We are only days away from 2017, and this is certainly an exciting time if you’re in New York. We have a change of guard in the USA, with Donald Trump winning the race to the White House. What does that mean for you if you’re looking to sell your property in New York, USA fast?
Here are our predictions on the top real estate trends for New York in 2017.
Trend #1: Donald Trump’s Presidency
The biggest event of 2016 was Donald Trump’s win the Presidential election. New York voted overwhelmingly against Trump, but that shouldn’t matter. Trump is a real estate billionaire himself and he is expected to take decisions that are in favour of the property market. The stock markets have already been on song since Trump’s win, and we expect a positive outcome for the real estate market as well.
Trend #2: Higher interest rates
The interest rates in the US have been close to their historic lows over the last few years. This is expected to change. The Federal Reserve raised interest rates by 25 basis points earlier this week. We expect the Fed to raise interest rates every quarter in 2017.
This will lead to a jump in mortgage rates, and make home loans more expensive. However, the interest rate hike should not affect a vast majority of buyers who have a property for sale in New York, USA, as interest rates are still very low. It might, however, affect major real estate developers who operate on a very thin margin.
Trend #3: It’s going to be a buyer’s market.
One of the biggest changes to be seen in 2017 is that buyers will be on top. It’s going to be a buyer’s market in New York. There are going to be a number of apartments for buyers to choose from, available at affordable prices.
Buyers can take longer to arrive at a decision on whether to make the purchase or not. Sellers will have no choice but to wait. The reason for this is that there are a glut of apartments in New York, largely because of the over construction seen here over the last few years. It will take some time yet before the apartments for sale on the market are all disposed off.
Trend #4: Sellers will have to be realistic
A number of sellers in New York have unrealistic expectations. They are unwilling to accept the realities of the property market. It’s no surprise then that they are losing out to the more realistic sellers, who have reacted to the current situation with a series of price cuts.
There’s no point in setting a high price for your apartment in New York, hoping that some buyer would take it off your hands. Buyers have become very sophisticated and have a number of tools at their disposal, including expert advice from estate agents.
Trend #5: Major foreign interest
New York is arguably the hottest overseas property destination in the world. A number of wealthy Chinese buyers have invested in properties worth millions in NYC since 2010. This trend is expected to continue as New York will always attract the rich and the powerful from all over the world.