Appraising real estate in the metro New York area can prove to be much different than in other areas of the Country. The real estate market in New York, particularly in areas proximate to New York City, is more self contained and has shown to be stronger than most other markets throughout the USA. While most real estate markets are showing serious declines in property values, New York City and its surrounding areas have been less affected with property values maintaining for the first half of 2008.
Despite this market stability, there are some signs which indicate a potential decline in values. Outside of Manhattan, statistics are showing an oversupply of properties being actively offered for sale. In fact, the number of properties listed for sale in almost any given community is outweighing the number of sales over the prior year.
The increased difficulty in obtaining financing due to more stringent qualifications has also affected the state of the local real estate market. Buyers are now becoming more focused on competitive pricing and the condition of properties as the market is shifting towards a buyer’s market.
There is still a steady volume of properties being purchased, yet homeowner’s must price their properties realistically or be prepared for price reductions and/ or prolonged marketing times. The increased supply gives buyers a higher number of properties to choose from & therefore presents an increasingly competitive marketplace, which is a 360 degree turnaround from only 3-4 years prior.
With foreclosures on the rise in most areas and more weary buyers in the marketplace, the outlook for the real estate market remains uncertain. While New York City has remained strong due to an increased International presence of property buyers, most other surrounding areas are experiencing a change in the overall real estate marketplace.
Seeing that the remainder of the Country has been experiencing declining values for the past year or longer, there are already some steps that have been taken to help increase values and “rebound” the slumping markets. Real Estate markets that are just now showing signs of declining values may not see prolonged exposure to these conditions due to the efforts in place which are expected to assist the overall Real Estate market in the Country (ie: lowered interest rates, increased FHA funding, etc..)
All of these factors play into an Appraiser’s ability to value properties. An appraiser must not only be able to have knowledge of the current changes in their marketplaces, but they must also have the ability to anticipate future market reactions from statistical analysis and other pertinent indicators.
Comments regarding your opinion of the current, local Real Estate markets (New York City, Westchester County, Long Island, etc.) are welcomed. Please check back for postings on other related topics such as: Tax Grievances, Various Types of Appraisal Assignments, and How to Become a Real Estate Appraiser.