If you live outside of Manhattan and you believe that home prices in your neighborhood (or where you are looking to move) are continually rising, chances are that you are not alone. According to a recent crainsnewyork.com report, home prices in Brooklyn and Queens hit record highs this year.
The median sale price for a home in Brooklyn reached $735,000 this year. This represents a nine (9) percent jump over the same time last year. In Queens, the median sale price reached $499,000, which was 10 percent higher compared to 2015.
There are a number of theories behind these numbers. One notion is that the cost of homeownership in Manhattan has pushed people to the suburbs. So with Manhattan essentially maxing out on price (except for luxury apartments), the influx to Brooklyn has sparked a pricing spike. Nevertheless, the prevailing notions that a strong job market and increasing demand to live closer to work (for those who work in Manhattan) could be driving up home prices are given credence with every home sale that increases in price.
Increasing prices could be discouraging to some buyers, but with affordable money (i.e. home loans) and many more choices, finding the right deal is still possible. But fear should not drive the decision to purchase a home. It should be based on one's personal preferences along with some guidance from an experienced New York City real estate attorney. The time taken to become educated about the market, as well as one's legal rights, can help in all phases of the transaction and beyond.