Are you thinking about buying your first home? Or are you perhaps considering a real estate investment? This is a wonderful idea, especially if you’re based in New York City! There’s no type of investment more secure than real estate, and NYC has been one of the most extraordinary real estate markets in the US for years. And sure, sometimes barriers to entry here may be tough, but for those who know what they’re doing, this place presents ample opportunity! If you don’t mind an ever changing, dynamic market - you’ll find yourself right at home here. So, if you’re interested in hearing all about the recent real estate trends, we’re here to help!

Rising mortgage rates

First of all, let’s take a look at one of the most important factors when it comes to home buying power - mortgages. In the previous year, we saw mortgage rates that were not really on par with the economic growth we had. This kind of strong economic development really sets the stage for higher mortgage rates and the adequate real estate trends that follow. And that’s precisely what awaits the market in 2019, when we’ll see those rising significantly. Especially the long-term fixed rate mortgages, which will reach almost six percent.

Bear in mind, these are numbers we haven’t seen since the economic crisis of 2008. At that point, mortgage rates took a sharp dive because of the looming housing crisis. So, for those who decide to buy a home in New York and call up a moving company like Dynamic Movers NYC, think long and hard if you can afford it.

Market domination of millennials

When looking at the most important real estate trends, it’s worth noting which sections of the population will prove to be the biggest home buyers in the coming months. And in 2019, millennials will definitely be the most numerous home buyers. And sure, while higher mortgage rates might make certain buyers refrain from their purchase, there are other factors to consider. Indeed, statistically - the biggest cohort of millennials will enter the perfect home-buying age of early thirties. And this kind of influx means most of those buying a house in 2019 will be young professionals with families.

Also, considering their youth, millennials will also be the largest first-time buyers of real estate. So, if you notice skyrocketing first-time demand - that will be precisely the reason why. And this isn’t a trend you should expect to end any time soon - it’s something that will only increase over the following decade.

The NYC market will feel this

This will influence the New York real estate market quite directly. After all, when we look for a new home, our lifestyle choices are a big influence in that decision, especially in New York. Some boroughs and neighborhoods fit the millennial lifestyle better than others, which will lead to predictable spikes in the local real estate market.

So, what does that mean specifically? Well, we can expect more and more young people trying to find local movers in Brooklyn area and buying a home there. Which is why anyone buying real estate in the area for the first time should definitely find a trustworthy, reputable real estate agent. You’ll need to search for someone who is a local and knows the area well, but is also looking out for your best interests -someone like Imma, Broker Owner of Tyler Vincent Real Estate Inc.

Real estate trends dictate reduced home buying power

As you can probably guess, some of the real estate trends we’ve mentioned will affect home buying power across the board. More specifically - the rising mortgage rates will have a negative impact on people’s ability to buy homes. As those rates climb, the fixed payments on a monthly basis will mean smaller borrowing capacity for everyone. Consequently, buying power will be significantly smaller compared to the last year.

However, even though it may not seem so from the start, this might actually be a good thing for the buyers. As this trend continues, there will be fewer people buying at all price points, and the market will respond logically. Thus, we can expect slower and fewer sales and a lowering in prices. So yes, as ironic at it may seem - a rise in mortgage prices will probably lead to something akin a buyer’s market.

A possible buyers market

As with any other market, in real estate, there are constant shifts between demand and supply, in favor of one or the other. And as everything is connected in economics, the real estate trends we’ve talked about may have interesting consequences in 2019. You’ve probably spotted the slower sales momentum we mentioned above and a smaller number of buyers. Well, in light of this, we can almost definitely expect a buyer’s market in 2019. As fewer people decide to invest in real estate, those who do will be able to have their pick.

And don’t think that New York will be an exception to this rule. Even though this is a traditionally expensive real estate market, you’ll see those prices become more affordable in 2019. Of course, this doesn’t mean people who decide to sell real estate won’t be able to make a profit. But they’ll definitely need to tread more carefully, and consult experienced real estate pros. Like Imma Giocoli located in Carroll Gardens says - while advice is free, information is priceless!