The current real estate climate in New York is a mixed bag for buyers. On one hand, the city continues to be one of the most desirable places to live in the world, with a thriving economy, world-class culture, and a rich history. This means that demand for housing in New York is consistently high, and prices have been steadily rising for years. However, the recent trend of quantitative tightening has resulted in a rise in interest rates for mortgages, making it more expensive for buyers to purchase a home particularly in the suburban climate surrounding the big apple. This has made it more difficult for many people to enter the real estate market in New York, especially for first-time buyers who are just starting out.
To learn more about the current Real Estate climate we sat down with one of the top residential brokers in New York — Rup Singh to get his insight on the current macro climate.
Current Rates & Refinancing
Singh’s expert advice as a top 1% luxury Real Estate broker is that buyers should consider moving forward with a home purchase as long as they can afford the mortgage payment — even in today’s Fed rate hike climate. Rup shares that the Federal Reserve has done an amazing job at taming inflation through Quantitative Tightening to combat and maintain an altruistic & fair marketplace for all where the cost of goods and services is low & asset prices have taken a small but healthy reset. Rup went on to say “In my opinion, the bulk of interest rate hikes have already hit the market & I don’t think there will be any more drastic changes. That being said, I also don’t see them coming back down to 2-3% like they used to be. I believe they will come back down to 4-5%, it’s a great time for sellers to sell, & for buyers to still buy.” Singh went on to say that buyers in today’s market need to realize that rates can always be refinanced later on down the road.
As for the Luxury Residential market, Singh mentioned that higher interest rates aren’t a huge driver. The Luxury specialist went on to say “High networth buyers are looking for a hedge to inflation in a luxury home purchase, & in today’s simmering housing market there couldn’t be a better time to find the perfect property.”
Choosing The Right Broker
Additionally, Rup went on to say that with less activity on the market choosing the right agent has never been more important. Singh went on to say “Buyers need to be patient when searching for the right property. With interest rates rising, it is becoming increasingly common for properties to stay on the market for longer periods of time & less new properties to hit the market.” Having a great agent in today’s real estate market is great for first time buyers all the way to luxury real estate buyers looking for off market properties and pocket listings.
Outlook
In conclusion, the current real estate climate in New York is challenging for buyers, but it is not impossible to navigate. With the help of a world class broker such as Rup Singh & his team known as The Legacy Group — finding the right home is more than possible regardless of current market conditions.
