RESOURCES FOR BUYERS AND SELLERS TO SURVIVE THE CoVid 19 VIRUS IN NEW YORK CITY, BRONX

WHAT TO DO WHEN THE MARKET IS DOWN ( for Sellers)

Should Coronavirus Be A Cause Of Concern For Sellers in New York?

It's important to keep in mind that New York City and the surrounding areas were already buyer's markets prior to the coronavirus outbreak. So, sellers were well aware they didn’t have the upper hand to begin with. Sellers experiencing frustration have either already sold at less than they wanted or taken their properties off the market.

So it’s safe to assume that the majority of sellers are extra motivated right now. The properties that are on the market right now are priced to sell. Although sellers do not love the buyer’s market, they accept what is and have priced their properties accordingly.

WHAT TO DO WHEN THE MARKET IS DOWN ( for Buyers)

Coronavirus already pushing mortgage rates lower.

Lastweek, the Federal Reserve announced a second emergency interest rate cut since the coronavirus outbreak, bringing the yield on Treasury bonds to almost 0 percent. Furthermore, the stock market crash can have an effect on interest rates, too. The New York Times reported that this inverse relationship between stocks and bonds has not held as firm as it has historically, probably in part because interest rates were already so low. Rates are down to around 3.7 percent, and it’s an open question how low mortgage lenders are willing to go, regardless of whether the Federal Reserve cuts its target rate again.

Where the housing market currently stands ?

The housing market in The Bronx and all five boroughs of New York is, in a word, tight. At the end of 2019, the number of houses for sale dropped. So how should I approach things heading into the spring homebuying season? The conditions were set for the spring being an incredibly competitive in the Bronx and New York City housing market. Inventory is low, demand was high, and mortgage rates are low.

If you already own a home, you might consider refinancing while rates are this low; other homeowners are already jumping at the chance. Home prices are still very high. If the same conditions existed and home prices were a little undervalued, it would likely create rapid home-price appreciation. But with prices already potentially maxed out, it remains to be seen whether current market conditions cause prices to break even higher or hit a ceiling.

The wild card in the housing market is coronavirus. If its impact is prolonged and induces even a minor recession, it could put a damper on demand—which would actually be welcome for buyers in particularly competitive markets. Still, don’t expect home prices to drop. It would likely just slow down the pace at which they are rising.

RESOURCES TO SURVIVE THE CoVid 19 VIRUS:

https://www.cdc.gov/coronavirus/2019-ncov/prepare/prevention.html

For all your real estate needs in The Bronx, Westchester, White Plains, Brooklyn and New York, call the most trusted and professional real estate Broker-Anthony Domathoti and EXIT Realty Premium Associates at (718)829-2300 or visit our website www.ExitRealtyPremium.com