The April 2022 S&P CoreLogic Case-Shiller Home Price Index, which measures U.S. residential real estate prices and tracks changs in value of residential real estate nationally, recently reported a 20.4% year-over-year growth nationally and a record 21.2% growth for its top 20-City Composite. The index listed New York City as one of its data point cities. As a result, it should now be recognized why the main housing concern was an overheating housing market rather than the crash that many people had predicted would occur between 2012 and 2021. American society would have been in good shape for years without suffering too much when rates rise if home price growth had increased at a pace of 3% to 4% annually. Of course, that wasn’t the case, and the price was paid by seeing a record-breaking drop in housing inventory in 2020–2024.
Mohtashami Logan, How Home Price Growth Has Damaged the Housing Market, Housing Wire, https://www.housingwire.com/articles/how-home-price-growth-has-damaged-the-housing-market/ (June 28, 2022).
Technological Advancements in the Time of COVID: Staff use an ultraviolet light wand to disinfect the buttons of an elevator at a new condo in Park Slope, Brooklyn. Elevator disinfection tech has been a focus for both developers and concerned residents, but more time is needed to study their efficacy.
Stefano Ukmar for The New York Times
COVID-19 has brought different technological advancements to the real estate industry. Although some of these advancements raise privacy concerns and may not be around “post-pandemic”, there are many products and ideas that could stay with us for the long haul.
Stefanos Chen, Covid Pushes Real Estate Into the Future,
https://www.nytimes.com/2020/11/13/realestate/real-estate-coronavirus.html
(Nov.13, 2020).
The real estate markets in suburbs and fashionable exurbs are heating up since people have been escaping from the COVID-19 pandemic. Due to such booming, some first-time buyers might feel a sudden hurry to buy their property and fear that the price would keep going up if they wait. However, Robert J. Shiller warned in this article that such optimism and excitement is unwarranted because of the historical boom-and-bust cycles, potential interference of political components and potential surge of foreclosure resulting from the pandemic.
Robert J. Shiller, How to Navigate the Coronavirus Real Estate Market,
https://www.nytimes.com/2020/07/31/business/housing-market-prices-risk.html?searchResultPosition=2 (July 31, 2020)
This article illustrates how one New Yorker chose between a house in Upstate and an apartment in Brooklyn. The New York Times interviewed Ms. Ashleigh Kaneski, a 37-year-old New Yorker, to tell her story why she initially decided to buy a house in the Catskills, but eventually chose to buy an apartment in Brooklyn.
Joyce Cohen, An Apartment in Brooklyn or a House Upstate? She Had the Budget for One,
https://www.nytimes.com/interactive/2020/10/29/realestate/29hunt-kaneski.html (Oct. 29, 2020)
The U.S. mortgage rate has reached its lowest level since tracking began in 1971. The U.S. mortgage rate dropped down to 2.86 percent in early September and the 30-year fixed mortgage rate averaged 2.88 percent for the week ending Oct. 1. Economists expect that the low mortgage rate below three percent would propel the home sales and refinance the real estate market hit by the unexpected pandemic.
DBJ Staff, U.S. mortgage rates nudge down near historic low mark,
https://www.bizjournals.com/newyork/news/2020/10/05/us-mortgage-rates-nudge-down-near-historic-low.html (Oct. 05, 2020).
Here is an article outlining expert predictions on what will happen to real estate in New York City. The New York Times interviewed nearly 50 people, including former senior city officials, real estate executives, affordable housing advocates, urban planners and brokers to get different perspectives regarding New York real estate
David W. Chen, What Will New York Real Estate Look Like Next Year?,
https://www.nytimes.com/2020/10/23/realestate/nyc-housing-future.html
(Oct. 23, 2020).
The average sales price in the Hamptons soared 46% in the quarter to just over $2 million, according to a report from Douglas Elliman and Miller Samuel. The median sales price jumped 40% to $1.2 million, which is now higher than Manhattan’s median sales price of $1.1 million. This is the result of wealthy families spending more time away from their lives in Manhattan. The beach home in many cases is no longer just a secondary home for vacationing,
Robert Frank, Hamptons real estate prices break records as New York City wealthy flee to the beach,
https://www.cnbc.com/2020/10/22/hamptons-real-estate-prices-break-records-amid-flight-from-nyc.html#:~:text=Prices%20in%20the%20Hamptons%20hit,Douglas%20Elliman%20and%20Miller%20Samuel (Oct. 22, 2020).
Attracted by near-record-low mortgage rates and relatively low prices, overall sales have increased in Brooklyn and Queens. The new market emerging could benefit first-time and move-up buyers, as well as renters seeking year-long leases. Every month since May, the real estate market has seen an increase in the number of contracts signed and more people who moved away from the city are finding ways to return.
Stefanos Chen, New York Real Estate is on the Mend, The New York Times,
https://www.nytimes.com/2020/10/09/realestate/new-york-city-real-estate-return.html?auth=login-google (Oct. 9, 2020).
Home sales have increased by 9.5% just in September, 2020, and the median purchase price nearly increased by 15%. Many professionals working remotely from home are seeking to escape from the metropolitan area and purchasing suburban “vacation homes” to live and work in. Low interest rates are also driving sales up. Redfin predicts the number of listings to increase in November continuing onto January and February, 2021.
Kevin Stankiewicz, Redfin CEO expects ‘absolutely insane’ demand in housing market to last into 2021,
https://www.cnbc.com/2020/10/22/redfin-ceo-absolutely-insane-demand-for-housing-will-last-into-2021.html
(Oct. 22, 2020).
According to the National Association of Realtors, only in September, the sale of homes has gone up by more than 20% from a year ago despite seeing a decrease in the number of listings. On average, listed homes are sold within 21 days of listing. The Realtors group also currently sees an increase in sale of homes costing more than $1 million. Buyers to whom cost is not a concern continue to make purchases and investments in homes.
Chris Arnold, Housing Boom: Sales of Million-Dollar Homes Double,
https://www.npr.org/sections/coronavirus-live-updates/2020/10/22/926657942/housing-boom-sales-of-million-dollar-homes-double (Oct. 22, 2020).
