If you are wondering if the COVID-19 pandemic in 2020 and the continuing effects had a ripple effect that touched even the real estate industry, the simple answer is: yes, it did. Even way before the pandemic, New York City had been one of the most sought-after locations for prospective homeowners. This is also one of the reasons why the city, and the state of New York overall, had been one of the most expensive and competitive locations for real estate. On the other hand, the state and New York City were also one of the most hard-hit places by COVID-19. With that in mind, one can expect drastic changes in how homes and mortgages are valued in the City for 2021.
Whether you are in the market looking up New York rates or perhaps looking for the best mortgage rates in NJ, the information given in this article would help you a lot–from your decision of whether to buy a home this year or not to possible advantages and disadvantages of the current situation for future homeowners like you.
What are the experts saying about home prices 2021?
Despite the very challenging year that was 2020, a lot of experts in the real estate industry are predicting that overall sales of homes–from those built for couples to those built for a family–would skyrocket for the year 2021. Although the good news may not be the same as it is when it comes to the mortgage prices–as they are soaring higher than ever in the past months–experts still expect buyers to come in and be ready to invest in their new or first home. These expected clients are mostly from Gen Z (first-time owners) or millennials (possibly repeat owners already).
The latest data from Freddie Mac, the country’s federally chartered mortgage investor recently reported that the 30-year fixed-rate average for mortgages saw an increase of 2.81 percent, with an average of 0.7 points. This number has been the highest so far since November of 2020.
However, it is expected to get better. It is anticipated to get better throughout 2021. As the economy slowly bounces back and people start spending again, one of the industries that are assumed to make a major comeback is real estate. For one, mortgages are to be at an all-time low this year.
Rental market trends in New York City 2021
For now, the renters seem to be holding the cards when it comes to the market in New York City. This was due to the tables turning in the second half of 2020. Following an exodus of tenants due to the challenges and effects of the pandemic, renters have found a way to once again attract new tenants with the right numbers for rent, and start a “now-or-never” kind of hype when it comes to rental properties in New York City.
If you plan to rent, though, doing it as soon as possible is the best course of action, as vacant properties are being signed like hotcakes.
NYC real estate market forecast for 2021
Overall, the NYC real estate market is not looking so bad for this year and may even start to bounce back from the hit it took last year, if not entirely coming back up. As the vaccine rollout continues and people start gaining more confidence, the market is expected to gain more revenue as buyers start making decisions that they have postponed last year.
So, while the market is still looking good for buyers, take advantage of it. Start looking up offers that might be a fit for you and who knows, you might find your perfect new home in the middle of this recovery period for the economy.
Interesting Related Article: “ 6 Successful Real Estate Investing Tips for 2021“