In a prior post, we noted the optimism that was felt regarding New York City's residential real estate market near the end of 2016. Now there is hard data to support that notion as we complete the first month of 2017.
According to a recent article on globest.com, all-time highs for single family home prices were reached in each of the last three months. The finding is based on numbers found through the S&P CoreLogic Case-Shiller US National Home Price NSA Index. It covers nine census divisions, and has been used as a predictor of future home price gains based on past performance involving sales.
The record highs are ostensibly a product of many factors, including low mortgage interest rates, lower unemployment rates and slower rates of inflation. For instance, 30 year fixed interest rates dropped to under 4.5 percent in 2011, and have not risen above that level yet. Also, the 4.7 percent unemployment rate is the lowest in a decade. Further, inflation has risen at 2.5 percent for the last 30 months.
With the new administration's push to seek faster economic growth, and the increasing gains in personal income, it is expected that home prices will climb further. Indeed, changes in interest rates could temper this expectation, but nevertheless it is a signal that deals on homes can still be found even with average home prices continuing to grow. An experienced real estate attorney can help prospective buyers understand the nuances in the market, and shepherd them through the process of finding a great home for a fair price.