If you are currently looking to buy a home in New York City, 2018 might be the year to do it.
According to a recent article posted on StreetEasy, the number of Big Apple homes listed for sale increased to a record high in the last few months. Street Easy said that with more inventory expected to flood the residential market this fall, it could nudge sellers to cut prices on apartments that have yet to be snapped up or meet buyers' demands. All in all, buyers will have the power to leverage.
June inventory for homes priced in the range from $560,000 to $750,000, said StreetEasy, went up 39 percent and 32 percent for Manhattan and Brooklyn respectively from 2017.
“No matter what type of home you are looking for,” according to the article, “there will likely be more to choose from than in past years. And while New York remains one of the world’s most expensive cities, this year’s for-sale inventory includes a significant number of units at lower price points.”
In its May 2018 market report, StreetEasy said that inventory in Manhattan climbed 16.7 percent year-over-year, setting a record; Brooklyn saw a jump in inventory by 23.4 percent from last year as well as Queens by 42.8 percent.
StreetEasy Senior Economist Grant Long said back in June: “Sellers are betting on a wave of demand from the peak shopping season, but this summer’s market has turned out to be a crowded one. However, prices are high and continue to rise. More affordable homes are the hardest to find, and are sure to sell quickly. But higher-end homes, particularly those joining the market from the ongoing stream of new development, will be pressured to lower prices or linger on the market. This summer is poised to offer an excellent negotiating opportunity for buyers with big budgets.”
With the uptick of inventory, StreetEasy offered some advice to potential buyers, including: be patient, as more homes are coming this fall; shop around; and prepare to negotiate with sellers, as prices could change down the road.
StreetEasy's assessment is somewhat encouraging in light of another recent report that said a growing number of American families are renting instead of buying a home, Based on estimates provided by the U.S. Census Bureau, RentCafe said the number of families with young children who own their home decreased by 3.6 million between 2006 and 2016; while the number of families with kids who rent increased by 1.9 million during that same period. The decline of families owning a homes has been attributed to such factors as the loss of homes due to foreclosures, the financial challenges of homeownership, and the increasing cost of raising a child.
From those findings, the U.S,. cities that have the most rentals by American families are Miami, Houston, Atlanta, Phoenix, and Charlotte. In the case of New York, the number of renters with children grew by 79,000, a positive change of 8 percent. In contrast, the number of homeowners with young kids was down by 176,000, a negative change of 13 percent.
David Chiu is an associate editor at The Cooperator.