New York housing market: Everything you need to know
The Empire State is one of the most densely populated in the country, stretching the entire length of New England from the Canadian border down to Long Island. Surprising, then, that it also has the lowest homeownership rate in the U.S., according to a 2022 report by the state comptroller. This is because much of the state’s population resides in New York City, where apartments and multi-family residences are far more dominant than typical one-family homes.
But New York state is much more than just New York City. Whether you’re buying or selling a home in the charming Hudson Valley, the Capital region of Albany, Adirondack Mountain ski country or the beach towns that make up the Hamptons, it’s important to keep tabs on real estate trends. Read on for all the info you need to know about the New York housing market.
New York housing market overview
As is the case all around the country, high mortgage rates and affordability challenges are hampering the market here. According to July 2023 data from the New York State Association of Realtors (NYSAR), closed sales are down 25 percent from July 2022, and the number of new listings is down 18.6 percent.
“The real estate market is keeping me and my colleagues across the state on our toes,” says Jeffrey Decatur, a broker associate with RE/MAX Capital in the Albany area. “Inventory is still low, but the supply level changes from county to county and neighborhood to neighborhood. Fortunately, we are still seeing multiple offers when home sellers price appropriately according to the market comparables.”
One important thing to note about real estate in New York: There are huge market and price differences between the NYC area and the rest of the state. It’s important to work with a real estate agent who’s very familiar with your specific area, as someone who’s a Manhattan expert won’t know the market in, say, Syracuse — and vice versa.
New York housing trends and stats
- The median sale price in the state as a whole was $400,000 in July, according to NYSAR data.
- That’s slightly less than the nationwide median for the same time, $406,700, and a 2 percent decrease from last year.
- There was a 3-month supply of inventory in July, which is down from 3.4 percent last year and gives sellers an advantage. A balanced market would require 5 to 6 months.
- Homes typically spent 45 days on the market before selling, 5 days longer than this time last year.
- The sale-to-list price ratio was a strong 103.3 percent, meaning homes typically sold for 3.3 percent above their asking price.
- According to CoreLogic’s ClosingCorp, closing costs in New York average 3.1 percent of the home’s sale price. On a median-priced $400,000 home, that comes to $12,400.
Should you buy or sell in the New York housing market?
New York remains a seller’s market, where demand outpaces supply and homes sell for above their list price. Still, homes are sitting on the market for a long 45 days before selling, which gives buyers a bit of a breather. Here’s what New York homebuyers and sellers should consider.
If you’re a home seller
Median sale prices have dropped over the past year, but only by 2 percent — and homes are tending to sell for about 3 percent more than list price, which kind of balances that out. The fact that there are far fewer listings on the market gives sellers even more of an edge.
Even so, before jumping into the market, it’s crucial to understand exactly how much your home is worth. While online algorithms can provide an initial reference, a local real estate agent can pull comps of nearby homes similar to yours to see what they have sold for recently. This will give you a more precise perspective on the potential price your home can command.
If you’re a homebuyer
Homes are a bit more affordable across the state this year than they were last year, per NYSAR data, and even though the $400,000 median seems high, it’s actually lower than the nationwide median. The fact that homes are spending longer on the market takes some of the pressure off too — so, despite high mortgage rates, buyers have reason to be hopeful.
“There are numerous communities across the state where affordability makes homeownership more possible,” says Decatur. Housing is a big part of an area’s overall cost of living, and it can vary wildly in different areas of New York state. For example, while the local median home price in Long Island’s Nassau county was a high $720,000 in July, per NYSAR, that figure was in the $200Ks in counties like Clinton, Erie and Monroe and even less than $200K in many more, including Oswego, Niagara and Allegany.
Bankrate’s home-affordability calculator can help you crunch the numbers to figure out how much house you can afford. Getting preapproved for a mortgage is also extremely helpful when setting a homebuying budget, as it tells you how big of a loan a lender might be willing to offer you.
New York housing market predictions
Some have speculated about the likelihood of a nationwide housing market crash in recent years. But the experts don’t see such an event on the horizon. While real estate activity and prices in New York are decelerating, the foundational elements of the national market remain robust. Strong demand and stricter lending rules and guidelines will keep the housing bubble from bursting, like it did during the Great Recession.
What’s coming down the pike when it comes to real estate in New York? Greg Helbeck, owner of Velocity House Buyers in the Hudson Valley, believes the market will be strong — especially in the NYC metro area due to the proximity of jobs there. “Prices will stay high and even go up in the months ahead, due to the low inventory and high demand,” he predicts.
Find a New York real estate agent
Professional real estate agents are licensed experts who know the intricacies of their local market. They have the skills to secure the most advantageous deal, regardless of whether you’re buying or selling.
“The best way to find an agent is through people you know,” says Decatur. “Ask your friends and family who they used — there is no better endorsement than a personal referral. Do your own research, as well: Meet with several agents, go to open houses and buyer or seller seminars and see whom you click with.”
FAQs
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Yes, but not significantly. According to the New York State Association of Realtors, the median sale price across the state dropped by 2 percent from July 2022 to July 2023. Redfin data also shows a slight dip of 1.6 percent year-over-year.
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Yes. New York is not just New York City — the state is huge, and many areas have extremely affordable home prices. In fact, according to New York State Association of Realtors data, more than 20 counties in the state had median home sale prices below the $200,000 mark. In general, though, the closer you get to New York City, the higher prices will get. The overall statewide median price was $400,000 in July, which is lower than the nationwide median of $406,700.
