Ten years have passed since the real estate market crashed prior to the Great Recession. The current real estate market is characterized by higher home prices, high demand among buyers and an increased interest in flipping homes. Although today's market throughout the United States, including New York, resembles the pre-recession residential real estate market in some ways, some key differences exist.
First, although home prices were rising at the time of the crash, the crash was really the result of low-documentation and subprime mortgages. In addition, at the time, people were on the prowl for more shorter-term gains. The market today is vastly different, as obtaining a mortgage is now a much more challenging feat due to more stringent lending standards, and more genuine market vitality exists now than it did before.
In addition, although flipping is popular again, it is now under control. Years ago, builders in search of profits built more homes than what the market at the time was demanding. Now, the tougher lending standards have helped to curb overbuilding. In light of this, however, there is currently a shortage of single-family homes shortage.
Due to the current residential real estate inventory shortage, the ideal time for sellers to put their homes on the market may be right now. However, buyers may also be motivated to purchase property in high-demand areas as a potentially strong financial investment for the future. An attorney can help with navigating both the purchase and the sale of a home in today's competitive real estate market in New York.
Source: realtor.com, "10 Years After the Recession, Boom Times Are Back in Real Estate", Cicely Wedgeworth, Nov. 13, 2017