Bubbles, Bubbles, Bubbles
If you watched the last presidential debate, there was talk of bubbles. In fact, bubbles have been on the minds of many lately.
During the debate, Trump told us there’s a "big, fat, ugly market bubble, folks." But Wall Street doesn't necessarily agree. Meanwhile, billionaire Wang Jianli, one of the largest real estate investors in China, was quoted as saying that market faces the "biggest bubble in history."
Top real estate brokers have looked at the possibility of a future surge of Chinese investment into the U.S. And UBS Group’s Global Real Estate Bubble Index also shows New York City well-positioned. The ranking of 18 major cities by their housing bubble risk categorizes New York City as "fairly valued," close to bottom of list, while Vancouver and London are placed at the top of the list and deemed at risk.
Again, this market is anybody's guess. Despite the frequent talk of bubbles, owners need to be most aware of buyer trends. Buyers are still not forking over any amount of dough just for the sake of "getting into the market." That being said, bidding wars are happening, and buyers are calling the shots. When buyers perceive a property as a "value," they will act with reckless abandon to "win" it, and, consequently are setting new record prices in buildings across the city.
Things to look out for:
- The Fed has yet to increase interest rates.
- Every few months, it seems the house market holds its breath. Sometimes, these ebbs and flows are simply cyclical.
- The presidential election, and reactions to the election, will have an impact, no matter who's elected, one month from now, and there's plenty of pent-up demand from buyers waiting on that outcome.
- Continued low resale inventory combined with new development condo and rental building units set to release in 2017, will continue to have an impact on the New York City real estate landscape.
For now, we should sit back, make smart decisions based on facts, not paranoia, and see what the next few weeks bring.
In September we saw a large increase in inventory, which means everyone is finally back from summer vacation. Overall there was an increase of 47%, with the biggest additions in the 2 and 3+ bed categories.
There was a 75% increase in new inventory for the 3+ beds, and an increase of 53% for new 2 bed listings.
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