2021 was quite the year for real estate in New York City. Prices came back with a vengeance. The city’s buyer’s market, Now shifting into a seller’s market, there is not nearly enough inventory to keep up with the number of buyers looking for condos, co-ops, and townhouses. Sellers are on the right side of negotiations with a key advantage while buyers are in bidding wars for a property. New York City once the epicenter of COVID-19 has gone from a city of fleeing people looking for more backyard space and more interior sqft an oversupply of inventory into now a market where it is now necessary to venture to find possible off-market opportunities.

So, In 2022 how can you secure your dream home? Let’s take a look at some crucial factors to keep in mind.

Mortgage rates set to climb in 2022

CPI data going up indicate that the fed will begin to raise rates anywhere from 3-7 times in 2022. Historic low rates allowed buyers to purchase properties at 3.62% and below, the rise of rates will likely gradually over time cause a decline in mortgage application submissions and cause more people to look into renting instead. So with a lack of inventory coupled with rising rates, the average NYC buyer should ask themselves if buying right now is a good option. Housing affordability will be a critical factor to monitor throughout the year.

Intense Competition for Homes

Realtors in New York have had their work cut out for them in the 2nd half of 2021. There are a few reasons why the competition was so intense in 2021.

Fewer Active Listings

Supply is the key reason that that market will drive. With few houses and steady interest rate rises the fear glooming over the mind of every buyer in the country will scream “BUY A HOUSE RIGHT NOW.” This increases competition, and overbidding. When inventory is low there is less competition among sellers and far more among buyers.

More Homes are Selling

Despite fewer listings on the market, the number of homes being sold is on the rise. Homes are no longer sitting on the market for long periods of time, and properties that might have once been undesirable are now in demand. Buyers are paying top dollar for homes in New York.