After more than 15 years as a licensed real estate seller in New York State, I have witnessed a variety of different real estate markets including: Sellers Market; Buyers Market; and neutral/balanced. I’ve seen mortgage interest rates high, low, and seemingly everything in between. The rules of supply and demand have fluctuated dramatically from time to time! In recent times, a combination of factors, especially since the start of this horrible pandemic, have included: record/historic low interest rates; limited inventory of homes for sale and changing priorities of potential and qualified buyers (in terms of location, style, size, priorities/perceptions, etc.). However, the reality is that at some point the market will likely change again and with that in mind this article will attempt, briefly, to consider, examine, review and discuss 6 likely mid-term changing real estate trends.

1. Gradually rising mortgage interest rates: These record lows, rates, will eventually move up. This will likely happen gradually, depending on general interest rates, which are largely determined by the policies and actions of the Federal Reserve Bank. Extremely low rates make home buying more desirable because since most rely on a mortgage, it means they can afford higher prices, etc. The current low rates are largely due to perceived weaknesses in the broader economy. If and when general economic conditions appear to improve, and/or there are improved inflationary trends and tensions, a rate hike will most likely follow.

two. Return to a more balanced market: We will probably see a better balance between the number of buyers and sellers in the intermediate future. This will probably take some time, because we are living in strange and unpredictable times! If/when more homeowners decide to sell their homes, the change will begin!

3. Changes, desirable trends and priorities: Currently, due to the impacts and ramifications of this pandemic and related public health restrictions, many shoppers seem to be leaving the city in search of a less dense set of conditions. Some priorities seem to include: more interior space; different interior features/priorities; enough land, to be comfortable; and other amenities, etc.

Four. Power sources/heating: Many are looking for more sustainable energy sources to meet their heating and electricity services. needs. We can probably expect more use of solar panels, geothermal, and more energy efficiency, etc.

5. Modification of tax considerations: When the 2017 tax reform law was enacted, it included, SALT restrictions, which limited the ability to deduct state and local taxes from federal income tax returns. This may, at some point, reduce the attractiveness of homes, in certain areas with higher taxes.

6. Different model for real estate taxes: Certain localities have significantly higher property taxes than others! At some point, this can negatively affect how desirable home ownership can be in some regions.

Since, for most, the value of their home represents their largest asset, doesn’t it make sense to pay close attention to anything that might affect the value of the home? Will you be a more knowledgeable and educated homeowner/homebuyer?

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