at various market niches is going to change. Granted, the low inventory, the high prices and the high interest rates are reconfiguring what's affordable, what is reasonable and what is realistic.
As Manhattan rents cross the $4,100-a-month threshold, and demand continues to support higher levels, renters are being forced to look elsewhere, now that Brooklyn is almost as out of reach as Manhattan.
Corcoran, the real estate agency, reported that the median rent in Brooklyn was now $4,100 in June 2024. This reflects an 8% increase year-over-year. So, what is the future for renters and homeowners?
Everyone has to live somewhere, and, since the hybrid business model is now a reality, those employees who are able to move further away from the classic urban business centers are doing so.
The website realtor.com reported recently that one of the hottest markets in the Northeast was Hartford, Connecticut. Its unique proximity to both Boston and New York City makes it an ideal midpoint for first-time home buyers to dip their toe into the real estate market. In Hartford, according to realtor.com the median home price is now $450,000. Whereas in New York City, the median home price is $825,000, almost double of Hartford.
These shadow urban markets are coming alive: since New Haven - Milford, Connecticut came in at #9 and the Worcester- Massachusetts, Connecticut region at #12, and Bridgeport-Stafford-Norwalk, Connecticut came in #13 and Norwich-New London came in #19. So out of the five hottest real estate markets in the country, the state of Connecticut claimed five.
It has been noted that another element to these markets that makes them attractive is their quality education systems and also the green space element for all of these markets.
Talk about freaky pricing: realtor.com noted that Manchester, New Hampshire, which is just an hour from Boston, reported median home prices of $598,000 - that's over $100,000 more than the median price of a home in the nation.
As long as prices continue to remain out of reach for most buyers, the Midwest and the Northeast Metro surrounding areas will continue to dominate the hottest markets.
Here are some of the other findings:
■ An interesting finding was that 2024 sellers were 87% more likely to sell below asking price than sellers in 2022.
■ About 64% of sellers made money on their sale.
■ The median profit resulting from each sale totaled $100,000.
■ More than half of sellers (58%) had to reduce their asking price.
■ Approximately one-third (34%) of home sellers were not satisfied with the final sale price of their home.
■ About 89% of sellers have regrets about their sale. The most common regrets include selling too quickly (30%), missing their old home (29%), and not selling for enough money (28%).
■ Another 89% of sellers had to compromise on their priorities.
■ The most-compromised priority was selling above asking price. One-third of sellers (33%) said it was a priority, but of those, 13% had to settle for asking price or below.
Average cost of selling a home depends on a number of factors. Here are some of the categories and breakdowns for the costs for homeowners to sell their homes:
- Listing agent commission on the median-priced home: $11,136
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Buyer's agent commission on the median-priced home: $10,467
- Pre- and post-listing repairs, improvements, and renovations: $10,000
- Closing costs: $8,000
- Concessions to the buyer: $7,200
- Moving costs: $3,250
- Marketing: $2,300
- Staging: $2,263
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