According to the latest information, the number of buyers is growing rapidly. The competition for each property increases, along with the buyer’s desire to pay much more than the original asking prices requested by the sellers.
The local market turns into a large auction house, where each participant wages his own "bidding war" with competitors.
Real estate agencies indicate that there is an intense battle between buyers in all price ranges, both in affordable housing and in luxury properties.
The situation leaves sellers free to dictate the terms, but they need to act quickly because of two pressing problems: an active shortage of offers and rising lending interest rates.
In March 2022, the US Federal Reserve System has already raised rates by 25 points and plans to continue this practice at least throughout this year. On the other hand, the tightness of the market situation will not go away even if current new housing stocks double or even triple.
In many ways, the on-going growth in consumer demand is justified by the upcoming increase in lending rates, especially for mortgages. Many people are trying to purchase housing "here and now" while it is still profitable. Sellers often receive requests to book or to buy even before properties are officially on the market.
But, of course, the closer 2023 is, the less favorable interest rates will be and the fewer people willing to spend money on buying real estate there will be. Experts predict a booming spring season and, possibly, a summer season in 2022. However, the future outlook is much more hazy.
Speaking about the main interest of buyers, it is worth noting that the trend for large-sized real estate, mostly apartments, continues. The habits and preferences that clients have developed during the COVID-19 pandemic are not going to change anytime soon. After all, many people still work remotely, with no prospect of changing this in the near future.
By area, good performance can be seen in Brooklyn, Manhattan, and Queens. On Long Island, more than half of the sold units were distributed at prices higher than originally requested.