Will 2022 be the best year for your real estate goals?

The year's about to end and while many are feeling the Holiday Slump, the real estate market in the Big Apple is brimming with optimism.

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Over the past year, New York City suffered the brunt of the pandemic. And now that economic activity begins to pick up, New Yorkers now have enough breathing space to talk about their homeownership goals?

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One thing's for sure, the coming new year has a lot in store for home buyers, sellers, and investors in NYC. Preparation is crucial to accomplishing your goals. You will need to know where the market is going so you can make the right decisions.?

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For that, here are a few things to expect in the NYC real estate market in 2022:

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The luxury market will stand strong

Before the Omicron variant brought a new set of travel and health restrictions, the demand for luxury homes had risen significantly for the better part of 2021. This demand is comprised of international investors who have expressed their interest in owning luxury apartments and townhouses. And even as anxiety over the latest variant will cause local luxury buyers to?pause their search, experts say that the NYC luxury market can recover quickly from the disruption.

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The effects of remote work persist

The pandemic has caused many professionals to rethink their homeownership goals. The rising popularity of remote and flexible work arrangements has led homeowners to move into larger homes in neighborhoods that support their lifestyles. With the reopening of lifestyle and cultural hubs, homebuyers are moving into amenity-rich NYC neighborhoods that match their preferences. In StreetEasy.com's "NYC Neighborhoods to Watch in 2022", places like SoHo in Manhattan and Red Hook in Brooklyn are at the top of everyone's lists.

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Will demand for residential real estate taper off?

An article from TheRealDeal.com reports that residential sales have reached historic highs throughout 2021. In Manhattan alone, over?14,774 contracts have been signed, indicating a two-fold increase from last year’s sales records. However, the record low housing inventory will cause a reversal in price appreciation and a slowdown in the demand for residential listings. Quoting UrbanDigs Co-founder John Walkup, TheRealDeal.com is looking at a slower first quarter for the NYC real estate market as supply rises and interest rate hikes are expected.

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Increased competition among millennial homebuyers

Depending on where interest rates are going in 2022, affordability could remain a challenge for buyers and renters. But according to Realtor.com’s Chief Economist Danielle Hale, the housing market will see more?competition among younger buyers?from the ages of 26 to 35. Realtor.com also expects 53% of millennial homebuyers to close in on a deal in 2022. In NYC, much of this demand is concentrated in the suburbs rather than the downtown areas of the city.?

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It’s too early to tell whether 2022 is going to be a stellar year for buying, selling, and investing in NYC properties. But these forecasts should help you make well-informed decisions.

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It’s also important to get timely and relevant advice from a real estate professional who can help you find the best opportunities in the NYC market.?

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Feel free to reach out to me and I will work closely with you in accomplishing your real estate goals for 2022. Give me a call at?917-627-5677?or send an email to?[email protected].

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Let’s rise above the uncertain and start building your dreams at the start of the New Year!

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Talk soon. Happy Holidays!

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Eli

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