Congratulations. You've made it through a brutal winter. Actually, let's be honest. It wasn't so bad. Sure, the season brought you Snowmageddon and a little sprinkle of snow on the first day of spring, but it's getting ready to warm up, and we can't wait!
If you've been sitting on the sidelines this winter for your apartment search, you're not alone. As a matter of fact, most people prefer to do their New York City apartment shopping when it's warmer out. So what does that mean for you? More competition, which ultimately drives up prices.
Let's take a look at the 5 reasons that the New York City real estate market will break records this spring.
1. Interest rates are still at record lows.
Can you believe it? Interest rates are so low that banks are still running ads to get people to refinance. Current interest rates on a 30-year fixed mortgage are running under 4%. If you're looking at 5-1 or 7-1 ARMs (adjustable rate mortgages), you're looking at rates in the mid to low 3% range.
2. The stock market has shed all its losses from the start of 2016.
We saw a 10% stock market drop in the first weeks of 2016. Most people were getting ready for chaos. Some people were holding back on real estate purchases. And you know what the real estate market did? Nothing! It didn't budge, and here we are a few months later, with all 2016 losses in the rear view mirror.
3. Housing stock has yet to keep up with demand in NYC.
Have you noticed construction in every neighborhood? If you haven't look up. You'll see it, we promise. Whether you are in Williamsburg, Brooklyn or in Midtown Manhattan, you can't miss it. Despite all the construction that's taking place, it's still not enough to keep up with the demand. Remember, it's not just you looking for property. There are international investors on the prowl as we write.
4. The US economy looks relatively stable compared to the international markets.
Chaos in Brazil. Slowing growth in China. Confusion in Europe. The United States looks pretty solid. Anybody and everybody who has money abroad is considering New York City real estate as an investment option.
5. Warm weather brings out the buyers.
As if you didn't already know. When it's warm out, people like to go out and see property. It's the same reason why rents are higher in the spring and summer time. People are getting out of winter hibernation mode and are checking out the New York City real estate market. Combined with all the factors above, this spring will see record demand and record prices.
So are you ready to check out what's on the market? Get a head start and begin right now. The longer you wait, the more competition you'll be facing. Check out Blooming Sky to start the search today.