Inventory is at a Historic low, so where will prices go????
The market is zooming along and sellers are receiving excellent prices and interest rates are still below 4%!
Will the market continue its upswing? This author believes it will as long as interest rates stay within a reasonable range 4-6%, which I believe they will and no major catastrophic events occur that would affect our economy. Jobs are being created on average of 269,000 per month over the last 12 months (Bureau of Labor Statistics April 2015). Unemployment in 2009 was around 10% and now it is steady @ 5.5%, so things have greatly improved (Bureau of Labor Statistics May 2015. This will only continue to enhance our real estate market. The Millenials and Generation Xer’s will be growing the demand by leaps and bounds over the 1-5 years (42% of millennials want to buy compared with 31% of Generation Xer’s). There are 87 million Millenials (ages 23-34, born 1981-1992) will over take the Generation Xer’s (ages 35-50, born 1965-1980) and are the largest group ever to enter the market second to the 76 Million baby boomers, after WWII. (U.S. News & World Report Dec 2014 & Stan Humphries, Chief Economist @ Zillow)
The individuals and families that are able to stay local within the New York region will do so, because their earnings warrant it. Many builders throughout the country are building lower cost homes that are more affordable to attract the large groups of potential purchasers. Long Island tends to have a higher cost factor for housing, which is driving many to leave New York (we have lost over 3 million residents to other states from 2000-2010, Forbes Magazine Jan. 2015) for other lower cost regions in the southern, central and western regions. The brain drain has been occurring for many, many years, due to the high cost of housing and the only way to slow it down is to have that lower cost housing in downtowns and areas where smaller and lower cost homes can be constructed, with government assistance, which in some situations is happening. Will the no taxes for 10 years plan by Cuomo help reduce this exodus and bring more businesses and residents here? Time will tell.