Modern Day New York City
For many decades, New York City has been a very popular destination for prospective residents and tourists. The city combines a variety of cultures with a multitude of activities for people to participate in. As a result, housing in the city is highly demanded by residents and non-residents of New York. Many opportunities are available for real estate investors who would like a piece of the New York City market. There are a few current trends in the New York City market that are signaling a positive investment forecast for 2020.
Increasing House Prices
Home prices have been steadily increasing in New York City since mid-2018. Within the year between July 2018 and July 2019, the median sales price of New York City homes increased by 7%. The 7.1% increase in the median sales price of homes in New York City is greater than the 5.7% increase that the entire real estate market of the United States experienced in 2019.
Decreasing Home Availability
High demand and a limited supply are fueling the increasing house prices in New York. In 2019, the average number of homes for sale decreased by 2.6%. While the figures may not drop much lower, it is still expected that less homes will be available for purchase in 2020.
Rental Market
Investors may want to consider purchasing rental properties in 2020. After performing an in-depth analysis, Mashvisor determined that rental properties in New York City are highly capable of providing strong returns on initial investments. It is important for investors to select properties in the right areas though, as some areas provide lower rate of returns than others.
Conclusion
New York City has been growing tremendously throughout history. There are a variety of reasons why investors should consider investing in the New York City real estate market. The market, based on past and current performance, is expected to grow even further in 2020. Consumer demand is increasing in NYC while home availability is decreasing. In order to make the best returns, there are many strategies that investors can use. The strategies that investors choose should cater to their personal circumstances and what goals they have for their investment careers