- Improving economic fundamentals: The economy has picked up steam and produced a banner year for the real estate industry in 2019. The GDP this year was higher, and is trending lower, resulting in some lower consumer confidence due to the COVID-19. As you can see people are not moving around they are staying home. However, as the year comes to a close and we enter into 2021 we expect lower sales a lower consumer confidence.
- Historically low mortgage rates continued through 2020: Mortgage rates remain low despite the end of quantitative easing this year. Global weakness at times, along with a high rate of foreclosures and short sales- encourages those capital and good credit to buy, buy, buy before rates increase. However, it is still a sellers market which means that home values are still higher than the demand. What use to be location, location, location is not as savvy as leveraging cost vs value and cost vs equity.
- Abnormal home price gains or return to normal price appreciation continues: After two years of abnormally high levels of home price appreciation in 2019 and 2020, it's continued price increases are moderately on the rise throughout 2021 as the demand for housing increases.
- Increase of distressed sales: Foreclosures-short sales increased throughout the year, and while total home sales increased the market is higher in the purchasing of the distressed homes more than in 2017;of non foreclosed homes.
- Investors still are active in purchases: Related to the increase in distressed sales opportunities, higher home prices, portfolios of single-family homes for rent potentially reached their peak in June. Large-scale investors purchased higher in the single-family market sector and continues to increase as a few purchasers are getting pre-approved for mortgages. Investors still outweigh the number of first time home buyers as the economy and jobs market slowly recover. Investors have purchased the majority of low priced housing and will resell in 2020 which will cause the housing market to moderately rise, as fewer 1st time purchasers are approved due to lower family income levels as many families loose their income and file for unemployment.
- Rental units are still above market value due to the high rate of foreclosures on each block that are causing homeowner general taxes to rise. While school districts are over burdened with some out of resident parents and some other parents that have lived in the district but have lost their home to foreclosure, they are stressed and pressed for their children to continue to get a quality education, therefore, school taxes are increased as well.The rental market in Long Island is the highest in New York State.
- If you have not already purchased and you can't find anything under $250,000.00 it is better to wait the season out. It just might be that if the property is not priced right it can be on the market for a longer time than anticipated. The peak of the sales are coming down and prices are being reduced on the majority of the properties listed. So if your property is not listed already it may not be in contact for another couple of months awaiting to see any tax benefits the president will offer before years end.
So, If you know of anyone give them my number or if you have any questions, please call me at 516-385-1880