As of the date I’m writing this (May 2019), the news stories continue to abound – at long last, it’s finally a buyer’s market in NYC. In 2018, more than 70% of listings sold below asking price in 2018. This kind of stat would have been unthinkable back in 2014 and 2015.
But we all know this isn’t going to last. We may not know how much further prices may fall. Or when the market will start to turn. But rest assured, absent some unexpected shock to the system, it will happen. And even if something derails it, it’ll find its way back once again.
The question is – how do you time it so that you can get the best deal?
Nobody has a crystal ball – goodness know if I could perfectly time the market, I’d be one heck of a well to do real estate investor. And I’d be somewhere on a beach (or in the mountains) while writing this!!!
You often only know that your place was a “real deal” once it’s shot up in value in just a couple of years. Plenty of people were uncertain about buying in 2009 and 2010 – it wasn’t clear at that time if or when the bottom would hit. But many of those buyers have enjoyed sweet returns since then (especially folks who purchased in Brooklyn).
So, if no one can really accurately call the “bottom” of the market as it happens, what do you do in the meantime?
Look at the current inventory as well as past sales and see how it compares to your budget.
Are there more listings within your price range versus last year or several months ago? Are more homes in your desired area closing below the asking price? And more importantly, do you see better quality listings in your desired price range than you did before?
If so, then these are the signs that now may be a great time for you to get back into the game!
Is it possible that prices could drop further? Of course it is!
But the only thing you can do as a buyer is be clear on what makes sense for you right now.
If the market is looking good for what you want to buy, and your time horizon to hold onto the property is at least a couple of years (ideally, 5 or more), then get out there and start looking.
And let’s have a chat about how I can help you with your search while you’re at it! 😉
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